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CP 2024-08-13City Council City of Coppell, Texas Meeting Agenda 255 E. Parkway Boulevard Coppell, Texas 75019-9478 Council Chambers5:30 PMTuesday, August 13, 2024 WES MAYS KEVIN NEVELS Mayor Mayor Pro Tem JIM WALKER RAMESH PREMKUMAR Place 1 Place 5 BRIANNA HINOJOSA-SMITH BIJU MATHEW Place 2 Place 6 DON CARROLL MARK HILL Place 3 Place 7 MIKE LAND City Manager Notice is hereby given that the City Council of the City of Coppell, Texas will meet in Regular Called Session at 5:30 p.m. for Work Session, and Regular Session will begin at 7:30 p.m., to be held at Town Center, 255 E. Parkway Boulevard, Coppell, Texas. As authorized by Section 551.071(2) of the Texas Government Code, this meeting may be convened into closed Executive Session for the purpose of seeking confidential legal advice from the City Attorney on any agenda item listed herein. As authorized by Section 551.127, of the Texas Government Code, one or more Councilmembers or employees may attend this meeting remotely using videoconferencing technology. The City of Coppell reserves the right to reconvene, recess or realign the Work Session or called Executive Session or order of business at any time prior to adjournment. The purpose of the meeting is to consider the following items: 1. Call to Order 2.Work Session (Open to the Public) 1st Floor Conference Room Citizen comments will not be heard during the Work Session, but will be heard during the Regular Session under Citizens' Appearance. A. Discussion regarding agenda items. Page 1 City of Coppell, Texas Printed on 8/9/2024 August 13, 2024City Council Meeting Agenda B. Discussion on City Council’s 2024-2025 Fiscal Year Budget. Memo.pdfAttachments: Regular Session 3. Invocation 7:30 p.m. 4. Pledge of Allegiance 5. Citizens’ Appearance 6. Consent Agenda A.Consider approval of the Minutes: July 22, 2024, July 23, 2024, and July 29, 2024. CM 2024-07-22 (Budget WKS).pdf CM 2024-07-23.pdf CM 2024-07-29 (Budget WKS).pdf Attachments: B.Consider approval of Change Order #1, in the amount of $30,000, to Entrust One Custodial Services contract, at Coppell Arts Center; and authorizing the City Manager to sign any necessary documents. Memo.pdf 2023 Entrust One Contract.pdf Attachments: C.Consider approval of Change Order #1, in the amount of $30,000, to Andy Frain Security Services contract, at Coppell Arts Center; and authorizing the City Manager to sign any necessary documents. Memo.pdf 2023-2024 Andy Frain Agreement.pdf Attachments: D.Consider approval to purchase PC's from Dell Marketing LP, DIR contract# DIR-TSO-3763 for replacement of existing PC's as provided in the Enterprise Solutions Replacement Fund in the amount of $180,497.68; and authorizing the City Manager to sign any necessary documents. Memo.pdfAttachments: E.Consider approval and adoption of the City of Coppell Investment Policy. Memo.pdf Investment Policy Fiscal Year 24.pdf Attachments: End of Consent Agenda 7.Consider approval of a maximum proposed tax rate of $0.46222 for the 2024 tax year and to set the Public Hearings on the budget and proposed Page 2 City of Coppell, Texas Printed on 8/9/2024 August 13, 2024City Council Meeting Agenda tax rate for the regularly scheduled City Council Meeting on August 27, 2024, at 7:30 p.m. Memo.pdf NOTICE OF VOTE-8-03-24 (Rambler).pdf NOTICE OF VOTE-8-04-24 (Gazette).pdf Attachments: 8.City Manager Reports, Project Updates, Future Agendas, and Direction from Work Session 9. Mayor and Council Reports on Recent and Upcoming Events. 10.Public Service Announcements concerning items of community interest with no Council action or deliberation permitted. 11. Necessary Action from Executive Session 12. Adjournment ________________________ Wes Mays, Mayor CERTIFICATE I certify that the above Notice of Meeting was posted on the bulletin board at the City Hall of the City of Coppell, Texas on this 9th day of August, 2024, at _____________. ______________________________ Ashley Owens, City Secretary PUBLIC NOTICE - STATEMENT FOR ADA COMPLIANCE The City of Coppell acknowledges its responsibility to comply with the Americans With Disabilities Act of 1990. Thus, in order to assist individuals with disabilities who require special services (i.e. sign interpretative services, alternative audio/visual devices, and amanuenses) for participation in or access to the City of Coppell sponsored public programs, services and/or meetings, the City requests that individuals make requests for these services seventy-two (72) hours – three (3) business days ahead of the scheduled program, service, and/or meeting. To make arrangements, contact Kori Allen, ADA Coordinator, or other designated official at (972) 462-0022, or (TDD 1-800-RELAY, TX 1-800-735-2989). This publication can be made available in alternative formats, such as Braille or large print, by contacting Kori Allen, ADA Coordinator, or other designated official at (972) 462-0022, or (TDD 1-800-RELAY, TX 1-800-735-2989). Page 3 City of Coppell, Texas Printed on 8/9/2024 Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2023-7593 File ID: Type: Status: 2023-7593 Agenda Item Work Session 1Version: Reference: In Control: City Council 08/05/2024File Created: Final Action: Work SessionFile Name: Title: A. Discussion regarding agenda items. B. Discussion on City Council’s 2024-2025 Fiscal Year Budget. Notes: Sponsors: Enactment Date: Memo.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: Text of Legislative File 2023-7593 Title A. Discussion regarding agenda items. B. Discussion on City Council’s 2024-2025 Fiscal Year Budget. Summary Page 1City of Coppell, Texas Printed on 8/9/2024 MEMORANDUM To: Mayor and City Council From: Mike Land, City Manager Date: August 13, 2024 Reference: Discussion on City Council’s 2024-2025 Fiscal Year Budget. Introduction: The purpose of this Work Session item is to discuss City Council’s 2024-2025 Fiscal Year Budget. Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2023-7592 File ID: Type: Status: 2023-7592 Agenda Item Consent Agenda 1Version: Reference: In Control: City Council 08/05/2024File Created: Final Action: Consider approval of the MinutesFile Name: Title: Consider approval of the Minutes: July 22, 2024, July 23, 2024, and July 29, 2024. Notes: Sponsors: Enactment Date: CM 2024-07-22 (Budget WKS).pdf, CM 2024-07-23.pdf, CM 2024-07-29 (Budget WKS).pdf Attachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: Text of Legislative File 2023-7592 Title Consider approval of the Minutes: July 22, 2024, July 23, 2024, and July 29, 2024. Summary Page 1City of Coppell, Texas Printed on 8/9/2024 255 E. Parkway Boulevard Coppell, Texas 75019-9478 City of Coppell, Texas Minutes City Council 6:00 PM 2nd Floor Conference RoomMonday, July 22, 2024 Budget Work Session WES MAYS KEVIN NEVELS Mayor Mayor Pro Tem JIM WALKER RAMESH PREMKUMAR Place 1 Place 5 BRIANNA HINOJOSA-SMITH BIJU MATHEW Place 2 Place 6 DON CARROLL MARK HILL Place 3 Place 7 MIKE LAND City Manager Wes Mays;Jim Walker;Brianna Hinojosa-Smith;Don Carroll;Kevin Nevels;Ramesh Premkumar;Biju Mathew and Mark Hill Present 8 - Also present were Deputy City Manager Traci Leach, City Secretary Ashley Owens, Director of Strategic Financial Engagement Kim Tiehen, Budget Officer Jesica Almendarez, and Business Analyst Jerry Young. The City Council of the City of Coppell met in Regular Session on Monday, July 22, 2024, at 6:00 p.m. in the 2nd Floor Conference Room at Town Center, 255 Parkway Boulevard, Coppell, Texas. Work Session (Open to the Public) Call to Order1. Mayor Wes Mays called the meeting to order, determined that a quorum was present and convened into the Work Session at 6:00 p.m. Citizens’ Appearance2. Mayor Wes Mays advised that no one signed up to speak. 3.Introduction of the General Fund and Debt Service Fund. Page 1City of Coppell, Texas July 22, 2024City Council Minutes Presentation: Kim Tiehen, Director of Strategic Financial Engagement, provided a presentation and answered questions from Mayor and City Council. 4.Presentation and discussion regarding assessed valuation and tax rate. Presentation: Kim Tiehen, Director of Strategic Financial Engagement, provided a presentation and answered questions from Mayor and City Council. 5.Presentation and discussion regarding the General Fund: A. Revenue Summary B. Expenditure Summary C. Capital Outlay Presentation: Kim Tiehen, Director of Strategic Financial Engagement, provided a presentation and answered questions from Mayor and City Council. 6.Presentation and discussion regarding Mayor and City Council Budget. Presentation: Kim Tiehen, Director of Strategic Financial Engagement, provided a presentation and answered questions from Mayor and City Council. Mayor Wes Mays recessed the meeting at 7:37 p.m. for a break, and reconvened back into the Work Session at 7:45 p.m. 7.Presentation and discussion regarding the Debt Service Fund: A. Revenue Summary B. Expenditure Summary Presentation: Kim Tiehen, Director of Strategic Financial Engagement, provided a presentation and answered questions from Mayor and City Council. 8.Discussion regarding Fund Balance Policy. Presentation: Kim Tiehen, Director of Strategic Financial Engagement, provided a presentation and answered questions from Mayor and City Council. 9.Review and Discussion regarding the initial proposed budget. Presentation: Jesica Almendarez, Budget Officer, provided a presentation and answered questions from Mayor and City Council. 10.Discussion regarding General Fund and Debt Service Fund. Presentation: Kim Tiehen, Director of Strategic Financial Engagement, provided a presentation and answered questions from Mayor and City Council. Citizens’ Appearance11. Mayor Wes Mays asked for those who signed up to speak: 1) Dave Shauff, 215 Westwind, spoke in regards to the budget. 2) Jeff Varnell, 1601 E Sandy Lake Rd, spoke in regards to the budget. Page 2City of Coppell, Texas July 22, 2024City Council Minutes Adjournment12. There being no further business before the City Council, the meeting was adjourned at 8:37 p.m. ________________________ Wes Mays, Mayor ATTEST: ________________________ Ashley Owens, City Secretary Page 3City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 City of Coppell, Texas Minutes City Council 5:30 PM Council ChambersTuesday, July 23, 2024 WES MAYS KEVIN NEVELS Mayor Mayor Pro Tem JIM WALKER RAMESH PREMKUMAR Place 1 Place 5 BRIANNA HINOJOSA-SMITH BIJU MATHEW Place 2 Place 6 DON CARROLL MARK HILL Place 3 Place 7 MIKE LAND City Manager Wes Mays;Jim Walker;Brianna Hinojosa-Smith;Kevin Nevels;Ramesh Premkumar;Biju Mathew and Mark Hill Present 7 - Don CarrollAbsent1 - Also present were Deputy City Manager Traci Leach, City Attorney Bob Hager, and Deputy City Secretary Phoebe Stell. The City Council of the City of Coppell met in Regular Session on Tuesday, July 23, 2024, at 5:30 p.m. in the City Council Chambers of Town Center, 255 Parkway Boulevard, Coppell, Texas. Call to Order1. Mayor Wes Mays called the meeting to order, determined that a quorum was present and convened into the Executive Session at 5:30 p.m. Executive Session (Closed to the Public) 1st Floor Conference Room2. Section 551.071, Texas Government Code - Consultation with City Attorney. A.Consultation with City Attorney and special legal counsel, regarding City of Coppell, et. al. vs. Glenn Hegar, Texas Comptroller of Public Accounts. Discussed under Executive Session Page 1City of Coppell, Texas July 23, 2024City Council Minutes Work Session (Open to the Public) 1st Floor Conference Room Citizen comments will not be heard during the Work Session, but will be heard during the Regular Session under Citizens' Appearance. 3. Mayor Wes Mays adjourned the Executive Session at 5:57 p.m. and convened into the Work Session at 5:59 p.m. A. Discussion regarding agenda items. B. Discussion regarding the Community’s Allyship Initiative. C. Discussion regarding Retail Survey results and RFP. D. Discussion regarding Vector Control. Presented in Work Session Regular Session Mayor Wes Mays adjourned the Work Session at 6:41 p.m. and convened into the Regular Session at 7:30 p.m. Invocation 7:30 p.m.4. Parvin Izadi with Allies Interfaith Group gave the invocation. Pledge of Allegiance5. Mayor Wes Mays led the audience in the Pledge of Allegiance. Proclamations 6.Presentation of a Proclamation designating July 23, 2024, as “Hannah Bilka Appreciation Day.” Mayor Wes Mays read the Proclamation into the record and presented the same to Hannah Bilka and her family. Presentations 7.Presentation from Metrocrest Services regarding Homelessness. Director of Program Development Melanie Meijering of Metrocrest gave the presentation and answered questions of City Council. Citizens’ Appearance8. Mayor Wes Mays advised that no one signed up to speak. Consent Agenda9. A.Consider approval of the Minutes: July 9, 2024 and July 15, 2024. Page 2City of Coppell, Texas July 23, 2024City Council Minutes A motion was made by Councilmember Jim Walker, seconded by Mayor Pro Tem Kevin Nevels, that Consent Agenda Items A through E be approved. The motion passed by unanimous vote. B.Consider approval of an amendment to a Memorandum of Understanding (MOU), between the City of Coppell and the Texas A&M Engineering Extension Services, for the purpose of updating the MOU regarding Liability and Workers’ Compensation for Firefighters participating in state activation and training related to Emergency Response deployments; and authorizing the Mayor to sign. A motion was made by Councilmember Jim Walker, seconded by Mayor Pro Tem Kevin Nevels, that Consent Agenda Items A through E be approved. The motion passed by unanimous vote. C.Consider approval to purchase retrofitting technology, for the Fire and Police Department Mobile Command Vehicle, from Comprehensive Communication Service, through Buyboard contract #714-23, in the amount of $63,392.59, as approved for in the American Rescue Plan Act (ARPA) funds; and authorizing the City Manager to sign any necessary documents. A motion was made by Councilmember Jim Walker, seconded by Mayor Pro Tem Kevin Nevels, that Consent Agenda Items A through E be approved. The motion passed by unanimous vote. D.Consider approval to purchase three (3) Portable Message Boards from Buyers Barricades, through BuyBoard Contract #703-23, for replacement of two (2) existing message and arrow boards for Streets Department and one (1) additional message board for Traffic Operations Department, in the amount of $54,822.75; funds were previously approved on May 28th, 2024 by City Council and will be utilizing ARPA funds; and authorizing the City Manager to sign any necessary documents. A motion was made by Councilmember Jim Walker, seconded by Mayor Pro Tem Kevin Nevels, that Consent Agenda Items A through E be approved. The motion passed by unanimous vote. E.Consider approval of a Resolution nominating City Manager Mike Land as a candidate for the Board of Trustees of the Texas Municipal League Intergovernmental Risk Pool (The Risk Pool), Place 14 for a six-year term, 2024 through 2030; and authorizing the Mayor to sign. A motion was made by Councilmember Jim Walker, seconded by Mayor Pro Tem Kevin Nevels, that Consent Agenda Items A through E be approved. The motion passed by unanimous vote. Enactment No: RE 2024-0723.1 End of Consent Agenda Page 3City of Coppell, Texas July 23, 2024City Council Minutes City Manager Reports, Project Updates, Future Agendas, and Direction from Work Session 10. City Manager Mike Land gave the following report: Woodhurst - The Sanitary Sewer installation is complete, 98% of the water line is installed, Storm Drain installation to begin within a week or two. Street paving from Cul De Sac to Hillhaven is complete and sidewalks are being constructed. S Belt Line – Punchlist items are close to complete. The contractor began potholing for the electric service for the digital sign. DART – Complete closure of Freeport scheduled for August 2, 2024 to August 5, 2024. Complete closure of Southwestern scheduled August 9, 2024 to August 12, 2024. Work continues on the street pavement repair at Freeport. Mayor and Council Reports on Recent and Upcoming Events.11. Mayor Wes Mays gave the following report: Travel and Leisure ranked Coppell as the second-best place to live in Texas, the third-best place for public schools in Texas, and the fifth-best suburb to live in the United States. The final budget workshop will be Monday, July 29th, at 6:00 p.m., here at Town Center in the upstairs conference room. Please join us as we work diligently to ensure that Coppell maintains its high-quality services while also respecting your pocketbooks. Residents are encouraged to get involved in the budget process, attend the public hearings, and provide feedback. Council Committee Reports concerning items of community involvement with no Council action or deliberation permitted. 12. A. Report on Carrollton-Farmers Branch ISD, Lewisville ISD - Councilmember Mark Hill Councilmember Mark Hill gave his report on Carrollton-Farmers Branch ISD and Lewisville ISD. Public Service Announcements concerning items of community interest with no Council action or deliberation permitted. 13. Councilmember Ramesh Premkumar announced that a service organization will hold a 9/11 commemorative service on September 14, 2024, at 2:00 p.m., at the Senior Service Center. Necessary Action from Executive Session14. There was no action resulting from Executive Session. Adjournment15. Page 4City of Coppell, Texas July 23, 2024City Council Minutes There being no further business before this Council, the meeting adjourned at 8:05 p.m. ________________________ Wes Mays, Mayor ATTEST: ________________________ Ashley Owens, City Secretary Page 5City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 City of Coppell, Texas Minutes City Council 6:00 PM 2nd Floor Conference RoomMonday, July 29, 2024 Budget Work Session WES MAYS KEVIN NEVELS Mayor Mayor Pro Tem JIM WALKER RAMESH PREMKUMAR Place 1 Place 5 BRIANNA HINOJOSA-SMITH BIJU MATHEW Place 2 Place 6 DON CARROLL MARK HILL Place 3 Place 7 MIKE LAND City Manager Wes Mays;Jim Walker;Brianna Hinojosa-Smith;Don Carroll;Kevin Nevels;Ramesh Premkumar;Biju Mathew and Mark Hill Present 8 - Also present were Deputy City Managers Traci Leach and Kent Collins, City Secretary Ashley Owens, Director of Strategic Financial Engagement Kim Tiehen, Budget Officer Jesica Almendarez, and Business Analyst Jerry Young. The City Council of the City of Coppell met in Regular Session on Monday, July 29, 2024, at 6:00 p.m. in the 2nd Floor Conference Room at Town Center, 255 Parkway Boulevard, Coppell, Texas. Work Session (Open to the Public) Call to Order1. Mayor Wes Mays called the meeting to order, determined that a quorum was present and convened into the Work Session at 6:00 p.m. Citizens’ Appearance2. Mayor Wes Mays asked for those who signed up to speak: 1) John Dobmeyer, Kaye Street, spoke in regards to the city's trails. Page 1City of Coppell, Texas July 29, 2024City Council Minutes 3.Presentation and discussion regarding the final budget review: A. Assessed Valuation and Tax Rate B. Debt Service C. General Fund D. Water/Sewer Fund E. Other Funds Presentation: Kim Tiehen, Director of Strategic Financial Engagement, provided a presentation and answered questions from Mayor and City Council. 4.Discussion regarding the final budget review. Presentation: Kim Tiehen, Director of Strategic Financial Engagement, provided a presentation and answered questions from Mayor and City Council. Citizens’ Appearance5. Mayor Wes Mays asked for those who signed up to speak: 1) Jeff Varnell, 1601 E Sandy Lake Rd, spoke in regards to the budget. Adjournment6. There being no further business before the City Council, the meeting was adjourned at 7:17 p.m. ________________________ Wes Mays, Mayor ATTEST: ________________________ Ashley Owens, City Secretary Page 2City of Coppell, Texas Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2023-7596 File ID: Type: Status: 2023-7596 Agenda Item Consent Agenda 1Version: Reference: In Control: Parks and Recreation 08/05/2024File Created: Final Action: Entrust Change OrderFile Name: Title: Consider approval of Change Order #1, in the amount of $30,000, to Entrust One Custodial Services contract, at Coppell Arts Center; and authorizing the City Manager to sign any necessary documents. Notes: Sponsors: Enactment Date: Memo.pdf, 2023 Entrust One Contract.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: Text of Legislative File 2023-7596 Title Consider approval of Change Order #1, in the amount of $30,000, to Entrust One Custodial Services contract, at Coppell Arts Center; and authorizing the City Manager to sign any necessary documents. Summary See attached memo. Fiscal Impact: There is no fiscal impact on the CRDC Fund for the additional funds to be added to the Entrust One Contract. The Arts Center will reallocate funds from its existing budget to cover the $30,000 contract increase. Staff Recommendation: The Community Experiences Department recommends approval. Strategic Pillar Icon: Sustainable Government Page 1City of Coppell, Texas Printed on 8/9/2024 Master Continued (2023-7596) Page 2City of Coppell, Texas Printed on 8/9/2024 1 MEMORANDUM To: Mayor and City Council From: Ginene Delcioppo, Community Experiences Arts Center Manager Via: Jessica Carpenter, Director of Community Experiences Date: August 13, 2024 Reference: Consider approval of Change Order #1, in the amount of $30,000, to Entrust One Custodial Services contract, at Coppell Arts Center; and authorizing the City Manager to sign any necessary documents. 2040: Sustainable Government Introduction: The purpose of this agenda item is to consider the approval of using existing Arts Center budget funds to increase the amount available to spend on the Entrust One Custodial Contract for the remainder of fiscal year 2024. The current contract for Custodial Services is based on hourly rates of service as needed to operate events at the Center and was approved on September 12, 2023. This new Custodial contract has increased hourly rates higher than the previous contract that was used to create budget projections for the fiscal year 2024. With higher hourly rates and the Arts Center contracting more private rental and event days than projected at the time of budgeting, the Center has exceeded the approved funding amounts applied to this contract. The Arts Center is seeking to use existing budget funds to add $30,000 to the contract for the remainder of fiscal year 2024. Background: The Coppell Arts Center contracts and annually budgets for service vendors to provide daily operations at the center. These service vendors include a PR & Marketing Firm, a Food and Beverage operator, Custodial Service, and a Security Services company • Entrust One is the vendor awarded to hold the Custodial contract with the Arts Center. o Current Contract Rates  Hourly general cleaning custodial - Regular – $22.88  Event cleaning custodial - Regular - $22.67  Post Event cleaning custodial - Regular - $22.67 o The fiscal year 2024, the Arts Center budgeted $75,000 for Custodial Services. o For each event and private rental at the Arts Center, Custodial services are on site during the event and provide post event cleaning services as well. Custodial staffing 2 numbers are based on the type of event, attendance numbers and how many rooms at the Art Center are active on the day of service. • The fiscal year 2024 will exceed the amount of service hours budgeted required to meet the minimum needs of Custodial Services for the remainder of year due to more private rental and event contracted days than were projected at the time the budget was created. o The Arts Center tracks active days each year. An active day is defined by an event (show or private rental) or a rehearsal which requires operational needs from the Arts Center staff and or contractors. If there are multiple events happening in the Center on any given day, each event is counted as an active day since it requires its own team and set of operational expenses to execute.  Fiscal year 2023 the Arts Center had 595 active days, 81 were for private rentals. Actual Calendar days the Center was open was 350.  Fiscal year 2024 is estimated to have 738 active days, 114 are for private rentals. Actual Calendar days the Center is estimated to be open is 351. o Examples of minimum Custodial staffing for an active day at the Arts Center. If multiple spaces are active through the course of one calendar day the staffing maybe increased to meet the level of service required to operate the Center.  One Presented show with load in the day of, normally an 18-hour day, shifts are staggered: 5 Custodial Shifts  8hr Private Rental with Food & Beverage with 100 or more people, normally a 12-hour day, shifts are staggered: 3 Custodial shifts • Due to the increase of Active Days with multiple spaces active at the same time the Arts Center will be using more service hours than projected at the time the fiscal year 2024 budget was created. To meet the required level of service to fulfil contracted private rentals and events for the remainder of the fiscal year the Arts Center is requesting to allocate existing Arts Center budget funds of $30,000 to the Entrust Custodial contract. Benefit to the Community: The Coppell Arts Center is committed to first class service to the community while executing events. The appearance and cleanliness of the Center is the first impression guests see when they enter and Entrust One’s services will provide this level of service expected for the community while they are in attendance at the Coppell Arts Center. Legal Review: The change order for the contract has been reviewed by the city attorney. Fiscal Impact: There is no fiscal impact on the Coppell Recreation Development Corporation (CRDC) Fund for the additional funds to be added to the Entrust One Contract. The Arts Center will reallocate funds from its existing budget to cover the $30,000 contract increase. Recommendation: The Community Experiences Department recommends the approval of this item. Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2023-7598 File ID: Type: Status: 2023-7598 Agenda Item Consent Agenda 1Version: Reference: In Control: Parks and Recreation 08/05/2024File Created: Final Action: Andy Frain Change OrderFile Name: Title: Consider approval of Change Order #1, in the amount of $30,000, to Andy Frain Security Services contract, at Coppell Arts Center; and authorizing the City Manager to sign any necessary documents. Notes: Sponsors: Enactment Date: Memo.pdf, 2023-2024 Andy Frain Agreement.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: Text of Legislative File 2023-7598 Title Consider approval of Change Order #1, in the amount of $30,000, to Andy Frain Security Services contract, at Coppell Arts Center; and authorizing the City Manager to sign any necessary documents. Summary See attached memo. Fiscal Impact: There is no fiscal impact on the CRDC Fund for the additional funds to be added to the Andy Frain Security Contract. The Arts Center will reallocate funds from its existing budget to cover the $30,000 contract increase. Staff Recommendation: The Community Experiences Department recommends approval. Strategic Pillar Icon: Enhance the Unique 'Community Oasis' Experience Page 1City of Coppell, Texas Printed on 8/9/2024 Master Continued (2023-7598) Page 2City of Coppell, Texas Printed on 8/9/2024 1 MEMORANDUM To: Mayor and City Council From: Ginene Delcioppo, Community Experiences Arts Center Manager Via: Jessica Carpenter, Director of Community Experiences Date: August 13, 2024 Reference: Consider approval of Change Order #1, in the amount of $30,000, to Andy Frain Security Services contract, at Coppell Arts Center; and authorizing the City Manager to sign any necessary documents. 2040: Enhance the Unique “Community Oasis” Experience Introduction: The purpose of this agenda item is to consider the approval of using existing Arts Center budget funds to increase the amount available to spend on the Andy Frain Security Contract for the remainder of fiscal year 2024. The current contract for Security Services is based on hourly rates of service as needed to operate events at the Center and was approved on September 12, 2023. This new Security contract has increased hourly rates higher than the previous contract that was used to create budget projections for the fiscal year 2024, with higher hourly rates and the Arts Center contracting more private rental and event days than projected at the time of budgeting, the Center has exceeded the approved funding amounts applied to this contract. The Arts Center is seeking to use existing budget funds to add $30,000 to the contract for the remainder of fiscal year 2024. Background: The Coppell Arts Center contracts and annually budgets for service vendors to provide daily operations at the center. These service vendors include a PR & Marketing Firm, a Food and Beverage operator, Custodial Service, and a Security Services company. • Andy Frain Services is the vendor awarded to hold the Security Contract with the Arts Center. o Current Contract Rates for a licensed security officer:  $26.35 (Daily Site Security Guard)  $23.92 (Event Guard)  $25.57 (Event Supervisor)  $31.25 (Event Manager) o The fiscal year 2024, the Arts Center budgeted $85,000 for Security Services. 2 o For each event and private rental at the Arts Center Security staffing numbers are based on the needs of the event, if alcohol will be onsite served or for purchase, attendance numbers and if there are any contracted security obligations the Arts Center must meet with an artist. • The fiscal year 2024 will exceed the amount of service hours budgeted required to meet the minimum needs of Security Services for the remainder of year due to more private rental and event contracted days than were projected at the time the budget was created. o The Arts Center tracks active days each year. An active day is defined by an event (show or private rental) or a rehearsal which requires operational needs from the Arts Center staff and or contractors. If there are multiple events happening in the Center on any given day, each event is counted as an active day since it requires its own team and set of operational expenses to execute.  Fiscal year 2023 the Arts Center had 595 active days, 81 were for private rentals. Actual Calendar days the Center was open was 350.  Fiscal year 2024 is estimated to have 738 active days, 114 are for private rentals. Actual Calendar days the Center is estimated to be open is 351. o Examples of minimum security staffing for an active day at the Arts Center. If multiple spaces are active through the course of one calendar day the staffing maybe increased to meet the level of service required to operate the Center.  One Presented show with load in the day of, normally an 18-hour day, shifts are staggered: 5 Security Guard Shifts  8hr Private Rental with Food & Beverage with 100 or more people, normally a 12-hour day, shifts are staggered: 3 Security Guard shifts • Due to the increase of Active Days with multiple spaces active at the same time the Arts Center will be using more service hours than projected at the time the fiscal year 2024 budget was created. To meet the required level of service to fulfil contracted private rentals and events for the remainder of the fiscal year the Arts Center is requesting to allocate existing Arts Center budget funds of $30,000 to the Andy Frain Security contract. Benefit to the Community: The Coppell Arts Center is committed to first class service to the community while executing events. Safety is at the top of the list, and Andy Frain’s services will set in place the added level of safety and security for the community while they attend the Coppell Arts Center. Legal Review: The change order for the contract has been reviewed by the city attorney. Fiscal Impact: There is no fiscal impact on the Coppell Recreation Development Corporation (CRDC) Fund for the additional funds to be added to the Andy Frain Security Contract. The Arts Center will reallocate funds from its existing budget to cover the $30,000 contract increase. Recommendation: The Community Experiences Department recommends the approval of this item. DocuSign Envelope ID: 28005A3A-C454-4B78-8E89-08F4CD28CA6B DocuSign Envelope ID: 28005A3A-C454-4B78-8E89-08F4CD28CA6B DocuSign Envelope ID: 28005A3A-C454-4B78-8E89-08F4CD28CA6B DocuSign Envelope ID: 28005A3A-C454-4B78-8E89-08F4CD28CA6B DocuSign Envelope ID: 28005A3A-C454-4B78-8E89-08F4CD28CA6B DocuSign Envelope ID: 28005A3A-C454-4B78-8E89-08F4CD28CA6B DocuSign Envelope ID: 28005A3A-C454-4B78-8E89-08F4CD28CA6B DocuSign Envelope ID: 28005A3A-C454-4B78-8E89-08F4CD28CA6B DocuSign Envelope ID: 28005A3A-C454-4B78-8E89-08F4CD28CA6B Laura Grund 16th Executive VP October DocuSign Envelope ID: 28005A3A-C454-4B78-8E89-08F4CD28CA6B DocuSign Envelope ID: 28005A3A-C454-4B78-8E89-08F4CD28CA6B Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2023-7599 File ID: Type: Status: 2023-7599 Agenda Item Consent Agenda 1Version: Reference: In Control: Information Systems 08/05/2024File Created: Final Action: Dell ESRFFile Name: Title: Consider approval to purchase PC’s from Dell Marketing LP, DIR contract# DIR-TSO-3763 for replacement of existing PC’s as provided in the Enterprise Solutions Replacement Fund in the amount of $180,497.68; and authorizing the City Manager to sign any necessary documents. Notes: Sponsors: Enactment Date: Memo.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: Text of Legislative File 2023-7599 Title Consider approval to purchase PC’s from Dell Marketing LP, DIR contract# DIR-TSO-3763 for replacement of existing PC’s as provided in the Enterprise Solutions Replacement Fund in the amount of $180,497.68; and authorizing the City Manager to sign any necessary documents. Summary Fiscal Impact: The fiscal impact of this purchase is $180,497.68 and is available in the Enterprise Solutions Replacement Fund. Staff Recommendation: The Enterprise Solutions Department recommends approval. Strategic Pillar Icon: Apply 'Smart City' Approach to Resource Management Page 1City of Coppell, Texas Printed on 8/9/2024 Master Continued (2023-7599) Page 2City of Coppell, Texas Printed on 8/9/2024 1 MEMORANDUM To: Mayor and City Council From: Josh Littrell, Interim Director of Enterprise Solutions Date: August 13, 2024 Reference: Consider approval to purchase PC’s from Dell Marketing LP, DIR contract# DIR- TSO-3763 for replacement of existing PC’s as provided in the Enterprise Solutions Replacement Fund in the amount of $180,497.68; and authorizing the City Manager to sign any necessary documents. 2040: Apply “Smart City” Approach to Resource Management Introduction: This item is presented for consideration and approval to purchase PC’s from Dell Marketing LP, DIR contract# DIR-TSO-3763 for replacement of existing PC’s as provided in the Enterprise Solutions Replacement Fund in the amount of $180,497.68. Departments/divisions scheduled for device replacement this year include Police Department (Patrol Vehicles, Criminal Investigations, and Animal Services), Fire Department Administration, Public Works, GIS, and Library. Background: The City of Coppell uses Dell hardware to maintain consistency across the organization and provide a standard fleet of hardware. This allows the City of Coppell to have one vendor for supporting the hardware, firmware, drivers, software, etc. The City refreshes its PC hardware on a rotational basis to keep the technology current, reduce device maintenance/down time, and accommodate future City needs. Laptops are replaced every four years. While there are approximately 100 devices scheduled for replacement this year, not all the devices are purchased at one time. Due to differing requirements and configurations by department or user groups, staff purchases similar machines together for more efficient specification build-out, acquisition and deployment throughout the year. Staff utilizes the State of Texas Department of Information Resources (DIR) purchasing cooperative for the PC purchases requested under this agenda item. The City routinely utilizes DIR for technology purchases because the State has already conducted the due diligence around procurement, vetting, and qualification of various vendors for all manner of technology equipment and services, which creates a much more efficient procurement process. With DIR, the City is also able to leverage the purchasing power of the State to obtain 2 discounted pricing with pre-negotiated terms and conditions in compliance with state procurement rules. Benefit to the Community: These PC’s are essential pieces of equipment used by all departments to perform their daily jobs that provide our community with exceptional service. Legal Review: The Procurement division has reviewed the documents and determined that this is an appropriate method of contracting with the vendor. Fiscal Impact: The fiscal impact of this purchase is $180,497.68 and is available in the Enterprise Solutions Replacement Fund. Recommendation: The Enterprise Solutions Department recommends approval. Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2023-7601 File ID: Type: Status: 2023-7601 Agenda Item Consent Agenda 1Version: Reference: In Control: Finance 08/05/2024File Created: Final Action: Annual Investment Policy AdoptionFile Name: Title: Consider approval and adoption of the City of Coppell Investment Policy. Notes: Sponsors: Enactment Date: Memo.pdf, Investment Policy Fiscal Year 24.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: Text of Legislative File 2023-7601 Title Consider approval and adoption of the City of Coppell Investment Policy. Summary See attached memo. Fiscal Impact: There is no direct fiscal impact from this agenda item. Staff Recommendation: The Strategic Financial Engagement Department recommends approval. Strategic Pillar Icon: Sustainable Government Page 1City of Coppell, Texas Printed on 8/9/2024 1 MEMORANDUM To: Mayor and City Council From: Vanessa Tarver, Financial Relationships Group Manager VIA: Kim Tiehen, Director of Strategic Financial Engagement Date: August 13, 2024 Reference: Consider approval and adoption of the City of Coppell Investment Policy 2040: Sustainable City Government Introduction: This item is presented for consideration and approval of the City’s Investment Policy. As required by the Texas Public Funds Investment Act, the written Investment Policy must be reviewed and adopted on an annual basis by the governing body. No changes are proposed for the 2024 Investment Policy. Background: The most recent changes to the Public Funds Investment Act were approved in 2019. Furthermore, the investment policy has been reviewed by the Government Treasurer’s Organization of Texas (GTOT) Review Committee to ensure it meets the requirements of the Texas Public Funds Investment Act. The investment policy originally received the Certificate of Distinction Award on July 10, 2001 and has subsequently been recertified on a biannual basis. The current Certification of Investment Policy is effective for a two-year period ending August 31, 2024. The GTOT has indicated the City’s policy meets the criteria set forth in the investment policy review checklist and is an excellent example of a comprehensive written investment policy. GTOT is currently reviewing the policy for the renewal period of September 1, 2024 to August 31, 2026. Results are anticipated prior to August 31, 2024. Benefit to the Community: To have an investment policy that is in compliance with the Public Funds Investment Act, which prioritizes safety, liquidity, then yield. 2 Legal Review: Agenda item was reviewed by legal as part of the agenda packet. Fiscal Impact: N/A Recommendation: The Strategic Financial Engagement Department recommends approval of the investment policy. 1 INTRODUCTION The purpose of this document is to set forth specific investment policy and strategy guidelines for the City of Coppell in order to achieve the goals of safety, liquidity, yield, and public trust for all investment activity. The City Council of the City of Coppell shall review its investment strategies and policy not less than annually. This policy serves to satisfy the statutory requirement of Chapter 2256, Texas Government Code as amended, to define, adopt and review a formal investment strategy and policy. INVESTMENT STRATEGY The City of Coppell maintains portfolios utilizing four specific investment strategy considerations designed to address the unique characteristics of the fund groups represented in the portfolios: A. Investment strategies for operating funds and commingled pools containing operating funds have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The secondary objective is to create a portfolio structure which will experience minimal volatility during economic cycles. This may be accomplished by purchasing high quality, short-to-medium-term securities which will complement each other in a laddered or barbell maturity structure. The dollar weighted average maturity of 365 days or less will be calculated using the stated final maturity date of each security. B. Investment strategies for debt service funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligation on the required payment date. Securities purchased shall not have a stated final maturity date that exceeds the debt service payment date, or funds shall be maintained in an investment pool to be available for debt service payments. C. Investment strategies for debt service reserve funds shall have as the primary objective the ability to generate a dependable revenue stream to the appropriate debt service fund from securities with a low degree of volatility. Securities should be of high quality and, except as may be required by the bond ordinance specific to an individual issue, of short to intermediate-term maturities. Volatility shall be further controlled through maturity and quality range, without paying premium, if at all possible. Such securities will tend to hold their value during economic cycles. D. Investment strategies for special projects or special purpose fund portfolios will have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. These portfolios should include at least 10% in highly liquid securities to allow for flexibility and unanticipated project outlays. The stated final maturity dates of securities held should not exceed the estimated project completion date. 2 INVESTMENT POLICY I. SCOPE This investment policy applies to all financial assets of the City of Coppell. This policy includes all funds listed and accounted for in the City's Annual Comprehensive Financial Report (ACFR) and include: * General Fund * Special Revenue Funds * Debt Service Funds * Capital Projects Funds * Proprietary Funds * Trust and Agency Funds * Component Units All funds noted above hold pooled cash assets, and all funds above except Debt Service hold separately invested assets. II. OBJECTIVES The City of Coppell shall manage and invest its cash with four objectives, listed in order of priority: Safety, Liquidity, Yield, and Public Trust. The safety of the principal invested always remains the primary objective. All investments shall be designed and managed in a manner responsive to the public trust and consistent with State and Local law. The City shall maintain a comprehensive cash management program that includes collection of accounts receivable, vendor payment in accordance with invoice terms, and prudent investment of available cash. Cash management is defined as the process of managing monies in order to insure maximum cash availability and maximum yield on short-term investment of pooled idle cash. The City monitors rates using their Financial Advisor, who provides daily ratings information for Pools, Agencies (callable and non-callable), and Treasury Bills. Safety The primary objective of the City's investment activity is the preservation of capital in the overall portfolio. Each investment transaction shall be conducted in a manner to avoid capital losses, whether they are from securities default or erosion of market value. Liquidity The City's investment portfolio shall be structured such that the City is able to meet all obligations in a timely manner. This shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. 3 Yield The City's cash management portfolio shall be designed with the objective of regularly exceeding the average rate of return on three-month U.S. Treasury Bills. The investment program shall seek to augment returns above this threshold consistent with risk limitations identified herein and prudent investment policies. Public Trust All participants in the City's investment process shall seek to act responsibly as custodians of the public trust. Investment officials shall avoid any transaction that might impair public confidence in the City's ability to govern effectively. III. RESPONSIBILITY AND CONTROL Investment Committee An Investment Committee, consisting of the City Manager, Deputy City Manager, the Director of Strategic Financial Engagement, and Financial Relationships Group Manager, shall meet at least quarterly to determine operational strategies and to monitor results. The Investment Committee shall include in its deliberation such topics as: performance reports, economic outlook, portfolio diversification, maturity structure, potential risk to the City's funds, authorized brokers and dealers, annually adopt the qualified bidders list, and the target rate of return on the investment portfolio. Delegation of Authority and Training Authority to manage the City's investment program is derived from a resolution of the City Council. The Director of Strategic Financial Engagement, Financial Relationships Group Manager, and the Chief Accountant are designated as the investment officers of the City and are responsible for investment decisions and activities. The Director of Strategic Financial Engagement shall establish written procedures for the operation of the investment program, consistent with this investment policy. The investment officers shall attend a training session not less than once in a two-year period that begins on the first day of the City’s fiscal year and consists of the two consecutive fiscal years after that date, and receive not less than 8 hours of training approved by the governing body relating to the officer's responsibility under the Act. The investment officers must also receive 10 hours of training within 12 months after taking office or assuming duties. This training must include education in investment controls, security risks, strategy risks, market risks, diversification of investment portfolio and compliance with the Texas Public Funds Investment Act. Sources of authorized independent training are those sponsored by: • Government Finance Officers Association (G.F.O.A.) • Government Finance Officers Association of Texas (G.F.O.A.T.) 4 • Government Treasurers Organization of Texas (G.T.O.T.) • University of North Texas - Center for Public Management • Texas Tech - Center for Professional Development • TEXPO – Alliance of Texas Treasury Associations • Texas Municipal League • Any online training (affiliated with Texas Municipal League) Internal Controls The Director of Strategic Financial Engagement is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation costs and benefits require estimates and judgements by management. Accordingly, the Director of Strategic Financial Engagement shall establish a process in conjunction with the annual financial audit to assure compliance with policies and procedures. The internal controls shall address the following points: A. Control of collusion. B. Separation of transaction authority from accounting and record keeping. C. Custodial safekeeping. D. Avoidance of physical delivery securities. E. Clear delegation of authority to subordinate staff members. F. Written confirmation for telephone (voice) transactions for investments and wire transfers. G. Development of a wire transfer agreement with the depository bank or third party custodian. Prudence The standard of prudence to be applied by the investment officer shall be the "prudent investor" rule, which states: "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." In determining whether an investment officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration: A. The investment of all funds, or funds under the City's control, over which the officer had responsibility rather than a consideration as to the prudence of a single investment. B. Whether the investment decision was consistent with the written investment policy of the City. 5 The investment officer, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for a specific security's credit risk or market price changes, providing that these deviations are reported immediately and that appropriate action is taken to control adverse developments. Ethics and Conflicts of Interest City staff involved in the investment process shall refrain from personal business activity that could conflict with the proper execution of the investment program, or which could impair the ability to make impartial investment decisions. City staff shall disclose to the City Manager any material financial interests in financial institutions that conduct business with the City and they shall further disclose positions that could be related to the performance of the City's portfolio. City staff shall subordinate their personal financial transactions to those of the City, particularly with regard to timing of purchases and sales. An investment officer of the City who has a personal business relationship with an organization seeking to sell an investment to the City shall file a statement disclosing that personal business interest. An investment officer who is related within the second degree by affinity or consanguinity to an individual seeking to sell an investment to the City shall file a statement disclosing that relationship. A statement required under this subsection must be filed with the Texas Ethics Commission and the governing body of the entity. IV. REPORTING Quarterly Reporting The Director of Strategic Financial Engagement shall submit a signed quarterly investment report that is in compliance with this policy and the Texas Public Funds Investment Act and summarizes current market conditions, economic developments and anticipated investment conditions. The report shall summarize investment strategies employed in the most recent quarter, and describe the portfolio in terms of investment securities, maturities, risk characteristics, and shall explain the total investment return for the quarter. Annual Report Within 90 days of the end of the fiscal year, the Director of Strategic Financial Engagement shall present an annual report on the investment program and investment activity. This report may be presented along with the Annual Comprehensive Financial Report to the City Manager and City Council. Methods The quarterly investment report shall include a succinct management summary that provides a clear picture of the status of the current investment portfolio and transactions made over the last quarter. This management summary will be prepared in a manner that will allow the City to 6 ascertain whether investment activities during the reporting period have conformed to the investment policy. The reports shall be formally reviewed at least annually by an independent auditor, if investments are other than those offered by the City's depository. The portfolio shall be marked to market monthly. The market value of the securities is to be provided by the City's depository or by a third-party valuation service. The report will be provided to the City Manager and City Council. The report will include the following: A. A listing of individual securities (investment position) held at the end of the reporting period. B. Unrealized gains or losses resulting from appreciation or depreciation by listing the beginning and ending book and market value of securities for the period. C. Additions and changes to the market value during the period. D. Average weighted yield to maturity of portfolio on entity investments as compared to applicable benchmark. E. Listing of investment by maturity date. F. The percentage of the total portfolio each type of investment represents. G. Statement of compliance of the City's investment portfolio with State Law and the investment strategy and policy approved by the City Council. H. Prepared and signed by the investment officers. I. Fully accrued interest for the period. J. States account or fund for each investment. V. INVESTMENT PORTFOLIO The City shall pursue an active versus a passive portfolio management philosophy. That is, securities may be sold before they mature if market conditions present an opportunity for the City to benefit from the trade. The investment officer will routinely monitor the contents of the portfolio, the available markets, and the relative value of competing instruments, and will adjust the portfolio accordingly. Investments Assets of the City of Coppell may be invested in the following instruments; provided, however, that at no time shall assets of the City be invested in any instrument or security not authorized for investment under the Act, as the Act may from time to time be amended. I. Authorized A. Obligations, including letters of credit, of the United States of America, its agencies and instrumentalities (including Government Sponsored Enterprises). B. Direct obligations of the State of Texas or its agencies and instrumentalities. C. Other obligations, the principal of and interest on which are unconditionally guaranteed by the State of Texas or United States of America. 7 D. Obligations of the State, agencies thereof, Counties, Cities, and other political subdivisions of any state having been rated as investment quality by a nationally recognized investment rating firm and having received a rating of not less than "A" or its equivalent. E. Interest-bearing banking deposits that are guaranteed or insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund or its successor F. Interest-bearing banking deposits other than those described by (E) above if: (1) the funds invested in the banking deposits are invested through: (i) a broker with a main office or branch office in Texas that has been approved by the investment committee or (ii) a depository institution with a main office or branch office in Texas that the investment committee approves; (2) the broker or depository institution selected as described by (1) above arranges for the deposit of the funds in the banking deposits in one or more federally insured depository institutions, regardless of where located, for the City of Coppell’s account; (3) the full amount of the principal and accrued interest of the banking deposits is insured by the United States or an instrumentality of the United States; and (4) the City of Coppell appoints as it’s custodian of the banking deposits issued for the City’s account: (i) the depository institution selected as described by (1) above; (ii) A custodian must be approved by the City and be: (a) a state or national bank that: - is designated by the comptroller as a state depository; - has its main office or a branch office in this state; and - has a capital stock and permanent surplus of $5 million or more (b) the Texas Treasury Safekeeping Trust Company; (c) a Federal Reserve Bank or a branch of a Federal Reserve Bank; (d) a federal home loan bank; or (e) a financial institution authorized to exercise fiduciary powers that is designated by the comptroller as a custodian; or (iii) a clearing broker dealer registered with the Securities and Exchange Commission and operating under Securities and Exchange Commission Rule 15c3-3. G. Certificates of Deposit of state and national banks with a branch in Texas, guaranteed or insured by the Federal Deposit Insurance Corporation, collateralized or secured by obligations described in A through D above or in accordance with Chapter 2257 or in any other manner provided by law, which are intended to include all direct agency or instrumentality issued mortgage backed securities rated AAA by at least one nationally recognized rating agency and that have a market value of not less than the principal amount of the certificates. H. Fully collateralized direct repurchase agreements with a defined termination date secured by obligations of the United States or its agencies and instrumentalities. These shall be pledged to the City of Coppell, held in the City’s name, and deposited at the time the investment is made with the City or with a third party selected and approved by the City. 8 Repurchase agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve, or a bank domiciled in Texas. A Master Repurchase Agreement must be signed by the bank\dealer prior to investment in a repurchase agreement. All repurchase agreement transactions will be on a delivery versus payment basis. Securities received for repurchase agreements must have a market value greater than or equal to 105 percent at the time funds are disbursed. I. Local government investment pools in accordance with the conditions prescribed in Section 2256.016 and that have been authorized by the governing body by rule, ordinance or resolution. The investment pool must maintain a rating no lower than AAA or AAA-M by at least one nationally recognized rating service. Investment in such pools shall be limited to 75% of the City’s entire portfolio, with no more than 25% of the entire portfolio invested in any one authorized pool, and hold a weighted average maturity of 1. Ratings shall be monitored using nationally recognized financial information sources, including actions published on rating agency websites. Any investment currently held that does not meet the guidelines of this policy, but was authorized at the time of purchase, shall be exempted from the requirements of this policy and investment officers shall not be required to liquidate the investment. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. II. Not Authorized The City's authorized investments options are more restrictive than those allowed by 2256.009(b)(1-4). 2256.009(b)(1-4) specifically prohibits investment in the following investment securities. A. Obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal. B. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest. C. Collateralized mortgage obligations that have a stated final maturity date of greater than 10 years. D. Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. 9 Holding Period The City of Coppell intends to match the holding periods of investment funds with liquidity needs of the City. In no case will the average maturity of investments of the City's operating funds exceed one year. The maximum final stated maturity of any investment shall not exceed five years. Investments in all funds shall be managed in such a way that the market price losses resulting from interest rate volatility would be offset by coupon income and current income received from the volume of the portfolio during a twelve-month period. Risk and Diversification The City of Coppell recognizes that investment risks can result from issuer defaults, market price changes or various technical complications leading to temporary illiquidity. Risk is controlled through portfolio diversification which shall be achieved by the following general guidelines; A. Risk of issuer default is controlled by limiting investments to those instruments allowed by the Act, which are described herein. B. Risk of market price changes shall be controlled by avoiding overconcentration of assets in a specific maturity sector, limitation of average maturity of operating funds investments to one year, and avoidance of overconcentration of assets in specific instruments other than U.S. Treasury Securities and insured or Collateralized Certificates of Deposits. C. Risk of illiquidity due to technical complications shall be controlled by the selection of securities dealers as described herein. D. All prudent measures will be taken to liquidate an investment that is downgraded to less than our minimum stated required rating. VI. SELECTION OF BANKS AND DEALERS Depository At least every five (5) years a Depository shall be selected through the City's banking services procurement process, which shall include a formal request for proposal (RFP). In selecting a depository, the credit worthiness of institutions shall be considered, and the Director of Strategic Financial Engagement shall conduct a comprehensive review of prospective depository bank’s credit characteristics and financial history. Certificates of Deposit Banks seeking to establish eligibility for the City's competitive certificate of deposit purchase program shall submit for review annual financial statements, evidence of federal insurance and other information as required by the Director of Strategic Financial Engagement. 10 Qualified Representatives Investment officials shall not knowingly conduct business with any firm with whom public entities have sustained losses on investments. All qualified representatives shall provide the City with references from Public entities they are currently serving. All financial institutions and qualified representatives who desire to become qualified bidders for investment transactions must supply the following as appropriate: - audited financial statements - proof of Financial Industry Regulatory Authority (FINRA) certification - proof of state registration - completed broker/dealer questionnaire - Certification of having read the City's investment policy signed by a qualified representative of the organization . - Acknowledgement that the organization has implemented reasonable procedures and controls in an effort to preclude imprudent investment transactions conducted between the entity and the organization that are not authorized by the entity’s investment policy. The investment officers are precluded from purchasing an investment from a representative who has not delivered the written certification. An annual review of the financial condition and registration of qualified bidders will be conducted by the Director of Strategic Financial Engagement. Competitive Bids Competitive quotes must be taken from at least three (3) qualifying financial institutions or broker/dealers for any investment transaction involving an individual security. Investment transactions should include written confirmation of offers on the Investment Bid Tabulation form. VII. SAFEKEEPING AND CUSTODY Insurance or Collateral All deposits and investments of City funds other than direct purchases of U.S. Treasuries or Agencies shall be secured by pledged collateral. To anticipate market changes and provide a level of security for all funds, the collateralization level will be 105% of the market value of principal and accrued interest on the deposits or investments less an amount insured by the FDIC or NCUA. Evidence of the pledged collateral shall be maintained by the Director of Strategic Financial Engagement or a third-party financial institution. The City’s Depository Agreement shall specify the acceptable investment securities for collateral, the substitution or release of investment securities, ownership of securities, and the method of valuation of securities. Repurchase agreements shall be documented by a 11 specific agreement noting the collateral pledge in each agreement. Collateral shall be reviewed monthly to assure that the market value of the pledged securities is adequate. Safekeeping Agreement Collateral pledged to secure deposits and investments, and investment securities purchased by the City shall be held by a safekeeping institution in accordance with the Safekeeping Agreement. The Safekeeping Agreement clearly defines the procedural steps for gaining access to the collateral should the City of Coppell determine that the City's funds are in jeopardy. The safekeeping institution, or Trustee, shall be the Federal Reserve Bank or an institution not affiliated with the firm pledging the collateral. The safekeeping agreement shall include the signatures of authorized representatives of the City of Coppell, the firm pledging the collateral, and the Trustee. Collateral Defined The City of Coppell shall accept only the following securities as collateral: A. FDIC and NCUA insurance coverage. B. A bond, certificate of indebtedness, or Treasury Note of the United States, or other evidence of indebtedness of the United States that is guaranteed as to principal and interest by the United States. C. Obligations, the principal and interest of which, are unconditionally guaranteed or insured by the State of Texas. D. A bond of the State of Texas or of a county, city or other political subdivision of the State of Texas having been rated as investment grade (investment rating no less than "A" or its equivalent) by a nationally recognized rating agency with a remaining maturity of five (5) years or less. Subject to Audit All collateral shall be subject to inspection and audit by the Director of Strategic Financial Engagement or the City's independent auditors. Delivery vs. Payment Treasury Bills, Notes, Bonds and Government Agencies' securities shall be purchased using the delivery vs. payment method. That is, funds shall not be wired or paid until verification has been made that the correct security was received by the Trustee. The security shall be held in the name of the City or held on behalf of the City. The Trustee's records shall assure the notation of the City's ownership of or explicit claim on the securities. The original copy of all safekeeping receipts shall be delivered to the City. 12 VIII. INVESTMENT POLICY ADOPTION The City of Coppell’s investment policy shall be adopted annually by the City Council. The policy shall be reviewed for effectiveness on an annual basis by the Investment Committee and any modifications will be recommended for approval to the City Council. 13 GLOSSARY of COMMON TREASURY TERMINOLOGY Agencies: Federal agency securities. Ask: The price at which securities are offered. Bid: The price offered for securities. Broker: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides. In the money market, brokers are active in markets, in which banks buy and sell money, and in interdealer markets. Certificate of Deposit (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD's are typically negotiable. Collateral: Securities, evidence of deposit or other property that a borrower pledges to secure repayment of loan. Also refers to securities pledged by a bank to secure deposits of public monies. Annual Comprehensive Financial Report (ACFR): The official annual report for the City of Coppell. It includes combined statements and basic financial statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. Coupon: The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. Debenture: A bond secured only by the general credit of the issuer. Delivery versus Payment: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. Discount Securities: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, such as U.S. Treasury bills. Diversification: Dividing investment funds among a variety of securities offering independent returns. 14 Federal Credit Agencies: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, such as Savings and Loans, small business firms, students, farmers, farm cooperatives, and exporters. Federal Deposit Insurance Corporation (FDIC): A federal agency that insures bank deposits, currently up to $100,000 per deposit. Federal Funds Rate: The rate of interest at which Fed funds are traded. This rate is currently set by the Federal Reserve through open-market operations. Federal Home Loan Banks (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks. Federal National Mortgage Association (FNMA): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development, H.U.D. It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. Federal Open Market Committee (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open-market as a means of influencing the volume of bank credit and money. Federal Reserve System: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks and commercial banks that are members of the system. Government National Mortgage Association (GNMA or Ginnie Mae): Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by FHA, VA or FMHM mortgages. The term pass-throughs is often used to describe Ginnie Maes. • Government Sponsored Enterprises: a financial services corporation created by the United States Congress. Examples include the following: Federal Home Loan Banks (FHLB), Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Federal Farm Credit Banks (FCB), and Federal Agricultural Mortgage Corporation (Farmer Mac) 15 Liquidity: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. Market Value: The price at which a security is trading and could presumably be purchased or sold. Master Repurchase Agreement: To protect investors, many public investors will request that repurchase agreements be preceded by a master repurchase agreement between the investor and the financial institution or dealer. The master agreement should define the nature of the transaction, identify the relationship between the parties, establish normal practices regarding ownership and custody of the collateral securities during the term of the investment, provide remedies in the case of default by either party and clarify issues of ownership. The master repurchase agreement protects the investor by eliminating the uncertainty of ownership and hence, allowing investors to liquidate collateral if a bank or dealer defaults during the term of the agreement. Maturity: The date upon which the principal or stated value of an investment becomes due and payable. Money Market: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances) are issued and traded. Open Market Operations: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. Portfolio: Collection of securities held by an investor. Primary Dealer: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers banks and a few unregulated firms. Prudent Person Rule: An investment standard. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return. Repurchase Agreement (RP of REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and their terms of the agreement are structured to compensate him for this. Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2023-7602 File ID: Type: Status: 2023-7602 Agenda Item Agenda Ready 1Version: Reference: In Control: Finance 08/06/2024File Created: Final Action: Max Tax Rate VoteFile Name: Title: Consider approval of a maximum proposed tax rate of $0.46222 for the 2024 tax year and to set the Public Hearings on the budget and proposed tax rate for the regularly scheduled City Council Meeting on August 27, 2024, at 7:30 p.m. Notes: Sponsors: Enactment Date: Memo.pdf, NOTICE OF VOTE-8-03-24 (Rambler).pdf, NOTICE OF VOTE-8-04-24 (Gazette).pdf Attachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: Text of Legislative File 2023-7602 Title Consider approval of a maximum proposed tax rate of $0.46222 for the 2024 tax year and to set the Public Hearings on the budget and proposed tax rate for the regularly scheduled City Council Meeting on August 27, 2024, at 7:30 p.m. Summary Fiscal Impact: N/A Staff Recommendation: The Strategic Financial Engagement Department recommends approval. Strategic Pillar Icon: Sustainable Government Page 1City of Coppell, Texas Printed on 8/9/2024 Master Continued (2023-7602) Page 2City of Coppell, Texas Printed on 8/9/2024 1 MEMORANDUM To: Mayor and City Council From: Kim Tiehen, Director of Strategic Financial Engagement Date: August 13, 2024 Reference: Consider approval of a maximum proposed property tax rate of $0.462222 for the 2024 tax year and set the Public Hearings on the budget and proposed property tax rate for the regularly scheduled Council Meeting on August 27, 2024, at 7:30 p.m. 2040: Sustainable Government Introduction: The purpose of this agenda item is to obtain the record vote on the maximum proposed property tax rate, and it announces the date, time and place of the public hearing to be held on the proposed tax rate. Section 26.06 of the Texas Tax Code requires a record vote on the maximum proposed tax rate be included on the Notice of Public Hearing and Vote on the Tax Rate. Background: Attached to this agenda item are the notices that were published in the Rambler and Gazette newspapers on August 3 and August 4, 2024, respectively. The notices inform the public of this evening’s vote to consider the maximum proposed property tax rate and provides notice concerning the date the public hearing and vote on the tax rate will occur. Next, the Notice of the Public Hearing and Vote on the Property Tax Rate will be published on August 17th in the Rambler and August 18th in the Gazette newspapers. That notice will provide the results of the vote this evening and state that the public hearing and vote on the tax rate will be held at the regular Council meeting on August 27, 2024. Benefit to the Community: The benefit to the community of this item is that it provides additional communication regarding the tax rate setting process and timeline. Legal Review: This agenda item was reviewed by legal counsel during the Council packet review process. Fiscal Impact: N/A Recommendation: The Strategic Financial Engagement Department recommends approval. MEMORANDUM Date: July 26, 2024 To: Rambler From: Jesica Almendarez, Budget Officer City of Coppell Subject: Notice of Vote to Consider Maximum Rate Please publish the following Notice of Public Hearing on Saturday, August 3, 2024: NOTICE OF VOTE TO CONSIDER MAXIMUM RATE A vote to consider a maximum ad valorem rate will be held by the City Council of the City of Coppell, Texas. The vote will be held during the regularly scheduled City Council meeting on August 13, 2024, at 7:30 p.m. in the Council Chambers at the City Hall, 255 Parkway Boulevard, Coppell, Texas 75019. This vote is NOT to adopt a property tax rate; that vote is currently scheduled for August 27, 2024. The vote to consider a maximum ad valorem rate is a statutory requirement, per Texas Tax Code §26.06, and may not be the vote considered for adoption. PUBLIC NOTICE – STATEMENT FOR ADA COMPLIANCE The City of Coppell acknowledges its responsibility to comply with the Americans with Disabilities Act of 1990. Thus, in order to assist individuals with disabilities who require special services (i.e. sign interpretative services, alternative audio/visual devices, and amanuenses) for participation in or access to the City of Coppell sponsored public programs, services and/or meetings, the City requests that individuals make requests for these services seventy-two (72) hours – three (3) business days ahead of the scheduled program, service, and/or meeting. To make arrangements, contact Kori Allen, ADA Coordinator, or another designated official at (972) 462-0022, or (TDD 1-800-RELAY, TX 1- 800-735-2989). Please contact me if you have any questions or need additional information. I can be reached at (972) 462-5305. Thank you. MEMORANDUM Date: July 26, 2024 To: Gazette From: Jesica Almendarez, Budget Officer City of Coppell Subject: Notice of Vote to Consider Maximum Rate Please publish the following Notice of Public Hearing on Sunday, August 4, 2024: NOTICE OF VOTE TO CONSIDER MAXIMUM RATE A vote to consider a maximum ad valorem rate will be held by the City Council of the City of Coppell, Texas. The vote will be held during the regularly scheduled City Council meeting on August 13, 2024, at 7:30 p.m. in the Council Chambers at the City Hall, 255 Parkway Boulevard, Coppell, Texas 75019. This vote is NOT to adopt a property tax rate; that vote is currently scheduled for August 27, 2024. The vote to consider a maximum ad valorem rate is a statutory requirement, per Texas Tax Code §26.06, and may not be the vote considered for adoption. PUBLIC NOTICE – STATEMENT FOR ADA COMPLIANCE The City of Coppell acknowledges its responsibility to comply with the Americans with Disabilities Act of 1990. Thus, in order to assist individuals with disabilities who require special services (i.e. sign interpretative services, alternative audio/visual devices, and amanuenses) for participation in or access to the City of Coppell sponsored public programs, services and/or meetings, the City requests that individuals make requests for these services seventy-two (72) hours – three (3) business days ahead of the scheduled program, service, and/or meeting. To make arrangements, contact Kori Allen, ADA Coordinator, or another designated official at (972) 462-0022, or (TDD 1-800-RELAY, TX 1- 800-735-2989). Please contact me if you have any questions or need additional information. I can be reached at (972) 462-5305. Thank you.