MARCH 26 2003
SCHERTZ ECONOMIC DEVELOPMENT CORPORATION (4-B BOARD)
March 26, 2003
The Schertz Economic Development CotpOration (4-B Board) convened on Wednesday,
March 26,2003 at 6:00 p.m. in the Municipal Complex Conference Room, 1400 Schertz
Parkway, Schertz, Texas. Those members present were as follows: President Ken
Greenwald, presiding; Secretary Johnie McDow, Director Ramon Cook, Director Steve
Simonson, Director Reginna Agee and Director Tony Wilenchik. Absent: Vice-President
Steve White. Also present were City Manager, Mark Marquez, Interim Finance Director
Juan Santoya and Recording Secretary Norma Althouse.
#1 Call to Order
The meeting was called to order by President Ken Greenwald.
#2 Approval of Minutes: September 3, 2002
Director Cook moved to approve the minutes, as written, for the meeting of September 3,
2002. Secretary McDow seconded the motion, which carried by unanimous vote of all
Directors present.
#3 Discussion of and Review of Annual Audit Report
Mr. Marquez reminded the Board members they have a copy in their packets of the
General Purpose Annual Financial Report for the Fiscal Year ended September 30, 2002.
He doesn't understand some of the movements of funds, but the auditor says they have
$874,421.00 in the fund balance. It includes the $750,000.00 they received from a note
when they got the fire trucks. They are drawing down $163,000.00 per year for the fire
engine and brush truck. What's missing is that we never spent the money out of bonds
for the brush truck last fiscal year when it was .approved. We didn't get the brush truck
last fiscal year, but we have it now. Those funds automatically roll back into fund
balance. He is asking for a budget adjustment to re-appropriate the funds that are
necessary for the brush truck. The effect of that is to reduce the actual fund balance by
about $70,000.00. Director Cook commented that changes the over/under expenditures
by about $70,000.00. Mr. Marquez advised he is more comfortable with the funds than
he was last year. He insists they maintain a healthy fund balance, no less than half a
million dollars.
Director Agee mentioned the $706,000.00 under Capital Outlay. She thought that's what
the auditor meant that they appropriated the prior year for the truck, but didn't re-
appropriate this year. That's why there's such a difference between the budget and the
actual. Mr. Marquez agreed. A brief discussion on this subject followed.
Mr. Marquez then mentioned there's a crack in the jail cells, on the floors, you can drop a
pencil in and they need to fix it. They haven't gotten any estimates yet, but it's coming
down the road very shortly. He will come back to the Board at the appropriate time with
that request.
Mr. Marquez went on to say that the Equipment Cost is a good candidate for rolling stock
on the vehicles, taking pressure off the General Fund. He emphasized he doesn't want to
get into that now, but will look at it again next budget year and see ifthere's a need to do
that. His preference is not to do that until the fire trucks are paid off.
Director Cook observed the fund expenditures versus revenues are basically flat (1.7"/0
under budget). This is a very good DUmber as far as budgeting goes. What's anticipated
in terms of sales tax? Mr. Marquez answered the sales tax revenues so far are flat, so we
should be okay. This is not to say that in the next six months things can't go bad. It's not
impossible. That's one of the reasons they need to maintain a very solid and powerful
reserve fund.
President Greenwald questioned what the annual payments are for the fire trucks and the
public safety buildings. Mr. Marquez answered $160,000.00 for the fire trucks and
$388,000.00 for the buildings. They need a minimum of$550,000.00 to cover them.
Director Wilenchik asked how the additional one-half of one percent cent sales tax used
by the Corporation ties into public transportation. Mr. Marquez explained they wouldn't
have money to payoff bonds and if they went with VIA, they would get no return from
them. President Greenwald added that VIA charges you for street damage. Mr.
Marquez admitted they could look at interoa1 bus routes.
Director Wilenchik then mentioned that internal transportation seems to be a concern of
focal groups. Mr. Marquez said that's correct. However you are looking at $200,000.00
to $300,000.00 per year for interoa1 routes.
Director Simonson noted that the City had looked at transportation in the past and at that
time, there was no big outcry for it. Director Agee said she couldn't imagine a big outcry
here for public transportation.
Mr. Marquez stated he and the Mayor had gone to several meetings regarding public
transportation and the question was raised about how much money do you want to spend.
There are people out there who want to get involved. President Greenwald stated if you
go with VIA, the routes and times are dictated by them.
Director Cook moved to approve the Annual Audit Report ending September 30, 2002.
Director Agee seconded the motion, which carried by unanimous vote of all Directors
present.
#4 Discussion and Action on Mid-Year Budget Adjustments:
a. Additional equipment for Police Department
b. Staff Pay adjustment
c. Additional Parking for Police Dept., EMS Dept. and Fire Dept.
Juan Santoya distributed some information for the Board to read.
a. Additional equipment for Police Department
Security cameras and recorders
Property room fume vent
Fitness Equipment
TOTAL
$11,000.00
$ 7,500.00
$ 20,000.99
$ 38,500.00
Mr. Marquez stated they have had two incidents where cameras would have made a big
difference.
President Greenwald asked if the cameras are continuous. Police Chief Steve Cantrell
replied only when an active prisoner is in there. President Greenwald then mentioned
they have a newer system that has motion-sensitive cameras whether you turn them on or
not.
Director Cook asked about the recording time of the cameras and was told by chief
Cantrell it is 24-7. They keep them for 30-60 days and then turn them around. Director
Cook asked if they are color cameras and was told they are.
Chief Cantrell explained they do not currently have security cameras inside the booking
room and it is imperative to install these cameras to monitor the activity of the prisoners
and those persons that enter the facility. Security cameras would also provide a level of
security during times of nationwide or local threats. They have received proposals from
three companies that range in estimates from $7,400.00 to $10,960.00.
b. Property room fume vent
Chief Cantrell stated the fume vent is critical to meet requirements under State and
Federal regulations concerning exhaust and evacuation of potentially hazardous fumes.
The vent was originally planned in the property room where evidence is processed.
However, certain evidence cannot be processed due to accumulation of hazardous fumes.
According to proposals submitted, the cost would be anywhere from $7,200.00 to
$7,500.00.
c. Fitness Equipment
Chief Cantrell indicated the fitness equipment had been discussed previously. A layout
of the equipment had been provided for the Board in their packets. The quote from Hest
(approximately $20,000) includes rubber mats to be placed where heavy weights will be
used and also includes freight and installation.
Mr. Marquez distributed a document regarding a gate in the evidence room. He
mentioned he hasn't had a chance to review it, but will bring it back at a future meeting
for discussion.
Mr. Marquez noted another item for discussion under mid-year budget adjustments is the
parking lot. In discussing it with City Attorney, Michael Spain, the question was raised
as to whether or not this is appropriate for 4-B money. His answer was yes it is - it is
designed to support the emergency services buildings. It should have been done when
they built the buildings. Manpower has been added to all three departments (police, Fire,
EMS) and the training rooms are in use almost all the time. It seems appropriate to
expand the parking. He doesn't believe, however, the Board should act on this
unilaterally. He believes it's appropriate that they have a public hearing. The use of the
funds is acceptable out of 4-B. They can make a case from the emergency services
standpoint and the economic development standpoint that it serves both purposes.
There is a risk you run that there may be a petition that says you can't do that. That's
fme. Ifwe determine this is a necessary expenditure, we should not be afraid to step out
in front of the public and say so. If a petition arises that requires an election, there are
alternatives. Mr. Spain initially suggested going back and looking at the General Fund
and finding out how much we're paying to maintain the buildings, man them, clean them
and do all the things that are appropriate and that are allowed in the bonding package. He
then suggested taking that money out of the General Fund and putting it into the 4-B and
applying the excess funds to the parking lot. It's kind of late in the game to do that in
terms ofa budgetary problem. Mr. Marquez said he's of the mind that down the road
they may want to use 4-B money for all the things that were listed on the ballot.
Mr. Marquez went on to say the number is $114,000.00 for the parking lot. Director
Agee inquired how many spaces we're talking about besides the helipad. Mr.
Bierschwale, Asst. City Manager, replied 8-10 on the Police Department side, and 50
plus where they're going to have the helipad. Director Cook added it's 150 feet each
way, which is a large area. Secretary McDow asked which side of the building they're
talking about and was told straight back, directly across from the EMS and Fire buildings.
Director Simonson pointed out there's a lot of community services that go on in the
public safety buildings and if this is authorized under the 4-B Code, then he's all for it.
He's sees no need for a public hearing, but appreciates what Mr. Marquez is trying to say.
Director Agee indicated it is Mr. Spain who is recommending the public hearing. Mr.
Marquez reminded the Board this is a discussion item and can be on a future agenda. He
recommends the Board listen to Mr. Spain's reasoning for having a public hearing.
President Greenwald pointed out that when it comes to public safety issues, this
community has always supported them wholeheartedly.
Mr. Marquez commented the Board has to approve a Resolution for a public hearing and
he suggested to Mr. Spain they discuss it first and then approve it at a future meeting.
The Council also has to approve a Resolution for a public hearing. There is a regular
timeline schedule that has to be followed - it will take 60 days or more. Director Cook
asked if the gym equipment is included in this schedule or is it just the additional parking.
Mr. Marquez answered only the additional parking.
Director Simonson moved to include on a future agenda a Resolution calling a public
hearing for additional parking for the public safety buildings. Secretary McDow
seconded the motion, which carried with the following votes:
AYES: President Greenwald, Secretary McDow, and Directors Simonson, Agee and
Wilenchik.
NAYS: Director Cook.
Mr. Marquez then mentioned briefly a mid-year budget adjustment for an increase in staff
pay, particularly for Amy Madison who has taken on a much broader range of
responsibilities. He is recommending a raise from grade 36-5 at $55,272 to grade 40-1 at
$59,736. She will continue her efforts as Economic Development Coordinator and as the
department head over Planning and Inspection.
Director Wilenchik asked if it's appropriate to use 4-B money for additional
responsibilities in departments other than Economic Development. Director Agee asked
if the additional money shouldn't come from the City rather than the 4-B Board. Mr.
Marquez said, in his mind, it's all an Economic Development function. President
Greenwald suggested having some guidelines about where the money should come from.
He feels the 4-B money should be strictly for Ecomonic Development and the additional
funds should come from the City. The Board agreed.
Secretary McDow had to leave at this time for another commitment.
Mr. Marquez stated he had distributed the adjusted budget figures to reflect all requests.
The mid-year budget adjustments will be published as soon as possible. There was a
brief discussion on the adjustments.
Director Wilenchik moved to approve the adjusted budget figures. as presented, with the
changes recommended by the Board. Director Cook seconded the motion, which carried
by unanimous vote of all Directors present.
#5 Approval of bids for gym equipment.
President Greenwald inquired about AED's and Chief Cantrell replied they have them in
the cars.
Director Cook moved to approve the bid for gym equipment from Hest Fitness Products,
as presented, in the amount of $19,568.60. Director Simonson seconded the motion,
which carried by unanimous vote of all Directors present.
#b Discussion and Action on appointment of Juan Santoya as Treasurer for the
~orporatian.
. Marquez advised they need to have a Treasurer for Corporation purposes to sign
ocuments and that sort of thing. It is inappropriate for him to do it.
Director Cook asked about qualifications for the position of Treasurer and was assured
Mr. Santoya is qualified.
Director Simonson moved to appoint Juan Santoya as Treasurer of the Economic
Development Corporation (4-B Board}. Director Agee seconded the motion, which
' carried by unanimous vote of all Directors present.
#7 Adjournment
There being no'further business to discuss, President Greenwald adjourned the meeting at
b:58 p.m.
1VIINUT'ES APPROVED this the p~~ ay of 2003.
Signature of alI Directors whether present or absent.
~ ~ 9
President Dire
ice-President Dire
4
S retary Director
Treasurer Dir ctor