[PAGE 1] Mayor Oscar D. Montoya Commissioner Dr. Jacob Howell Commissioner Joe Martinez Mayor Pro-Tem Dr. Ruben Saldana Commissioner Armando Garcia City Manager Alberto Perez MERCEDES CITY COMMISSION REGULAR MEETING OCTOBER 7, 2025 – 6:30 PM MERCEDES CITY HALL – COMMISSION CHAMBERS 400 S. OHIO AVE., MERCEDES, TX 78570 “At any time during the course of this meeting, the City Commission may retire to Executive Session under Texas Government Code 551.071(2) to confer with its legal counsel on any subject matter on this agenda in which the duty of the attorney to the City Commission under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Texas Government Code. Further, at any time during the course of this meeting, the City Commission may retire to Executive Session to deliberate on any subject slated for discussion at this meeting, as may be permitted under one or more of the exceptions to the Open Meetings Act set forth in Title 5, Subtitle A, Chapter 551, Subchapter D of the Texas Government Code.” 1. Call Meeting to Order 2. Establish Quorum 3. Invocation 4. Pledge of Allegiance 5. Open Forum 6. Presentation a. Recognition of Retirement for Mercedes Police Officer Roy Rocha b. Presentation of Campaign for Spay and Neuter of Animals c. Presentation by Planning Department on Developments 7. Consent Agenda a. Approval of Minutes for Meeting(s) held September 16, 2025 & September 23, 2025. b. Approval of Series 2025 Budget Amendment 8. Management Items: Present, discuss, consider and possibly take action regarding: a. Public Hearing regarding the Urban County Needs Assessment 9. Ordinances/Resolutions a. Approval of Resolution 2025-573 approving the Agreement for the Temporary Closure of State Right-of-Way - Veterans Day Parade 2025 b. Approval of Ordinance 2025-31 to include a standard design for Fire Hydrants and Saddles 10. Bids/Contracts a. Approval of renewal of Workers Compensation Insurance with Texas Mutual 11. Executive Session: Chapter 551, Texas Government Code, Section 551.071 (Consultation with Attorney), Section 551.072 (Deliberation regarding Real Property), Section 551.074 (Personnel Matters) and Section 551.087 (Economic Development) a. Discussion with City Manager regarding personnel matters - Section 551.074 b. Consultation with Attorney regarding update on litigation - Section 551.071 c. Consultation with Attorney regarding Project Anchor- Section 551.087 Page 1 of 45 [PAGE 2] Page 2 of 45 [PAGE 3] MERCEDES CITY COMMISSION REGULAR MEETING SEPTEMBER 16, 2025 – 6:30 PM MERCEDES CITY HALL – COMMISSION CHAMBERS 400 S. OHIO AVE., MERCEDES, TX 78570 MEMBERS PRESENT: Mayor Oscar Montoya Commissioner Joe Martinez Commissioner Jacob Howell Commissioner Armando Garcia Mayor Pro-Tem Ruben Saldana MEMBERS ABSENT: STAFF PRESENT: Alberto Perez, City Manager Joselynn Castillo, City Secretary Martie Garcia Vela, City Attorney Meredith Hernandez, Interim Finance Director Krisinte Longoria, Human Resources Francisco Sanchez, Police Chief Michael Rocha, I.T Director Tom Villagomez, Public Works Director Marisol Vidales, Library Director Denisse Hernandez, Interim Planning Director Armando Villela, Parks Director Javier Campos, Fire Chief/EMC OTHERS PRESENT: Nellie Zamora, Martin Johnson, Juan Vasquez, Alvaro De Leon 1. Call Meeting to Order Mayor Montoya welcomed everyone and called the meeting to order at 6:31 p.m. 2. Establish Quorum Four members of the Commission were present, constituting a quorum. Commissioner Martinez arrived later in the meeting. 3. Invocation The invocation was led by Commissioner Howell. 4. Pledge of Allegiance The Pledge of Allegiance was led by Commissioner Garcia. 5. Open Forum There were no sign-ups for Open Forum. 6. Presentation Page 3 of 45 [PAGE 4] a. Presentation by Melden & Hunt regarding the Water Well Project Mr. Ruben James De Jesus and Mr. Mike Hernandez provided the monthly report for June regarding the progress of the water well project. They noted that the cost estimate and the current project schedule are still pending. Environmental clearance has been obtained, and the project is now in the design phase. Funding has been allocated, and efforts are underway to close on the grant in order to access the funds. They further reported that the permitting from TCEQ remains pending, with completion anticipated by February 2026. In response to a question, Mr. De Jesus confirmed that Well Site No. 1 is the designated site for development. Mr. Perez clarified that funds are allocated exclusively for Site No. 1 and not for Site No. 2. b. P resentation on Mile 2 W Project by Pct. 1 County Commissioner David Fuentes and Mr. Lozano informed the Commission about the 9-mile road rehabilitation project from Highway 107 to IH-2 on Mile 2 West, with a total allocation of $12 million. They reported that 2.5 miles of the project fall within the City limits of Mercedes. Approval is requested for work to proceed inside the City limits. The County will front the costs and invoice the City at a later time during FY 2026–2027. The project will restore the existing pavement, and Commissioner Fuentes noted that bar ditching improvements will be completed following construction. Mayor Montoya expressed appreciation to Commissioner Fuentes and Mr. Lozano for their continued support and assistance to the City of Mercedes. At this time, Commissioner Garcia motioned to move to Item 9F. Commissioner Howell seconded. Upon a called vote, the motion passed unanimously. Ms. Caso clarified that the item is listed as 9D as per the addendum. Commissioner Garcia corrected his motion to move to Item 9D. Commissioner Howell seconded. Upon a called vote, the motion passed unanimously. 7. Consent Agenda a. Approval of Minutes for Meeting(s) held September 2, 2025 b. Second and Final Reading of Ordinance 2025-26 regarding the voluntary annexation of Salvador Roel Garcia and Jeffrey Adam Bryant c. Second and Final Reading of Ordinance 2025-27 to adopt the City of Mercedes Budget for FY 25-26 d. Approval of the Non-Discrimination Policy as required by GLO Commissioner Garcia made a motion to approve and forego the reading of Items B and C. Mayor Pro-Tem Saldana seconded. Upon a called vote, the motion passed unanimously. 8. Management Items: Present, discuss, consider and possibly take action regarding: a. Approval of Budget Amendment for Vehicle Maintenance Page 4 of 45 [PAGE 5] Mayor Pro-Tem Saldana motioned to approve. Commissioner Garcia seconded. Upon a c alled vote, the motion passed unanimously. b. Approval of Memorandum of Agreement between LEAD Regional Advisory Council (EMTF) and City of Mercedes - Mercedes Fire Department for E mergency Medical Task Force Commissioner Howell motioned to approve. Commissioner Garcia seconded. Chief Campos informed the Commission that the agreement allows the Fire Department to respond to regional calls and that reimbursement will cover personnel, equipment, and fuel. Mayor Montoya expressed pride in the Fire Department for their EMS services, which enabled the EMTF to request assistance from the City of Mercedes. Upon a called vote, the motion passed unanimously. c. Approval of MOU between the City of Mercedes Fire Department and South Texas College for fire-related continuing education and training equipment resources. Mayor Pro-Tem Saldana motioned to approve. Commissioner Garcia seconded. Upon a called vote, the motion passed unanimously. d. Approval of Facility Usage Agreement between the City of Mercedes Fire Department and South Texas College for access to the college’s live fire burn training facility. Commissioner Garcia motioned to approve. Mayor Pro-Tem Saldana seconded. Chief Campos stated that this agreement pertains to the use of a training facility for controlled burn exercises. He noted that while the facility charges per hour for training, there will be no charges for personnel. Upon a called vote, the motion passed unanimously. e. Approval of the updated Procurement Policy Commissioner Howell motioned to approve. Mayor Pro-Tem Saldana seconded. The Interim Finance Director Ms. Hernandez stated that the policy required updating, as the previous version was adopted in 2017. Upon a called vote, the motion passed unanimously. 9. Ordinances/Resolutions a. Approval of First Reading of Ordinance 2025-28 to Rezone Lot 7 Block 41 Capisallo E Subdivision Interim Planning Director Denisse Hernandez stated that this item pertains to the Warehouse Pallet. She noted that only three members were able to vote, resulting in a vote of two to one. The rezone request is from Newly Annexed to Business. Mayor Pro-Tem Saldana motioned to approve. Commissioner Garcia seconded. Upon a called vote, the motion passed unanimously. b. P UBLIC HEARING on Proposed Tax Rate for 2025 Page 5 of 45 [PAGE 6] Mayor Montoya opened the public hearing at 7:11 p.m. There were no comments from the public. Mayor Montoya closed the public hearing at 7:14 p.m. 1) Approval of first reading of Ordinance 2025-29 to adopt the Tax Rate for 2 025 Mayor Pro-Tem Saldana motioned to approve and forego the reading. Commissioner Garcia seconded. Upon a called vote, the motion passed unanimously. c. Approval of Ordinance 2025-30 updating the Water and Sewer Rates Mr. Jason Gray addressed the Commission regarding utility rates. He reported that a recent water rate study indicates that utility rates increase on average by 5% annually, with construction costs rising faster than inflation. Mayor Montoya noted that cities only receive grants for necessary projects, not discretionary ones. It was further explained that cities not increasing rates typically have no ongoing utility construction projects. Mr. Gray presented four scenarios and recommended updating the tier structure to the new rates for the coming year. The base charge is determined by meter size: Scenario 1A: Funds clean water and drinking water revolving fund projects only, utilizing both forgivable loan elements and low-interest state loans. This is the lowest-cost alternative for immediate projects but does not fund future CIP projects. Base cost increase for average 5,000-gallon user: $3.96. Scenario 1B: Funds current expenses plus contemplated CWSRF and DWSRF projects using market-rate bonds instead of state funding. Allows completion of immediate projects but requires considerably higher rate increases. Base cost increase: $10.91. Scenario 2: Funds current expenses plus current CWSRF and DWSRF projects using state programs, with an additional $5M annual market-rate debt issuance. Capitalizes on state programs and supports meaningful CIP projects over the long term. Base cost increase: $6.30. Scenario 3: Funds current expenses plus current CWSRF and DWSRF projects using state programs, with an additional $10M annual market-rate debt issuance. Supports completion of all known long-term CIP projects. Base cost increase: $8.74. Water rate would increase 7% and sewer rate 15%. Commissioner Martinez arrived at 7:49 p.m. Mr. Matt Lujan explained the timeline due to a pending grant. Mayor Pro-Tem Saldana motioned to approve and adopt Scenario 3. There was no second, and the motion died. Mr. Mike Hernandez of Melden & Hunt noted that equipment costs are rising, increasing project costs if the City delays. Mr. Perez expressed comfort with Scenario 2. Mayor Pro- Tem Saldana motioned to approve and adopt Scenario 2. Commissioner Garcia seconded. Upon a called vote, the motion passed with Commissioner Howell voting against. Page 6 of 45 [PAGE 7] d. Approval of Resolution 2025-20 authorizing the Resale of Foreclosed Real Estate P roperties for failure to pay ad valorem taxes Ms. Janelle Caso addressed the Commission regarding homes that have been struck off following the tax resale. She provided information on properties that did not sell during the tax resale and explained that the City can purchase and retain these properties by submitting a bid to the taxing entities. Property No. 2, located at 642 Iowa St., had an appraised value of over $70,000, with a requested purchase price of $27,000. Mr. Romeo Cantu clarified that the City can approve the resolution while still removing the property from the tax resale at a later time. The Commission moved to discuss this item in executive session. The Commission proceeded with the agenda as written. Move back to item 7. Following Executive Session, Commissioner Martinez motioned to approve. Commissioner Garcia seconded. Upon a called vote, the motion passed unanimously. e. Approval of Resolution 2025-21 regarding establishing a Utility Fund Bank account Finance Director Meredith Hernandez addressed the Commission, stating that staff recommends separating the General Fund from the Utility Fund in the bank to facilitate audits. Commissioner Howell motioned to approve. Mayor Pro-Tem Saldana seconded. Upon a called vote, the motion passed unanimously. f. Consideration and Approval of a Resolution 2025-22 relating to establishing the City's Intention to reimburse itself for the prior lawful expenditure of funds relating to constructing various city improvements from the proceeds of tax- exempt obligations to be issued by the city for authorized purposes; authorizing other matters incident and related thereto; and providing an effective date Mr. Matt Lujan requested that Items F and G be considered together. Mr. Lujan, with Estrada Hinojosa, addressed the Commission regarding financing on the Interest & Sinking (I&S) side for a Fire Engine, building maintenance, Public Works, and Utilities projects. Bond counsel for the financing is Norton Rose Fulbright. He explained that a notice will need to be posted for 45 days before financial institutions can submit bids. Commissioner Martinez motioned to approve item 9F and 9G. Commissioner Garcia seconded. Upon a called vote, the motion passed unanimously. g. Consideration and Approval of a Resolution 2025-23 by the City Commission of the City of Mercedes, Texas Authorizing and approving publication of Notice of Intention to issue certificates of obligation; complying with the requirements contained in securities and exchange commission rule 15c2-12; and providing an effective date 10. Bids/Contracts Page 7 of 45 [PAGE 8] a. Approval to select a contractor for the 2019 GLO Floods Mercedes Drainage I mprovement Project Commissioner Howell initially motioned to approve, but rescinded his motion following input from Ms. Dalinda Ramos with SWG. Ms. Ramos stated that the environmental review was approved in June and that bids were received on August 15, 2025. The lowest bidder was G8 Utilities, with a bid of $1,002,412.00. The project includes a $1,000,000 grant and involves drainage improvements near the dome, connecting to the existing gate structure currently being processed with the drainage district. Commissioner Martinez motioned to approve the recommendation. Commissioner Howell seconded. Upon a called vote, the motion passed unanimously. b. Approval of Televon (Civic Tech) Contract Amendment FY 25-26 Renewal I.T. Director Michael Rocha addressed the Commission regarding amending the current contract to reflect the city’s goals and needs. Televon will continue its operations of backup and disaster recovery of critical infrastructure as well as Tier 2 and 3 non- emergency support. The pricing will reduce from $5,000 per month to $2,800 per month equating to $33,600 annually down from $54,000. Commissioner Martinez motioned to approve. Commissioner Garcia seconded. Upon a called vote, the motion passed unanimously. c. Approval of Agreement for Animal Control Services with the City of Weslaco Mr. Perez stated that this item is a renewal. Commissioner Martinez motioned to approve. Commissioner Garcia seconded. Mr. Perez noted that staff is exploring other options. Chief Sanchez stated that the department is organizing an event for spay and neuter, as well as tagging and registration of pets. Mayor Montoya requested that this item be placed on the next agenda to advance the event. Upon a called vote, the motion passed, with Commissioner Howell voting against and recommended reaching out to non-profit organizations to assist. d. Consideration and possible approval of entering into a Water CCN Buyout agreement with North Alamo Water Supply Corporation (NAWSC), subject to the criteria outlined Mr. Mike Hernandez with North Alamo Water Supply addressed the Commission regarding an agreement for the buyout of water to allow the City to provide service to the designated area. He stated that the associated fees would be paid by the developer. The agreement designates an area on FM 491 from Mile 8 N to Mile 10 N, enabling developers within this area to receive City water service. Commissioner Martinez motioned to approve. Commissioner Garcia seconded. Upon a called vote, the motion passed unanimously. e. Approval to renew the Administrator of Records contract for EMS Page 8 of 45 [PAGE 9] Chief Campos stated that this item is a renewal for the requirement of the state application and that the agreement covers a two-year period. Mayor Pro-Tem Saldana motioned to approve. Commissioner Garcia seconded. Upon a called vote, the motion passed unanimously. 11. Monthly Departmental Reports a. Recreation Center, I.T, Planning, Public Works, Library, City Sec/HR, Police Dept, Fire Dept, Finance Mayor Pro-Tem Saldana complimented the Police and Fire Departments for the workshop they conducted on emergency management. 12. Executive Session: Chapter 551, Texas Government Code, Section 551.071 (Consultation with Attorney), Section 551.072 (Deliberation regarding Real Property), Section 551.074 (Personnel Matters) and Section 551.087 (Economic Development) Commissioner Howell motioned to go into executive session. Mayor Pro-Tem Saldana seconded. Upon a called vote, the motion passed unanimously. The meeting went into e xecutive session at 9:07 p.m. a. Discussion with City Manager regarding personnel matters - Section 551.074 b. Consultation with legal counsel pursuant to Texas Government Code 551.071 (1)(a) regarding pending litigation c. Consultation with Attorney regarding Project Anchor - Section 551.087 13. Open Session Mayor Montoya reconvened the meeting at 11:25 p. m. a. Possible Action pertaining to executive session item A No action was taken on item A in executive session. b. Possible Action pertaining to executive session item B No action was taken on item B in executive session. c. Possible Action pertaining to executive session item C No action was taken on item C in executive session. 14. Adjournment Commissioner Martinez motioned to adjourn. Commissioner Garcia seconded. Upon a called vote, the motion passed unanimously. The meeting adjourned at 11:26 p.m. Page 9 of 45 [PAGE 10] MERCEDES CITY COMMISSION REGULAR MEETING SEPTEMBER 23, 2025 – 6:30 PM MERCEDES CITY HALL – COMMISSION CHAMBERS 400 S. OHIO AVE., MERCEDES, TX 78570 MEMBERS PRESENT: Mayor Oscar Montoya Commissioner Joe Martinez Commissioner Armando Garcia Commissioner Jacob C. Howell (virtual) MEMBERS ABSENT: Mayor Pro-Tem Ruben Saldana STAFF PRESENT: Alberto Perez, City Manager Martie Garcia Vela, City Attorney (virtual) Meredith Hernandez, Interim Finance Director Kristine Longoria, Human Resources M ichael Rocha, I.T Director OTHERS PRESENT: Juan Vasquez 1. Call Meeting to Order Mayor Montoya welcomed everyone and called the meeting to order at 6:40 p.m. 2. Establish Quorum A quorum was established with Mayor Montoya, Commissioner Garcia, and Commissioner Martinez present in person. Commissioner Howell and Attorney Martie- Vela joined the meeting via Google Meets. Mayor Pro-Tem Saldana was absent. 3. Invocation The invocation was led by Commissioner Howell. 4. Pledge of Allegiance The Pledge of Allegiance was led by Commissioner Martinez. 5. Open Forum There were no sign-ups for Open Forum. 6. Consent Agenda a. Second and Final Reading of Ordinance 2025-28 to Rezone Lot 7 Block 41 Capisallo E Subdivision b. Second and Final Reading of Ordinance 2025-29 to adopt the Tax Rate for 2025 c. Second and Final Reading of Ordinance 2025-30 updating the Water and Sewer Rates d. Discussion and Possible Action to Amend City of Mercedes Personnel Policy Chapter 23. Hours of Work, Attendance, and Punctuality Page 10 of 45 [PAGE 11] Commissioner Jose Martinez motioned to approve items A, B, C, and D and to forgo the reading of items A, B, and C. The motion was seconded by Commissioner Armando Garcia and carried unanimously. 7. Management Items: Present, discuss, consider and possibly take action regarding: a. Approval of Interlocal Cooperation Agreement between the County of Hidalgo, City of Mercedes, and City of Edcouch, Texas concerning project development activities of the Mile 2 West Road Project, from State Highway (SH) 107 to Interstate Highway (IH) 2 Commissioner Jose Martinez made a motion to approve the agreement, which was seconded by Commissioner Armando Garcia. The motion carried unanimously. ADDENDUM 8. Executive Session: Chapter 551, Texas Government Code, Section 551.071 (Consultation with Attorney), Section 551.072 (Deliberation regarding Real Property), Section 551.074 (Personnel Matters) and Section 551.087 (Economic Development) A motion to enter Executive Session was made by Commissioner Martinez and seconded by Commissioner Garcia. The motion carried unanimously, and the Executive Session began at 6:44 p.m. a. Discussion with City Manager regarding personnel matters – Section 551.074 b. Consultation with Attorney regarding update on litigation – Section 551.071 c. Consultation with Attorney regarding Project Anchor – Section 551.087 9. Open Session: Mayor Montoya reconvened the meeting at 7:28 p.m. a. Possible Action pertaining to executive session item A No action was taken on item A from executive session. b. Possible Action pertaining to executive session item B No action was taken on item A from executive session. c. Possible Action pertaining to executive session item C No action was taken on item A from executive session. 10. Adjournment Commissioner Jose Martinez motioned to adjourn the meeting, and Commissioner Armando Garcia seconded the motion. Upon a called vote, the motion passed unanimously. The meeting was adjourned at 7:29 p.m. Page 11 of 45 [PAGE 12] AGENDA ITEM NO. 7.B. Consent Agenda DATE: October 7, 2025 FROM: Meredith Hernandez, Interim Finance Director ITEM: Discussion and possible action to Approval of Series 2025 Budget Amendment BACKGROUND INFORMATION: This budget amendment is necessary to cover the first year of Series 2025. BOARD REVIEW/CITIZEN FEEDBACK: N/A ALTERNATIVES/OPTIONS: N/A FISCAL IMPACT: (Total Costs) Proposed Expenditure/(Revenue): Account Number(s): $ Finance Review by: Yes LEGAL REVIEW: No ATTACHMENTS: 1. B UDGET AMENDMENT STAFF RECOMMENDATION: Approval of the Budget Amendment Page 12 of 45 [PAGE 13] CITY OF MERCEDES BUDGET AMENDMENT FUND: 01 BUDGET AMENDMENT# DEPARTMENT: DATE POSTED: Approved Amended Fund G/L ACCT# DESCRIPTION Budget (Decrease) Add Budget 02 540-6024 Series 2025 Interest 228,027.00 (65,000.00) 163,027.00 02 540-6023 Series 2025 Principal 65,000.00 65,000.00 - - - - - - - - Justification/Explanation for change: Payment adjustment for Series 2025 Dept Head Requesting change Finance Dept Approved: City Manager Mayor Page 13 of 45 [PAGE 14] HIDALGO COUNTY URBAN COUNTY PROGRAM MEMORANDUM To: Hidalgo County Urban County Program CDBG Participating Cities’ and Precincts’ From: Joel Rivera, Ph.D., Director Urban County Program Date: September 04, 2025 Reference: HIDALGO COUNTY URBAN COUNTY PROGRAM CDBG PROGRAM CALENDAR FISCAL YEAR 2026 ANNUAL ACTION PLAN (AAP) In compliance with the U.S. Department of Housing and Urban Development (HUD) regulations governing the Community Development Block Grant (CDBG) Program, the Urban County Program is preparing to initiate the process for the 2026 Program Year Needs Assessment Public Hearing. Pursuant to CDBG regulations, the Needs Assessment Public Hearing serves as a crucial platform to solicit input from the public, particularly low- and moderate-income residents, regarding the community’s housing and non-housing needs. This input is vital in ensuring compliance with CDBG’s primary objective of developing viable urban communities by providing decent housing, a suitable living environment, and expanding economic opportunities. In accordance with 24 CFR Part 91, each participating jurisdiction must provide citizens with adequate opportunity to participate in the development of the Annual Action Plan. The public hearing, which is a mandatory component of this process, must take place between October 01 to October 31, 2025, as outlined in the attached UCP 2026 Program Year Annual Action Plan Calendar. Please schedule the public hearing for your City/Precinct during this timeframe. It is essential that the meeting is publicized in advance, allowing residents ample opportunity to attend and offer their feedback, in line with CDBG public participation requirements. Ensure to provide the confirmed date and time for the public hearing no later than September 17th so that we may coordinate the necessary publication and ensure compliance with HUD's citizen participation and consultation regulations. Should you require any further information or clarification on the process, please do not hesitate to contact me. We appreciate your prompt attention to this matter and your continued partnership in advancing the goals of the CDBG program. Thank you for your cooperation and commitment to adhering to HUD’s CDBG regulations. 1916 TESORO STREET PHARR, TEXAS 78577 (956) 787-8127 FAX: (956) 318-2988 E-mail: ucp@co.hidalgo.tx.us Equal Housing Opportunity Equal Employment Opportunity Employer Page 14 of 45 [PAGE 15] HIDALGO COUNTY URBAN COUNTY PROGRAM CDBG PROGRAM CALENDAR PROGRAM YEAR 2026 ANNUAL ACTION PLAN (AAP) DATE TIMELINE FOR PROGRAM 2026 PROJECTS September 04, 2025 • UCP will send Memorandum to the Cities & Precincts AAP Calendar & schedule technical assistance and training, if necessary and/if requested. • Cities and Precincts must send date and time to hold Public Hearing for Needs Assessments held September 17, 2025 in October. September 24, 2025 • UCP will Publish NOFA (Notice of Funding Availability) & Public Hearing on the Monitor & El Periodico Cities and Precincts Must Hold A Needs Assessment Public Hearing • Emphasize public attendance and input; October 01, 2025- • Keep attendance log and minutes for meeting; • Provide public with information about past years funding/spending. October 31, 2025 • Obtain input about public needs and provide answers to questions. • If suggestions from the public are not included in plan, the city/precinct must explain why. • Submit copies of Affidavits, Sign-In sheets, Agenda, Minutes and Funding Request Letters to UCP. Preliminary Due at Urban County Program Office November 14, 2025 • Cities/ Precincts must submit workplans to UCP. • UCP will schedule one-on-one meetings with City staff to review the eligibility. • Each activity should be well documented and must include photos, location map (identifying project location), flood zone map, project cost estimates and estimated length of time to complete and estimated start date. December 19, 2025 UCP Projects Eligibility Determination • UCP will return work plans to City/Precinct with comments and/or revisions if needed, along with request for City Council approval. January 30, 2026 Final Work Plans Due At UCP Offices. • Final work plans submissions should include a copy of City Council approved resolution, certified minutes and sign-in sheet. February 02, 2026 UCP Staff Begins Preparation of The Annual Action Plan • Staff begins to enter the data (drafted from the Funding Applications submitted, to include narratives, maps, eligibility documents, etc.) into the Integrated Disbursement & Information System (IDIS) to prepare for the Annual Action Plan. February 25, 2026 UCP Publish Summary of The Proposed AAP & Public Hearing • Post on Website • Send notice/affidavits to the Cities/ Precincts for posting • DRAFT FY 2026 AAP must be ready for posting February 25, 2025 UCP Start of 30 Day Comment Period (Start the Environmental Process) March 02-31, 2026 UCP Start Environmental Review Record (ERR) • Exempt • Categorical Exclusions Not Subject to §58.5 • Environmental Assessment • Environmental Impact Statements March 06, 2026 UCP Hold Public Hearing on Proposed AAP at UCP Office April 06, 2026 UCP End of FY 2026 AAP 30 Day Comment Period • UCP Prepare and submit AAP Agenda Item March 25, 2026 UCP to Follow up on Environmental Consultation Letters April, 2026 Commissioners Court Approves Final AAP • Post Copy of Final AAP on Website May 15, 2026* UCP submit FY 2026 Annual Action Plan to HUD APP Due at HUD June 30, 2026 Audits are due in UCP Office (before 5:00 p.m.) from cities. Page 15 of 45 [PAGE 16] HIDALGO COUNTY URBAN COUNTY PROGRAM CDBG PROGRAM CALENDAR PROGRAM YEAR 2026 ANNUAL ACTION PLAN (AAP) DATE TIMELINE FOR FY 2026 PROJECTS May 21 – June 05, Publish NOI/ RROF 2026 • 15 Day Comment Period • Submit Combined Notice to “The Monitor” for publishing • Combined Notice Published June, 2026 Submit Request of Funds and Certification form to HUD • HUD Comment Period (7 Days for Individual Projects) June, 2026 Receive Authority to utilize Grant Funds *All scheduled dates are based on current information and are subject to change due to project needs or unforeseen circumstances. Page 16 of 45 [PAGE 17] Page 17 of 45 [PAGE 18] AGENDA ITEM NO. 9.A. Ordinances/Resolutions DATE: October 7, 2025 FROM: Orlando Diaz, Lieutenant ITEM: Discussion and possible action to Approval of Resolution 2025-573 approved the Agreement for the Temporary Closure of State Right-of-Way - Veterans Day Parade 2025 BACKGROUND INFORMATION: The Mercedes Police Department respectfully requests the approval of Agreement for the Temporary Closure of State Right-of-way in order to aid with traffic control during the Veterans Day Parade. BOARD REVIEW/CITIZEN FEEDBACK: ALTERNATIVES/OPTIONS: FISCAL IMPACT: (Total Costs) Proposed Expenditure/(Revenue): Account Number(s): $ 01-522-1011 LEGAL REVIEW: ATTACHMENTS: 1. A pproval of Agreement for the Temporary Closure of State Right-of-Way - Veterans Day Parade 2025 STAFF RECOMMENDATION: I move to approve the Agreement with the Texas Department of Transportation for the Temporary Closure of State Right-of-Way to facilitate traffic control during the Veterans Day Parade. Page 18 of 45 [PAGE 19] Page 19 of 45 [PAGE 20] Page 20 of 45 [PAGE 21] Page 21 of 45 [PAGE 22] Page 22 of 45 [PAGE 23] Page 23 of 45 [PAGE 24] Page 24 of 45 [PAGE 25] Page 25 of 45 [PAGE 26] Page 26 of 45 [PAGE 27] Page 27 of 45 [PAGE 28] Page 28 of 45 [PAGE 29] Page 29 of 45 [PAGE 30] Page 30 of 45 [PAGE 31] Page 31 of 45 [PAGE 32] Page 32 of 45 [PAGE 33] Page 33 of 45 [PAGE 34] Page 34 of 45 [PAGE 35] Page 35 of 45 [PAGE 36] ORDINANCE NO. 2025-31 AN ORDINANCE OF THE CITY OF MERCEDES, TEXAS, AMENDING THE CODE OF ORDINANCES, CHAPTER 13 “UTILITIES,” ARTICLE 13.03.00 “WATER AND SEWERS,” TO ADD DIVISION 13.03.007 “FIRE HYDRANT AND DOUBLE STRAP SADDLE SPECIFICATIONS”; PROVIDING FOR ADOPTION OF TECHNICAL STANDARDS; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. Section 1. Amendment. The Code of Ordinances of the City of Mercedes, Texas, Chapter 13, “Utilities,” Article 13.03.00, “Water and Sewers,” is hereby amended to add a new Division 13.03.007, which shall read as follows: DIVISION 13.03.007 – FIRE HYDRANT AND DOUBLE STRAP SADDLE SPECIFICATIONS 1. Purpose. The purpose of this division is to establish uniform specifications and installation requirements for fire hydrants and double strap saddles used within the City of Mercedes, Texas, to ensure compliance with industry standards, public safety, and protection of the City’s water infrastructure. 2. Double Strap Saddle Specifications. All double strap saddles installed within the City shall meet the following minimum requirements: 1. Outlet tapped with either AWWA taper (C.C.) or AWWA I.P. thread (F.I.P.T.). 2. Maximum working pressure: 200 psig (1380 kPa/13.80). 3. Only double strap saddles are permitted. 4. Straps shall be made of brass. 5. Straps shall be flattened silicon brazed. 6. Cast nuts shall have integral washers. 7. Straps shall have rolled threads. 8. Outlet shall be O-ring sealed. 9. All saddles three (3) inches and above shall be brass. 10. Saddles shall meet all applicable parts of ANSI/AWWA C800. 11. Saddles shall be NSF 61 Certified. 12. All components in contact with potable water must comply with the U.S. Federal Safe Drinking Water Act, effective January 4, 2014. 3. Fire Hydrant Specifications. (a) General Requirements. Page 36 of 45 [PAGE 37] 1. Hydrants shall comply with AWWA C502, AWWA C550 (coatings), AWWA C111 (joints), NSF/ANSI 61 & 372, and TCEQ 30 TAC 290. 2. Hydrants shall be installed in accordance with NFPA 24. 3. Fire flow testing and color coding shall be in accordance with NFPA 291. 4. Hydrants must be UL/FM approved where required. (b) Performance Standards. 1. Working pressure: 250 psi minimum. 2. Hydrostatic test: 500 psi. 3. Main valve opening: 5-1/4 inch minimum. 4. Nozzles: two (2) 2-1/2 inch NST and one (1) 4-1/2 inch NST, with local fire department threads as directed. 5. Operating direction: open left (counter-clockwise) unless otherwise directed. 6. Drainage: automatic drains with gravel pocket, or plugs where groundwater risk exists. 7. Materials: ductile iron body, bronze seat rings, stainless steel stem, EPDM O-rings. 8. Coating: fusion bonded epoxy, inside and outside, per AWWA C550, 8–12 mil DFT. 9. Markings: year, manufacturer, and open direction cast on hydrant. 10. Warranty: minimum ten (10) years on hydrant and twenty-five (25) years on main valve/bonnet sealing. 4. Fire Hydrant Installation Requirements. 1. Hydrants shall only be installed on mains six (6) inches in diameter or larger. 2. Each hydrant shall have a six (6) inch auxiliary resilient-seated gate valve located two (2) to five (5) feet from the hydrant shoe. 3. Hydrant bury depth shall provide eighteen (18) inches ± two (2) inches nozzle height above grade. 4. Thrust blocks or mechanical restraint shall be provided at all tees and fittings. 5. A minimum of three (3) feet clear space shall be maintained around hydrant, with pumper nozzle oriented toward roadway. 6. Hydrant leads shall be disinfected and tested per AWWA C600 and C651. 7. Fire flow testing shall be performed, and hydrants painted per NFPA 291 color coding. 8. The top of the hydrant shall have an all-weather protective cap. 9. Hydrants shall feature a 304 stainless steel upper stem piece for corrosion resistance and strength. 10. Hydrants shall include a drainage system at the hydrant shoe to keep interior dry when not in use. 11. Spare parts shall be interchangeable between models and compatible with at least ninety (90) percent of previous years’ models. 5. Enforcement. All contractors, developers, and City departments shall comply with the specifications contained in this Division. No hydrant or saddle shall be accepted by the City unless it meets these requirements. Page 37 of 45 [PAGE 38] Section 2. Severability. If any provision of this ordinance is declared invalid, such invalidity shall not affect the remaining provisions, which shall continue in full force and effect. Section 3. Effective Date. This ordinance shall take effect immediately upon passage and approval. PASSED AND APPROVED this 7th day of October, 2025. PASSED, APPROVED, AND ADOPTED this 21st day of October, 2025. CITY OF MERCEDES, TEXAS _________________________________ Oscar D. Montoya Sr., Mayor ATTEST: _________________________________ __________________________________ Joselynn Castillo, City Secretary Martie Garcia-Vela, City Attorney Page 38 of 45 [PAGE 39] AGENDA ITEM NO. 10.A. Bids/Contracts DATE: October 7, 2025 FROM: Kristine Longoria, HR Specialist ITEM: Discussion and possible action to Approval of renewal of Workers Compensation Insurance with Texas Mutual BACKGROUND INFORMATION: The City of Mercedes is requesting approval of the agreement with Texas Mutual for Workers Compensation. The current policy with Texas Mutual ends on November 1, 2025. BOARD REVIEW/CITIZEN FEEDBACK: N/A ALTERNATIVES/OPTIONS: N/A FISCAL IMPACT: (Total Costs) Proposed Expenditure/(Revenue): Account Number(s): $ Finance Review by: No LEGAL REVIEW: No ATTACHMENTS: 1. F inal Premium Audit-City of Mercedes(4) STAFF RECOMMENDATION: Recommend approval Page 39 of 45 [PAGE 40] PRMAUD WORKERS' COMPENSATION INSURANCE PO Box 12058 Austin, TX 78711-2058 Confidential Information Enclosed MONTALVO INS AGCY INC PO BOX 2 WESLACO TX 78599-0002 CONFIDENTIALITY NOTICE: This communication may contain confidential, proprietary or privileged information and is intended only for the person to whom the communication is addressed. If you are not the intended recipient, please immediately notify Texas Mutual's information services center at (800) 859-5995 or information@texasmutual.com and destroy all copies of the communication as your use, disclosure, copying or storage of the communication is prohibited and may be a violation of state or federal law. 2025-01-21 Print Cover Page Page 40 of 45 [PAGE 41] WORKERS' COMPENSATION INSURANCE 1/21/25 Final Audit Cover Letter Agent copy MONTALVO INS AGCY INC PO BOX 2 WESLACO TX 78599-0002 Regarding Policy no. Policy period CITY OF MERCEDES 0002005502 11/1/23 to 11/1/24 Dear Policyholder, Enclosed you will find a copy of the final audit statement for your policy. This final audit reflects the total premium associated with the referenced policy period. Any credits or additional amounts owed will be addressed separately. This final audit statement covers only the policy period referenced above. Final audits for other policies will be processed separately. If you have questions, please contact our office at (800) 859-5995 and ask to speak with a representative in our information services center. Thank you for doing business with Texas Mutual Insurance Company. Sincerely, Premium Audit Team cc: CITY OF MERCEDES 400 S OHIO AVE MERCEDES TX 78570-3120 2200 Aldrich Street Austin, Texas 78723-3474 texasmutual.com | (800) 859-5995 | Fax (512) 224-3011 FACOVR Page 41 of 45 [PAGE 42] WORKERS' COMPENSATION INSURANCE 1/21/25 Important Message for the Agent Agent copy MONTALVO INS AGCY INC PO BOX 2 WESLACO TX 78599-0002 Regarding Policy no. Policy period CITY OF MERCEDES 0002005502 11/1/23 to 11/1/24 Dear Agent, Due to the results of the enclosed audit it may be necessary to make changes to the current policy. The underwriting team will review the audit and make any amendments by endorsement. This may include, but is not limited to, a change in the current payrolls to reflect the audited payrolls, resulting in an increase in premium for the current policy. If you are in need of any further information or have any questions, please send an email to underwriting@texasmutual.com. Sincerely, LISA SMITH Underwriting Team 2200 Aldrich Street Austin, Texas 78723-3474 texasmutual.com | (800) 859-5995 | Fax (512) 224-3011 UNADDPRM Page 42 of 45 [PAGE 43] Agent copy e€xasMutual" Final Audit Summary WORKERS'COMPENSATIONINSURANCE Printed 01/21/2025 Policyholder Policy number Policy period CITY OF MERCEDES 0002005502 11/01/2023 to 11/01/2024 400 S OHIO AVE MERCEDES TX 78570-3120 Agency MONTALVO INS AGCY INC We sent this summary to your client PO BOX 2 Additional premium amount : $10,649.00 WESLACO TX 78599-0002 THIS IS NOT A BILL Estimated premium 118,157.00 $10,649.00 Change in premium (+) 10,649.00 Final calculated premium 128,806.00 Billing adjustment This change will be applied to your account. Premium billed to date (-) 118,157.00 Billing adjustment 10,649.00 Final audit notes Final calculated premium is based on the final audit conducted by Jessica Moreno. Final audit definitions Estimated premium Premium billed to date Based on the payroll and business operations description provided The amount we've billed you, based on your payment plan and any during your quote and any policy changes that happened during the applicable deposits or payroll reports. This amount may differ from the policy period. estimated premium. Change in premium Billing adjustment This is how much your premium changed after your final audit. The difference between the final calculated premium and the premium billed to date. The billing adjustment is subject to change and may not Final calculated premium include all payments or charges on your account. Based on the actual payroll and description of operations you provided during the audit. Next steps ● Do not make a payment until you get your next invoice. ● We will send you an invoice for the balance due. ● Log on to texasmutual.com for billing and payment information. Questions? Call (800) 859-5995 or email finalaudit@texasmutual.com for help or to request a copy of the audit worksheet used to calculate the premium. 1 of 1 2200 Aldrich Street Austin, Texas 78723-3474 | texasmutual.com | (800) 859-5995 | Fax (512) 224-3011 FASUM Page 43 of 45 [PAGE 44] TexasMutual Agent copy Final Audit Summary WORKERS'COMPENSATIONINSURANCE Printed 01/21/2025 CITY OF MERCEDES Policy period: 11/01/2023 to 11/01/2024 11/01/2023 to 11/01/2024 Location Class code Class description Exposure Rate Actual premium 00001 4511 Analytical Chemist 0.00 0.830 0.00 00001 5191 Computer and Data Processing Services: Maintenance and Repair 82,247.00 0.880 724.00 00001 5506 Street or Road Construction-All Operations & Drivers 239,901.00 7.020 16,841.00 00001 7520 Waterworks Operation & Drivers 307,794.00 2.900 8,926.00 00001 7704 Fire Fighters & Drivers 1,018,753.00 7.540 76,814.00 00001 7704 Fire Fighters-Volunteer-& Drivers 51,750.00 7.540 3,902.00 00001 7720 Police Officers & Drivers 1,726,168.00 2.900 50,059.00 00001 8391 Automobile Machine Shop & Drivers 42,820.00 2.050 878.00 00001 8742 Salespersons or Collectors-Outside 113,810.00 0.320 364.00 00001 8810 Clerical Office Employees NOC 1,545,079.00 0.110 1,700.00 00001 8831 Animal Shelters & Drivers 44,380.00 1.440 639.00 00001 8838 Museum or Public Library-Professional Employees 280,153.00 1.060 2,970.00 00001 9015 Buildings NOC-Operation By Owner or Lessee-& Drivers 87,256.00 2.810 2,452.00 00001 9063 Recreation Centers & Drivers 43,186.00 0.920 397.00 00001 9101 Museum or Public Library-All Other Employees-& Drivers 0.00 3.800 0.00 00001 9102 Park NOC-All Employees-& Drivers 207,128.00 2.860 5,924.00 00002 7720 Police Officers & Drivers 0.00 2.900 0.00 00003 7720 Police Officers & Drivers 0.00 2.900 0.00 00004 7720 Police Officers & Drivers 0.00 2.900 0.00 00005 7720 Police Officers & Drivers 0.00 2.900 0.00 00006 7720 Police Officers & Drivers 0.00 2.900 0.00 00007 7720 Police Officers & Drivers 0.00 2.900 0.00 00008 7720 Police Officers & Drivers 0.00 2.900 0.00 00009 7720 Police Officers & Drivers 0.00 2.900 0.00 Manual Premium 172,590.00 9812 Increased Limits Factor 1,000,000/1,000,000/1,000,000 172,590.00 0.014 2,416.00 9898 Experience Modifier of 1.22 175,006.00 1.220 38,501.00 9887 Schedule Modifier 213,507.00 0.760 (51,242.00) 9874 Healthcare Network Option 162,265.00 0.120 (19,472.00) Period Total 142,793.00 0063 Premium Discount 142,793.00 0.099 (14,137.00) 0900 Expense Constant 150.00 1.000 150.00 Questions? Call (800) 859-5995 or email finalaudit@texasmutual.com for help or to request a copy of the audit worksheet used to calculate the premium. 1 of 2 2200 Aldrich Street Austin, Texas 78723-3474 | texasmutual.com | (800) 859-5995 | Fax (512) 224-3011 FASUM Page 44 of 45 [PAGE 45] TexasMutual Agent copy Final Audit Summary WORKERS'COMPENSATIONINSURANCE Printed 01/21/2025 Location Class code Class description Exposure Rate Actual premium Final calculated premium 128,806.00 Final Audit: Revision of the previous Audit Questions? Call (800) 859-5995 or email finalaudit@texasmutual.com for help or to request a copy of the audit worksheet used to calculate the premium. 2 of 2 2200 Aldrich Street Austin, Texas 78723-3474 | texasmutual.com | (800) 859-5995 | Fax (512) 224-3011 FASUM Page 45 of 45