08-28-2012 MinutesMINUTES
REGULAR MEETING
August 2$, 2012
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on August 28,
2012, at b:00 p.m., in the Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4,
Schertz, Texas. The following members present to-wit:
Mayor Pro-Tem Gearge Antuna
Councilmember David Scagliola
Councilmember Michael Carpenter
Councilmember Jim Fowler
Councilmember Cedric Edwards
Staff Present:
Executive Director John Bierschwale
Executive Director Brian James
City Attorney Michael Spain
CALL TO ORDER:
City Manager John Kessel
Executive Director David Harris
Chief of Staff Bob Cantu
City Secretary Brenda Dennis
Mayor Pro-Tem Antuna called the Regular Meeting to order at 6:00 p.m. and welcomed everyone.
INVOCATION AND PLEDGES OF ALLEGIANCE TO THE FLAGS OF THE UNITED
STATES AND STATE OF TEXAS.
Councilmerxrber Fowler gave the invocation followed by the PIedges of Allegiance to the Flags of the
United States and the State of Texas.
Mayor Pro-Tem Antuna recognized Ms. Regina Agee, former City Councilmember and current
CCIvIA Board Member who was in the audience this evening.
Presentations
• Proclamation recognizing Mr. Phil Seidenberger. (Mayor Pro-Tem/Council)
Mayor 'Pro-Tem Antuna recognized Phil and Nancy Seidenberger. Mayor Pro-Tem Antuna
presented Mr. Seidenberger with a proclamation recognizing his years of service to the
community and congratulated him on recent retirement. Mr. Seidenberger thanked the
Mayor Pro-Tem and Council and citizens.
C~_Evetr#s
Announcements of upcoming City Events (D. Harris/J. Bierschwale/B. James)
Mayor Pra-Tem Antuna recognized Executive Director David Harris who provided the following
announcements:
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• Monday, September 3, 2012, City Office will be closed in observance of Labor Day.
• Tuesday, September 4, 2012, second required public hearing on FY 2012-13 Tax Rate &
Budget and first vote on ordinance.
• Tuesday, September 11, 2012, final vote on the FY 2012-13 Budget
• Tuesday, September 11, 2012, Playscape Groundbreaking Ceremony, 5:30 p.m. before the
Council meeting.
• Monday, September 17, 2012, Volunteer Fair & Open House, 6 to $ p.m. -Civic Center.
Worksho Items
Presentation and update regarding the West Nile Virus (J. KessellJ. Hamilton)
Mayor Pro-Tem Antuna recognized Sanitarian Jesse Hamilton, EMS Clinical Manager Michael
Consentino, and Emergency Management Coordinator Captain Chris Meek who explained the
City's program to educate residents and businesses about the steps they can take to reduce the
mosquito population and the threat of the West Nile Virus. Mr. Hamilton provided a Quick
Fact Sheet, which can be found on the City's website. Mr. Hamilton stated that flyexs have
been passed out to the business and schools. Educational posters have been placed throughout
the City in high traffic areas. Utilizing the GIS system, the City will be able to tract places
where larvicide disks have been placed.
Mayor Pro-Tem Antuna recognized City Manager John Kessel who stated that there have been
some unsubstantiated reports of West Nile Virus being in Schertz. So far we do not have any
confii7ned cases; however, we are acting and treating it as if is here. We are going 100% all in
with our campaign to cover the tluee areas: {1} what do individuals do to protect themselves,
(2) what do individuals do when they see standing water, (3} utilize a proactive approach with
larvicide. Everyone needs to pitch in: citizens, City employees, City Council, businesses, and
the school district. Mr. Kessel stated that he visited with Dr. Gibson with the school district
and he supplied information to all schools: elementary through high school. Mr. Kessel stated
that the City is cu~xently working with the Senior Center to do presentations to make certain
that they have the same infoi7nation.
Mayor Pro-Tem Antuna recognized Councilmember Fowler who thanked those involved in the
campaign, particularly taking the time to map out the areas.
Mayor Pra-Tem Antuna recognized City Manager John Kessel who stated as the Council will
notice several departments were involved working as a team to get the word out on this.
Hearing of Residents
This time is set aside for any person who wishes to address the City Council. Each person should fIl
out the speaker's register prior to the meeting Presentations should be limited to no more than 3
minutes.
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AI! remarks shall be addressed to the Council as a body, and not to any individual member thereof.
Any person making personal, impertinent, or slanderous remarks while addressing the Council may
be rearrested to leave the meeting
Discussion by the Council of any item not on the agenda shall be limited to statements of specifac
factual information given in response to any inquiry, a recitation of existing policy in response to an
inquiry, andlor a proposal to place the item on a fixture agenda. The presiding offacer, during the
Hearing of Residents portion of the agenda, will call an those persons who have signed up to speak in
the order they have registered.
Mayor Pro-Tem Antuna recognized the following who spake:
• Mr. Steve Layton, 12231 Lost Meadows Drive, who provided information on tap management
of other cities.
• Mr. Anthony Dale, 3664 Prairie Lane, who spoke regarding the budget and the citizens'
financial status.
• Mr. Robert Gibson, 3517 McAllister Lane, who spoke on voter apathy.
• Donna Fitzgerald, 5304 Storm King, who spoke regarding a meeting with Pulte and their
recommendations to resolve her issues.
Discussion and/ar Action Items
Minutes -. (Consideration andlor action regarding the approval of the minutes of the Special
Meeting of August 20, 2012, and the minutes of the Regular Meeting of August 21, 2012.
(KesselB. Dennis)
Mayor Pro-Tem Antuna recognized Councilmember Fowler who moved, seconded by
Councilmember Scagliola to approve the minutes of the Special Meeting of August 20, 2012,
and the minutes of the Regular Meeting of August 21, 2012. The vote was 4-0-1, with Mayor
Pro-Tem Antuna, Councitmembers Fowler, Scagliola and Carpenter voting aye and
Councilmember Edwards abstaining. Motion Carried.
2. Acceptance of Bids -Consideration andlor action regarding the acceptance of bids relating to
the Sale of Obligations designated as "City of Schertz, Texas General Obligation Bonds, Series
2012"; consideration and approval of Financial Advisor's recommendation concerning this
matter; and other matters in connection therewith. (J. Kessel/M. McLiney}
Mayor Pra-Tem Antuna recognized Mark McLiney with Southwest Securities, who stated that
action accepts the bids related to the Sale of Obligations designated as "City of Schertz, Texas
General Obligation Bonds, Series 2012". Mr. McLiney stated that this is the final issue of the
November 2, 2010 Bonds. The bonds are rated AA by Standard and Poor's, and 9 bids were
received. The winning bidder was Hutchison Shockey with a rate of 2.863%. The bonds were
purchased at a premium so that costs of issuance can be paid without using voted authority.
The $7,625,000 will be deposited to the construction fund. Final results after adjustments vs.
preliminary: Total interest cost (TIC} of 2.834% vs, 4.00%. or $2,459,477 vs. $3,413,6$3.
Closing will occur on or about September 13, 2012.
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Mayor Pro-Tem Antuna recognized Councilmember Scagliola who moved, seconded by
Councilmember Fowler that the City Council accept the Financial Advisor's recommendation
concerning the acceptance of bids relating to the Sale of Obligations designated as "City of
Schertz, Texas General Obligation Bonds, Series 2012. The vote was unanimous, Motion
Carried.
3. Ordinance No. 12-B-21 -- Consideration andlor action approving an Ordinance by the City
Council of the City of Schertz, Texas authorizing the issuance of "City of Schertz, Texas
General Obligation Bonds, Series 2012", levying an annual ad valorem tax, within the
limitations prescribed by law, for the payment of the bonds; prescribing the form, terms,
conditions, and resolving other matters incident and related to the issuance, sale, and delivery
of the bonds, including the approval and distribution of an official statement pertaining thereto;
authorizing the execution of a paying agent/registrar agreement; complying with the
requirements imposed by the letter of representations previously executed with the depository
trust company; and providing for an effective date. First and Fin~rl Rending (J. Kessel/M.
McLiney)
The following was read into record:
ORDINANCE NO. 12- B - 21
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING THE ISSUANCE OF "CITY OF SCHERTZ, TEXAS GENERAL
OBLIGATION BONDS, SERIES 2012", LEVYING AN ANNUAL AD VALOREM TAX,
WITHIN THE LIMITATIONS PRESCRIBED BY LAW, FOR THE PAYIrIENT OF
THE BONDS; PRESCRIBING THE FORM, TERMS, CONDITIONS, AND
RESOLVING OTHER MATTERS INCIDENT AND RELATED TO THE ISSUANCE,
SALE, AND DELIVERY OF THE BONDS, INCLUDING THE APPROVAL AND
DISTRIBUTION OF AN OFFICIAL STATEMENT PERTAINING THERETO;
AUTHORIZING THE EXECUTION OF A PAYING AGENT/REGISTRAR
AGREEMENT; COMPLYING WITH THE REQUIREMENTS IMPOSED BY THE
LETTER OF REPRESENTATIONS PREVIOUSLY EXECUTED WITH THE
DEPOSITORY TRUST COMPANY; AND PROVIDING FOR AN EFFECTIVE DATE.
Mayor Pro-Tem Antuna recognized Mark McLiney with Southwest Securities who stated
action approves first and final reading of Ordinance No. 12-B-21. As Council will recall, on
November 2, 2010, voters approved 4 separate bond propositions totaling $1S,S7S,000. To
date, the City Council has authorized the issuance of $8,250,000 of these voted bonds leaving a
balance of $7,625,000 unissued. Today, Council will consider the issuance of Bonds in the
amount of $3,625,000 for the Aquatic Facility, $3,000,000 for the Sports Fields and
$1,000,000 for Downtown Improvements for a total bond issue of $7,625,000.
With the issuance of the bonds, the City's I&S tax rate will increase in Fiscal Year 2013 by a
rate of $0.01 S to $0.025. With this fmal issuance the total tax rate increase for all of the 2010
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bonds will be approximately $0.05. {This is consistent with what was told to the voters and is
$0.01 less than what was discussed in the 2012 Budget.)
Mayor Pro-Tem Antuna recognized Councilmember Carpenter who moved, seconded by
Councilmember Edwards that the City Cauncil adopt Ordinance No.12-B-21 authorizing the
issuance of "City of Schertz, Texas General Obligation Bands, Series 2012" pursuant to a
competitive sale". T'l:e vote was unanimous. Motion carried.
4. Public Hearing on Proposed Tax Rate for FY 2012-13 - Conduct a public hearing and
consideration and/or action regarding the adoption of the FY 2012-13 Tax rate. (First required
prr6lic heari~tg) (D. Harris/J. Santoya)
Mayor Pro-Tem Antuna recognized Executive Director David Harris who stated that tonight
Council will conduct the second of tluee public hearings on the proposed Tax Rate for FY 2012-
13 in accordance with Chapter 26 of the Texas Tax Cade. At the August 7 regular session, the
City Council, by record vote, established a proposed preliminary maximum tax rate of $0.5045
per $100 of value. The rate is not subject to rollback. Mr. Harris stated that the second public
hearing will be conducted at the September 4, 2012 regular meeting, The final vote to adopt the
proposed budget for FY 2012-13 will be conducted September 11, 2012 at 6:00 p.m. in the
Council Chambers.
Mr. Hai7•is presented the FY 2012-13 budget video and a brief PowerPoint regarding the
proposed tax rate and budget. Mr. Harris stated that as a result of the sale of the bonds this
evening staff is recornrnending a tax rate of $0.4999.
1~Iayor Pro-Tem Antuna opened the public hearing and recognized the following:
• 1Vli•. Steve White, 805 Main Street
• Mr. Robert Gibson, 3517 McAllister Lane
• Mr, Daniel Scott, 3941 Brook Hollow Drive
• Mrs. Yolanda Suarez, 3808 Broughton
• Mr. Ryan Mahoney, 523 3 Columbia
• Mr. Anthony Dale, 3664 Prairie Lane
• M1. Robert Brockman, 1000 Elbel
As no one else spoke, Mayor Pro-Tem Antuna closed the public hearing.
Mayor Pro-Tem Antuna opened it up for Council comments. Mayor Pro-Tem Antuna,
Council, and Staff conducted a spirited discussion regarding their views of where the tax rate
should be.
City Manager John Kessel thanked the Council for the great conversation. Mr. Kesel stated
that as citizens noticed this year, the City planned and held additional workshops for our
citizens to participate. Mr. Kessel stated that next year he is planning on holding meetings
with the public on the budget preparation process to provide more transparency.
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Mayor Pro-Tem Antuna stated that on September 4, 2012, the Council will conduct a public
hearing and take the first vote on the FY 2012-13 tax rate, with the final vote being taken on
September 11, 2012.
5. Public Hearing Fiscal Year 2012-13 Budget - Conduct a public hearing and consideration
and/or action approving the City of Schertz FY 2012-13 Budget. (First required public hearing)
{D. Harris/J. Santoya}
Mayor Pro-Tem Antuna recognized Executive Director David Harris who stated that the
information he presented above covers this item and can answer any questions if necessary.
Mayor Pro-Tem Antuna recognized City Manager John Kessel who stated that the City is
growing; the Council has annexed 3,000 acres. Permit issuances are high, 1,000 new jobs have
come into the City. He stated that it is important to understand as the City continues to grow,
there is a requirement of having adequate staff. Choices were made to grow Economic
Development. Mr. Kessel asked Council to consider where they want to be in the next few
years. He stated that making the right choices today will allow the City to grow and provide
the services that citizens require. He tivill entertain areas and ideas Council wishes to cut, but
he will not entertain individuals to be named. There is no fat or fluff in the budget. He is
proud of staff and has heard this from Council. This budget provides a 2% merit within six
months. The tax rate is a good rate. Voters said in 2010 that they would pay a $0.55 tax rate,
with the sale of the bonds, this rate decrease. The proposed tax rate of $0.4499 enables us to
also fund a fire station.
Mayor Pro-Tem Antuna opened the public hearing and recognized the following:
• Mr. Anthony Dale, 3564 Prairie Lane
• Mr. Steve Layton, 12231 Lost Meadows Drive
• Mrs. Yolanda Suarez, 3808 Broughton
As no one else spoke, Mayor Pro-Tem Antuna closed the public hearing.
Mayor Pro-Tem Antuna opened it up for Council comments. Mayor Pro-Tem Antuna and
Council again conducted a spirited discussion providing their viewpoints.
Mayor Pro-Tem Antuna stated that on September 4, 2012, the Council will conduct a public
hearing and take the first vote on the FY 2012-13 Budget with the final vote being taken on
September 11, 2012.
Executive Session
Maayor Pro-Tem Antuna recessed into Executive Session rct 9:05 p.m.
Called under Section:
• Section 551.071 Texas Govern~neut Code Litigation, pending or contemplated litigation;
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• Section 551.072 Texas Government Code - Deliberation regarding the purchase,
exchange, sale, lease, or value of real property, or real estate;
• Section 551.074 Deliberation regarding personnel matters, duties of certain public
officials and employees;
• Section 552.087 "Texas Government Code - Deliberation regarding Economic
Development Negotiations.
Reconvene into Regular Session
Mayor Pro-Tem Antarfra reconvened into regular session at 10:22 p. m.
6. Take any action deemed necessary as a result of the Executive Session.
No action taken.
Re uests and Announcements
7. Requests by Mayor Pro-Tem and Councilmembers that items be placed on a future City
Council agenda.
No items regreesterl.
8. Requests by Mayor Pro-Tem and Councilmembers to City Manager and Staff for information.
Mayor Pro-Tem Antuna recognized Councilmember Fowler who requested clarification on the
change memo that was distributed to Council. Executive Director David Harris explained that
the City had atwo-paz•# agreement with Capital Group Project regarding a tax abatement that
will be paid fiom the CPS CIED funds which will be cost neutral. The change also includes a
$1,800 addition to the parks budget.
4. Announcements by Mayor Pro-Tem and Councilmembers
• City and community events attended and to be attended
• City Council Committee and Liaison Assignments
• Continuing education events attended and to be attended
• Recognition of actions by City employees
• Recognition of actions by community volunteers
• Upcoming City Council agenda items
Mayor Pro-Tem Antuna announced that he and Mr. Kessel attended and spoke to the
SCUCISD staff convocation on Friday, August 24, 2012.
Mayor Pro-Tem Antuna recognized Councilmember Scagliola who stated he attended the
following events:
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• Senior Center Art Show
• Chamber of Commerce Ribbon Cutting, OSO Cross fit
• Meetings with Fairhaven Residents
10. Announcements by City Manager
Mayor Pro-Tem Antuna recognized City Manager John Kessel who explained that the options
on the drainage fee were not discussed; however, it will be posted on Friday at a rate of $I.40.
This amount can be lowered at a later date.
Mr. Kessel announced that a correction on the election notice will need to be made due to an
oversight. An agenda item will need to be added to the September 4, 2012, meeting. Mr.
Kessel recognized City Attorney Michael Spain who explained that the enor was in regards to
the charter change for the election date and the terms of certain members of Council. Mr.
Spain explained that it can be corrected and how it will need to be corrected.
Mr. Kessel recognized Myles Clausen, Director of IT, who completed his Certified
Government Chief Information Officer certification from the University of North Carolina
Chapel Hill.
Mr. Kessel announced that he received an appreciation for Officer Westin from a teacher who,
even though was stopped by the police officer for speeding, the attitudes and actions of the
officer were kind and generous.
Mr. Kessel recognized City Attonney Michael Spain who announced that Mr. Brockman was
correct in his earlier comments that the time limit on public hearing had been changed to 3
minutes unless modified by the presiding officer.
Adjournment
Councilmember Carpenter adjourned the meeting at 10:40 p.m.
A ~ ST:
renda Dennis, TItMC, MMC, CPM City Secretary
Ma -Tem eorge Antuna
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