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08-02-2016 MinutesMINUTES REGULAR MEETING August 2, 2016 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on August 2, 2016, at 6:00 p.m., in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Texas. The following members present to -wit: Mayor Michael Carpenter Councilmember Jim Fowler Councilmember Grumpy Azzoz Councilmember Robin Thompson Staff Present: Executive Director Brian James City Attorney Charles Zech City Manager John Kessel Executive Director Dudley Wait City Secretary Brenda Dennis Mayor Pro -Tem Edwards and Councilmember John were absent. Call to Order — City Council Regular Session Mayor Carpenter called the meeting to order at 6:00 p.m. Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of 'Texas. (Councilmember Thompson) Councilmember Thompson provided the opening prayer followed by the pledges of allegiance to the flags of the United States and the State of Texas. Mayor Carpenter recognized Boy Scouts Jack and Gavan Dusbabek with Troop 467 who were in the audience this evening. Boys Scouts Jack and Gavan stated that they were here tonight as they were working on the Communication Merit Badge. Mayor Carpenter welcomed them. City Events and Announcements • Announcements of upcoming City Events (B. James/D. Wait/S. Gonzalez) Mayor Carpenter recognized Executive Director Brian James who provided the following announcements: • Friday, August 5 TML Region 7 Meeting Kerr Arts and Cultural Center 228 Earl Garrett Street, Kerrville Those attending need to meet in the City Manager's Office area before 4:00 p.m. to depart for Kerrville. • Saturday, August 6 Pack the Bus Throughout the month of July, Communities in Schools of South Central Texas will collect school supplies and will hold an all -day event at three area H -E -B locations, one being our Schertz H -E -B, 8 am. -4 pm. 08 -2 -2016 Minutes Page - 1 - • Thursday, August 11 Community Budget Meeting Corbett Middle School 6:30 PM 12000 Ray Corbett Drive • Friday, August 19 Senior Center Boogie Disco Dinner Dance Schertz Civic Center, 6:00 -10:00 pm • Announcements and recognitions by City Manager (J. Kessel) Mayor Carpenter recognized City Manager John Kessel who stated he wanted to acknowledge all the departments who have been working on their budgets, particularly the Finance Department. Mr. Kessel stated that recently we held two (2) great retreats, (1) on Thursday with Staff and (2) on Friday with Council. Mr. Kessel congratulated all departments for the work they have done so far. New Employee Recognitions: • Library: Jennifer Pearson, Alexsaray Wheeler, Pt. Time Circulation Clerk & Summer Marsh Pt. Time Library Page (B. James/M. Uhlhorn) • Finance: R. J. Fraire - Financial Analyst Each new staff member was introduced to Council by their Department Manager /Supervisor who also provided a short bio on them. Each employee was allowed an opportunity to speak if they wished. Mayor Carpenter recognized Jennifer Pearson and R. J. Fraire who provided brief comments. Mayor and Council welcomed the new employees introduced this evening. Workshop • Discussion, presentation and update regarding the Schertz Seguin Local Government Corporation regarding current water supply, future water development, water pipeline construction and funding for future projects. (D. Wait/A. Cockrell/A. Friedman) Mayor Carpenter recognized Executive Director Dudley Wait who introduced SSLGC General Manager Allen Cockrell, Assistant General Manager Amber Briggs and Vice President with Willdan Financial Services Dan Jackson. Mayor Carpenter recognized Mr. Cockrell who stated that the following presentation will cover the following topics: • Project Organization • Project History • Project Map • Current Facilities • SSLGC Sales • Wholesale Customers • Guadalupe Project • Parallel Pipeline • SWIFT Funding • Risks • Water Rates 08 -2 -2016 Minutes Page - 2 - Mr. Cockrell provided the following information regarding the Project organization: • SSLGC was formed under Subchapter D of Chapter 431 of the Texas Transportation Code in December 1998 • SSLGC is governed by a Board of Directors (5) appointed by each city council • Staggered five year terms with majority control shifting each year between owner cities • One ex- officio member from each city • Management Services Agreements were developed between each city and SSLGC Mr. Cockrell provided the following information regarding the Project history: • SSLGC was formed under Subchapter D of Chapter 431 of the Texas Transportation Code in December 1998 • SSLGC is governed by a Board of Directors (5) appointed by each city council • Staggered five year terms with majority control shifting each year between owner cities • One ex- officio member from each city • Management Services Agreements were developed between each city and SSLGC Project Map- Storage - Cib-10 Santa Marion o 6 Schertz 1\ ture,SSLGC a �, ew. nmm�o - N —Su ply Line (ShareO) Berlin j' Neal Guadalupe OC9. - n W Ilfield t,F - - Hedwi9� �� n ) - P TExisting SSLGC %GtJADALUPE� WILSON- "Y - L:a-Verrtie'r s�� �_ - ._ Water Treatment Plant and Pump,Stations ,1 (� ' � . ��;sY- - -- lit ���. \'rc, v�. +• 0 25 5 6a t Miles SAWS Sales: 08 -2 -2016 Minutes Page -3 - SAWS Delivery 1800.0 1600.0 1400.0 - — 1200.0 — 1000.0 -- 800.0 — —t —T1 600.0 400.0 —FT2 200.0 =49 —jir—Total 0.0 -200.0 - -400.0 — - -- r3 v- �YctctLnLncnLn .nrnLnLn LnLnLn Lnrotpw okDo I r-i r-1 r3 v- r-1 c-1 r] rl ri c-I ci ci c-I ci r-I r-i e-i] r-1 e-1 a-I c-I r-1 ri ci ci c-1 c-! ri r-1 c-1 c-i } b c-0 C WQ } U C a C— W, CL } U C: - as= 0 t6LL �¢� ¢LAOzin -LL2 du :<Ln0zo OU- :2 Wholesale Customers: • Water delivery began in Sept 02 to Seguin & Feb 03 to Schertz • SSLGC wholesale water supplier contracts: Entity Selma 2003 800 Universal City 2003 300 Springs Hill WSC 2003 340 Selma 2015 2015 250 SAWS T2 * 2011 21500 * T2 water for CY 2017 only Provide Treatment and Transport for SAWS T1 Water (11,688 ac- ft. /yr.) Guadalupe Project: • Included in 2006, 2011 & 2016 Regional Plans ® Needed for Summer Peaking and Projected Growth in Schertz 08 -2 -2016 Minutes Page - 4 - Adjacent to SSLGC Pipeline in Guadalupe County Groundwater Conservation District (GCGCD) Sites for Well Locations & Treatment Plant Purchased Carrizo Water Rights 3,791 ac- ft. /yr. Permitted Wells 3,226 ac- ft. /yr. Wells 5 3 Wilcox Water Rights 1,320 ac- ft. /yr. Permitted Wells 1,290 ac- ft. /yr. Wells 2 3 SSLGC Estimated Expenditures to Date = $12,860,364 Guadalupe Project Breakdown GUADALUPE PROJECT CATEGORY COST 1 ENGINEERING $ 758,282.65 2 LAND $ 7,763,910.37 3 WATER LEASES $ 2,958,829.15 4 LEGAL FEES $ 125,778.04 5 CONSULTING FEES $ 24,332.16 6 WELL TESTING $ 46,209.00 7 PERMITTING FEES $ 230,470.15 8 IMISCELLANEOUS $ 1,286.00 9 BOND EXPENSES (interest & issuance fees) $ 951,266.81 TOTAL EXPENDITURES $ 12,860,364.33 SWIFT FundinL,: • SWIFT Funding: Low Interest Loan (30 yr. term) - $43,670,000 -TWDB Subsidy of $5.6M -Total Estimated Combined Interest Savings of $9.5M ❖ TWDB Participation Agreement - $22,830,000 - Pipeline Ownership: TWDB 71% & SSLGC 29% - Deferred Payments of $6.5M for ten years (0% interest) • SWIFT Schedule: 08 -2 -2016 Minutes Page - 5 - ❖ TWDB Board Action on Master Agreement — July 21, 2016 ❖ SSLGC Board Action on Master Agreement — August 18, 2016 ❖ City Councils Actions on Master Funding Agreement — TBA ❖ TWDB & SSLGC Closing —November 16, 2016 • Project Schedule: ❖ Design Phase Complete — September 2017 Start Construction — June 2019 ❖ Construction Complete — February 2021 Project Risks: • Lack of Additional Water Sales • Vista Ridge Project (SAWS) • Hayes Caldwell Public Utility Agency (HCPUA) • TWA/San Jose Water Project — Under Contract with GBRA • Cibolo Valley Local Government Corporation (CVLGC) Project d• SSLGC to be Paid for Treatment and Transport of CVLGC Water ❖ Expansion Costs will be Allocated based on Use • SSLGC Gonzales Wilcox Brackish Water Project • Weather!! Mayor Carpenter recognized Mr. Dan Jackson, Vice President of Willdan Financial Services who provided information on the following, addressing questions from Council: Impact on Rates: • SSLGC charges each customer an operating rate /1,000 gallons and allocated debt service costs • SSLGC rate adjustment adopted in FY 2016 is first such adjustment in 5 years • 2015 rate study for City of Schertz established need for annual water and wastewater rate adjustments for all customers • SSLGC costs increases only part of reason why annual rate adjustments are required • Other reasons include increase in general utility operating costs and capital spending to replace aging infrastructure within the City Mayor Carpenter recognized Mr. Andrew Friedman, Financial Advisory with SAMCO who came forward addressing Council's questions regarding funding and interest rates. Mayor Carpenter recognized Allen Cockerel) who lastly spoke regarding the City of Schertz impact on average monthly charges. He provided the following information: 08 -2 -2016 Minutes Page - 6 - 5/8" Meter Current Rate Plan 67.56 73.84 78.93 84.02 87.81 90.61 Scen 2 - No SAWS Excess 67.56 73.84 82.22 91.10 96.19 100.36 1" Meter (Business) Effective Effective Effective Effective Effective Water WW Prior Oct -15 Oct -16 Oct -17 Oct -18 Oct -19 5/8" Meter 5,000 W, 5,000 WW 452.14 Scen 2 - No SAWS Excess 285.56 333.14 380.93 Current Rate Plan $ 55.04 $ 60.56 $ 65.12 $ 69.67 $ 73.17 $ 75.67 Scen 2 - No SAWS Excess 55.04 60.56 67.49 74.75 79.19 82.68 5/8" Meter Current Rate Plan 67.56 73.84 78.93 84.02 87.81 90.61 Scen 2 - No SAWS Excess 67.56 73.84 82.22 91.10 96.19 100.36 1" Meter (Business) Current Rate Plan 285.56 333.14 370.29 405.19 431.26 452.14 Scen 2 - No SAWS Excess 285.56 333.14 380.93 428.05 458.33 483.64 2" Meter (Business) Current Rate Plan 1,092.58 1,324.30 1,502.19 1,665.76 1,786.79 1,887.53 Scen 2 - No SAWS Excess 1,092.58 1,324.30 1,537.98 1,742.71 1,877.88 1,993.55 In addressing Councilmember Thompson's question regarding not funding the Guadalupe Project and Parallel Pipeline, what affects would it have? What would be the cost to consumers, what is the cost to our future growth, to our future economy? What is the liability or cost impact to any businesses we may want to bring in? Mr. Cockrell stated that number one, from the corporation side he will not be able to supply his customers of their need. Specifically of Schertz, they would not be able to supply all your water needs. There hasn't been an analysis of what that will cost and even what the options are for Schertz to do this. It would have a significant economic impact on this community if we don't have water to supply for all the needs. Mayor Carpenter recognized Mr. Jackson who stated that you would probably have a moratorium on growth in the City of Schertz very shortly, which would be devastating from an economic stand point. No more homes, no more new businesses, businesses that are already here might leave. The economic damage of not doing this could in incalculable. Councilmember Thompson stated that the 66 million is significant but if we turn it down it could be even more significant the other way. Mr. Jackson and Mr. Cockrell concurred. This is an investment in the City of Schertz. Water is the oil of the 21St century. Those who control their water resources control their future. Those who do not, cannot! The choice that the City of Schertz has as well as other cities have is do you want to pay a few dollars extra in your water bill to insure that your children and grandchildren will have water. That's what it comes down to. Mr. Wait came forward stating the very project we are involved with as a City, SSLGC both well fields the Gonzalez has been on since 2003 and the upcoming CVLGC projects, all of these are timed to meet what we expect for our growth pattern. If we don't do this, instead of us being a water seller we become a water purchaser. If you are a water purchaser you do not control your destiny, the people that sell the water control your destiny. If there are water shortages the seller gets to decide who gets the water. Mayor Carpenter recognized Councilmember Azzoz who stated that there were two (2) things that his dad taught him that have no alternatives: air and water. We cannot put a price cap on water; we must 08 -2 -2016 Minutes Page - 7 - constantly look for it. His question was he hopes that we own more than we are leasing. Mr. Cockrell addressed his question with the following rough breakdown. In Gonzalez County we own 2500 acres and it is one acre foot per acre, so that is 4500 acre feet per year, and the remainder we lease for local landowners around our well field throughout the county. Mr. Cockrell also addressed the price of leasing as well as other questions. Mayor Carpenter stated that water is critical. One of the. things when he first ran for City Council, the first thing they showed him was where the Council Chambers were. The second thing they said was this is the ACUZ, this is the danger zone on the north and south sides of Randolph and we can't develop there because we have to protect the mission of the base. The third thing we talked about was water. It has been critical to our success both economically and as a quality of life that we have water in this city as we have. Former Councilmember Greenwald who is in the audience and who is now serving as President of the Local Government Corporation got this started twenty years ago. It was absolutely the right thing to do then and it is absolutely the right thing to do now. His comment to them would be, you know it is kind of like building a school, and whatever we build it already is not going to be big enough. Press on. Find more. What you have before us is probably Phase I of many others. Not only do we need to press on but we also need to be thinking about other sources as well, and he knows they are. Also, as a little brief history on one of the things that our good water source has provided us. When we were in negotiations to bring Amazon into Schertz, we told them, and as a requirement from the insurance company, they needed 60 pounds of water pressure in the hydrants in the area they are now. Sam Willoughby, former Public Works Director at the time, told them that actually it would be 90 pounds or better. At that time Amazon said there was no way; they asked them to show them right now. We went up there and sure enough, put the meter on and it was above 90 pounds. Because we were able to do that, without hesitation it had a direct effect on our economic development success in that project and many others will be like that as we go on. This has an effect on the entire community both in our commercial and in our residential space and our ability to do everything else that we do. As you say, it is the oil of the 21St century; the precious metal of the 21St century that we control our water source here in Schertz is a material advantage over our competition. Our competition is every municipality and county and pseudo governmental agency around us. Great work and please continue. Mayor Carpenter recognized Mr. Cockrell who stated that he would like to reiterate a comment that Mr. Jackson made earlier about SAWS. They have been a fantastic partner for us as a customer and it has worked very well that arrangement for them purchasing our excess water, both on the water resource side at SAWS and us never saw this coming, this little hiccup where they wouldn't buy excess water. We are still trying to work through this. The next big hurdle is the Vista Ridge Project and he can guarantee that SAWS upper management is committed to that project. We will see what happens. What we would like to do is secure a firmer agreement on excess water between now and 2021or 2022 when Vista Ridge comes on. We are talking to SAWS about this and working on getting this arranged. That will provide more stability, at least in the short term, five years as far as our rates. Hearing of Residents No one spoke. Consent ALenda Items 08 -2 -2016 Minutes Page - 8 - The Consent Agenda is considered self - explanatory and will be enacted by the Council with one motion. There will be no separate discussion of these items unless they are removed from the Consent Agenda upon the request of the Mayor or a Councilmember. 1. Minutes — Consideration and /or action regarding the approval of the minutes of the Regular Meeting of July 26, 2016. (J. Kessel /B. Dennis) 2. Ordinance No. 16 -M -26 — Consideration and /or action approving an Ordinance setting the Fee Schedule of the City of Schertz for FY 2016/17. Final Reading (J. Kessel /J. Santoya/J. Walters) The following was read into record: ORDINANCE NO. 16 -M -26 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AMENDING THE CITY OF SCHERTZ CODE OF ORDINANCES AND CERTAIN OTHER ORDINANCES BY AMENDING AND ESTABLISHING FEES FOR CERTAIN LICENSES, PERMITS, AND OTHER SERVICES PROVIDED BY THE CITY OF SCHERTZ. 3. Ordinance No. 16 -T -21 — Consideration and /or action approving an Ordinance authorizing a budget adjustment to the General Fund for the FY 2015/16 Budget. Final Reading (D. Wait/D. Covington) The following was read into record: ORDINANCE NO. 16 -T -21 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A BUDGET ADJUSTMENT TO THE GENERAL FUND; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE Mayor Carpenter recognized Councilmember Azzoz who moved, seconded by Councilmember Fowler to approve consent agenda items 1 -3. The vote was unanimous with Councilmembers Fowler, Azzoz, and Thompson voting for and no one voting no. Mayor Pro -Tem Edwards and Councilmember John were absent. Motion passed. Discussion and Action Items 4. Resolution No. 16 -R -61 — Consideration and /or action approving a Resolution authorizing expenditures with Verizon Wireless, a DIR Vendor totaling no more than $133,100.00 for Mobile Device Services, Air Cards for Public Safety Fleet, laptop connect, Ipads and MiFi's. (B. James /M. Clauser) The following was read into record: 08 -2 -2016 Minutes Page - 9 - RESOLUTION NO. 16 -R -61 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING EXPENDITURES WITH VERIZON WIRELESS TOTALING NO MORE THAN $113,100.00 FOR MOBILE DEVICE SERVICES, AIR CARDS FOR PUBLIC SAFETY FLEET, LAPTOP CONNECT, IPADS AND MIFI'S AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized IT Director Myles Clauser who said the City of Schertz has been continuously working to move our City and Public Safety fleets into a more reliable, faster service provider due to the City's large wireless demand. AT &T notified the City that the tunnel to the City of San Antonio would no longer be a viable service. The City looked to Verizon services to expand to our mobile fleet. The City desires to continue to purchase services from Verizon Wireless, pursuant to the terms and conditions of the State of Texas Department of Information Resources (DIR) Agreement. So as we move services from AT &T, the AT &T monthly expense will go down while the Verizon expense would increase. This will not require any additional funding to the City budget. Verizon has continued to provide the City with excellent wireless and customer service and this agreement will allow the City to maintain the high level of service that we provide to the Community. Staff recommends approval. Mayor Carpenter mentioned to the audience and Council that the language on the agenda provided an amount of $133,100 but that the resolution amount was the correct amount of $113,100. Mayor Carpenter recognized Councilmember Azzoz who moved, seconded by Councilmember Thompson to approve Resolution No. 16-R-61. The vote was unanimous with Councilmembers Fowler, Azzoz, and Thompson voting for and no one voting no. Mayor Pro -Tem Edwards and Councilmember John were absent. Motion passed. 5. Consideration of Bids - Consideration of bids relating to the Sale of Obligations Designated as "City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2016A ", consideration and approval of Financial Advisor's recommendation concerning this matter; and other matters in connection therewith. (J. Kessel/J. Santoya/J. Walters /A. Friedman) Mayor Carpenter recognized Financial Advisory, Managing Director Andrew Friedman who stated that today between 10:00 a.m. and 11:00 a.m.; they took the bids for $2,500,000 Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2016A. As a result we had two bidders: (1) Fidelity Capital Markets for 2.26% and (2) Robert W. Baird & Co., Inc. for 2.35 %. The low bidder was Fidelity Capital Markets for 2.26 %. Mr. Friedman recommended the Council award the bid to Fidelity Capital Markets. Mr. Friedman also stated that they are pleased with the rate. Mayor Carpenter recognized Councilmember Azzoz who moved that a motion by Trustee Azzoz seconded by Trustee Thompson 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 Combination Tax and Limited Pledge Revenue 08 -2 -2016 Minutes Page - 10 - Certificates of Obligation, Series 2016A ". The vote was unanimous with Councilmembers Fowler, Azzoz, and Thompson voting for and no one voting no. Mayor Pro -Tem Edwards and Councilmember John were absent. Motion passed. 6. Ordinance No. 16 -B -22 - Consideration and approval of an Ordinance authorizing the issuance of "City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2016A "; providing for the payment of said certificates by the levy of an ad valorem tax upon all taxable property within the city and further securing said certificates by a lien on and pledge of the pledged revenues of the system; providing the terms and conditions of said certificates and resolving other matters incident and relating to the issuance, payment, security, sale, and delivery of said certificates, including the approval and distribution of an official statement pertaining thereto; authorizing the execution of a paying agent/registrar agreement and an official bid form; complying with the requirements of the letter of representations previously executed with the depository trust company; authorizing the execution of any necessary engagement agreements with the City's Financial Advisors and/or Bond Counsel; and providing an effective date. First and Final (J. Kessel/J. Santoya/J. Walters /A. Friedman). The following was read into record: AN ORDINANCE AUTHORIZING THE ISSUANCE OF "CITY OF SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2016A97; PROVIDING FOR THE PAYMENT OF SAID CERTIFICATES BY THE LEVY OF AN AD VALOREM TAX UPON ALL TAXABLE PROPERTY WITHIN THE CITY AND FURTHER SECURING SAID CERTIFICATES BY A LIEN ON AND PLEDGE OF THE PLEDGED REVENUES OF THE SYSTEM; PROVIDING THE TERMS AND CONDITIONS OF SAID CERTIFICATES AND RESOLVING OTHER MATTERS INCIDENT AND RELATING TO THE ISSUANCE, PAYMENT, SECURITY, SALE, AND DELIVERY OF SAID CERTIFICATES, INCLUDING THE APPROVAL AND DISTRIBUTION OF AN OFFICIAL STATEMENT PERTAINING THERETO; AUTHORIZING THE EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT AND AN OFFICIAL BID FORM; COMPLYING WITH THE REQUIREMENTS OF THE LETTER OF REPRESENTATIONS PREVIOUSLY EXECUTED WITH THE DEPOSITORY TRUST COMPANY; AUTHORIZING THE EXECUTION OF ANY NECESSARY ENGAGEMENT AGREEMENTS WITH THE CITY'S FINANCIAL ADVISORS AND /OR BOND COUNSEL; AND PROVIDING AN EFFECTIVE DATE Mayor Carpenter recognized Financial Advisory Andrew Friedman who stated the Certificate Ordinance before the Council tonight is to authorize the sale of approximately $1,600,000 Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2016A. Mayor Carpenter recognized Councilmember Fowler who made a motion and seconded by Councilmember Thompson that the City Council adopt an ordinance authorizing the issuance of "City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2016A ". The vote was unanimous with Councilmembers Fowler, Azzoz, and Thompson voting for and no one voting no. Mayor Pro -Tem Edwards and Councilmember John were absent. Motion passed. 08 -2 -2016 Minutes page -11- 7. Consideration of Bids - Consideration of bids relating to the sale of Obligations designated as "City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable Series 201613", consideration and approval of Financial Advisor's recommendation concerning this matter; and other matters in connection therewith. (J. KesseUJ. Santoya/J. Walters /A. Friedman) Mayor Carpenter recognized Financial Advisor, Managing Director Andrew Friedman who stated that today they took the $1,400,000 Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable Series 2016B to bid. As a result we had two bidders: (1) Robert W. Baird & Co., Inc., for 3.17% and (2) Raymond James & Associates, Inc. for 3.20 %; the low bidder was Robert W. Baird & Co., Inc. for a rate of 3.17 %. Mr. Friedman recommended that Council award the bid to Robert W. Baird & Co., Inc. Mr. Friedman also stated that they are pleased with the rate. Mayor Carpenter recognized Councilmember Azzoz who moved that a motion by Trustee Azzoz seconded by Trustee Thompson that the City Council accepts the financial advisor's recommendation concerning the acceptance of bids relating to the sale of obligations designated as "City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable Series 2016B ". The vote was unanimous with Councilmembers Fowler, Azzoz, and Thompson voting for and no one voting no. Mayor Pro -Tem Edwards and Councihmember John were absent. Motion passed. 8. Ordinance No. 16 -B -23- Consideration and approval of an Ordinance authorizing the Issuance of "City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable series 2016B "; providing for the payment of said certificates by the levy of an ad valorem tax upon all taxable property within the city and further securing said certificates by a lien on and pledge of the pledged revenues of the system; providing the terms and conditions of said certificates and resolving other matters incident and relating to the issuance, payment, security, sale, and delivery of said certificates, including the approval and distribution of an official statement pertaining thereto; authorizing the execution of a paying agent/registrar agreement and an official bid form; complying with the requirements of the letter of representations previously executed with the depository trust company; authorizing the execution of any necessary engagement agreements with the City's Financial advisors and/or Bond Counsel; and providing an effective date. First and Final (J. KesseUJ. Santoya/J. Walters /A. Friedman) The following was read into record: ORDINANCE NO. 16 -B -23 AN ORDINANCE AUTHORIZING THE ISSUANCE OF "CITY OF SCHERTZ, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, TAXABLE SERIES 201611"; PROVIDING FOR THE PAYMENT OF SAID CERTIFICATES BY THE LEVY OF AN AD VALOREM TAX UPON ALL TAXABLE PROPERTY WITHIN THE CITY AND FURTHER SECURING SAID CERTIFICATES BY A LIEN ON AND PLEDGE OF THE PLEDGED REVENUES OF THE SYSTEM; PROVIDING THE TERMS AND CONDITIONS OF SAID CERTIFICATES AND RESOLVING OTHER MATTERS INCIDENT AND RELATING TO THE ISSUANCE, PAYMENT, SECURITY, SALE, AND DELIVERY 08 -2 -2016 Minutes Page -12 - OF SAID CERTIFICATES, INCLUDING THE APPROVAL AND DISTRIBUTION OF AN OFFICIAL STATEMENT PERTAINING THERETO; AUTHORIZING THE EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT AND AN OFFICIAL BID FORM; COMPLYING WITH THE REQUIREMENTS OF THE LETTER OF REPRESENTATIONS PREVIOUSLY EXECUTED WITH THE DEPOSITORY TRUST COMPANY; AUTHORIZING THE EXECUTION OF ANY NECESSARY ENGAGEMENT AGREEMENTS WITH THE CITY'S FINANCIAL ADVISORS AND /OR BOND COUNSEL; AND PROVIDING AN EFFECTIVE DATE Mayor Carpenter recognized Financial Advisor Andrew Friedman who stated the Certificate Ordinance before the Council tonight is to authorize the sale of approximately $1,400,000 Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2016B. Mayor Carpenter recognized Councilmember Azzoz who made by motion and seconded by Councilmember Fowler that the City Council adopt an ordinance authorizing the issuance of "City of Schertz, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2016B ". The vote was unanimous with Councilmembers Fowler, Azzoz, and Thompson voting for and no one voting no. Mayor Pro -Tem Edwards and Councilmember John were absent. Motion passed. 9. Consideration of bids - Consideration of bids relating to the sale of Obligations designated as "City of Schertz, Texas General Obligation Bonds, Series 2016 ", consideration and approval of financial advisor's recommendation concerning this matter; and other matters in connection therewith. (J. Kessel/J. Santoya/J. Walters /A. Friedman) Mayor Carpenter recognized Financial Advisor, Managing Director Andrew Friedman who stated that today they took the $6,000,000 General Obligation Bonds, Series 2016 to bid. As a result we had two bidders: (1) Fidelity Capital Markets for 2.47 %, and (2) Robert W. Baird & Co., Inc. for 2.48 %. The low bidder was Fidelity Capital Markets for 2.47 %. Mr. Friedman recommended that Council award the bid to Fidelity Capital Markets. Mr. Friedman also stated that they are pleased with the rate. Mayor Carpenter recognized Councilmember Azzoz who moved that a motion by Trustee Azzoz seconded by Trustee 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 2016. The vote was unanimous with Councilmembers Fowler, Azzoz, and Thompson voting for and no one voting no. Mayor Pro -Tem Edwards and Councilmember John were absent. Motion passed. 10. Ordinance No. 16 -B -24 - Consideration and approval of an Ordinance authorizing the issuance of "City of Schertz, Texas General Obligation Bonds, Series 2016 "; levying a continuing direct 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 and an official bid form; complying with the provisions of the depository trust company's letter of representations; authorizing the execution of any necessary engagement agreements with the City's Financial Advisors and/or Bond Counsel; 08 -2 -2016 Minutes Page - 13 - and providing for an effective date. First and Final (J. Kessel /J. Santoya/J. Walters /A. Friedman) The following was read into record: ORDINANCE NO. 16 -B -24 AN ORDINANCE AUTHORIZING THE ISSUANCE OF "CITY OF SCHERTZ, TEXAS GENERAL OBLIGATION BONDS, SERIES 2016 "; LEVYING A CONTINUING DIRECT 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 AND AN OFFICIAL BID FORM; COMPLYING WITH THE PROVISIONS OF THE DEPOSITORY TRUST COMPANY'S LETTER OF REPRESENTATIONS; AUTHORIZING THE EXECUTION OF ANY NECESSARY ENGAGEMENT AGREEMENTS WITH THE CITY'S FINANCIAL ADVISORS AND /OR BOND COUNSEL; AND PROVIDING FOR AN EFFECTIVE DATE Mayor Carpenter recognized Financial Advisor Andrew Friedman who stated the Certificate Ordinance before the Council tonight is to authorize the sale of approximately $6,000,000 in General Obligation Bonds, Series 2016. Mayor Carpenter recognized Councilmember Azzoz who made by motion and seconded by Councilmember Fowler that the City Council adopt an ordinance authorizing the issuance of "City of Schertz, Texas General Obligation Bonds, Series 2016 ". The vote was unanimous with Councilmembers Fowler, Azzoz, and Thompson voting for and no one voting no. Mayor Pro -Tem Edwards and Councilmember John were absent. Motion passed. Roll Call Vote Confirmation Mayor Carpenter recognized City Secretary Brenda Dennis who provided the roll call votes for agenda items 1 through 10. Requests and Announcements 11. Announcements by City Manager • Citizen Kudos • Recognition of City employee actions • New Departmental initiatives No further announcements were made. 12. Future Agenda Item Request for City Council: This is an opportunity for City Council members to request that items be placed on a future agenda. No discussion of the merits of 08 -2 -2016 Minutes Page - 14 - the item may be taken at this time. Should a Council Member oppose placement of the requested item on a future agenda, the Mayor, without allowing discussion, shall ask for the consensus of the other City Council members to place or not place the item on a future agenda. No items were requested. 13. Announcements by Mayor and Councilmembers • City and community events attended and to be attended • City Council Committee and Liaison Assignments (see assignments below) • Continuing education events attended and to be attended • Recognition of actions by City employees • Recognition of actions by community volunteers Mayor Carpenter recognized Councilmember Fowler who stated that yesterday he has survived 57 years with the same woman. Mayor and Council congratulated Councilmember Fowler and his wife Pat. Mayor Carpenter recognized Councilmember Azzoz who said that two weeks ago he held a fundraising event for the fallen Police Officer's family. They were able to raise over $10,000 and more funds are still coming in. He thanked all those that participated and contributed and he is sure that the family will thank everyone. Mayor Carpenter stated it is amazing as he watches the things that they do with regard to our management of our money. It is about four and half million dollars he can immediately off the top of his head count from bond refunding and having an advantageous bond rating that we have been able to save the taxpayers and therefore ourselves as resident taxpayers over the last several years. Congratulations to the Council and to staff for doing an excellent job with managing the finances of the city. It is also a reflection of the relative power of Council that in the Charter it says "When so directed by Council the Mayor shall sign, and he pointed over to the City Secretary as she held up a large package, he gets to for the next hour sign documents and they get to go home. But that's how it works. Adi ournment Mayor Carpenter adjourned the meeting at 7:42 p.m. Achael Carpenter, Mayor AT ST: renda Dennis, City Secretary 08 -2 -2016 Minutes Page - 15 - 08 -2 -2016 Minutes Page - 16 -