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Item 4CCITY OF SOUTHLAKE MEMORANDUM June 9, 2020 To: Shana Yelverton, City Manager From: Amy Shelley, City Secretary Ite Subject: Resolution No. 20-026, repealing Resolution No. 20-006, calling the Special (Bond) Election Action Requested: Approve Resolution No. 20-026, repealing Resolution No. 20-006, calling the Special (Bond) Election Background Information: The City Secretary's Office is responsible for conducting municipal elections as prescribed by the Election Code of the State of Texas and the City of Southlake's City Charter. On February 11, 2020, City Council approved Resolution No. 20-006, ordering a City Bond Election to be held on May 2, 2020 for the Issuance of a General Obligation Bond. In response to public health and safety concerns related to the novel coronavirus ("COVID-19") infectious disease outbreak, the Governor of the State of Texas issued a proclamation on March 18, 2020 authorizing political subdivisions, such as the City, that would otherwise hold elections on May 2, 2020, to move their general and special elections for 2020 to the next uniform election date, occurring on November 3, 2020. On March 23, 2020, Council passed a resolution to postpone the special election to November 3, 2020 or a date that may be specified as an alternative in a future order issued by the Governor. The Council now deems that the measure referred to as Proposition A in Resolution No. 20-006, ordering the special election is moot and should be removed from the ballot of the November 3, 2020 election. Issuing bonds at this time would not be in the best interests of the health, safety and welfare of the City and its residents. COVID-19 has created instability in the financial markets and in the national, state and local economies and the impacts of COVID-19 on the City and its residents renders the City unable to continue with the sale of bonds were the proposition to pass and, therefore, renders the bond election moot. Financial Considerations: Funds for elections are included in the City Secretary's Office budget Strategic Link: Partnerships & Volunteerism and Collaboration Citizen Input/ Board Review: NIA Legal Review: Resolution was provided to legal counsel for review Alternatives: Section 3.001 of the Texas Election Code, indicates that each general and special election shall be ordered as provided by Chapter 3, Ordering Election Supporting Documents: Resolution No. 20-006 Resolution No. 20-026 Staff Recommendation: Approve Resolution No. 20-026, repealing Resolution No. 20-006, calling a Special (Bond) Election. Staff Contact: Amy Shelley, City Secretary RESOLUTION NO. 20-006 A RESOLUTION CALLING A BOND ELECTION TO BE HELD IN THE CITY OF SOUTHLAKE, TEXAS; MAKING PROVISION FOR THE CONDUCT OF AN ELECTION; AND RESOLVING OTHER MATTERS INCIDENT AND RELATED TO SUCH ELECTION WHEREAS, the City Council (the Council) of the CITY OF SOUTHLAKE, TEXAS (the City), located in Tarrant and Denton Counties, Texas (the Counties), hereby finds and determines that an election should be held to determine whether the Council shall be authorized to issue general obligation bonds of the City in the amount and for the purposes hereinafter identified (the Election); and WHEREAS, the City will enter into an election services contract with Tarrant County, by and through its Elections Administrator and Denton County, by and through its Elections Administrator (the Administrator and together the Administrators) in accordance with the provisions of Subchapter D of Chapter 31, as amended, Texas Election Code, or other applicable law, pursuant to which Counties will assist with certain aspects of the Election on the City's behalf (being, particularly, the rental by the Counties to the City of electronic voting machines and provision of certain polling locations); and WHEREAS, the Election may be held jointly with other political subdivisions (such other political subdivisions, collectively, the Participants), as provided pursuant to the provisions of an election services agreement and/or a joint election or similar agreement between or among (as applicable) the City and any Participants, entered into in accordance with the provisions of Section 271.002, as amended, Texas Election Code; and WHEREAS, the Council hereby finds and determines that the necessity to construct various capital improvements within the City necessitates that it is in the public interest to call and hold the Election at the earliest possible date to authorize the issuance of general obligation bonds for the purposes hereinafter identified; and WHEREAS, the Council hereby finds and determines that the actions hereinbefore described are in the best interests of the residents of the City; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS THAT: SECTION 1. The Election shall be held in the CITY OF SOUTHLAKE, TEXAS on the 2nd day of May, 2020 (Election Day), which is a uniform election date under the Texas Election Code, as amended, and is not less than 78 days nor more than 90 days from the date of the adoption of this resolution (the Resolution), for the purpose of submitting the following measure to the qualified voters of the City: PROPOSITION A "Shall the City Council of the City of Southlake, Texas be authorized to issue and sell one or more series of general obligation bonds of the City in the aggregate principal amount of not more than $50,000,000 for the purpose of designing, acquiring, constructing, renovating, improving, and equipping the City parks (including passive parks and open space improvements), and acquiring lands, interests in lands, and rights-of-way necessary thereto, such bonds to mature serially or otherwise (not more than 40 years from their date) in accordance with law; and any issue or series of said bonds to bear interest at such rate or rates (fixed, floating, variable or otherwise) as may be determined within the discretion of the City Council, provided that such rate of interest shall not exceed the maximum rate per annum authorized by law at the time of the issuance of any issue or series of said bonds; and shall the City Council of the City be authorized to levy and pledge, and cause to be assessed and collected, annual ad valorem taxes, within the limitations prescribed by law, on all taxable property in said City sufficient to pay the annual interest and provide a sinking fund to pay the bonds at maturity?" SECTION 2. The City Council authorizes the Mayor, the City Manager, the City Secretary, or their respective designees, to negotiate and enter into the election services contracts (the "Contracts") with the Administrators. The Mayor, or his designee, is hereby authorized to execute the Contracts and any other necessary contract(s) and agreements, joint or otherwise, with the Administrators, or any other public entity. The contract documents and election services provided therein shall conform to Chapter 31, Subchapter D, of the Texas Election Code and all other applicable statutes and laws. One or more City election precincts are hereby established for the purpose of holding the Election, and one or more polling places are hereby designated for holding the Election in the City election precincts as identified in the Contracts (which are incorporated herein by reference for all purposes). At least 79 days prior to Election Day, or as soon thereafter as is reasonably practicable, the City, acting through the Mayor, the City Manager, or the designee thereof, in coordination with the Administrators, or the designee thereof, as necessary or desirable, will appoint the Presiding Judges, Alternate Presiding Judges, Election Clerks, and all other election officials for the Election, together with any other necessary changes to election practices and procedures and can correct, modify, or change the Exhibits to this Resolution based upon the final locations and times agreed upon by the Administrators, the City, and the Participants to the extent permitted by applicable law and as may be set forth in the Contracts. A. The Presiding Judge shall appoint not less than two resident qualified voters of the County to act as clerks in order to properly conduct the Election. To the extent required by the Texas Election Code, as amended, or other applicable law, the appointment of these clerks must include a person fluent in the Spanish language to serve as a clerk to render oral aid in the Spanish language to any voter desiring such aid at the polls on Election Day. If the Presiding Judge appointed actually serves, the Alternate Presiding Judge shall serve as one of the clerks. In the absence of the Presiding Judge, the Alternate Presiding Judge shall perform the duties of the Presiding Judge of the election precinct. -2- B. On Election Day, the polls shall be open as designated on Exhibit A. C. The main early voting location is designated in Exhibit B to this Resolution (which is hereby incorporated herein by reference for all purposes). The individual named as the Early Voting Clerk as designated in Exhibit B is hereby appointed as the Early Voting Clerk to conduct such early voting in the Election. The Early Voting Clerk shall appoint the Deputy Early Voting Clerks. This main early voting location shall remain open to permit early voting on the days and at the times as stated in Exhibit B. Early voting shall commence as provided on Exhibit B and continue through the date set forth on Exhibit B, all as provided by the provisions of the Texas Election Code, as amended. Additionally, permanent and/or temporary branch offices for early voting by personal appearance may be established and maintained in accordance with the Texas Election Code. In the event such permanent and/or temporary branch locations are established, information regarding the locations, dates, and hours of operation for early voting at these offices shall be determined by the Administrators/Early Voting Clerk, as identified in Exhibit B hereto. The Council authorizes each Administrator to establish an Early Voting Ballot Board for the purpose of processing early voting results. The individual designated in Exhibit B as the Presiding Judge of an Early Voting Ballot Board is hereby appointed the Presiding Judge of the indicated Early Voting Ballot Board. The Presiding Judge shall appoint not less than two resident qualified voters of the City to serve as members of each such Early Voting Ballot Board. SECTION 3. Electronic voting machines may be used in holding and conducting the Election on Election Day; provided, however, in the event the use of such electronic voting machines is not practicable, the Election may be conducted on Election Day by the use of paper ballots (except as otherwise provided in this section). Electronic voting machines or paper ballots may be used for early voting by personal appearance (except as otherwise provided in this section). Pursuant to Section 61.012, as amended, Texas Election Code, the City shall provide at least one accessible voting system in each polling place used in the Election. Such voting system shall comply with State and federal laws establishing the requirement for voting systems that permit voters with physical disabilities to cast a secret ballot. Any legally permissible voting method may be used for early voting and Election Day voting by personal appearance. Certain early voting may be conducted by mail. SECTION 4: The Council authorizes each Administrator to utilize a Central Counting Station (the Stations) as provided by Section 127.001, et seq., as amended, Texas Election Code. The Administrators, or designees thereof, are hereby appointed as the Manager of their respective Stations who will establish a written plan for the orderly operation of the Stations in accordance with the provisions of the Texas Election Code. The Council authorizes the Administrators, or the designees thereof, to appoint the Presiding Judges, the Tabulation Supervisors, and the Programmers of their respective Stations and may appoint Station clerks as needed or desirable. The Administrators will publish (or cause to be published) notice and conduct testing on the automatic tabulation equipment relating to the Station and conduct instruction for the officials and clerks for their respective Stations in accordance with the provisions of the Texas Election Code. -3- SECTION 5. The official ballot shall be prepared in accordance with the Texas Election Code, as amended, so as to permit voters to vote "FOR" or "AGAINST" the aforesaid measures which shall appear on the ballot substantially as follows: PROPOSITION A "THE ISSUANCE OF NOT TO EXCEED $50,000,000 OF CITY OF SOUTHLAKE, TEXAS GENERAL OBLIGATION BONDS .FOR PARK (INCLUDING OPEN SPACE AND PASSIVE PARKS) IMPROVEMENTS, AND THE IMPOSITION OF A TAX SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS." SECTION 6. All resident qualified voters of the City shall be permitted to vote at the Election, and on Election Day, such voters shall vote at the designated polling places. The Election shall be held and conducted in accordance with the provisions of the Texas Election Code, as amended, Chapters 1251 and 1331, as amended, Texas Government Code, and as may be required by any other law. To the extent required by law, all materials and proceedings relating to the Election shall be printed in both English, Spanish and Vietnamese. SECTION 7. Notice of election, including a Spanish and Vietnamese translation thereof, shall be published on the same day in each of two successive weeks in a newspaper of general circulation in the City, the first of these publications to appear in such newspaper not more than 30 days, and not less than 14 days, prior to Election Day. Moreover, a substantial copy of this Resolution and the voter information attached as Exhibit C, including a Spanish and Vietnamese translation thereof, shall be posted (i) at City Hall not less than 21 days prior to Election Day; (ii) at three additional public places within the City not less than 21 days prior to Election Day, (iii) in a prominent location at each polling place on Election Day and during early voting, and (iv) in a prominent location on the City's intemet website not less than 21 days prior to Election Day. A sample ballot shall be posted on the City's intemet website not less than 21 days prior to Election Day. SECTION 8. As required by and in accordance with Section 3.009(b)(5) and (7) through (9) of the Texas Election Code, the City, as of the date of this Resolution, had outstanding an aggregate principal amount of debt equal to $78,260,000; the aggregate amount of the interest owed on such City debt obligations, through the respective maturity, totaled $15,549,619.01; and the City levied an ad valorem debt service tax rate for its outstanding debt obligations of $0.0800 per $100 of taxable assessed valuation. The bonds that are the subject of this Election shall mature serially or otherwise overall a specified number of years (not more than 40 years from their date), as preserved by applicable Texas law, though the City estimates that, based on current bond market conditions, such bonds will amortize over a 20 -year period from their respective date of issue. The foregoing estimated maximum net effective interest rate and amortization period are only estimates, provided for Texas statutory compliance; they do not serve as a cap on the per annum interest rate at which any series of bonds authorized at the Election may be sold, or the amortization period for bonds that are the subject of this Election. The City estimates an ad valorem debt service tax rate of $0.0800 per $100 of taxable assessed valuation if the bonds that are subject of the Election are approved and are issued (taking into account the outstanding City bonds and bonds that are the subject of this Election, but not future bond authorizations of the City). Based on the bond market conditions on the date of the Council's adoption of this Resolution, the maximum interest rate for any series of bonds authorized at the Election is 6.00% (expressed as a net effective interest rate applicable to any such series of bonds). SECTION 9. The Council authorizes the Mayor, the City Manager, or their respective designee, to negotiate and enter into one or more joint election agreements and/or similar contracts or agreements with the Counties, acting by and through the Administrators, and any Participants if desired or required to comply with applicable law, as permitted and in accordance with the provisions of the Texas Election Code, as amended. In addition, the City authorizes the Mayor, the City Manager, or their respective designee of either of such parties to make such technical modifications to this Resolution that are necessary for compliance with applicable Texas or federal law or to carry out the intent of the Council, as evidenced herein. To the extent that any duty or obligation of the City, in general, or any City official, in particular, is properly delegated to the Counties pursuant to a joint election agreement, then the Counties' carrying out those duties and obligations on the City's behalf pursuant to the terms of such joint election agreement shall be binding upon the City and are hereby determined by the Council to be evidence of the City's compliance with the provisions of applicable Texas law concerning the Election relative to the same. By incorporating all essential terms necessary for a joint election agreement, this Resolution is intended to satisfy Section 271.002(d) of the Texas Election Code, as amended, without further action of the City Council. To the extent needed or desirable, the Administrators are hereby appointed joint custodian of voted ballots for the purposes of Section 31.096, as amended, Texas Election Code. SECTION 10. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the Council. SECTION 11. All ordinances and resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters ordained herein. SECTION 12. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 13. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, as amended, Texas Government Code. SECTION 14. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and this -5- Council hereby declares that this Resolution would have been enacted without such invalid provision. SECTION 15. Pursuant to the provisions of Section 1201.028, as amended, Texas Government Code, this Resolution shall be effective immediately upon adoption. fZ PASSED AND APPROVED on the �Lth day of February, 2020. CITYqOUTHLAKE, TEXAS Mayo ATTEST: A%tyv(�S�retary C60VXz S (CIT'e AI,) U'__ APPROVED AS TO FORM: City Attorney [Signature Page to City of Southlake, Texas Resolution Calling a Bond Election] -7- . Exhibit A ELECTION DAY PRECINCTS AND POLLING PLACES Election Day: Saturday, May 2, 2020 Election Day Polling Locations open from 7 a.m. to 7 p.m. Presiding Judge(s) and Altemate(s): to be determined by the Administrators DENTON COUNTY To be as provided in the Contract with the Denton County Elections Administrator TARRANT COUNTY To be as provided in the Contract with the Tarrant County Elections Administrator A-1 Exhibit B IWR:1RIAWF IXICCe7 Early voting begins Monday, April 20, 2020 and ends on Tuesday, April 28, 2020. Applications for voting by mail should be received no later than the close of business (5:00 pm) on Monday, April 20, 2020. If an application for ballot by mail is faxed or emailed (or if a federal postcard application is faxed), the applicant must also mail the original application so that the early voting clerk receives the original no later than four days after receiving the emailed or faxed copy. Voters entitled to vote an early ballot by personal appearance may do so at any Early Voting site in their County of registration. Denton County Early Voting Clerk: Frank Phillips, Denton County Elections, P.O. Box 1720, Denton, Texas 76202 Presiding Judge of the Early Voting Ballot Board: to be determined by Frank Phillips Denton County Elections Office, 701 Kimberly Drive, Suite Al01, Denton, Texas 76208 Polling Locations [To be completed per the Contract with the Denton County Elections Administrator] Monday, April 20, 2020 through Friday, April 24, 2020 7:00 am — 7:00 pm Saturday, April 25, 2020 8:00 am — 5:00 pm Monday, April 27, 2020 through Tuesday, April 28, 2020 7:00 am — 7:00 pm The following early voting location will ONLYbe open the dates and times listed: Denton Civic Center Monday — Thursday April 20-23 8:00 am — 5:00 pm 321 E. McKinney, Denton Friday April 24 8:00 am — 4:00 pm Monday — Tuesday April 27-28 7:00 am — 7:00 pm Applications for early voting by mail should be sent to: Frank Phillips, Early Voting Clerk, Denton County Elections, 701 Kimberly Drive, Suite A101, Denton, Texas 76208; fax: (940) 349-3201; email: elections@dentoncounty.com. Tarrant County Early Voting Clerk: Heider Garcia, 2700 Premier St., Fort Worth, Texas 76111 Presiding Judge of the Early Voting Ballot Board: to be determined by Heider Garcia Tarrant County Elections Center, 2700 Premier St., Fort Worth, Texas 76111 Polling Locations [To be completed per the Contract with the Tarrant County Elections Administrator] Monday, April 20, 2020 through Friday, April 24, 2020 7:00 am — 7:00 pm Saturday, April 25, 2020 8:00 am — 5:00 pm Monday, April 27, 2020 through Tuesday, April 28, 2020 7:00 am — 7:00 pm Applications for early voting by mail should be sent to: Heider Garcia, 2700 Premier St., Fort Worth, Texas 76111; fax: (817) 884-1755; email: votebymail@tarrantcounty.com. Exhibit C VOTER INFORMATION DOCUMENT City of Southlake, Texas Proposition A: ❑ FOR I "THE ISSUANCE OF NOT TO EXCEED $50,000,000 OF CITY OF SOUTHLAKE, TEXAS GENERAL OBLIGATION BONDS FOR PARK (INCLUDING OPEN SPACE AND PASSIVE PARKS) IMPROVEMENTS, AND THE IMPOSITION OF A TAX SUFFICIENT TO PAY THE ❑ AGAINST I PRINCIPAL OF AND BONDS." principal of debt obligations to be authorized estimated interest for the debt obligations to be authorized presuming an interest rate of 2.05% estimated combined principal and interest required to pay on time and in full the debt obligations to be authorized amortized over 20 years as of the date the election was ordered, principal of all outstanding debt obligations as of the date the election was ordered, the estimated interest on all outstanding debt obligations estimated combined principal and interest required to pay on time and in full all outstanding debt obligations amortized over 19 years estimated maximum annual increase in the amount of taxes on a residence homestead with an appraised value of $100,000 to repay the debt obligations to be authorized, if approved This figure assumes the amortization of the City's debt obligations, including outstanding debt obligations and the proposed debt obligation; changes in estimated future appraised values within the City; changes in estimated future appraised values within the political subdivision; and the assumed interest rate on the proposed debt obligations. $50,000,000.00 $10,981,193.96 $60,981,193.96 $78,260,000.00 $15,549,619.01 $93,809,619.01 $0.0000 [The remainder of this page intentionally left blank.] C-1 RESOLUTION NO. 20-026 A RESOLUTION REPEALING RESOLUTION NO. 20-006 PASSED ON FEBRUARY 11, 2020 CALLING FOR A BOND ELECTION TO BE HELD IN THE CITY OF SOUTHLAKE, TEXAS ON MAY 2, 2020 WHEREAS, the City of Southlake is a home rule City acting under its charter adopted by the electorate pursuant to Article XI, Section 5, of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, pursuant to a resolution passed by the City Council (the "Council") of the City of Southlake, Texas (the "City") on February 11, 2020, a bond election was ordered to be held in the City on May 2, 2020 (the "Election"); and WHEREAS, in response to public health and safety concerns related to the novel coronavirus ("COVID-19") infectious disease outbreak, the Governor of the State of Texas (the "Governor") issued a proclamation on March 18, 2020 (the "Proclamation") authorizing political subdivisions, such as the City, that would otherwise hold elections on May 2, 2020, to move their general and special elections for 2020 to the next uniform election date, occurring on November 3, 2020; and WHEREAS, pursuant to a resolution passed by the Council on March 23, 2020, the Election was postponed to November 3, 2020 or a date that may be specified as an alternative in a future order issued by the Governor; and WHEREAS, the Council further finds and determines that the measure referred to as Proposition A in the February 11, 2020 resolution calling the election is moot and should be removed from the ballot of the November 3, 2020 election; and WHEREAS, the Council hereby finds and determines that issuing bonds at this time would not be in the best interests of the health, safety and welfare of the City and its residents; and WHEREAS, COVID-19 has created instability in the financial markets and in the national, state and local economies; and WHEREAS, the Council hereby finds and determines that the Election should be cancelled because the impacts of COVID-19 on the City and its residents renders the City unable to continue with the sale of bonds were the proposition to pass and, therefore, renders the bond election moot. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS THAT: SECTION 1. The Election is hereby cancelled, and all proceedings and actions to date with respect to such election shall be of no force or effect. SECTION 2. The City Manager or City Secretary are hereby authorized to forward a copy of this Resolution to the Denton County Elections Administrator and the Tarrant County Elections Administrator and the Proposition A referred to in the February 11, 2020 resolution should be removed from the ballot of the November 3, 2020 Election to be conducted by the Denton County Elections Administrator and the Tarrant County Elections Administrator. SECTION 3. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the Council. SECTION 4. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters ordained herein. SECTION 5. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, as amended, Texas Government Code. SECTION 7. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and this Council hereby declares that this Resolution would have been enacted without such invalid provision. SECTION 8. This Resolution shall be effective immediately upon adoption. PASSED AND APPROVED on the 16th day of June 2020. ATTEST: Amy Shelley City Secretary CITY OF SOUTHLAKE, TEXAS Laura K. Hill Mayor 14 201TIMBYWO Eel•ill City Attorney