07/20/2009-CC-Minutes-Regulari
MINUTES: CITY COUNCIL MINUTES
July 06, 2009
PRESENT: Mayor Joe Higgs, Councilman Thomas Muir, Councilman Russell Martin,
Councilman Glenn Ervin, Councilman Andy Garza
MEMBERS
ABSENT: Councilman Robert Patton
OTHERS
PRESENT: Mike Brice City Manager, Rose Chavez City Secretary/Asst. City Manager,
Ted Christensen, Financial Advisor Government Capital, Reverend Reggie
Logan, Mrs. Logan, Peggy Haskins
1. Call Meeting to Order, Invocation, and Pledge of Allegiance.
Mayor Higgs called meeting to order, Reverend Logan (Galilee Baptist Church) led
the invocation and Councilman Martin led the Pledge of Allegiance,
2. Citizens Input:
Citizens are allowed 3 minutes to speak. The City Council is unable to respond or to discuss any
issues brought up during this section.
None
CONSENT AGENDA
3, a) Approve Minutes: July 6, 2009 -- Work Session
July 65 2009 -- City Council
b) Disbursements
c) Approve Galilee Baptist Church Tent Service on August 1 and 2, 2009
d) Approve Resolution #Wm09-09 - Galilee Baptist Church 100th Year
Anniversary
e) Approve 2009 Interlocal Agreement with Denton County Tax Office for
Tax Collections
Councilman Ervin requested item (c) and (d) be pulled from the agenda for
discussion in item #4.
Councilman Garza made a correction to the minutes on approval of the consent
agenda to indicate that he had abstained for approval since he was absent for the
June 15t" meetings.
Motion was made by Councilman Ervin to approve the consent agenda as presented
with the correction as noted, and to pull item (c) and (d) for discussion. Seconded by
Councilman Martin. Motion carried unanimously.
4. Consider any Items Removed from Consent Agenda.
Reverend Reggie Logan, Pastor of the Galilee Missionary Baptist Church, 300 E.
Willow Street, addressed Council concerning his request for a tent service on August
1st and August 2°d, 2009. The Galilee Missionary Baptist Church is about to embark
on their 100 year anniversary. He invited the Council to attend this special event
beginning on August 1st at 6:00 p.m. The celebration will begin with dinner, followed
with a musical. The official dedication of their site marker will be conducted on
August 2
nd, at 10:00 a.m. Reverend Logan gave a brief history of their Church.
(c) Motion was made by Councilman Ervin to approve the Galilee Baptist Church
tent service from August 1st and 2nd 2009. Seconded by Councilman Garza. Motion
carried unanimously.
(d) Motion was made by Councilman Muir to approve Resolution #R07-09-09
recognizing Galilee Baptist Church 100th Year Anniversary. Seconded by
Councilman Martin. Motion carried unanimously.
5. Consider and Possible Action on Approving Reimbursement of $1950.00 in Water
Tap Fees to Rio Vista Homes for Overpayment of Tap Fees,
The City Manager advised that at one point in the past Sable Creek Partners paid
water tap fees for a water meter that was basically utilized for landscaping. Rio
Vista Homes came in and built a house at that location and utilized the same tap,
meter and box that was there. The problem is that both builders paid for the tap
fees. Staff would like to reimburse Rio Vista Homes the tap fees.
Motion was made by Council Ervin to reimburse $1950.00 to Rio Vista Homes for
overpayment of water tap fees. Seconded by Councilman Muir. Motion carried
unanimously.
6. Consider and Possible Action on Approving Resolution #R07-07-09 -Approving a
Change in the Tariffs of Atmos Energy Corporation, Mid -Tex Division ("Atmos") as
a Result of a Settlement Between Atmos and the Atmos Texas Municipalities (ATM).
The City Manager advised that this is the last increase of about $24 million from
Atmos Energy. On June 10, the Atmos Texas Municipalities met with Atmos and
negotiating an offer to settle for a net increase of $2.6 million. This would mean an
increase to residents of about 15 cents per month. This is settled at the State level
and approved at a local level.
Motion was made by Councilman Ervin to approve Resolution #1107-07-09
approving a change in tariffs of Atmos Energy Corporation, Mid -Tex Division as
result of a settlement between Atmos and Atmos Texas Municipalities. Seconded by
Councilman Martin. Motion carried unanimously.
7. Conduct Public Hearing Regarding an Application for an Outdoor Recreation Grant
from the Texas Department of Parks and Wildlife for Development of a Sports
Complex,
Mayor Higgs declared public hearing opened.
No one spoke for or against.
Mayor declared public hearing closed.
8. Consider and Possible Action on Approving Resolution #R07-08-09 -Authorizing
Application for an Outdoor Recreation Grant from the Texas Department of Parks
and Wildlife for Development of a Sports Complex.
The City Manager advised this is a grant for the new Sports Complex. This grant is
a 50-50 grant with a match up to $500,000. There was also another public hearing
that was held at 49.00 p.m. that was a requirement for the application process. It was
discussed that the matching funds are funded from the bond proceeds.
Motion was made by Councilman Muir to approve Resolution #R07-08-09.
Seconded by Councilman Ervin. Motion carried unanimously.
9. Consider and Possible Action Adopting Ordinance #07-09-09 - Ordinance
Authorizing the Issuance of City of Sanger, Texas Combination Tax and Revenue
Certificates of Obligation, Series 2009.
Ted Christensen with Government Capital gave a review summary of all the current
bond debt and the debt that is about to be issued. He gave a summary of the EDC
obligation of $190,000. A review of the sale of the bonds continued as follows: the
market and the difficulty concerning the sale of the bonds, review of the bond rating
of Baal, insurance cost, underwriter's discount, and underwriter's risk He advised
that getting insurance saved the City $160,000. He also discussed the cost involved
with private placement. Mr. Christensen advised it is expensive to issue debt and
with private placement it has become very expensive.
Ted Christensen discussed the bond payments and the formulas with underwriting,
underwriting discount and underwriter's risk
Discussion continued concerning re -funding this bond issue, and that it is not an
option until eight or nine years. Mr. Christensen also discussed the importance of
the bond ratings.
Motion was made by
authorizing the issuance
Certificates of Obligation
carried unanimously.
Councilman Ervin to approve Ordinance # 07/09/09
of the City of Sanger Combination Tax and Revenue
Series 2009. Seconded by Councilman Martin. Motion
10. Consider and Possible Action on Approving Resolution #R07-10-09 - Relating to
Approving a Financing by the Sanger Cultural Education Facilities Finance
Corporation for the Benefit of Centerpoint Community Baptist Church DBA Center
Point Church and Related Matters.
Ted Christensen advised that the Sanger Educational Corporation was created about
a year ago. The Corporation is used as a way to take a non-profit 501c-3 charitable
organization, with a taxable loan that is laundered through the corporation and it
comes out as a tax exempt loan. It is done in accordance with State Statues and in
accordance with IRS. The benefit to the City is a $10,000 check. This is the second
check for the City this year. This is a great opportunity for cities and for non-profit
organizations. Andrew Kuruth is the bond counsel who handles these transactions.
The City does not have any obligations concerning this loan.
Motion was made by Councilman Muir to approve Resolution #R07-10-09 relating
to the financing by the Sanger Cultural Education Facilities Finance Corporation for
the benefit of Centerpoint Community Baptist Church DBA Center Point Church
and related matters. Seconded by Councilman Garza. Motion carried unanimously.
11. Executive Session: Pursuant to Open Meetings Act, Chapter 551, Texas Government
Code, Subchapter D, 551.074, Deliberation Regarding Personnel Matters.
a) Review City Manager Employment Contract
Motion was made by Councilman Martin to table item 11 & 12 for the next City
Council meeting. Seconded by Councilman Muir.
Reconvene: Into Regular Session and Consider Action if any, on Items Discussed in
Executive Session.
12. Information Items:
a) City of Sanger Investment Report
b) Monthly Financial Statement as of June 2009
c) Monthly Library Report
d) Chamber of Commerce Profit & Loss Report
e) Letter From Moody's Investors Service
13. Adjournment.
Mayor Higgs adjourned the meeting.