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07-15-2025 MinutesMINUTES REGULAR MEETING July 15, 2025 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on July 15, 2025, 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: Present: Mayor Ralph Gutierrez; Mayor Pro -Tern Allison Heyward; Councilmember Michelle Watson; Councilmember Paul Macaluso; Councilmember Ben Guerrero; Councilmember Robert Westbrook; Councilmember Tim Brown Absent: Councilmember Mark Davis Staff City Manager Steve Williams; Deputy City Manager Brian James; City Attorney present: Daniel Santee; Assistant City Manager Sarah Gonzalez; City Secretary Sheila Edmondson Call to Order Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Councilmember Macaluso) Councilmember Macaluso provided the opening prayer and led the Pledges of Allegiance to the Flags of the United States and State of Texas. Proclamations Proclamation for Park & Recreation Month (Councilmember Guerrero) Councilmember Ben Guerrero presented the Parks and Recreation Department a proclamation for Parks and Recreation Month -July 2025. Parks Director Lauren Shrum thanked her staff for all the hard work they provide to ensure all parks and recreation activities are enjoyed by all. City Events and Announcements Assistant City Manager Sarah Gonzalez provided information about the upcoming events: Friday, July 25th-8:00 pm Music & Movies in the Park Wendy Swan Memorial Park 4601 Cherry Tree Dr, Schertz, TX 78108 Saturday, July 26th-10:00 am-4:00 pm Mini Golf at The Library Schertz Library, 798 Schertz Pkwy, Schertz, TX, 78154 1 Sunday, July 27th-8:30 pm - 9:30 pm Owl Prowl Crescent Bend Nature Park 12805 W. Schaefer Road, Schertz, TX Friday, August 1st 8:30 am-5:00 pm Council Budget Retreat Schertz Council Chambers, 1400 Schertz Pkwy. Bldg. 4, Schertz, TX Next City Council Meeting: August 5th, 2025 at 6:00 pm Council Chambers, 1400 Schertz Pkwy. Bldg. 4 • Announcements and recognitions by the City Manager (S. Williams) City Manager Williams announced the promotion of Hector Castro from Police Officer to Sergeant. A big kudos and thank you to all the staff, especially the Parks Department, for the hard work on the 4th of July Parade and Jubilee. CM Williams also thanked the EMS Department for sending our AMBUS, two ambulances and a Strike Team to the flood -affected areas. A thank you to the Fire Dept. for sending in a swift rescue boat and our Emergency Manager, Brandon High, who has been out in the flood areas assisting. Also, kudos to the Police Dept. for sending out search and recovery staff to assist during the flooding in Kerrville. . Announcements and recognitions by the Mayor (R. Gutierrez) Mayor Gutierrez expressed how incredibly proud he is of our EMS and Fire Dept. who responded to the flooding in Kerrville. Their courage, professionalism and selfless dedication during times of crisis. Mayor Gutierrez also thanked the entire Parks and Recreation Dept. for their hard work with the 4th of July Parade and Jubilee Celebration. Hearing of Residents This time is set aside for any person who wishes to address the City Council. Each person should fill out the speaker's register prior to the meeting. Presentations should be limited to no more than 3 minutes. All 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 requested to leave the meeting. All handouts and/or USB devices must be submitted to the City Secretary no later than noon on the Monday preceding the meeting. Handouts will be provided to each Councilmember prior to the start of the meeting by the City Secretary. All USB devices will be vetted by City IT staff to ensure City property is protected from malware. Maggie Titterington:1730 Schertz Parkway, Schertz, TX 78154-Ms. Titterington shared that at the July Chamber Luncheon, there was a Leadership CORE Class graduation at the luncheon. 2 She thanked Mayor Gutierrez for attending and supporting our local businesses. Daniel Jameson: 1000 FM 78, Schertz, TX 78154 Mr. Jameson reminded everyone of the VFW Breakfast on July 19, 2025. All -you -can -eat breakfast is $12.00. Callie Decena: 3049 Muntjac, Schertz, TX 78154-Ms. Decena wanted to have an animal neglect and cruelty laws discussion added to a Council Agenda. San Antonio is focusing on the issues of animal abuse and would like the City of Schertz to be proactive in the care and concern of animals. Barbara C Palomo: 700 Maple Dr, Schertz, TX 78154-Ms. Palomo wanted to express her frustration about her recent dog attack incident. There was a police report made, and Animal Services did take possession of the dog. She has tried to leave voice messages with the Crime Victims' unit and cannot leave a message. She calls and tries to keep in touch with city officials but says she has not been provided the proper service for this incident. Mayor Gutierrez asked her to stop and speak to Chief Jim Lowery before leaving tonight's meeting. Consent Agenda Items 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 — Approval of the minutes from the City Council Meeting on July 1, 2025 (S.Edmondson/S.Courney) 2. Appointments, Reappointments, and Resignations - City of Schertz Boards, Commissions, and Committees Appointments Schertz Historical Preservation Committee - Jim Burdett Resignations Schertz Historical Preservation Committee -Chris Hormel EDC-Sammi Morrill 3. Resolution 25-R-081- Authorizing an Interlocal Agreement with the Schertz-Cibolo-Universal City Independent School District for the 2025-2026 School Year for School Resource Officer services (J.Lowery/P.Waller) 4. Resolution 25-R-087 - Authorizing an application to be submitted to the Office of the Governor for the Urban Areas Security Initiative (UASI) Grant Program (S. Williams/G.Rodgers) 5. Resolution 25-R-088 - Authorizing an application to the Office of the Governor for the State Homeland Security Program (SHSP) Grant Program (S.Williams/G.Rodgers) 3 6. Resolution 25-R-089 Authorizing an application to the Office of the Governor for the State Homeland Security Program (SHSP) Grant Program (S.Williams/G.Rodgers) 7. Resolution 25-R-090 - Authorizing an application to the Texas General Land Office for the Local Hazard Mitigation Plans Program (LHMPP) Grant Program (S. Williams/G.Rodgers) 8. Resolution 25-R-095 - Authorizing a contract with ABIP, PC for Auditing Services (S. Gonzalez/J. Walters) Councilmember Robert Westbrook requested to have item # 8-Resolution 25-R-093-Authorizing an Interlocal Agreement with 791 Purchasing Cooperative pulled from the consent agenda and discussed separately. Mayor Ralph Gutierrez asked for a motion to approve the Consent Agenda Item# 1-7 and Item #9. Moved by Councilmember Michelle Watson, seconded by Councilmember Tim Brown AYE: Mayor Pro-Tem Allison Heyward, Councilmember Michelle Watson, Councilmember Paul Macaluso, Councilmember Ben Guerrero, Councilmember Robert Westbrook, Councilmember Tim Brown Passed Discussion and Action Items 9. Resolution 25-R-093 - Authorizing an Interlocal Agreement with 791 Purchasing Cooperative (S.Gonzalez/J.Kurz/D.Ellenburg) Councilmember Robert Westbrook asked to have Resolution 25-R-093 pulled from the Consent Agenda and moved to Discussion and Action Items. He thought with the cost involved, this should be discussed with the Council before approval. Daniel Ellenburg-Purchasing Manager, explained the current buyboads programs the city is using and how much the savings are. By entering an interlocal agreement with the 791 Purchasing Cooperative, there is no financial obligation to use this program. City Manager Steve Williams added that this will save the city time and expense with not having to issue RFQ's and RFP's for items that would usually need a RFQ or RFP to purchase. Moved by Councilmember Tim Brown, seconded by Mayor Pro-Tem Allison Heyward AYE: Mayor Pro-Tem Allison Heyward, Councilmember Michelle Watson, Councilmember Paul Macaluso, Councilmember Ben Guerrero, Councilmember Robert Westbrook, Councilmember Tim Brown 4 Passed 10. Resolution 25-R-091 - Authorizing an application to the Texas Division of Emergency Management (TDEM) for the Hazard Mitigation Grant Program (HMGP) (S. Williams/G.Rodgers) Fire Chief Greg Rodgers is seeking Council permission to allow the City Manager, Steve Williams, to submit on behalf of the city a grant to the Texas Division of Emergency Management (TDEM) for a generator that would support public safety. The one the city currently uses is old and requires additional maintenance. This is an opportunity to replace one that is more powerful. This particular grant is 75%-25% split. The total cost of the generator is $325,000, and our portion of 25% is $81,250. The rest of the funding would be picked up through the federal grant process. Councilmember Ben Guerrero asked how much better the new generator was compared to the current generator. Chief Rodgers explained that a similar -sized generator could work, but the recommendation is to add a 20% buffer in reserve for emergencies. Moved by Councilmember Michelle Watson, seconded by Mayor Pro-Tem Allison Heyward AYE: Mayor Pro-Tem Allison Heyward, Councilmember Michelle Watson, Councilmember Paul Macaluso, Councilmember Ben Guerrero, Councilmember Robert Westbrook, Councilmember Tim Brown Passed 11. Resolution 25-R-092 - Authorizing an application to the Texas Division of Emergency Management (TDEM) for the Hazard Mitigation Grant Program (HMGP) (S. Williams/G.Rodgers) Fire Chief Rodgers is seeking Council permission to allow the City Manager, Steve Williams, to submit an application and accept an award for the Hazard Mitigation Grant Program (HMGP) as it relates to DR-4798; designating the City Manager as the Authorized Official not to exceed the amount of $985,000.00. It is a greater number of $985,000.00 in total. However, we re -submitted in this process the public safety generator again in the event that we did not get it in the first submission. The city wanted to have two opportunities to try. Should we get it in the first submission, we would subtract $325,000 off of the $985,000 and our commitment of the 25% would then be $165,000.00. Moved by Councilmember Ben Guerrero, seconded by Councilmember Michelle Watson 5 AYE: Mayor Pro-Tem Allison Heyward, Councilmember Michelle Watson, Councilmember Paul Macaluso, Councilmember Ben Guerrero, Councilmember Robert Westbrook, Councilmember Tim Brown Passed 12. Ordinance No. 25-B-031 - Consideration and approval by the city council of the City of Schertz, Texas authorizing the issuance of "City of Schertz, Texas, Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2025"; 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; and other matters incident and related thereto. First & Final Reading(S.Gonzalez/J.Walters/A.Friedman) Finance Director James Walters explained that Ordinance 25-B-031 authorizes the sale of Obligations for the projects previously proposed and properly noticed subsequent to the Notice of Intention Resolution adopted by the Council on May 6, 2025. The Certificates will fund street improvements, utility improvements, and facility improvements in an amount of $56,400,000. As of today, no petition has been filed to push this sale of debt to the November election. Today, July 15, 2025, the city received the quote for the sale of the bonds for the council's review. Council may agree to the terms of the sale based on the interest rates offered and adopt Ordinance 25-B-031. Andrew Friedman from Samco Capital Markets Financial Advisors provided some background information on the certificates of obligations. The city authorized the notice of intention for all the projects that are described in the council memo. There were three investment banks that worked as your syndicate of underwriters, and they went into the market today. Samco Capital has been in communication with the underwriting syndicate as they were visiting their customers. We have an improvement in interest rates, meaning the yields came down by the time we received their final bid to underwrite. Our credit rating with Standard and Poors is a AA+ credit rating, one level below AAA rating, which is the highest you can get. The city has strong management practices and strong policies. If the Council approves the CO's tonight, the funds will be delivered on August 13th, 2025. The city will receive $28.8 million for the general fund projects and $27.6 million for the utility fund projects. The average interest rate on this financing came in at 4.37%. Councilmember Macaluso asked how we compare past bonds and interest rates. Mr. Friedman explained that interest rates were lower in 2020-2021. These are not the most expensive bonds, but it has nothing to do with the city's credit rating. Councilmember Guerrero asked if the tax rate will stay the same or not? Finance Director James Walters explained the city recalculates the rate every year. If the city grows faster, the interest rate will be lower. If the city stays the same, the tax rate shouldn't go up since we came in low. Councilmember Westbrook asked if the interest rates drop, can we refinance the bonds? Mr. Friedman said we could, but not before 2034. Samco does monitor the rates carefully. Councilmember Tim Brown made the motion, " I move that the city council adopt an ordinance authorizing the "City of Schertz, Texas, combination tax and limited pledge revenue certificates of obligation, series 2025. Moved by Councilmember Tim Brown, seconded by Councilmember Paul Macaluso AYE: Mayor Pro-Tem Allison Heyward, Councilmember Michelle Watson, Councilmember Paul Macaluso, Councilmember Ben Guerrero, Councilmember Robert Westbrook, Councilmember Tim Brown Passed 13. Resolution 25-R-082 — Ordering the November 4, 2025, City of Schertz Joint General Election with Comal County, Bexar County and Guadalupe County and making a provision for the conduct of the election; authorizing contracts with the County Clerk of Comal County and the Election Administrators of Bexar and Guadalupe Counties to conduct this election and authorizing these elections to be held as Joint Elections. (Mayor/S.Edmondson) City Secretary Sheila Edmondson brought forward Resolution 25-R-082-Ordering the November 4, 2025, City of Schertz Joint General Election with Comal County, Bexar County and Guadalupe County and making a provision for the conduct of the election; authorizing contracts with the County Clerk of Comal County and the Election Administrators of Bexar and Guadalupe Counties to conduct this election and authorizing these elections to be held as Joint Elections. Moved by Councilmember Michelle Watson, seconded by Councilmember Tim Brown AYE: Mayor Pro-Tem. Allison Heyward, Councilmember Michelle Watson, Councilmember Paul Macaluso, Councilmember Ben Guerrero, Councilmember Robert Westbrook, Councilmember Tim Brown Passed 14. Resolution 25-R-083 — Ordering the November 4, 2025, City of Schertz Joint Special Election with Bexar County and making a provision for the conduct of the election; authorizing contracts with the Election Administrators of Bexar County to conduct this Special Election. (Mayor/S.Edmondson) City Secretary Sheila Edmondson brought foward Resolution 25-R-083-Ordering the November 4, 2025, City of Schertz Joint Special Election with Bexar County and making a provision for the conduct of the election; authorizing contracts with the Election Administrators of Bexar County to conduct this Special Election. CS Edmondson clarified in Section 2 that voters can vote for full annexation or choose to allow the city to adopt the land use/zoning. Under Section 10, the estimated cost of the special election would be approx. $4,600.00. 7 Moved by Mayor Pro -Tern Allison Heyward, seconded by Councilmember Paul Macaluso AYE: Mayor Pro -Tern Allison Heyward, Councilmember Michelle Watson, Councilmember Paul Macaluso, Councilmember Ben Guerrero, Councilmember Robert Westbrook, Councilmember Tim Brown Passed Information available in City Council Packets - NO DISCUSSION TO OCCUR 15. Listing of City Department Education Related Activities (S.WilliamsB.James) Requests and Announcements • City and Community Events attended and to be attended (Council) Mayor Gutierrez is seeking re-election as Mayor of the City of Schertz. Mayor Pro Tem. Heyward attended the Audit Committee Meeting, NEP Luncheon and there will be a Special Session on July 21 st. Councilmember Watson attended the Audit Committee Meeting and 4th of July Parade. Councilmember Macaluso attended the TIRZ Meeting and 4th of July Parade and Jubilee. Councilmember Guerrero 4th of July Parade and Gala event -Happy Kids Foundation. Councilmember Westbrook 4th of July Parade. Councilmember Brown supports EDC Meeting with the city growing strong and attended the 4th of July Parade. Adjournment Mayor Gutierrez adjourned the meeting at 7:02 p.m. alph Wtierrez, Mayor E