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Min 08/20/2019 City of Wichita Falls City Council Meeting Minutes August 20, 2019 Item 1 - Call to Order The City Council of the City of Wichita Falls, Texas met in regular session on the above with the following members present. Stephen L. Santellana - Mayor DeAndra Chenault - Mayor Pro Tem Tim Brewer - Councilors Jeff Browning - Steve Jackson - Eric West - Bobby Whiteley - Darron Leiker - City Manager Kinley Hegglund - City Attorney Marie Balthrop - City Clerk - - - - - - - - Mayor Santellana called the meeting to order at 8:30 a.m. - - - - - - - - Item 2a Invocation Eric Deluna, Pastor, Lakeview Church of the Nazarene, gave the invocation. - - - - - - - - Item 2b Pledge of Allegiance Mayor Santellana led the Pledge of Allegiance. - - - - - - - - Item 3 Consent Items 8:32 a.m. City Manager Darron Leiker gave a briefing on the items listed under the Consent Agenda. Moved by Councilor Browning to approve the items on the consent agenda. Motion seconded by Councilor Whiteley and carried by the following vote: Ayes: Mayor Santellana, Councilors Brewer, Browning, Chenault, Jackson, West, and Whiteley Nays: None Item 3 Approval of minutes of the August 6, 2019 Regular Meeting of the Mayor and City Council - - - - - - - Item 4a Ordinance 35-2019 8:33 a.m. Ordinance making an appropriation to the Special Revenue Fund in the amount of $72,015.48 for grant revenue from the Texas Department of Transportation (TxDOT) for a Comprehensive Selective Traffic Enforcement Program (STEP) Grant for Fiscal Year 2020 and authorizing the City Manager to execute all documents necessary to accept said funds. Moved by Councilor Chenault to approve Ordinance 35-2019. Motion seconded by Councilor Browning and carried by the following vote: Ayes: Mayor Santellana, Councilors Brewer, Browning, Chenault, Jackson, West, and Whiteley Nays: None - - - - - - - Item 5a Resolution 76-2019 8:35 a.m. Resolution approving the programs and expenditures of the Wichita Falls Economic Development Corporation (WFEDC) and amending the budget to include up to $150,000 for Tryer Process Equipment to expand their operations in Wichita Falls. Moved by Councilor Chenault to approve Resolution 76-2019. CITY COUNCIL MINUTES August 20, 2019 Page 2 Motion seconded by Councilor Browning and carried with the following vote: Ayes: Mayor Santellana, Councilors Brewer, Browning, Chenault, Jackson, West, and Whiteley Nays: None - - - - - - - Item 5b Resolution 77-2019 8:42 a.m. Resolution approving the programs and expenditures of the Wichita Falls 4B Sales Tax Corporation Board of Directors and amending the budget to include up to $217,500 for the retention of Kimley-Horn as a consultant to perform the design work of the section of the Hike and Bike Moved by Councilor Chenault to approve Resolution 77-2019. Motion seconded by Councilor Browning and carried by the following vote: Ayes: Mayor Santellana, Councilors Brewer, Browning, Chenault, Jackson, West, and Whiteley Nays: None - - - - - - - Item 5c Resolution 78-2019 8:45 a.m. Resolution authorizing the City Manager to execute a professional services agreement with Kimley-Horn and Associates, Inc. for the design of the Lake Wichita Trail west of Moved by Councilor Chenault to approve Resolution 78-2019. Motion seconded by Councilor Jackson and carried by the following vote: Ayes: Mayor Santellana, Councilors Brewer, Browning, Chenault, Jackson, West, and Whiteley Nays: None CITY COUNCIL MINUTES August 20, 2019 Page 3 - - - - - - - Item 5d Resolution 79-2019 8:49 a.m. Resolution authorizing the execution of a Memorandum of Agreement between the City of Wichita Falls and the Arthur J. Szczerba M.D., P.A. Physicians Professional Association for the Provision of Medical Services to the Wichita Falls - Wichita County Public Health District. Moved by Councilor Brewer to approve Resolution 79-2019. Motion seconded by Councilor Chenault and carried by the following vote: Ayes: Mayor Santellana, Councilors Brewer, Browning, Chenault, Jackson, West, and Whiteley Nays: None - - - - - - - Item 5e Resolution 80-2019 8:50 a.m. Resolution authorizing the City Manager to award bid and contract for the 2019 Sanitary Sewer Budget Utility Improvement Project - Phase 2 to Cage Construction and Management Co. in the amount of $699,064.15. Moved by Councilor Brewer to approve Resolution 80-2019. Motion seconded by Councilor Jackson and carried by the following vote: Ayes: Mayor Santellana, Councilors Brewer, Browning, Chenault, Jackson, West, and Whiteley Nays: None - - - - - - - Item 5f Resolution 81-2019 8:53 a.m. Resolution authorizing the City Manager to apply for non-matching Grant Funds from the Edward Byrne Memorial Justice Assistance Grant Program in the amount of $29,444.00 with co-applicant, CITY COUNCIL MINUTES August 20, 2019 Page 4 Moved by Councilor Chenault to approve Resolution 81-2019. Motion seconded by Councilor Browning and carried by the following vote: Ayes: Mayor Santellana, Councilors Brewer, Browning, Chenault, Jackson, West, and Whiteley Nays: None - - - - - - - Item 6 - Hearing to consider a complaint against Councilor Steve Jackson 8:56 a.m. Hearing to consider a complaint against Councilor Steve Jackson for violation of the City Council Code of Ethics, Section 2-146 of the City of Wichita Falls Code of Ordinances, and to determine if sufficient evidence exists to establish a violation warranting the imposition of disciplinary action. Mayor Santellana opened the hearing at 8:56 a.m. Mayor Santellana reminded everyone that this is an evidentiary hearing, stated the guidelines for the hearing, and presented an opening statement for the alleged violations of Section 2-146 of the City Council Code of Ethics. On July 31, 2019, a complaint was filed by Mayor Stephen Santellana against Councilor Steve Jackson for an alleged violation of Section 2-146 of the City Council Code of Ethics. The complaint referenced two potential violations: 1) that Councilor Jackson made false or misleading statements regarding a city issue; 2) that Councilor Jackson was accompanied by individuals representing themselves to be ice, did not find any evidence that Councilor Jackson was present when any individuals allegedly represented themselves as city officials, or that he knew that individuals were representing themselves as city officials. Therefore, that allegation will not be addressed at this hearing. The investigation did yield sufficient evidence that Councilor Jackson knowingly made false or misleading statements, therefore, pursuant to Section 2-147 of the City Council Code of Ethics, the City Council will hold a hearing to determine if Councilor Jackson did in fact knowingly make false or misleading statements, and if so, what if any discipline is warranted. Mayor Santellana reviewed the guidelines and rules of decorum for the hearing. Mayor Santellana called himself as the first witness, was sworn in by the City Clerk, and provided his testimony. On July 31, 2019 at 10:49 a.m. he submitted the complaint form and attached the emailed complaint. Mayor Santellana stated that he was informed by a local insurance agent that there had been chatter about eminent domain downtown and was asked to call Rueben Rodriguez to discuss this. Mayor Santellana visited with CITY COUNCIL MINUTES August 20, 2019 Page 5 Mr. Rodriguez, and Mr. Rodriguez stated that Councilor Jackson had been by his business and he provided the business card Councilor Jackson had given him. Mr. Rodriguez discussed that Councilor Jackson told him the City had plans to take his property via eminent domain and use certificates of obligation to push forward with a new city facility. Mayor Santellana reiterated to Mr. Rodriguez that there were no plans to move forward with this project after the failed bond election. Mayor Santellana Santellana reached out to Darron Leiker, City Manager, to confirm that there were no discussions about moving forward with a new city hall, and Mr. Leiker confirmed that there had been no talk of moving forward with this project. Mr. Leiker emailed Councilor Jackson to let him know this information was incorrect. After the City Charter Review meeting the next day, Mayor Santellana spoke with Councilor Jackson and asked him if the things Mr. Rodriguez said were true, and Councilor Jackson stated yes he said those things. Mayor Santellana asked who the people were that were with him, but did not get a response. Councilor Jackson stated he had a source, but would not reveal his source. During the conversation Councilor Jackson made statements suggesting that the city was planning on taking downtown properties via eminent domain and planned to use certificates of obligation to fund the project. Mayor Santellana told Councilor Jackson that if his source was not from specific upper management in the city, then it was not reliable, and that these statements were not true. Councilor Jackson was asked to return to the businesses and give correct information, however, Councilor Jackson returned to the businesses and restated the incorrect information that the city was planning to take their property via eminent domain, for pennies on the dollar, and use certificates of obligation to fund a new municipal building. Mayor Santellana visited various businesses to ensure they understood this was not true, and received the same story from multiple businesses in the area that stated they had also been visited by Councilor Jackson and given the same incorrect information. Mayor Santellana stated that he wanted to be clear that this is the first complaint he has filed, but is not the first time that he has had issues with Councilor Jackson spreading false information. The In response to threating litigation if Councilor Jackson was removed from his seat. Mayor Santellana but stated that not all speech is protected. Mayor Santellana stated he is not interested in removing Councilor Jackson from the council. Ms. Elizabeth Alvarez questioned Mayor Santellana about the administrative rules and if there was any conflict with him presiding over the hearing given the subject of the hearing was his own complaint. Mayor Santellana stated that he did not feel this was a conflict, that this was an evidentiary hearing, and if they wanted someone else to preside they could have requested that prior to the meeting, which they did not. Ms. Alvarez stated that an evidentiary hearing that threatens any liberty interest has due process rules that apply, which includes an impartial tribunal, and stated that Mayor Santellana could not be an impartial tribunal if this is his complaint. There were comments between Ms. Alvarez and Mayor Santellana about how the hearing was CITY COUNCIL MINUTES August 20, 2019 Page 6 being handled. Ms. Alvarez asked Mayor Santellana about statements made to the media after the bond election failed, that the city would complete these projects in smaller steps, and asked if he still wanted a new municipal center. Mayor Santellana stated that he did make statements to the media about going forward with failed bond projects in smaller pieces, but not in regards to the municipal center, and discussed the cost savings if a new municipal center was built. Ms. Alvarez asked Mayor Santellana if he still wanted a new municipal center, and what would it take to build one. Mayor Santellana stated that yes he would like to see a new municipal center, but that it would take a miracle to build one. Ms. Alvarez asked where the new municipal building would go and Mayor Santellana discussed the three proposed options. Ms. Alvarez asked if any of the options required certificates of obligation had the bond passed. Mayor Santellana stated that only bond funds would have been used, and once the bond failed there have been no more discussions about moving forward with the project. Ms. Alvarez asked if the first individual Mayor Santellana had talked to said he heard this information from his partner and asked if Mayor Santellana spoke to the partner. Mayor Santellana confirmed that he did speak with the partner. Ms. Alvarez asked the Mayor if the person that called him or any of the other witnesses filed a complaint and Mayor Santellana replied no. Ms. Alvarez then asked Mayor Santellana why he filed a complaint, and he stated that he sits on the City Council with Councilor Jackson and there have been multiple incidents with misinformation being given, and that the complaint was focused more on the slanderous statements about illegal activity. Ms. Alvarez and Mayor Santellana discussed what statements were considered slander such as under the table, taking money under the table, breaking quorum rules, and how statements made by Councilor Jackson may or may not have been translated into accusations of illegal activity. Mayor Santellana read specific written evidence provided to discuss the wording that was used. There was discussion about if the statements backdoor deal and under the table imply illegal activity, if political mailers that use these types of statements are illegal, and if statements like these are always implying illegal activity. Ms. Alvarez asked about the other witnesses Mayor Santellana spoke to, and if he spoke with them before or after he filed the complaint, and if citizens were frightened, and what they were frightened about. Mayor Santellana stated that he spoke to the witnesses before filing the complaint, citizens were frightened, and they were afraid of losing their businesses. There was a discussion about previous false and misleading statements alleged by Councilor Jackson, and screenshots provided of Facebook messages, personal messages, and other ways that Councilor Jackson has accused the Mayor and the Council of illegal activity such as illegal contracts. Ms. Alvarez asked Mayor Santellana about his complaint and if he is saying the statements Councilor Jackson allegedly made in the statement were untrue, if he thought Councilor Jackson knew they were untrue, if the statements were misleading, or an opinion and how he violated city code. Mayor Santellana stated that initially he thought it was an opinion, but when he was provided with the correct information and told his statements were not correct, he went back and repeated the lies to Mr. Rodriguez. Ms. Alvarez asked Mayor Santellana how he knew Councilor Jackson spoke to business owners again, how Councilor Jackson would have known what he was saying was untrue, and specifically which parts were untrue. Mayor Santellana stated that he spoke with Mr. Rodriguez CITY COUNCIL MINUTES August 20, 2019 Page 7 and he confirmed Councilor Jackson returned a second time, that Councilor Jackson would have known the statements were untrue from an email sent to him, and that there are no plans for the use of eminent domain, using certificates of obligation, or plans being discussed for a new city complex in the near future. There was discussion about City Code, Section 2-146, if this was the first complaint under this section and when this part of the code was adopted. It was stated that this is the first complaint filed and this part of the City Code was adopted in May of 2019. There was also discussion about why this section was passed or needed. It was stated that a Code of Ethics was needed for grants, the city is mirroring other communities our size, how it should have been addressed years back, and that it cleans up council procedures and rules of decorum. Councilor Jackson stated he had no questions at this time. (Councilor Whiteley left the meeting at 9:32 a.m.) Ruben Rodriguez was sworn in by the City Clerk and provided his testimony. Mayor Santellana asked Mr. Rodriguez to briefly walk him through the initial contact with Councilor Jackson. Mr. Rodriguez stated that Councilor Jackson came by his shop and had a conversation with him about the City trying to take over his business, stated that Mr. Jackson was very convincing. Councilor Jackson told Mr. Rodriguez that the city was going to try and take his business again and that they would use a loophole to take business. Mayor Santellana asked Mr. Rodriguez if he be words to be true. Mr. Rodriguez stated yes he believed him since he was a council member. Mayor Santellana asked Mr. Rodriguez if based on some of the words Councilor Jackson used such as e city council was going to do this illegally and that Councilor Jackson was going to try and stop those efforts. Mr. Rodriguez stated that yes, Councilor Jackson had stated the city was going to find a loophole and take businesses to build a fire department and police department. Mayor Santellana asked Mr. Rodriguez if this was the first time he had heard this or had he heard this from any other source. Mr. Rodriguez confirmed that this was the first time he had heard it and had not heard from anyone else. Mayor Santellana asked Mr. Rodriguez how hearing this news affected him. Mr. Rodriguez stated that he moved from Dallas to start his business, has his life savings invested in his business, and hearing this affected him badly and ruined his weekend since it worried him. Mayor Santellana asked if it was hard for Mr. Rodriguez to know who to believe at that time. Mr. Rodriguez stated that it was hard to believe either of them during this time. Mr. Rodriguez stated again that he moved from Dallas to Wichita Falls, that he is not around politics much, and how he waited until the bond election was over before purchasing the building. He was very distraught to think that the city would take over his business, and was concerned about his business and workers that had moved with him from Dallas. Mayor Santellana discussed that how after receiving a phone call from Billy Rogers, he spoke to Mr. Rodriguez and referred him to Darron Leiker, City Manager, to hear from him that none of the statements made by Councilor Jackson were true. Mr. Rodriguez stated that it took time for him to believe the truth, and he felt a weight lifted after he believed the Mayor and Mr. Leiker. Mayor Santellana asked about the second contact from Councilor Jackson. Mr. Rodriguez stated that Councilor CITY COUNCIL MINUTES August 20, 2019 Page 8 Jackson admitted to having a conversation with the Mayor about this, that Councilor Jackson said it got pretty heated between him and the Mayor, and that Councilor Jackson stated again that the city would still try to take his property and to be careful, but that he was working for the people. Mayor Santellana stated the second visit transpired even after Councilor Jackson received an email from the City Manager stating his statements were untrue, and after a conversation with the Mayor stating the information was untrue. Mr. Rodriguez stated he was no longer relieved or at ease after the second meeting with Councilor Jackson, but he appreciated both Councilor Jackson and the Mayor for stopping by to talk to him, but he was just torn about what was the truth. Mayor Santellana asked Mr. Rodriguez if he ever felt like Councilor Jacksons statements were his opinion of something that might happen, or that something was going to happen. Mr. Rodriguez stated he did not know if it was just an opinion but that Councilor Jackson was very convincing. Councilor West asked Mr. Rodriquez if Councilor Jackson stated what his source was for this information. Mr. Rodriguez said Councilor Jackson did not say who his source was, but he believed him since he is a council member. Ms. Alvarez asked Mr. Rodriguez what Councilor Jackson said to him when he came to see him. Mr. Rodriguez stated that he did not remember specific words, but they had a conversation and Councilor Jackson asked if he had heard what was going on with the city. Mr. Rodriguez told Councilor Jackson that he had received a call from David, a business owner down the street, and David had asked if he knew that the city was going to try to take their property. Ms. Alvarez asked multiple questions about the specifics of the conversation with David and Councilor Jackson. Mr. Rodriguez stated again that he did not know if Councilor Jackson was giving his opinion or not, but that it sounded very convincing when he said the City was trying to go under businesses, and pay them pennies on the dollar. Ms. Alvarez asked Mr. Rodriguez which district he lives in and if he voted in the bond election. Mr. Alvarez did not know what district he lived in and stated he did not vote on the bond election. Ms. Alvarez discussed the bond proposal, how the city would have taken several properties via eminent domain downtown had it passed, and asked if Mr. Rodriguez knew that his property was one that would have been taken had the bond passed. Mr. Rodriguez said yes that he knew, but that he did not own the property before the bond election. Ms. Alvarez asked if Mr. Rodriguez saw a city official on TV saying they still wanted to build a municipal center what would he think, when he bought the property, and when the bond election was held. Mr. Rodriguez stated he did not know how he would feel seeing this on TV if they did not come and speak to him directly, that he purchased the property in November of 2018, and that he believes the bond election was in April of 2018. Ms. Alvarez asked if anyone else was with Councilor Jackson when he visited Mr. Rodriguez. Mr. Rodriguez stated that he came by himself, but that David called and said another white male visited him, said he worked for the City, and that he was going to bring paperwork since they needed at least 3000 signatures to keep the city from taking their property. Ms. Alvarez asked if Mr. Rodriguez had any reason to believe Councilor Jackson knows who the other white male is, and Mr. Rodriguez said he was unsure, but acknowledge that the gentleman did not imply Councilor Jackson sent him. CITY COUNCIL MINUTES August 20, 2019 Page 9 There was discussion about the possible security video footage, and Mr. Rodriguez acknowledged that he has a security camera, but had not had time to find the portion of the video showing Mr. Jackson. Mayor Santellana asked Mr. Rodriguez about his written sworn statement, asked if he had read it, and if he still swears his statements are true. Mr. Rodriguez stated that he had read the statement and that his statements were true. Mr. Rodriguez was dismissed. Paul Menzies, Assistant City Manager, was sworn in as a witness. Councilor Jackson stepped out of the meeting to pick up hearing documents that had been left in his mailbox the week prior to the hearing. When Councilor Jackson returned Mayor Santellana asked Mr. Menzies to walk them through specifics of what has happened since the bond failed last spring in reference to municipal buildings. Mr. Menzies stated that the city only constructs projects the community supports. He discussed that after the bond failed a presentation discussing renovation of the current building was presented to council, that it was clear that the new municipal building had been put to rest, and we were focusing on triage of the current building. Around $3 million of work had been discussed, but due to accessibility issues the cost to renovate this building will jump to around $30-$35 million. Mayor Santellana asked if this was discussed during the strategic planning session and was Councilor Jackson present during that meeting. Mr. Menzies stated that yes this was discussed and Councilor Jackson was present. Mayor Santellana asked if there was any discussion of certificates of obligation, eminent domain, or building a new municipal complex. Mr. Menzies said he did not recall if any of those issues came up, but with regards to building a new municipal complex, no, that was not discussed. Mayor Santellana asked Mr. Menzies if he had ever discussed any of these terms with Councilor Jackson. Mr. Menzies stated that he had not had any discussions like this since May of 2018 when the bond failed. Mayor Santellana asked Mr. Menzies if he had heard any other Council members or staff discussing eminent domain or taking of property. Mr. Menzies stated that he cannot possibly fathom how a project this size would occur without this Council taking action in public and directing the City Manager to move forward with those efforts, and stated that he had not heard any talk or chatter from Council or staff. Mayor Santellana discussed Mr. Menzies sworn statement, the presentation concerning renovation of Memorial Auditorium, workshops attended, and the adopted Strategic Plan, and asked if beyond that there was anything Mr. Menzies was aware of that would lend any truth towards statements made by Councilor Jackson. Mr. Menzies said no there was not. Mayor Santellana asked if Mr. Menzies still held his signed statement to be true, and Mr. Menzies said yes. Councilor Browning asked Mr. Menzies if he was stating that the cost of remodeling this building and building a new complex without fire and police facilities would be around the same cost, and Mr. Menzies stated that it would. Ms. Alvarez asked about the estimated costs of remodeling this building, if the new center would be cheaper, and in the best interest of the citizens over time. Mayor Santellana and Paul Menzies discussed the costs of maintaining the current building, how portions of this building are one hundred years old, and accessibility standards that would have to be met once a certain cost threshold is met during renovations. Ms. CITY COUNCIL MINUTES August 20, 2019 Page 10 Alvarez asked if Mr. Menzies was saying we have to do these things since we did not get the new center in the bond. Mr. Menzies stated that yes, this building needs a lot of maintenance. Ms. Alvarez asked if eminent domain would have been used if the bond had passed. Mr. Menzies stated that yes, that was the plan. Ms. Alvarez asked Mr. Menzies if the Mayor spoke to him before he filed the complaint, or had they spoken about what he would say today. Mr. Menzies said they talk regularly, but not in regards to this, and they had not discussed what he would say today because he had turned in his affidavit to the City Attor Mayor Santellana about today and what they discussed. Mr. Menzies stated that he had spoken to the Mayor a few times and most recently the day before and they discussed the procedure for the hearing. Mayor Santellana asked for clarification about the procedures if the bond had passed in reference to the location of the new municipal center. Mr. Menzies stated that the bond was just a funding mechanism, but where the municipal center would be located had not been absolutely determined. Councilor West stated that he did not, and had not heard any chatter about this. Mayor Santellana asked if Mr. Menzies knew of any opportunity offered to Councilor Jackson to clarify his statements even before the written complaint was filed. Mr. Menzies stated that Darron Leiker, City Manager, had emailed Councilor Jackson directly asking him to fill in the blanks for him since he was unaware of any project like this happening. Mr. Menzies did not recall a response from Councilor Jackson, but believes the email from Mr. Leiker stated there was no project like this being discussed. Councilor Steve Jackson was sworn in by the City Clerk as a witness. Mayor Santellana asked Councilor Jackson if he had read everything contained in the hearing exhibit. Councilor Jackson stated that he just received the information today and has read it for the first time as it is being discussed since he missed the last meeting due to an abscess and being sick. Mayor Santellana stated that this document has been available for some time, was emailed to Councilor Jackson, a binder was left in his city mailbox, and it was emailed to Ms. Alvarez. Ms. Alvarez acknowledged that she also emailed the information to Councilor Jackson. Mayor Santellana asked if Councilor Jackson heard the testimony of Mr. Rodriguez and if he was now reading the interview summary provided. Councilor Jackson confirmed that he had heard the testimony and seen the affidavits. Mayor Santellana said that Councilor Jackson had stated that his information came from a source, and asked who the source was. Councilor Jackson stated that he does not want to reveal his source at this time, and would not elaborate. Mayor Santellana asked Councilor Jackson to confirm that he had received information from some source in regards to certificates of obligation and eminent domain of properties. Councilor Jackson stated that he has been hearing word of this. Mayor Santellana asked again if Councilor Jackson did receive this information from a source, and if his source said the city was looking to build a new municipal center. Councilor Jackson stated that at this time that what he said to property downtown was what the Mayor had said to the newspaper after the bonds in May 2018 failed. There was discussion back and forth between Mayor Santellana and Councilor Jackson in reference to what was specifically said to the newspaper, what Councilor Jackson said, CITY COUNCIL MINUTES August 20, 2019 Page 11 the sworn affidavits provided, and the refusal of Councilor Jackson to reveal his source. Mayor Santellana asked if Councilor Jackson believed the business owners may be upset at th Lord and Savior Jesus Christ, second I work for the people of Wichita Falls and I want them to know what could happen if it was to happen I want them to know, and I work for my constituents and I work for the people in Wichita Falls, I have lived here all my life and I have a passion for Wichita Falls and the people that live here, and I work for the people that voted me in and will continue working for them and doing what they ask me Mayor Santellana stated that he thinks they all share that same passion for serving Wichita falls, and that is why we have a strong strategic plan. Mayor Santellana asked Councilor Jackson if he remembered attending the strategic planning session and voting on the strategic plan, and Councilor Jackson said that he did. Mayor Santellana asked if there was anything discussed during the strategic planning session in regards to certificates of obligation, eminent domain, or taking property and Councilor Jackson said not at that time. Mayor Santellana then asked Councilor Jackson if there was anything in the adopted Strategic Plan in regards to those issues, and Councilor Jackson said not that he recalled. Mayor Santellana then asked if it was still Councilor Jackson opinion that this council has some backdoor, underhanded, secret plan to take these properties. Councilor Jackson replied that he works for the people and is concerned for them, and he will let them know how he feels. Mayor Santellana asked what district Councilor Jackson was in when he spoke to the businesses, and Councilor Jackson stated that he did not know. There was discussion about district boundaries, the boundary map provided online, that the businesses he visited were in district 2, and how the business owners do not live in District 5 either. Councilor Jackson acknowledged that the businesses he visited were not located in his district. Mayor Santellana asked if Councilor Jackson felt he needed to go into District 2 and go door to door to make them aware of issues with certificates of obligation, offering pennies on the dollar for their property and eminent domain. Councilor Jackson stated again that he has concern for all of Wichita Falls and he works for the people. Mayor Santellana asked Councilor Jackson multiple times if he felt he has an obligation to verify information provided to him before sharing that information with others, and Councilor Jackson said no that it was his first amendment right to speak to citizens, that he had spoken to others, that he was letting them know he was concerned for them. He finally acknowledged that as a City Councilor he did have an obligation to verify information with the appropriate city staff. Mayor Santellana asked if Councilor Jackson made any efforts to verify his information and seek the truth, and Councilor Jackson replied that no, he had not talked to anyone. Mayor Santellana asked Councilor Jackson what he did after he was provided the truth. Councilor Jackson stated that he told business sworn statement, and there was discussion about the two times Councilor Jackson visited Mr. Rodriguez, fidavit, and similarities between others sworn statements. Mayor Santellana stated that Councilor Jackson had acknowledged that he feels an obligation to verify information provided to him, and asked how he had handled minor issues such as street repair issues in the past. Councilor Jackson stated that he contacts Russell Schreiber, Director of Public CITY COUNCIL MINUTES August 20, 2019 Page 12 Works. Mayor Santellana asked Councilor Jackson if he has ever contacted the City Manager, or City Attorney in regards to these issues, and Councilor Jackson stated that he has not contacted the City Manager, but has talked to Kinley in the past. Mayor Santellana asked if on an issue as big as eminent domain, and certificates of obligation, if Councilor Jackson felt any need to contact anyone on the city staff or council to verify the validity of these issues. Councilor Jackson said he did not contact anyone, but contacted his attorney after the complaint was filed. Mayor Santellana asked Councilor Jackson if he had any document, emails, or any piece of evidence to support statements he has made, and Councilor Jackson said he did not have anything, but stated that some of the people he talked to were afraid to come forward. There was discussion about how not all of the businesses Councilor Jackson spoke with provided sworn statements, that some could possibly be afraid to come forward due to statements Councilor Jackson made, and how it is reasonable that citizens believe what councilors say because they are held in a higher regard due to their position. Councilor Jackson acknowledged again that he has heard about the possible use of certificates of obligation and eminent domain, but has not spoken with any councilors or city officials to verify this information before sharing it with others. Mayor Santellana asked Councilor Jackson if he went back to speak to Mr. Rodriguez a second time, and if he knew the statements he was making were false. Councilor Jackson stated that he did visit Mr. Rodriguez again, but that he did not know what he was saying was false, other than received an email from the City Manager, and Councilor Jackson stated he had not, that due to illness he had not received any documentation until today. There was discussion between Mayor Santellana and Councilor Jackson about their conversation the day of the Charter Review Committee meeting, how Councilor Jackson knew what Mayor Santellana wanted to discuss, an email sent to Councilor Jackson from the City Manager that he denied receiving, how Councilor Jackson in fact had replied to the email from the City Manager, and that Councilor Jackson was not sure when he replied. Mayor Santellana asked if Councilor Jackson was calling Mr. Rodriguez a liar, or if he held his sworn statement to be true. After some discussion back and forth between Mayor Santellana and Ms. Alvarez about the characterization of the words used in the affidavits, Councilor Jackson agree that the affidavit was true, but stated that he had just read and seen it today. Mayor Santellana asked Councilor Jackson if he believes the other sworn statements to be true, and Councilor Jackson said he has not been able to read them all. Mayor Santellana asked Councilor Jackson if he was aware this item was th on the agenda for August 20, and Councilor Jackson replied that he did. Mayor Santellana asked if during the past week Councilor Jackson did not feel the need to prepare himself for this hearing. Councilor Jackson stated he had been sick, had not had time and did not receive the information until today. It was stated again the various ways the information had been provided to Councilor Jackson over the past week. Mayor Santellana asked Councilor Jackson if he felt he would create distrust between citizens and the council when he was speaking with business owners, and he replied absolutely not. There was discussion about the words used in the affidavit such as not have been the words he used. Mayor Santellana reminded Councilor Jackson that he acknowledged the sworn CITY COUNCIL MINUTES August 20, 2019 Page 13 statements were true earlier in the hearing, and Councilor Jackson stated again that he had been sick and unable to read everything. Councilor Browning noted that Councilor Jackson had been able to post on Facebook six days and four days ago while he was sick, although he was unable to read the information emailed to him. There was discussion again about the various ways the information was provided to Councilor Jackson over the past week, and Councilor Jackson stated that he had just received the printed copy today. Mayor Santellana asked Councilor Jackson if his source(s) told him that the city plans to move forward with taking property, would post information in the newspaper, sneak it past the citizens, and there would be an effort to gain signatures to stop the city. Councilor Jackson stated that the signatures would be in response to certificates of obligation after it was posted in the paper. Mayor Santellana asked Councilor Jack refuses to answer that question, since this is a civil proceeding, Council can draw an inference that if he did testify to such that it would be negative or hurtful to his position. Mayor Santellana asked Councilor Jackson if after all he has heard today, does he still believe there is an effort to take property and build a new municipal building, and Councilor Jackson stated at this time he does not. There was brief discussion about why Councilor Jackson did not verify the information to begin with. Councilor Browning asked if Councilor Jackson did talk to one of the other Councilors first, or if he attempted to call anyone. Councilor Jackson made statements about how no one speaks to him or calls him, that he does not communicate with others on the council, and confirmed that he did not reach out to anyone on the council. Councilor West stated that everyone attended the strategic planning session, and how he remembers having clear discussion with everyone about the need to be transparent, open and honest with our citizens. Councilor West stated that he remembered some direct dialogue with Councilor Jackson about how to build trust through open and honest communication. Councilor West stated that one of the strategic goals was to actively engage and inform the public, and how Councilor Jackson voted on and agreed with that goal. Councilor West said right place, and he believes he wants to do the right thing. Councilor West stated that with that being said, he does not understand why Councilor Jackson had not read the report, and cannot understand if he had not received it why he would not ask for it, since he has asked for printed copies of information in the past. Councilor West stated that in every conversation he has had with Councilor Jackson he feels like he is a straight shooter, and so he asked if Councilor Jackson really has a source. Councilor Jackson stated he had people contact him, but he would not give them up because they could lose their job. Councilor West stated that implies to him the source is city staff, and Councilor Jackson replied that he did not say that. Councilor West asked if he believed his source, and Councilor Jackson said he thought that it could be true after the statements the Mayor said after the bond failed, and he was concerned for the citizens whether it was in his district or not. Councilor West stated that he truly believes it when Councilor Jackson says he works for the people, and that he shared this information out CITY COUNCIL MINUTES August 20, 2019 Page 14 of concern for them, but the problem that he has is that Councilor Jackson did not do any fact checking or research, although he has researched issues in the past. Councilor West stated that Councilor Jackson knows that a Code of ethics was passed, although he voted against it. Councilor Jackson commented on the policy that was passed and made comments about the dress code and stated he was never going to wear a suit. There was brief discussion about the policy and how there was not any requirement for members of the City Council to wear a suit in the policy. Councilor West read the definition of false and misleading statements from the approved policy, and asked Councilor Jackson if now that he knows the statements he made were untrue, does he feel like he made a false statement. Councilor Jackson said that he did not feel like he had made a false statement, but was just letting people know he was concerned for them and their businesses regardless of what district they are in. Councilor West read the definition of misleading statement from the policy and asked Councilor Jackson if he felt the statements he made were misleading. Councilor Jackson stated that no, at the time he did not, he was just concerned. Mayor Santellana asked Councilor Jackson if he felt the council wishes to see citizens lose their business, and Councilor Jackson stated that no, as of right now after this meeting he do not believe that, but he would stay as transparent as he can and continue to the most damaging thing that happens in situations like this is the loss of public trust, that citizens may not trust government because of false information they have received, and it can make them feel like everything the council does is underhanded. Councilor West stated they are all trying their best to do what is right for the citizens and the city, they volunteer their time, and invest a lot of time, because they love this city and want it to be a great place to live, work, and raise a family. Councilor Jackson asked if Councilor West felt like what he said is worse than the Deputy City Manager being busted for this was not a competition about what caused the most damage. Mayor Santellana stated that of course the Deputy City Managers actions hurt the city and he is no longer employed here. He asked Councilor Jackson if he believes that the council is held to a higher standard and if some of his statements have the ability to tarnish the reputation of the council, the city and the Mayor himself. Councilor Jackson did not answer the question, but stated he met with the Mayor, City Manager, and City Attorney to discuss the drug policy and accused them of hiding behind the fourth amendment when he provided the results of his own hair follicle drug test. The Mayor asked Councilor Jackson multiple times if he believes his statements had the ability to tarnish the reputation of the City Council, the City and specifically the Mayor. Councilor Jackson continued to discuss the actions of the Deputy City Manager, stated that his own actions were not worse than those of the Deputy City Manager, that he has concern for all citizens and will watch out for anyone that calls him regardless of what district they are in. Mayor Santellana asked if any of the individuals that provided sworn statements called Councilor Jackson, and he replied that he received calls, but not from the citizens that provided statements. CITY COUNCIL MINUTES August 20, 2019 Page 15 Councilor Chenault stated that Councilor Jackson has been speaking to businesses in District 2. She stated they had a conversation about respect, and how they may not always agree, and that is okay. Councilor Chenault stated that if she has an issue with another councilor she will speak to them, and that she did not appreciate what Councilor Jackson has done. Councilor Chenault stated that she serves on the Downtown Development Steering Committee and the committee has worked hard to help revitalize downtown, and that downtown revitalization was one of her goals when she was elected in 2015. She feels that it was very disrespectful that Councilor Jackson went into her district and made those statements. Councilor Jackson apologized to Councilor Chenault. Ms. Alvarez asked Councilor Jackson if he felt like his constituents like city government in general. Councilor Jackson stated they have concerns about city government because they have been left out of road work and maintenance for many years and the North side of Wichita Falls has always been a red flag. Ms. Alvarez asked Councilor it meant being the last one to be thought about and have anything done. Councilor Jackson discussed a call he received ye resolving the issue with Code Enforcement. Ms. Alvarez asked Councilor Jackson if he thinks citizens trust city government, and Councilor Jackson said some probably, and some no. Ms. Alvarez asked if he thought this hearing has made it better, and Councilor Jackson said he hoped that it did, stated that he would be as transparent as he can with his constituents, and will work to the best of his ability. Ms. Alvarez asked Councilor Jackson if he felt his hearing was fair. Councilor Jackson stated that he did not, and there were other problems they needed to work on, that he was just concerned and did testimony and how he stated he could not remember specific words that were said, but that Mr. Jackson discussed eminent domain. Councilor Jackson replied that all he said was certificates of obligation. Ms. Alvarez asked Councilor Jackson if he knew what a certificate of obligation was, and he said yes, that it was when the city tries to take property, it has to be published in the newspaper, and people can then petition to bring it to a vote by getting 3000 registered voters to sign the petition. Ms. Alvarez asked where Councilor Jackson got the idea that is what a certificate of obligation meant, and Councilor Jackson stated that he has researched and read about it and learned through the tea party organization he participates in, and further discussed what he believed certificates of obligation meant. Ms. Alvarez acknowledged that his definition was not exactly correct, but asked Councilor Jackson if he did not know what it meant who he would ask, if his fellow council members and the Mayor like him, and if he needed to know something would he ask the Mayor. Councilor Jackson replied that some of them might like him, but that the Mayor did not like him, and Ms. Alvarez asked if he trusted the Mayor and Councilor Jackson stated he did not. Ms. Alvarez asked if Councilor Ms. Alvarez then asked if he felt like the people that elected Councilor Jackson trusted the Mayor, and he said no because of what the Mayor has done and said in the past. Ms. Alvarez asked several questions of Councilor Jackson in reference to his CITY COUNCIL MINUTES August 20, 2019 Page 16 conversation with Mr. Rodriquez and if Councilor Jackson said it was certain the city would take his property or just a possibility. Councilor Jackson stated he said it was a was present only at the second meeting, and that she stated Councilor Jackson said the city might try to take their property. Councilor Jackson stated he was just concerned for their business. Ms. Alvarez stated that lots of people do not like eminent domain or seizure of property but that does not mean that they think it is illegal and asked Councilor Jackson when he says that the city is going to try and take property by eminent domain if he is saying it is illegal or unfair. Councilor Jackson stated that he guessed it was legal, but that he did not feel it was fair. Ms. Alvarez asked Councilor Jackson multiple questions about if he had ever stated that what the city was planning was illegal or criminal and Councilor Jackson stated no, he did not. Ms. Alvarez asked Councilor Jackson if he felt governments were sneaky in general and he replied yes from Washington D.C. all the way down, and that if we do not start taking care of our cities at the local level we are going to lose our country. There was more discussion the business owners. Ms. Alvarez asked Councilor Jackson wh him, and gave an example of if he was watching TV and a senator used the word that it meant something under the table, and Ms. Alvarez asked again if he thought it meant a crime, and Councilor Jackson replied absolutely it is a crime to do things illegal under the table. Ms. Alvarez asked again when Councilor Jackson tells someone the government is going to do something sneaky or unfair, or backdoor, he is not accusing them of doing something criminal but rather just something he feels is unfair, and Councilor Jackson replied that was absolutely correct. Ms. Alvarez asked Councilor Jackson several questions to clarify that Councilor Jackson was not accusing anyone of criminal activity, and further discussed the affidavits provided by other business owners. Councilor Jackson repeatedly stated that he talked about certificates of obligation but did not tell anyone that the city was going to take their property immediately, but he was concerned that it was possible and was concerned for their businesses. Ms. Alvarez continued to question Councilor Jackson about the difference between the cities plans, and what they may want, his source and why he did not want to reveal his source. Councilor Jackson stated that he has been an outcast since he was elected, how he works for his district and the people of Wichita Falls, and stated again that he has a passion for his hometown and will work them. Ms. Alvarez asked if the Mayor takes what Councilor Jackson has said personally and if he should have presided over the hearing. Councilor Jackson stated that he absolutely feels like the Mayor took his statements personally and that he should not have presided over the hearing. Ms. Alvarez asked if that made Councilor Jackson less likely to share information with other Councilors and if it made his constituents less likely to trust the City. Councilor Jackson stated that it does make it less likely that he will share information and that it did make people less likely to trust the City. Ms. Alvarez continued to ask Councilor Jackson multiple questions about how the hearing affected public trust, and Councilor Jackson stated that he hoped after the hearing they could all work together. Ms. Alvarez asked if Councilor Jackson supported the bond, and why not. Councilor Jackson stated he did CITY COUNCIL MINUTES August 20, 2019 Page 17 not support the bond because we cannot afford more taxes. Ms. Alvarez asked if the bond had passed would Councilor Jackson have supported the taking of private property and he said he would not. Ms. Alvarez stated that Councilor Jackson was a member of the Tea Party, and asked him if his governing principals were the same as the governing principals of the Tea Party. Councilor Jackson stated that he just tries to work for the people and be as transparent as he can. Ms. Alvarez asked Councilor Jackson what could be done to make the council more transparent. Councilor Jackson replied to be more truthful and help all of the people of Wichita Falls regardless of what district they are in. Ms. Alvarez asked multiple questions about what kind of statements were unclear or misleading, and if everyone that makes unclear or misleading statements have complaints filed against them. Councilor Jackson replied that he did feel like people make unclear and misleading statements a lot, but that they do not have complaints filed against them. Councilor Jackson stated that he and the Mayor have been at odds for some time because he has been transparent. Ms. Alvarez asked if Councilor Jackson thought the Council wished to banish him from the council and if he believed it was possible. Councilor Jackson stated that he hoped and prayed they would not banish him, but that it was possible. Councilor Brewer stated that he first met Steve during the election and he thought he was a country boy, which he is, but that he did not know he had worked at Sheppard Air Force Base. After learning that he had worked at the base, and all the knowledge Councilor Jackson had about the base, Councilor Brewer stated that he felt it was a tremendous asset to have someone with such insight on the Council. Councilor Brewer they do not always agree with each other, but that this hearing could have been avoided. Councilor Brewer stated that if Councilor Jackson felt there was a problem in another district he should have spoken to the Councilor in that district. Councilor Brewer stated that since he has been on the council he has never heard anyone say secondly there was no money to do something like that anyway. Councilor Brewer stated that the only way to get money for something like that would be through taxes, and he is against that. He stated that he did not feel like anyone on the council wanted to do anything illegal, but rather they are all working for the citizens, and that they could all work together and agree to disagree. Councilor Brewer stated that Councilor Jackson is not an outcast, he is just different. Mayor Santellana stated that he agreed with that statement, discussed multiple opportunities that were given to Councilor Jackson to make things right and how he could have avoided this hearing. Mayor Santellana stated that although we can try to categorize some of the terms used such as sneaky and underhanded as not being illegal, that some of the accusations made against council were of illegal actions. Councilor Jackson thanked Councilor Brewer and discussed time they spent together when they were first elected, that he respects him, and appreciates his friendship. CITY COUNCIL MINUTES August 20, 2019 Page 18 report was filed in official city records, and acknowledged that all council, pertinent staff, and C a copy of the document. Mayor Santellana announced that comments from the public would be heard at this time, and discussed the guidelines that would be followed. Monique Worthy, 1020 Landon Lane, stated that they keep talking about the ethics code that was passed, and how she feels it was aimed at Mr. Jackson. Ms. Worthy commented on the length of time the Mayor has been in office, and how they waited until Councilor Jackson was elected to pass a dress code. Ms. Worthy discussed misleading statements when the legislature discussed changes to property taxes, and that people in city governments were stating it was a cap, and it is not. Ms. Worthy stated it is a trigger that would cause an election, how she felt city governments were against it, and felt that this is one reason people mistrust the government. Mayor Santellana asked if this was leading to a general mistrust of governments, and Ms. Worthy said yes. Mayor Santellana stated that he believes we can infer there is a general mistrust in government from the national level down. Ms. Worthy discussed statements brought up by city officials during property tax discussions that she felt were untrue. She also stated that city officials are elected to a district, but they vote as a whole. Ms. Worthy discussed her feelings about distrust among the council and how it is clear that they do not like Councilor Jackson. All councilors stated that was not true, and the Mayor stated that they sat down in a closed door meeting and extended an olive branch and offered to start with a clean slate after Councilor Jackson was elected so they could work together going forward. Mayor Santellana wanted to make sure it was crystal clear that there were no ill feelings held toward Councilor Jackson, but feels that has not been reciprocated back to him. Mayor Santellana stated he has zero issues with Councilor Jackson or his free speech, only with the misleading statements he has given, and that we have a responsibility to be as truthful and transparent as possible. The complaint was filed, an investigation was held, we are hearing testimony today, and will decide what if any discipline is needed. We are all the same in that we all fight for our city and citizens, we are just trying not to erode the foundation of what we have started, and to fight misinformation. Mayor Santellana discussed the responsibility to verify information with staff or other council members. Ms. Worthy stated that she is addressing the mistrust. Mayor Santellana discussed that it is a Strategic Goal to be more transparent and get the public as much information as possible. We do not hide any information from the public, and it serves no purpose and no good to do so. Every effort we have is in public, and all agendas are posted within 72 hours. Councils obligation is to make sure information is truthful or not, before it is made public. Mayor Santellana further discussed issues with how misinformation leads to distrust, and how he does not want to restrict councilors from visiting other districts. Ms. Worthy stated that it would be nice to have other councilors come to her district, and it would help people be more engaged in politics since most people are not engaged. Ms. Worthy asked the Mayor what he thought of the election trigger in reference to property taxes. Mayor Santellana started to respond, but Ms. Worthy CITY COUNCIL MINUTES August 20, 2019 Page 19 interrupted and stated it is not a cap, it is you having to ask for what you need. If we have to do with less you should too. Mayor Santellana apologized to Ms. Alvarez and stated that he failed to ask if she had any further witnesses or documents to submit. Ms. Alvarez stated that she did not. Albert Flemings, 4117 Hughes, stated that Steve Jackson worked for him for 14 years, and was a good mechanic and good Christian man. Mr. Fleming stated he does not understand why this council cannot get along with him and agree. He understands why you do not always agree, but he could not understand why they cannot work together. The people of Wichita Falls elected them to take care of and work for the people. Mr. Fleming then asked what district he was located in, and the council replied that he lived in District 3. Mayor Santellana agreed that Steve is a good man, a good Christian man, that he believes in his constitution, and will fight hard for his constituents. Mayor Santellana understands and agrees with the statement made about why we cannot get along, that we do not want to rubber stamp anything, and sometimes it takes an action like this to bring us together. Mayor Santellana stated that when council and staff work together and get along, a lot of good things get done, but when we have infighting things come to a screeching halt. Mayor Santellana stated that he is trying to be all inclusive and appreciates Mr. Flemings comments. Lar for Rueben, but asked if he had the same concern for the business owners before the bond election, or is this now a concern because you are upset with someone. Mr. Robinson stated that he wished councilors would visit other districts, and stated that there was a reason why most people in District 5 do not trust the government. He stated that most of them were forced into the city limits against their will, and felt that they should have the right to vote if you want to be in city limits or not. Mr. Robinson discussed the disrepair of Kiel Lane and Airport Drive, and asked if any of them drove over there and asked why they are upset, and why they are upset with the government. Mr. Robinson discussed how the prison was forced on them, alleged fraud, and how they were forced into city limits but could not get water. Mr. Robinson stated that Councilor Jackson is concerned about the North side of town. Mr. Robinson discussed the circle trail and how nothing exists north of the river or railroad track, and stated they do not have quality of life but have crappy roads that tear up their cars. Ms. Alvarez gave her closing statement and reiterated that Councilor Jackson did not say anything untrue, did not say anything intentionally malicious, and did not liable or slander the council. He did not tell anyone that the council was going to do anything criminal, he told them he was concerned, and they should keep their eyes open and look out for the possibility of a future municipal building. Ms. Alvarez stated that she hears everyone saying they want this to be fair, but felt she should not have to tell them that it is ridiculous that the person that filed the complaint, is allowed to preside over the process, dictate what questions can be asked, and act as witness and judge. Ms. Alvarez discussed the statutes to punish someone for their speech and how they cannot CITY COUNCIL MINUTES August 20, 2019 Page 20 be vague or overbroad, and discussed how she felt the basis for the complaint was content based and overbroad. Ms. Alvarez stated that saying they did not intend to remove Councilor Jackson from the Council, but leaving that as part of the possible discipline process is insane. Ms. Alvarez stated that this process has not helped distrust, was unfair, and that Councilor Jackson stating things that they find to be unkind, unfair, or hurt their feelings is not criminal. Ms. Alvarez discussed how council wanted Councilor Jackson to make sure his facts were correct before sharing information, but she did not feel like anyone checked the facts of this complaint before bringing it forward. Ms. Alvarez stated that it is hypocritical to say this could have been resolved without a hearing, and she feels this whole exercise was in futility because all Councilor Jackson did was tell people he was concerned about their property. If the whole point of the hearing was to find out if you can communicate with Councilor Jackson, she feels that they can, but also stated that it was disingenuous and extremely hypocritical to insist that he has rights, unless it is speech that you do not like or offends you. She stated she feels this whole hearing is about hurt feelings, because the person who made the complaint feels like Councilor Jackson said things that make him look bad, and not about if the people are getting the message. Ms. Alvarez stated that voting to punish him in anyway is not going to help him, and it is not legal to punish him because his statements were maybe true then but are untrue now. Ms. Alvarez asked the council to consider if they would allow this to happen if the complaint was filed against them. Ms. Alvarez stated that using an ethics policy to have a hearing over hurt Mayor Santellana stated that this goes way beyond hurt feelings, and stated that Ms. ment would hold water had Councilor Jackson not gone back and double downed on the lie. After Councilor Jackson was given truthful information from staff and council he still went back and shared the same untrue information. Mayor Santellana stated that it is accusatory and inflammatory when you accuse the council of doing things behind peoples back. Mayor Santellana stated that he did not write the complaint based on a video, but based on testimony by Mr. Rodriguez and other individuals that he spoke with. Mayor Santellana stated that this is not a circus and not something we take lightly, and finds it offensive to be told we are taking this lightly. Councilor Jackson stated that he would like to thank those that came to support him. Councilor Jackson stated that he had one question for the Mayor and stated that when they first met, Mayor Santellana told him he would have to wear a suit, and if I could not afford a suit he could go to Goodwill and buy one. Mayor Santellana denied saying that to Councilor Jackson, and Councilor Jackson stated again that the Mayor said that and that he would not lie about it. Mayor Santellana closed public hearing at 11:41 Council adjourned for a lunch break and Item 12 Executive Session in accordance with Texas Government Code 551.071 at 11:41 p.m. CITY COUNCIL MINUTES August 20, 2019 Page 21 Councilor Whiteley returned and was present during executive session and the remainder of the meeting. Councilor Brewer was absent during executive session and for the remainder of the meeting. Item 12 Executive Session (a) Executive Session in accordance with Texas Government Code §551.071, consultation with attorney on matter involving pending or contemplated litigation or other matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the Texas Open Meetings Act. Mayor Santellana reconvened from executive session at 1:43 p.m. and stated that no votes or polls were taken. - - - - - - - Item 7 - Resolution 82-2019 1:44 a.m. Resolution determining range of discipline, if any, against Councilor Steve Jackson, for alleged violations of Council Code of Ethics. Moved by Councilor West to publicly censure Councilor Jackson based on the evidence pres prescribed in Section 2-85, paragraph c, option 6. Motion seconded by Councilor Browning. Mayor Santellana stated that in his opinion there has been testimony and evidence that shows Councilor Jackson made statements that were not supported by any objective evidence, were false, and that Councilor Jackson had no good faith basis for making these statements. Councilor Jackson had no evidence showing the city intended to do what he alleged. Even after being told by the City Manager and Mayor that his statements were not true, Councilor Jackson visited the Rodriguez family again and asserted that the city was going to take their property. Those statements were false and made with a reckless disregard for the truth. These false statements caused harm to the business owner, to the reputation of the city and sowed seeds of distrust among citizens in that area. By making these false statements Councilor Jackson accused his fellow council members of unethical and illegal conduct without any good faith basis to believe these statements were true. Councilor Jackson has the right to give his opinion but does not have the right to knowingly spread false information, and represent false statements CITY COUNCIL MINUTES August 20, 2019 Page 22 actions are categorized by himself or his attorney, his statements were admittedly false and went far beyond the acts of opinion. There are multiple sworn statements that all speak to the specific actions, and specific dates. Councilor West stated to Councilor Jackson that they have had this conversation in private, and in Strategic planning, that Councilor West believes that Councilor Jackson has an opportunity on this council to build a bridge between those that distrust the government, and has the opportunity to go out and talk to people to spread positivity and bring people together. Councilor West stated that he does not feel like this happened today, and that what he did was a mistake. Councilor West stated they want Councilor Jackson to remain on this council, but would like to see him act in a manner that helps the city. Councilor West stated that he feels Councilor Jackson wants to be a man of the people, and it was his choice to have this hearing in public. Councilor West stated he does not agree with what Councilor Jackson said, but feels he has a tremendous opportunity to bring this council and this city together. Motion carried with the following vote: Ayes: Mayor Santellana, Browning, Chenault, West, and Whiteley Nays: Councilor Jackson - - - - - - - Item 8 Items of Concern to Members of the City Council 1:52 p.m. Councilor Chenault Thanked everyone for coming out today. Stated that she was glad to see Michael Smith in the audience today. Councilor Browning Apologized for the time this took, and understands that not everyone had the time for this. Councilor Browning stated that there is still other business to conduct, thanked everyone that stayed through the meeting, and that hopefully Councilor Jackson can work with us in the future. Councilor Browning welcomed all of the Hotter Hell riders. Councilor Whiteley Attended funeral for a firefighter earlier when he left the meeting and asked that everyone please keep his family in our prayers. Councilor Whiteley apologized for everything going on and stated that he feels it is pretty silly. We are all adults and need to behave and be truthful with our citizens. Hopefully we can all have positivity and move forward. Councilor Jackson Asked for the council to make public what they were going to do to him. Kinley Hegglund explained that the Council had voted to do a public censure which basically means they voted to state publicly what he did was wrong, and there CITY COUNCIL MINUTES August 20, 2019 Page 23 would be no further actions taken against him. Councilor Jackson thanked his supporters for showing up and the ones that spoke, God bless each of you. Mayor Santellana Asked that everyone say a prayer for Tim Brewer for health issues that took him away from the meeting. Mayor Santellana stated that some people may feel that the hearing was silly and unnecessary, but that is was due process for Councilor Jackson. Mayor Santellana stated that he wanted to extend an olive branch as he does see Councilor Jackson as a strong Christian man, and feels they can move past this easily. He offered an open door invitation for anytime Councilor Jackson has any questions. Mayor Santellana stated that he wants to proceed forward without any thought of the past, and stated that positivity breeds positivity and he truly believes they can do good for the City of Wichita Falls moving f Hell riders, and he felt the race would live up to its name and wished everyone good luck. - - - - - - - Item 9 Comments from the Public to Members of the City Council Concerning Items That Are Not on the City Council Agenda. 1:55 p.m. Becky Raeke, 2420 Reilly Road, stated she is here on behalf of Bike Wichita Falls, and is a downtown business owner. She loves Wichita Falls just like the Council and that she appreciates everything they have done to support Bike Wichita Falls. Ms. Raeke discussed the Market Street Study, and the one-year analysis of the seven catalysts. She is happy to report they received raving reviews and are way ahead of where they anticipated they would be. Ms. Raeke accredits this to the committee, the partnership with the City headed up by John Burrus, along with the Chamber and Downtown Wichita Falls. We do not know if our application is successful yet, but we have made progress. She is here today to discuss the budget and there is a recommendation to fund a full-e here to support that since they have momentum from the community side, but it will be a hard battle if we do not have a staff person to move forward with. She asked that the council please consider this during the budget workshop. Ms. Raeke stated that the people that ride bikes are from all different socioeconomic backgrounds, and thanked the council for their support. Happy Hotter Hell Week. - - - - - - - Item 10 - Work Session to Consider Proposed FY 2019-2020 Budget 1:58 p.m. Darron Leiker, City Manager, introduced Jessica Williams, CFO/Director of Finance, and gave opening remarks concerning the 2019-2020 budget. Mr. Leiker discussed the process to set the tax rate, and the resolution to be passed if the council chooses to set CITY COUNCIL MINUTES August 20, 2019 Page 24 a rate that exceeds the effective rate. This resolution sets the two required public hearings and the date the budget and tax rate will be approved. Jessica Williams, CFO/Director of Finance, discussed the timeline, new accounting software, and changes to the budget format due to the new software. Ms. Williams discussed changes in how capital expenditures have been handled in the past, how they will be handled in the future, and challenges with staffing and legislative changes. cludes $8,720,500 in one-time costs. These one-time costs make it appear as if the upcoming budget is higher than the previous year, but in reality it is not. Next year, council will see more changes in the budget since the goal is to align our budget with the Government Finance Officers Association (GFOA) to apply for their award for excellence in budgeting. This will make it much easier to compare with other cities going forward. The budget process will start earlier next year due to legislative changes, and they will work closely with legal on a structured calendar. Following the GFOA checklist will allow for standardization of the budget. Mrs. Williams went over the overall revenues and noted that they include the $8.7 million for one-time projects as funds transferred in. Total revenues without the one-time costs are only a 2.31% increase and expenditures increased by 2.94%. The overall budget from last year to this year is actually a .81% decrease when the one-time costs are not included. General Fund - comprises 42.46% of the total budget, and provides for many basic city services. The fund balance policy is to maintain 20% of the general fund expenditures in reserve. We are currently at 97% policy at $15.8 million. In prior years, we have been at 92% of policy. Sales tax has leveled off and we believe that this trend will continue, so we have reduced the sales tax revenue. There is a 2.5% salary increase for staff, and the one-time expense of $300,000 for work at Memorial Auditorium. General fund revenues are up 4.71%, and this budget does not propose any increases in the tax rate. Each penny increase in the property tax generates approximately $517,000. Ms. Williams discussed changes in expenditures by category. Ms. Williams discussed the reorganization of personnel which eliminated the Deputy City Manager position, Director of IT and Facilities, and the Convention and Visitors Bureau Director. We added one Assistant City Manager, one Director of Marketing & Communications, and one Budget Analyst/Senior Accountant for a total cost savings of $115,000. There was brief discussion concerning the overall analysis of pay plans, and possibly hiring a consultant to complete an abbreviated study to ensure our pay plans are in alignment, and determine where they need to be adjusted. Councilor West expressed his desire to have funds for a neighborhood coalition program, as discussed during the strategic planning session, and he would like to see funds for neighborhood improvement grants. There was discussion about available CDBG funds, the increase in this funding, and meetings that are planned. Councilor West discussed the need for neighborhood coalitions, and how neighborhood grants would be an incentive for participation. We need to improve relationships with our citizens and one way to do that would be showing how their tax dollars are being spent CITY COUNCIL MINUTES August 20, 2019 Page 25 in their neighborhoods. He would like to see a separate pot of money specifically for a new initiative. Mayor Santellana asked if we needed to set up a neighborhood coalition, or a subcommittee first before providing funding. Councilor West stated that he sees an opportunity for neighborhood grants to go hand-in-hand with this coalition. Darron Leiker clarified that the intent was to use funds for public property, as city funds cannot be used for private property. Mr. Leiker discussed how we can target current funding for some of the neighborhood needs, and that CDBG funds can be used on income eligible private property. There was discussion about having money set aside as an incentive for neighborhoods to apply for, and it was noted that if we meet with the neighborhoods and they have valid needs, we should fund their projects. Mayor Santellana stated that this is more about letting communities have buy in and possibly setting up meetings in districts. Councilor West sees an opportunity to get neighborhood representatives in dialogue with the city to access their needs. Councilor West said the ultimate goal is community pride and communication, and further discussed how he formulated this idea based upon what other communities have done. Darron Leiker stated that we have a new Director of Development Services, and this is on his lists of tasks. Councilor Jackson stated that he agrees and has had requests for a new restroom at a new park, street improvements and more lighting in his district. Council agreed that it is all about communication with our neighborhoods. Councilor West stated that he would like to see the council be more proactive as opposed to citizens having to go out of their way to attend a council meeting. Water/Sewer Fund balance policy is 17% = $6.1 million. We expect to have a $10.5 million balance at the beginning of this budget year and are recommending the use of $4 million for the Kickapoo dam project. Since 2014 we have continually grown the fund balance, but have not increased our water rates. Expenditures are 2.74% over prior year (not including the one-time cost for the dam repair project). Operating expenses and revenues are pretty stable from the prior year, without the one-time costs. Mrs. Williams discussed the other expenditure changes per category and the favorable bond rating changes. In summary the Water/Sewer fund balance is in good shape, we are recommending $4 million for the Lake Kickapoo dam repair project, a 2.5% cost of living increase, and no retail rate increase recommended. Sanitation Fund Fund balance policy of 15% = $2.2 million, estimated fund balance is $4.5 million and we recommend using $920,500 for landfill capital equipment and end with a fund balance that is above policy. Fund Revenues and Expenditures were reviewed. In summary, the Sanitation fund balance is in good shape, recommend a 2.5% cost of living increase, and one-time capital equipment costs of $920,500 with no rate increases recommended. Stormwater Utility Fund There was a discussion of how this fund was started, and the purpose of the fund. Ms. Williams reviewed revenues and expenditures which includes the Quail Creek project. CITY COUNCIL MINUTES August 20, 2019 Page 26 Ms. Williams discussed the changes in revenues and expenditures of all Other funds including Fleet Maintenance fund, Regional Airport fund, Kickapoo Airport fund, Transit fund, Hotel/Motel Tax fund, MPEC & CVB fund, Golf Course fund, and Waterpark fund. Mayor Santellana stated that if anyone has questions to feel free to reach out to staff, and if you have any requests for budget changes you need to make those requests as soon as possible. Mr. Leiker stated that it is a lot of information to consume in one day, but we need to know as soon as possible if Council is requesting any changes. - - - - - - - Item 11 - Resolution 83-2019 3:24 p.m. to place a proposal on a future Council agenda approving a property tax rate that exceeds the effective rate, scheduling two public hearings, and establishing the date to vote on same. Moved by Councilor Chenault to approve Resolution 83-2019. Motion seconded by Councilor Browning. There was brief discussion on the maximum property tax rate, and options for a tax rate between the effective rate and rollback rate. The current proposed budget is prepared with a property tax rate of $0.72988, which is the same as last fiscal year. The effective tax rate is $0.706083, and the rollback rate is $0.773323. Mayor Santellana stated that we can pass a resolution at a higher rate, that it does not mean we are going to raise the rate, but gives us the ability for additional funding in the event of unforeseen circumstances. Council will vote on the actual tax rate on September 17th. The rate passed in the resolution is the rate that will be published in the newspaper, and we can approve a rate less than the published rate, but not higher. Councilor Jackson asked if there was a pay increase budgeted for police. Darron Leiker stated that there is a 2.5% across the board increase for all employees, in addition to funding the step and longevity pay. Councilor Jackson stated that no one wants to raise taxes, but we are still below average pay for police and fire, and he believes we lose employees due to this. He suggested higher pay for police and fire and possibly cutting the budget somewhere else. Mayor Santellana stated that the issue is if we cut something this year it is a one-time event, and we are looking at perpetual funds available for pay increases, which essentially is a tax increase. CITY COUNCIL MINUTES August 20, 2019 Page 27 Councilor Jackson feels his area needs more police officers, due to robberies. He discussed meth lab and bomb issues close to his house. Asked that we look at cutting the budget somewhere, but he is not in favor of raising taxes. Councilor Browning asked what the cost would be if we increased an additional 2.5% in pay. Ms. Williams stated it would cost approximately $1.3 million, and cautioned that when we increase pay, there are other personnel costs that also increase. Councilor Whiteley discussed that our employees are behind average, and discussed how this has been addressed in previous years, but we have not been able to maintain average pay. There are staff shortages in other departments besides police and fire. This is an ongoing problem we should not address once a year, but should look at a five-year plan. Before we set the tax rate, he would like to discuss all employees, as very few are at or above average pay. Councilor Whiteley stated he is not in favor of the status quo and wants to take care of our employees. He feels there are other incentives we can discuss to make working in Wichita Falls more appealing. Darron Leiker discussed how our revenues compare with other cities our size, and how our revenues are historically lower. We have used most of the additional revenue we have for pay, but it is difficult to keep up with other cities that have higher revenue. He also reminded council that our tax rate is on the high end, and it is a deterrent for new business. Base pay means a lot, but he asked that we do not forget the rest of the employees that have TMRS disparity, and we were trying to put funds in the budget to move to a 7% match since we are the only city our size that is still at the 5% rate, but we could not afford it. At this point it will take additional revenue through the tax increase or sustained budget cuts in the general fund. Mayor Santellana and Ms. Williams both cautioned that any budget cuts would need to be perpetual budget cuts every year. Councilor Jackson asked Mr. Spragins about the percentage we are behind in pay for police, and if it was 12.44%. Mr. Spragins stated his raw numbers were 12.44%, but he has since met with city staff and when you figure in the cost of living we are 6-7% behind average pay in police and fire. Mr. Spragins stated that there are a lot of great employees here and he feels everyone deserves a pay raise, but does feel public safety is in a different category since they are putting their lives on the line every day. Councilor Jackson agreed and stated he does believe their safety is number one and we want employees to stay here. Mr. Spragins stated that we do not want to train employees to go somewhere else, but hope to retain our employees. Councilor Jackson discussed problems with theft around his property, and the City View area. Christi Klyn spoke about recruitment and retention and that we have a 1-2% turnover for police and fire, and we do have one or two a year leave for pay, although this happens more often in Public Works, Parks, Dispatch, and Animal Services. CITY COUNCIL MINUTES August 20, 2019 Page 28 Councilor Jackson asked how many employees we are short in Police and Fire. Ms. Klyn stated 5 in police, and 14 in fire, but they are starting a new academy in October and plan to hire 17. Some turnover is due to retirement, but we are more fully staffed than we have been in quite a few years. Mayor Santellana reiterated that we were not planning on having extra money in the past two years, and we have thrown that money at pay even though there are infrastructure needs that are not being met. Would like everyone to understand if we are going to do this without a tax increase, we have to find perpetual budget cuts. Mr. Leiker pointed out that most of the general fund is for Police/Fire. Russell Schreiber, Public Works Director, noted that he is missing around 10 out of 70 positions. Police are 5 short out of 220. Mr. Schreiber is also short 2 engineers and one inspector out of a staff of approximately 15. Mr. Spragins stated that he wants us all to be on the same page. In the future we have to be proactive about pay. We have to realize what we are competing with and will continue to compete with, is that other cities are marketing for these positions. They are providing bonuses, moving expenses, and advertising in other cities to recruit. We are critical, and although being down 5 offic down 20 positions until a new class graduated. We need to be proactive for police and fire. Cities have realized how important it is to keep these numbers up, and it is difficult since Police are being attacked nationally. Mr. Spragins understands and knows we are all concerned, but wants everyone to realize what is coming in the future. Mayor Santellana discussed what a tax increase would look like, and in reference to economic development. He does not see any other way we can fund raises across the board without a tax increase, and we want to get information from all sides before we make a decision. We hold fire and police in the highest regards and especially during these times of lack of respect for police officers. Mr. Spragins stated that he wants to be clear and that Christi Klyn and Darron Leiker have been very helpful, and he does not want anyone to feel like he is fighting city hall on this. In future years we need to start working on this earlier in the year. Mayor Santellana stated that we run a very lean staff across the board, and wants to make sure we paint a complete picture in regards to tax rates. Councilor Whiteley asked how far do we have to drop in our recommended reserves before it affects our credit ratings. Mr. Leiker stated they look at trends and if we are drawing funds for a one-time project, it is not looked at harshly, but if you are drawing down for pay that will continue year to year it is looked at more harshly. Darron Leiker stated this is a very vanilla budget with no new programs, with increases in inflation, health, pay, and retirement, and we expect to see continued increases in these areas. Councilor Whiteley stated we need to find an answer, and Mr. Leiker stated the answer to grow our revenues is to grow the property tax base and the economy. CITY COUNCIL MINUTES August 20, 2019 Page 29 Councilor Jackson asked about crime rates and drugs in the last few years. Chief Borrego stated that methamphetamine and marijuana are the drugs of choice, and they have started to see a little heroine. There is not a big opioid issue here, and burglaries have gone down since 2012, with a small increase in vehicle burglary this year. The crime rate is low, and officers are doing a great job. Chief Borrego stated we do not have an issue getting hired, but we are losing experienced officers for various reasons including retirement. We have a very good community here that supports our officers, unlike some communities, and he takes great pride in our officers and the job they do. Councilor Jackson discussed how drugs had affected his family. He discussed how drug addicts hurt the whole family and he feels we have more of a drug problem here than we should have. Councilor Jackson feels we need more officers and he appreciates everything they do. Chief Borrego stated the underbelly of any society is drugs and they do their best to combat it. Drugs and burglaries are a cycle that go hand in hand. He acknowledged that he knows Mr. Leiker has put as much money as possible in the budget for pay increases and he appreciates that. Our officers are as professional and as highly trained as any officers in the state. Councilor Whiteley stated that we do not know exactly where we are going to end up at the end of this current budget year or if we will have excess money or be short. Mr. Leiker stated sales tax payments are a good example since sales tax reports are paid two months in arrears and we will be receiving sales tax into the next fiscal year that will be accounted for in the current year. We are not positive about revenues, but feel pretty certain about expenditures. Moved by Councilor Whiteley to amend the main motion to set the proposed rate at $0.75. Motion failed due to lack of a second. Moved by Councilor Browning to amend the main motion to set the proposed tax rate at $0.763323. Motion seconded by Whiteley and carried with the following vote: Ayes: Mayor Santellana, Councilors Browning, Chenault, Jackson, West, and Whiteley Nays: None Mr. Leiker stated that we will email this presentation to everyone, confirm what proposed tax rate would generate and provide different scenarios on COLA. We will CITY COUNCIL MINUTES August 20, 2019 Page 30 need to talk through these proposed changes on September 3rd, with a second public hearing on September 10th, and pass the final budget and tax rate on September 17th. - - - - - - - Item 12 - Executive Sessions 4:12 There was no additional executive session held. - - - - - - - Item 13 Adjourn Mayor Santellana adjourned the meeting at 4:13 p.m. rd PASSED AND APPROVED this 3 day of September, 2019. ________________________________ Stephen L. Santellana, Mayor ATTEST: ____________________________________ Marie Balthrop, TRMC, CMC City Clerk CITY COUNCIL MINUTES August 20, 2019 Page 31