04-27-2010 MINUTES
REGULAR MEETING
Apri127, 2010
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on
April 27, 2010 at 6:30 p.m., in the Municipal Complex Council Chambers, 1400 Schertz
Parkway, Building #4, Schertz, Texas. The following members present to-wit:
Mayor Hal Baldwin Mayor Pro-Tem David Scagliola
Councilmember Jim Fowler Councilmember John Trayhan
Councilmember Michael Carpenter
Staff Present: City Manager Don Taylor Assistant City Manager David Hams
Assistant City Manager John Bierschwale City Attorney Michael Spain
City Secretary Brenda Dennis
CALL TO ORDER REGULAR MEETING
Mayor Baldwin called the meeting to order at 6:30 p.m.
INVOCATION AND PLEDGES OF ALLEGIANCE TO THE FLAGS OF THE
UNITED STATES AND STATE OF TEXAS.
Councilmember Fowler gave the invocation followed by the Pledges of Allegiance to the
Flags of the United States and State of Texas.
Mayor Baldwin recognized former Mayor Earl Sawyer and Michael Borland, Boy Scout
from Troop 31 who were in the audience.
HEARING OF RESIDENTS
Mayor Baldwin recognized the following:
• Assistant City Manager David Harris who provided the following information:
- He stated last Friday, the Texas City Management Association (TCMA) Board of
Directors approved awarding City Manager Don Taylor a Lifetime Achievement
Award. The award will be conferred on him at the TCMA annual conference at a
luncheon to be held Friday, June 25 at 12:15 p.m. at Moody Gardens Hotel in
Galveston. Over the past couple of years, I have had the honor of serving as a
member of the Board of Directors for TCMA. I am doubly honored to have had the
honor of voting on this award for him both at a committee and Board level. Should
you be interested in attending the awards luncheon or staying overnight, please
contact Cindy Raleigh no later than this Friday by 12 noon. A block of hotel rooms
are available for Thursday night, June 24. Rooms are $100 per night. The
luncheon is $40. Please mind your travel budgets and consider sharing rooms
should you be interested in attending. Please join me in congratulating Mr. Taylor
on receipt of this honor!
04-27-2010 Minutes
• Robert Brockman, 1000 Elbel who spoke regarding a large tree branch that fell in
Thule Meyer Park. -
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• C.W. Reece, 533 Maple, representing the VFW Post speaking in favor of a Veteran
Plaza.
Discussion and/or Action Items
1. Bond Sale - Discussion briefing and consideration and/or action authorizing the
Schertz/Seguin Local Government Corporation, its staff and consultants to proceed
with the bond sale currently scheduled for June 15, 2010 that will finance the
expansion of the system. (A. Cockerell/M. McLiney)
Mayor Baldwin recognized SSLGC General Manager Alan Cockerell who
introduced this item stating that this item relates to the SSLGC and its plan to make
improvements to the wholesale water supply system. Mr. Cockerell stated the
SSLGC was created to develop and operate a wholesale water supply system from
the Carrizo Aquifer for the benefit and well-being of the cities of Schertz and
Seguin. SSLGC's original project and expansion plans are included in the regional
and state water plans. Mr. Cockerell provided a brief PowerPoint regarding the
history of the duties of SSLGC.
Mr. Cockerell introduced SSLGC Co-Financial Advisor Mark McLiney of
Southwest Securities who briefed the Council on the approximate $23 million bond
sale scheduled June 15, 2010 to finance the expansion of the SSLGC water system.
The bond includes:
- Four new wells and associated pipelines, roads and GVEC power: $11.9M
- Three new water storage tanks: $5.7M
- Expansion of system control and data acquisition (SCADA): $0.9M
Mr. McLiney stated there would be no impact to the City's water rates for the first
three years because capitalized interest will be included for that time period and the
bond is based on a deferred payment option. The City will not be paying any
principal and interest on the new bonds during this time period. After the third year,
if additional revenues are not available from other customers, the City will be
responsible for one-half of the debt service. Mr. McLiney provided an 18-month
timetable of events should this item be approved by Council as well as the debt
service breakdown. Mr. McLiney addressed questions from Council.
Councilmember Trayhan asked should new wholesale customers not come on line
by 2014, would the City have to pay the debt service payment amount at that time,
and what would the rate increase be. Assistant City Manager John Bierschwale
stated it would be approximately $5.50 per month. Mayor Baldwin briefed the
audience stating that the City began the search for water 20 years ago after being
warned by the Legislature and the Edwards Aquifer Authority that the City needed
to start looking for water other than the Edwards due to the rules and regulations.
Mayor Baldwin stated the City took this seriously considering the growth of Schertz
and formed the SSLGC to assist in securing its own water source. The City and the
Corporation found a source in Guadalupe County and secured the source that will
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provide water for the next fifty years. Mayor Baldwin recognized former Mayor
Earl Sawyer, Engineer Ramon Cook and current President of the SSLGC Board
Ken Greenwald who were instrumental in securing water for the future of the City.
Mr. McLiney addressed questions from Councilmember Carpenter regarding the
proposed bond sale rate of a possible 5 to 5.5 % as well as the bond rating of the
SSLGC Corporation which is at an A rating and how it will work. Mr. McLiney
stated that should the City Council approve to move forward, he would be bring
back to Council on June 15, 2010 an item to approve the sale of these bonds.
After considerable discussion, Mayor Baldwin recognized Councilmember Trayhan
who moved, seconded by Councilmember Fowler to authorize the Schertz Seguin
Local Government Corporation, staff and consultants to proceed with bond sales
currently scheduled for June 15, 2010 that will finance the expansion of the system.
Vote was unanimous. Motion Carried.
2. Note Offering - Discussion briefing and consideration and/or action authorizing
the city staff and financial consultants to begin work on a note offering to finance
certain EMS equipment and for Public Improvements related to the Sysco project if
requested and paid for by the EMS Department and the Economic Development
Corporation. (M. McLiney/J. Bierschwale)
Mayor Baldwin recognized Assistant City Manager John Bierschwale who introduced
this item; Mr. Bierschwale introduced Mr. Mark McLiney who briefed the Council on
the approximate $1.5 million combined bond sale for EDC and EMS. Mr. McLiney
stated that the bond would benefit EDC by providing $1.25 million in funds to
construct two roads, a water line and a wastewater line for the Sysco project and
$300,000 in funds for an EMS station alerting system, which is part of the CAD
system and purchase of an additional ambulance. He stated the bond is combined due
to cost effectiveness. The City and EDC will enter into an agreement in the future
that would detail EDC reimbursing the City for these funds. EMS Director Dudley
Wait addressed questions from Council regarding the funds to be used for EMS that
involve the EMS alerting system and the purchase of a new ambulance which are
necessary to maintain the level of service. Mr. Wait explained the types of chaises .
and their issues as well as what is available today. Council reminded staff to provide
appropriate backup material in their packets relating to items such as this.
After considerable discussion with staff addressing questions from Council, Mayor
Baldwin recognized Councilmember Trayhan who moved, seconded by
Councilmember Carpenter to authorize City staff and Financial Consultant to begin
work on a note offering to finance certain EMS equipment and for public
improvements relating to the SYSCO project if requested and paid for by the EMS
and Economic Development Corporation. Vote was unanimous. Motion Carried.
3. Water rate structure - Discussion briefing and consideration and/or action
regarding how the City would like to structure water rates. (S. Willoughby)
Mayor Baldwin recognized Public Works Director Sam Willoughby who briefed
the Council on how water rates are currently structured within the City compared to
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surrounding communities and discussed different options for the City to structure
rates. He stated that current water rates are based on a ten tier inverted block rate on
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the principal of the more you use the more you pay. The base rate is currently
$18.94 per LUE, covers existing debt payments and usage rate covering operation
and maintenance. Residential meters make up 93% of the water system users and
75% of the usage revenue, which is mainly influenced by landscape watering. A
comparison of water rates in the surrounding communities reflect a range of rates,
but may be deceiving because some do not include separate miscellaneous water
fees that are not posted with their usage rates. Water quality complaints are rare and
are usually associated to the customer's system. He stated that the treated Carrizo's
aquifer water hardness characteristics are better than can be produced by any
commercial water softener, which is a huge benefit to the system users.
Mr. Willoughby provided a brief PowerPoint presentation as it relates to water rates
and their breakdowns and answered questions from Council. Mr. Willoughby and
Assistant City Manager John Bierschwale stated that staff recommends no change
at this time to the base rates.
No action required of this item as it was informational only.
Mayor Baldwin requested the Council moved to agenda item 5.
5. Veteran Plaza Location -Discussion and consideration and/or action regarding a
location of a Veteran Plaza. (Mayor Baldwin).
Mayor Baldwin stated he requested this item be placed on the agenda to discuss a
possible location for a Schertz Veterans Plaza. Mayor Baldwin recognized Library
Director Ruth Tienor who came forward requesting Council consider a place for a
Schertz Veteran Plaza. She requested Council consider placing the plaza in front of
City Hall by the flagpole area. Ms. Tienor provided a draft sketch of how it would be
laid out. She stated that the VFW Post has agreed to co-sponsor and let them use
their tax exemption number for donations as well as assist in the set up of a special
account fund. She stated the group would be doing their own fundraising for this
project. She reiterated the location suggested is visible, close to the Police
Department and that the City could assist in maintaining the area. The Council and
staff discussed other possible locations such as between the frontage road on Elbel
Road by the Library and the YMCA, and the property the City owns off Schertz
Parkway across from the Knights of Columbus. Assistant City Manager Bierschwale
stated his concerns for the location being in front of City Hall due to the heavy traffic
from citizens coming in for water service and the number that come in the Municipal
Court. Council discussed and suggested that a Site Selection Committee be formed to
assist in the development, and assist in providing ideas for other possible areas for the
Plaza. Council suggested that City Engineer Larry Dublin be part of that Committee.
Councilmember Carpenter addressed funding questions, location and stated he
believes the appropriate location for the site should be in front of City Hall but would
go along with the Council and allow staff to research other possible locations and
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request that City staff review the plans. Council asked that City Engineer Larry
Dublin submit plans for the YMCA area location he mentioned.
City Manager Don Taylor thanked Ms. Tienor for her work on this project.
Mayor Baldwin recognized Councilmember Trayhan who moved, seconded by
Mayor Pro-Tem Scagliola to authorize City staff to develop recommendations and
plans in conjunction with the VFW for the location of a Veterans Plaza and bring it
back to Council. Vote was unanimous. Motion Carried.
4. Presentation on City Projects -Presentation and consideration and/or action
regarding the City Project Update and Status Report. (L. Dublin)
Mayor Baldwin recognized City Engineer Larry Dublin who provided a brief
PowerPoint presentation updating the Council on the status of current City projects
answering questions. No action required by Council.
6. Minutes -Consideration and/or action regarding the approval of the minutes of the
Regular Meeting of April 20, 2010.
Mayor Baldwin recognized Councilmember Fowler who moved, seconded by
Councilmember Trayhan to approve the minutes of the Regular Meeting of April 20,
2010. Vote was unanimous. Motion Carried.
7. Ordinance No. 10-M-07- Consideration and/or action approving an ordinance
approving revised budget figures and allocation of funds for Fiscal Year 2009-2010;
providing that this ordinance shall be cumulative of all ordinances; providing a
severability clause; and providing an effective date. Final Reading (D. Harris)
Mayor Baldwin recognized Assistant City Manager David Hams who introduced
this item stating the action requested of Council deletes the Assistant Director and
Analyst positions for Schertz Economic Development Corporation and creates an
Intergovernmental Relations Director and Clerk positions. Estimated net savings of
$2,234 to the Economic Development personnel budget (fund 620). Mr. Harris
addressed questions from Council and recommended final approval. Mayor Pro-
, Tem Scagliola stated his opposition based one excessive bureaucracy within the
City.
Mayor Baldwin recognized Councilmember Trayhan who moved, seconded by
Councilmember Carpenter to approve Ordinance No. 10-M-07 final reading. Vote
was 3-1-0 with Mayor Pro-Tem Scagliola voting no. Motion Carried.
8. Resolution No. 10-R-20 -Consideration and/or action approving a resolution
authorizing an Operating Agreement and a Lease Agreement with Schertz Chamber
of Commerce. (M. Spain/B. Cantu)
Mayor Baldwin recognized Assistant to the City Manager Bob Cantu who
introduced this item stating that the City continues to work closely with the Schertz
Chamber of Commerce, and staff recommends that the City Council approve an
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agreement concerning basic operations (the "Operating Agreement") and a
Commercial Lease Agreement for the Kramer House. The City Council previously
budgeted the payments relating to this matter. The Commercial Lease Agreement
will return $650/month to the City in rental payments to be paid in quarterly
installments. The City will continue to maintain the property and building and
provide telephone and information technology support. In addition, funding for
October 1, 2009 through September 30, 2010 in the amount of $58,228 was
approved.
Mayor Baldwin recognized Councilmember Fowler who moved, seconded by Mayor
Pro-Tem Scagliola to approve Resolution No. 10-R-20. Vote was unanimous.
Motion Carried.
9. Resolution No. 10-R-21 -Consideration and/or action approving a resolution
authorizing an Operating Agreement with the Comal County Senior Citizens'
Foundation. (M. Spain/B. Cantu)
Mayor Baldwin recognized Assistant to the City Manager Bob Cantu who stated
action requested of Council would authorize the City Manager to sign a binding
Operating Agreement with the Comal County Senior Citizens' Foundation to
operate a senior citizen program providing nutritional and social services to Schertz
area seniors at the old City Library. He stated that the annual fiscal impact would
be $42,000. This is a two-year agreement. Sufficient funds remain in the FY2009-
10 Senior Center Budget for this cost. The Foundation will make facility
improvements and install necessary equipment and furnishings.
Mayor Baldwin recognized Mayor Pro-Tem Scagliola who moved, seconded by
Councilmember Fowler to approve Resolution No. 10-R-21. Vote was unanimous.
Motion Carried.
10. Ordinance No. 10-5-08 -Consideration and/or action approving an ordinance
amending the official zoning map Ordinance 07-5-40 by rezoning approximately
83.61 acres of land from Garden Home District and General Business District (GH
& GB) to Single-Family District (R-7) and General Business District (R-7 & GB);
more specifically described as a portion of the C.M. Gahagan Jr. Survey No. 258,
abstract no. 142, Guadalupe County, and abstract 182, Comal County, Texas,
generally located near the southwest intersection corner of IH 35 and Eckhardt Road;
providing a reversionary clause; providing a repealing clause; providing a severability
clause; providing a penalty clause; and providing an effective date. First reading (M.
Nichols/M. Sanchez)
Mayor Baldwin recognized Development Services Director Michelle Sanchez who
introduced this item stating that action requested of Council would be to rezone the
formerly known Tanglewood Park Subdivision from Single Family Garden Homes
(GH) to Single Family District (R-7). The property is currently undeveloped and
the owner is working with Perry Blanton Home Builders to develop a new
subdivision named Cyprus Point. The Planning and Zoning Commission
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unanimously voted to forward a recommendation to Council to approve the changes
at their April 14, 2010 meeting.
Ms. Sanchez also stated this zoning request of R-7 would take the entire subdivision
from anon-conforming development and bring it into conformance. The developer
is considering all the UDC requirements in the planning and construction of the
subdivision. Staff recommends Council approve the first reading of Ordinance
No.10-S-08. Mayor Pro-Tem Scagliola presented a number of objections and
concerns regarding density and infrastructure needs. Council discussed their views
and opposition toward the proposed R7 zoning. Council discussed possibilities of
R6 and R2-gated. After considerable discussion, it was Council consensus to send
back to the Planning & Zoning Commission to discuss with the developer a variety
of classifications and additional options.
Mayor Baldwin recognized Councilmember Carpenter who moved, seconded by
Councilmember Fowler to send this item back to the Planning Department and
Planning & Zoning Commission to work with the developer to come up with some
additional options and have it come back to Council at that time. Vote was
unanimous. Motion Carried
Council did not meet in executive session.
EXECUTIVE SESSION
Called under Section 551.071 Texas Government Code Litigation, pending litigation;
Section 551.072 Texas Government Code - Deliberation regarding the purchase,
exchange, sale, lease, or value of real property and Section 551.074 -Deliberate the
appointment, employment, evaluation, reassignment, duties, discipline or dismissal of
the City Manager.
11. Take any action deemed necessary as a result of the Executive Session.
No action taken as the Council did not meet.
Requests and Announcements
12. Requests by Mayor and Councilmembers that items be placed on a future City
Council agenda.
No requests given.
13. Requests by Mayor and Councilmembers to City Manager and Staff for
information.
Mayor Baldwin recognized Councilmember Fowler about the study being done on
Morning Drive regarding speeding. City Manager Don Taylor stated that another
study would be done since the road has now been paved and will get information
back to Council.
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_ _ _
14. Announcements by Mayor and Councilmembers
• City and community events attended and to be attended
• City Council Committee and Liaison Assignments (see assignments below)
• Continuing education events attended and to be attended
• Recognition of actions by City employees
• Recognition of actions by community volunteers
• Upcoming City Council agenda items
Mayor Baldwin recognized Mayor Pro-Tem Scagliola who reminded everyone that an
election is going on. He stated that Wednesday, April 28, 2010 at 6:00 p.m. at the Civic
Center is meet the candidates. Mayor Baldwin recognized Councilmember Fowler who
stated that June 6~' through 21st he would be out of the Country.
15. Announcements by City Manager
• Recognition of City employee actions
• New Departmental initiatives
Mayor Baldwin recognized Assistant City Manager David Hams who stated that Thursday,
April 29, 2010 staff would be attending the San Antonio Council meeting to address the ETJ
release issue, and Tuesday, May 4, 2010 the Commissioners Court will be addressing the
Hillbrook Waterline extension.
Mayor Baldwin stated that he, Assistant City Manager John Bierschwale attended the Cancer
Therapy & Research Center -CTRC appreciation luncheon today. He stated they gave them
a tour of the facility and explained where the money from the Wilenchik Walk for Life is
distributed.
ADJOURNMENT
As there was no further action, Mayor Baldwin adjourne the meeting at 9:40 p.m.
Hal Baldwin, Mayor
ATTEST:
Bren a Dennis, TRMC, CMC City Secretary
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