ccss-02-22-01
SPECIAL SESSION OF SCHERTZ CITY COUNCIL
FEBRUARY 22, 2001
The Schertz City Council convened in Special Session on Thursday, February
22,2001 at 7:00 p.m. in the Council Chambers of the Municipal Complex, 1400
Schertz Parkway, Schertz, Texas. Those present were as follows: Mayor Hal
Baldwin, presiding; Councilmembers Norma Head; Reginna Agee; Glyn D
Williams and Ken Greenwald. Absent: Council member Joe Potempa. Staff
present were City Manager Dewey P Cashwell, Jr., Asst. City Manager Steve
Simonson and City Secretary Norma Althouse.
#1 RESOLUTION: CONSIDERATION AND APPRQVAL BY THE CITY
COUNCIL OF THE CITY OF SCHERTZ, TEXAS OF A BOND RESOLUTION TO
BE ADOPTED BY THE BOARD OF DIRECTORS OF THE SCHERTZ/SEGUIN
LOCAL GOVERNMENT CORPORATION AUTHORIZING THE ISSUANCE OF
OBLIGATIONS DESIGNATED AS "SCHERTZ/SEGUIN LOCAL
GOVERNMENT CORPORATION CONTRACT REVENUE BONDS, SERIES
2001"; ACKNOWLEDGING THAT THESE OBLIGATION$ WILL BE SOLD TO
FIRST SOUTHWEST COMPANY, AS THE AUTHORIZED REPRESENTATIVE
OF A GROUP OF UNDERWRITERS PURSUANT TO THI: PROVISIONS OF A
PURCHASE CONTRACT; RATIFYING, RECONFIRMING, AND READOPTING
THE PROVISIONS OF A REGIONAL WATER SUPPLY CONTRACT
EXECUTED BETWEEN THE CITY OF SCHERTZ, TEXAS, THE CITY OF
SEGUIN, TEXAS, AND THE SCHERTZ/SEGUIN LOCAL GOVERNMENT
CORPORATION; AUTHORIZING THE MAYOR, CITY SECRETARY, AND THE
CITY MANAGER OF THE CITY OF SCHERTZ, TEXAS TO EXECUTE ON
BEHALF OF THE CITY OF SCHERTZ, TEXAS ALL DOCUMENTS IN
CONNECTION WITH THIS TRANSACTION; AND OTHER MATTERS IN
CONNECTION THEREWITH.
Mayor Baldwin introduced a Resolution and read the caption the same as written
on the agenda. (The Resolution is No, 01-R-6.)
Mark McLiney of Southwest Securities provided Council a Final Pricing Report on
the Contract Revenue Bonds. Mr. McLiney mentioned they met a couple of
weeks ago with the rating companies and Schertz has been upgraded to an A-.
Fitch gave stronger credit to Schertz than they did to Seguin. Standard and
Poors gave a better rating to Seguin than they did to Schertz because Seguin
has already begun their water rate increases.
Mr. McLiney, along with Council, reviewed the Final Pricing Report. He advised
that the Corporation went out for bids on wells and they came in at $500,000
under budget.
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There was discussion about how some cities are going to be desperate for water,
about how the Legislature has not been very responsive, and about how a group
is going to Austin to support other cities.
Mr. Greenwald moved to approve the Resolution as written on the agenda
authorizing the issuance of obligations designated as "Schertz/Seguin Local
Government Corporation Contract Revenue Bonds, Series 2001." Mr. Williams
seconded the motion, which carried with the following votes:
AYES: Councilmembers Head, Agee, Williams and Greenwald.
NAYS: None.
John Bierschwale, Public Works Director, mentioned the City would need a new
water tank. It would probably cost somewhere between 1.3 million to 1.5 million
dollars. Then there's the matter of the land. The family who has been
approached on the matter wants $200,000 for their property. There would be
approximately ten acres left over for a park or whatever. Mayor Baldwin
commented it doesn't sound like a good deal. Mr. Bierschwale indicated he
would like to see it go to condemnation.
Mayor Baldwin asked Mr. Bierschwale if he had considered Ollie Burkett's
property off E. Live Oak Road. Mr Bierschwale stated the only problem is that
Mr. Burkett wants to finance it.
Mr. Bierschwale was instructed by Council to make a generous offer to the family
that has already been approached and if they don't accept, go to condemnation.
#2 ADJOURNMENT
There being no further business to discuss, Mayor Baldwin adjourned the
meeting at 7:50 p.m.
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