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08-24-10 MINUTES REGULAR MEETING August 24, 2010 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on August 24, 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 Edwards .Councilmember Jim Fowler Councilmember David Scagliola Councilmember George Antuna Councilmember Michael Carpenter Staff Present: City Manager Don Taylor Assistant City Manager John Bierschwale Assistant City Manager David Harris 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. HEARING OF RESIDENTS Mayor Baldwin recognized the following citizens who were opposed to the proposed tax increase: • John Borland, 13.17 Arrow Verde • Wayne Flowers, 409 Aviation • Bob Gibson, 3517 McAlister Lane • Mark Stemmerman, 1013 Gate Creek Lane • Charles Dickens, 3521 McAlister Lane Discussion and/or Action Items 1. Minutes -Discussion and consideration and/or action regarding the approval of the minutes of the August 17, 2010, regular meeting. Mayor Baldwin recognized Mayor Pro-Tem Edwards who moved, seconded by Councilmember Carpenter to approve the minutes of the workshop and regular meeting of August 17, 2010. The vote was unanimous. Motion Carried 2. Ordinance No. 10-5-22 -Consideration and/or action approving an ordinance to rezone approximately 304.10 acres of land west of the Lost Meadows Subdivision known as Cibolo Creek Municipal Authority, being part of the G. Malpez Survey 8-24-10 Minutes No. 67, Abstract No. 464, Bexar County Block No. 5054, the A.S. Lewis Survey No. 78, Abstract No. 1301, Bexar County Block No. 5472, and the William Bracken Survey No. 65, Abstract No. 48, Bexar County Block No. 5055, situated in Bexar County, Schertz, Texas from Pre-Development District (PRE) to Public Use District (PUB) and; approximately 187.99 acres of land known as Crescent Bend Nature Park located north of Schaefer Road and east of the Lost Meadows Subdivision situated in the A.S. Lewis Survey No. 78 and the Williams Bracken Survey No. 65 in Bexar County, Schertz, Texas from Pre-Development District (PRE) to Public Use District (PUB). Final Reading (M. Sanchez) Mayor Baldwin recognized Development Services Director Michelle Sanchez who stated that there are no changes to report since first reading and recommends Council approve final reading. Mayor Baldwin recognized Councilmember Fowler who moved, seconded by Councilmember Scagliola to approve Ordinance No. 10-5-22 final reading. Vote was unanimous. Motion Carried. 3. Ordinance No. 10-5-23 -Consideration and/or action approving an ordinance to rezone approximately 0.563 acres of land west of FM 1518 and east of the Cibolo Creek known as the former location of the Schertz Animal Shelter being a part of the G. Malpaz Survey No. 67, Abstract No. 221 Guadalupe County, Schertz, Texas from Pre-Development District (PRE). First Reading (1V1. Sanchez) Mayor Baldwin recognized Development Services Director Michelle Sanchez who stated that there are no changes to report since first reading and recommends Council approve final reading. Mayor Baldwin recognized Councilmember Scagliola who moved, seconded by Councilmember Fowler to approve Ordinance No. 10-5-23 final reading. Vote was unanimous. Motion Carried. 4. Resolution No. 10-R-46 -Consideration and/or action approving a resolution authorizing the City of Schertz Economic Development Corporation (i) to enter into a regional marketing and promotional agreement and related contracts and expending not to exceed $50,000 and (ii) to enter into a local initiative to encourage retail establishments and related contracts and expending not to exceed $25,000. Final Reading (J. Jewell) Mayor Baldwin recognized Economic Development Director Jeff Jewell who introduced this item answering questions from Council. Mr. Jewell stated the Board of Directors of the Schertz Economic Development Corporation (the "SEDC") recommend the approval of the following agreements at its August 12, f 2010, board meeting: • This item approves a joint marketing agreement with the SEDC, Seguin EDC, and the New Braunfels (Bui1dNB.org) equivalent for 8-24-10 Minutes Page - 2 - regional marketing and promotional activities at national and international events. • This item approves participation in a Buxton retail analysis for the three cities. Both are one-year agreements ending September 30, 2011. Fiscal impact not to exceed EDC funds of $75,000. Mr. Jewell stated that nothing has changed since first reading and recommends Council approve final reading. Mayor Baldwin recognized Councilmember Antuna who moved, seconded by Councilmember Scagliola to approve Resolution No. 10-R-46 final reading. Vote was unanimous. Motion Carried 5. Resolution No. 10-R-47 -Consideration and/or action approving a resolution approving a payment to the City from the Economic Development Corporation for Master Planning Costs. First Reading (J. Jewell) Mayor Baldwin stated that staff has asked to pull this item. No action taken. 6. Resolution No. 10-R-48 -Consideration and/or action approving a resolution authorizing the City to enter into a Development Agreement with the City of Schertz Economic Development Corporation and a company to provide data processing, hosting, and related services. (J. Jewell) Mayor Baldwin recognized Economic Development Director Jeff Jewell who introduced this item answering questions from Council. Mr. Jewell stated City staff has negotiated the terms of a Development Agreement among the City, the EDC, and The Capital Group Companies, Inc. regarding a new data center facility in the Verde Enterprise Business Park. Action requested of Council provides Capital Group with a 75% tax credit on the real and personal property for eight years regarding a new data center facility in the Verde Enterprise Business Park. Total fiscal impact to the City and EDC is approximately $114,000 per year. The abatement over the life of the agreement is worth $950,000 in ZO10 dollars. Net revenues will be approximately $80,000 per year. The company will be the sixth highest tax payer in the City on a facility square footage basis, and at full operation, they will be the third highest tax payer behind HEB and Wal-Mart. In order to receive the full 75% tax credit, Capital Group expects the cost of the building, fixtures, and personal property at the site will be at least $29,750,000. A table outlining the value of the improvement levels and resulting changes to the tax credit is built into the agreement. The resulting tax credit is reduced by 25% for each increment below the values listed in Section 6 of the agreement. The City would also authorize the transfer of $100,000 to Capital Group from the Community Infrastructure and Economic Development (CIED) Fund administered 8-24-10 Minutes Page - 3 - by City Public Service of San Antonio, upon completion of construction of the Capital Group's electronic infrastructure project. r' Mayor Baldwin recognized Councilmember Fowler who moved, seconded by Mayor Pro-Tem Edwards to approve Resolution No. 10-R-48. Vote was unanimous. Motion Carried 7. Resolution No. 10-R- 52 -Consideration and/or action approving a resolution of the City of Schertz, Texas, amending the Fee Schedule of Appendix C of the Code of Ordinances, City of Schertz. (R. Galindo/J. Santoya) Mayor Baldwin recognized Assistant City Manager David Harris who introduced this item answering questions from Council. Mr. Harris stated City Departments collect a wide variety of fees for permits, services, fines, and other charge that are all part of the every day operations of municipal government. Since September 2008, the fees have been incorporated into a single fee schedule. Mr. Harris provided a brief PowerPoint outlining the following proposed changes: Summary of Chan es 2009-10 2010-11 Library Books per day -adult $.25 Delete Books per day -child $.10 Delete All Books Per Day N/A $0.25 Audio cassettes per day $.10 $0.25 Audio cassettes per day $1.00 $0.25 Civic Center Grand Ballroom Setup Kit N/A $35.00 Capital Recovery fee, per person N/A $1.00 Civic Center Cut off Hall Mon-Thurs, per day N/A $325 Monday -Thursday, half day N/A $250 Friday & Saturday, per day N/A $1,200 Sunday, per day N/A $500 Sunday, half day N/A $325 Approved setup kit N/A $35 Capital Recover Fee, per person N/A $1.00 Civic Center Conf. Hall Mon-Thurs, per day N/A $250 Monday-Thursday, half day N/A $175 Sunday, per day N/A $400 Sunday, half day N/A $250 Audiovisual Access N/A $25 Approved setup kit N/A $35 Capital Recover Fee, per person N/A $1.00 Not available on Friday and Saturday Civic Center -Bluebonnet HALL Audiovisual Access N/A $25 Approved Setup Kit N/A $35 Capital Recovery Fee, per person N/A $1.00 Community Center North 3501 Morning Dr 8-24-10 Minutes Page - 4 - Monday -Thursday all day $125 $150 Monday -Thursday, half day $75 $100 Approved Setup kit N/A $35 Community Center Central Monday -Thursday, per day (removed per/hr $20/hr $150 Monday -Thursday, half day N/A $100 Friday-Saturday, per day $200 $400 Sunday, per day N/A $250 Sunday, half day N/A $150 Stage $50 $100 Damage/Cancellation Deposit $100 $200 Approved Setup kit N/A $35 Parks and Recreation -All Pavilions Monday-Thursday 50% discount on rental rates $25 to $150 Electricity (1St 3 hours) $8.00 Delete Electricity (each additional hour) $2.00 Delete Animal Services Quarantine fee Plus Daily charge per animal for boarding $8.00 $10.00 Marshal Services *City violation court fee N/A $10.00 Ins ections Plumbing Contractor (Annually) $60.00 N/C Administration Fee for Cancellation of permit, 10% of plus Plan Review fee if applicable permit fee Business Office Water Deposit (Renters) in City $60.00 $150.00 Water Deposit (Renters) out of City $90.00 $225.00 Garba a Collection Fees Class I: Residential, Single Family, per month $10.81 $11.08 Recycling Fee, per month/container $1.25 $1.87 Mr. Harris stated action requested of Council amends the City's fee schedule, effective October 1, 2010 by increasing and changing certain fees in the current schedule. Staff estimates the City will generate an estimated $47,000 in additional revenue, which is reflected in the FY 2010-11 proposed budget. Mayor and Council addressed the following concerns on rate increases: • Water deposit increase - Mr. Harris stated this was increase for renters due to renters leaving the city and leaving a water balance. Mayor Baldwin stated that the amount of increase should not be more than a commercial deposit. He also stated his concerns for a renter having to pay such high deposits, i.e., water, electricity etc. • Civic Center capital recover fee, per person - Mr. Harris stated this was a fee to set aside funds for future capital equipment replacement/purchases much like what the city is doing for fleet maintenance. This money would 8-24-10 Minutes Page - 5 - be set aside to replace a projector or other equipment that may go out. Civic Center Manager Jessica Robinson came forward and stated that the capital recovery fee only counts if the customer is going to have a catered event l because there is more wear and tear on the facility if it is a catered event. • Civic Center approved Setup Kit. Ms. Robinson explained this kit has approved items for them to use that will not damage the facility. • Marshal Services City Code Violation Court Fee -City Marshal Todd explained this fee is a recovery fee for down time of an officer to gather the information and bringing the violator to court to find out what they need to do to resolve the violation. She stated that the fee is for processing the paperwork much like the fee the Judge evokes for dismissing citations. • Garbage collection fees. Mr. Harris stated that this fee increase is at the request of Bexar Waste. Mayor Baldwin recognized City Manager Don Taylor who stated that he would recommend postponement of this item to allow him the time to bring more information back to Council on what the average 12-month water write-offs are, as well as information on what other Cities are charging for garbage rates both residential and commercial. This item was postponed to the next meeting for consideration. 8. Public Hearing on Proposed Tax Rate for FY 2010-11 - Conduct a public hearing and consideration and/or action regarding the adoption of the FY 2010-11 Tax rate. (First required public hearing) (D. Harris/J. Santoya) Mayor Baldwin recognized Assistant City Manager David Harris who introduced this item answering questions from Council. Mr. Harris stated in accordance with Chapter 26 of the Texas Tax Code the City Council must hold two (2) public hearings on a proposed tax rate. Mr. Harris stated at the August 10, 2010 regular session the City Council, by record vote, established a proposed preliminary maximum tax rate of $0.4675 per $100 of value and set public hearing dates. This rate is above the effective tax rate and in order to be in compliance with the Truth-in-Taxation requirements, at lease one week public notice must be given before the first public hearing. Therefore, we must revise the public hearing dates to comply with State law, which requires one- week publication before the first hearing. This proposed rate is not subject to rollback. Mr. Harris provided the following information as a brief overview for Council on the proposed tax rates and proposed budget: f Plan A: $0.4342 includes (Current rate) • Current approved staff 8-24-10 Minutes Page - 6 - • 9% Health Insurance cost increase • 20% increase in fuel expense • Code Enforcement Officer and Service Clerk for Marshal Services • Master Planning Project Plan B: $0.4493 Adds: (Proposed budget is currently set at this rate) • Parks & Recreation 2 Seasonal Part-time workers • Adult Services Librarian • 2% Cost of Living adjustment Plan C: $0.4615 adds $250,000 to reserves $0.4675 adds $375,000 to reserves Mr. Hams went over: • Property Values • FY 2010-11 Tax Rate Impact to Homeowners • General Fund -Expenses • Interest & Sinking Debt Fund • Details of New Personnel Mr. Harris stated this public hearing would be the first public hearing. The second required hearing will be conducted at the August 31, 2010, regular session. Staff recommends that the Mayor open the public hearing, take comments, close the public hearing and announce that the next public hearing on the proposed tax rate will be conducted on August 31, 2010, at 6:30 p.m. in the City Hall Council Chambers. Mayor Baldwin opened the public hearing and recognized the following who were opposed to a tax increase: • Mark Stemmerman, 1013 Gate Creek Lane • Wayne Flowers, 409 Aviation • John Borland, 1317 Arrow Verde • Wayne Flowers, 409 Aviation • Bob Gibson, 3517 McAlister Lane ' • Mark Stemmerman, 1013 Gate Creek Lane • Charles Dickens, 3521 McAlister Lane Mayor Baldwin closed the public hearing and announced that the next public hearing on the proposed tax rate would be conducted on August 31, 2010, at 6:30 p.m. in the City Hall Council Chambers. Mayor Baldwin recognized City Manager Don Taylor who stated that he started on this budget over a year ago. He stated that after the budget was approved last year and he saw revenues were not coming in as projected; he went to all his department heads and asked them to withhold spending. He stated the present budget is at 8-24-10 Minutes Page - 7 - .4342 he is raising it to .4493. To get to .4493 you have to understand GVEC and CPS electric went up, as well as fuel pricing is going up. Mr. Taylor stated that all the positions being asked for with the exception of two, effect the tax rate. Mr. Taylor explained the positions and from where the funding is coming. Example IT position is coming out of the Water and Sewer fund. Mr. Taylor reiterated that employees have not received a merit raise for two years and the rate of .4493 provides employees with only a 2% COLA. City Manager Don Taylor stated that he can cut areas of the budget, but that Council would have to give him some direction in where to go, for example, if you want him to take out the clerk position, the code enforcement officer, that would get them down to pretty close to the .4342, but would have to reduce the court revenues as well. He further stated that this year's budget is less than last year's when you take into consideration the increases that have been passed along to the city. What you are considering is if you want to go, less than the .4493 is what city services you are willing to cut. Mayor and Council discussed the following areas: • Believes Management and Staff have presented a balanced budget and will continue to watch revenues, sales tax etc • Optimistic about economy recovery • Critical to put money back into reserves • Look at replacing less vehicles -what would be the savings/or would it be savings • Continue to control spending specifically on purchasing properties that were not budgeted • Review budget to see what can be withheld this year to be able to put money in the reserves (example capital projects) • Attrition • Try to pull from .4493 tax rate to assist in replenishing reserves • Council recognizes it has been a tough year- commends the City Manager for managing the budget. • Should be a line item in the budget to feed the reserves • Should be a line item in the budget for a cost of living allowance Mayor Baldwin recognized Councilmember Carpenter who stated everyone on the dais and those he has worked with in the past approaches what they do with care and love for the city and the best interest of the citizens. Councilmember Carpenter moved to set the tax rate at .4493 as recommended by staff. City Secretary Brenda Dennis stated that this was a public hearing only and next week the council would be taking their first vote, therefore Councilmember Carpenter withdrew his motion. Mayor and Council concurred to end the debate on the tax rate and move to the public hearing on the budget. 8-24-10 Minutes Page - 8 - 9. Public Hearing Fiscal Year 2010-11 Budget - Conduct a public hearing and consideration and/or action approving the City of Schertz FY 2010-11 Budget (D. Harris/J. Santoya) Mayor Baldwin stated that he believed the above debate and all the discussions above have to deal with budget as asking the City Manager to go back and see if cuts to the budget could be made if any. Mayor Baldwin stated that if Mr. Harris did not have additional information as presented above in his presentation he would move to open the public hearing for discussion on the budget and take comment from anyone concerned with the budget. Mayor Baldwin opened the public hearing and recognized Mr. Wayne Flowers, 409 Aviation, who stated he is not here to discuss this particular budget, the budget that the staff has worked on for the past year is what you must have to make the city go forward. He believes there is a big misrepresentation on the tax rates and how they are set over the course of the year and what it takes to operate the machine they have built over the last 50 years. He stated that Council would be doing an injustice to staff if you go in and take a knife to the budget tonight. His initial conversation has to do with the proposed bond election, soccer field, and anything else the City might see that they need because it was a deal, and that is what has gotten the City in a bind. This is what has upset the citizens, not the budget, not the number of police on the street. He stated, "adopt your budget because if you do not it is a slap in the face to your employees." When the City gets to good times, give the employees a raise etc., that is the way the City has always been. As no one else spoke, Mayor Baldwin closed the public hearing and opened this item back up to Council discussion. Mayor Baldwin recognized Councilmember Carpenter who stated that as above in his commentary he would support a tax rate of .4493. Again, the purpose of that was to say, the budget has been presented to us by staff that includes the list of additions; those are minimal additions, and is also a minimal increase in the taxes. He supports the budget as presented that coincides with the tax rate of .4493. Mayor Baldwin recognized Councilmember Fowler who asked if the City Manager could look at the following one more time: • Look at the vehicles/replacement, costs • What would be the impact be if the COLA was cut to 1 • Three positions in the Marshal office • See what can be done to put the $250,000 in reserves 8-24-10 Minutes Page - 9 - Mayor Baldwin recognized Mayor Pro-Tem Edwards who also agreed that he is thinking about the future, and if the city is going out for bonds the need to replenish the reserves is a must and doesn't know if the .4493 rate would get this accomplished. Mayor Baldwin recognized Councilmember Scagliola who asked if they could look at the Gateway Planning Group Assessment item, which is going to cost $250,000 that is figured into this budget. He stated that maybe this amount could be allocated later down the road. Councilmember Scagliola also agreed with Councilmember Fowler in looking at the vehicle request. Mayor Baldwin stated that Council can not go line item by line item to find cuts, the Council has asked the City Manager to go back and look at areas again and he will do this and bring the information back at the next meeting with scenarios if he cuts certain items. As a recap, the Mayor and Council discussed the following areas: • Critical to put money back into reserves • Look at replacing less vehicles -what would be the savings/or would it be savings • Continue to control spending specifically on purchasing properties that were not budgeted • Review budget to see what can be withheld this year to be able to put money in the reserves (example capital projects) • Attrition • Try to pull from .4493 tax rate to assist in replenishing reserves • How the bond issue would affect the I&S Mayor Baldwin indicated that the next public hearing and first reading of approval of the budget would be on August 31, 2010. No action 10. City of Schertz Strategic Planning Review -Discussion on setting a date to meet with City Council, Planning & Zoning and EDC to review the City of Schertz Strategic Plan. (D. Harris) Mayor Baldwin recognized Councilmember Carpenter who requested that staff revisit this item after Council gets past the budget and the tax rate. Assistant City Manager David Harris concurred stating that just as a point of clarification this would be for the Council to discuss when they would want to get together to discuss their mission and goals for the City, as well as the City's whole strategic planning efforts. He also mentioned a possible field trip in September to have Council look at some of the Gateway planning projects. Requests and Announcements 11. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. 8-24-10 Minutes Page -10 - Mayor Baldwin recognized Councilmember Scagliola who requested that the public hearing items be placed at the beginning of the next agenda, Council concurred. 12. Requests by Mayor and Councilmembers to City Manager and Staff for information. Mayor Baldwin recognized Councilmember Scagliola who asked for the following updates: • House on Wimbledon, City Marshall Todd stated that information has been provided to the company that owns the house and the City is waiting on them. She stated that she would provide all the updated information she has to the Council this week. • Is there going to be more stripping placed on Country Club Blvd between Scenic Hills and the golf course; there is no medium. City Engineer Larry Dublin stated that there is no other stripping planned, but he would have the street supervisor look at it. • Would like to get some City banners put up along Country Club Blvd., Assistant City Manager David Harris stated that they will see if they have extra to put in the area, but that they had held off ordering more due to budget constraints. • When will the City be going out for RFQ's on the other road repairs in the North Cliff area? City Engineer Larry Dublin stated that there are three (3) contracts all under design; will be meeting with all three consultants next week. The first package will go out for bid within the next sixty days, then after that another sixty days for the other package. Mayor Baldwin recognized Councilmember Fowler who asked for information on the FM 1103 and Chelsea intersection, is there any information from the state regarding the possibility of putting a light at the intersection. Mr. Dublin stated that the state has put it in the system, but it might take a while. Councilmember Fowler also mentioned he had a call from a citizen regarding a pool of water or a possible water leak on our side of City Hall and asked if Sam could look into it. 13. 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 8-24-10 Minutes Page -11 - Mayor Baldwin recognized Councilmember Scagliola who stated he wanted to thank the North Cliff HOA for sponsoring movie night in the park. He stated he attended a ribbon cutting with the Chamber of Commerce last week KM Impressions and Makeup Studio Mayor Baldwin recognized Councilmember Antuna who stated that the new school year has started wanted to give kudos to the police department for taking care of the roads for the children. Mayor Baldwin reminded everyone about the upcoming September 8, 2010, Water Symposium hosted by the City of Schertz at the Civic Center, purpose is to get the cities of South Texas together to talk about mutual ways of developing more water in South Texas, showing them by example what the City of Schertz has done. Mayor Baldwin stated that today they attended the Grand Opening of the Justice Center in Guadalupe County. Mayor Baldwin also stated that they were able to attend a meeting today with GVEC to talk about what GVEC is doing with working with the cities throughout the area in trying to maintain a decent electric rate throughout the area. He stated that at this meeting he was amazed to find out the cost for alternative sources for electricity, such as windmill and solar sources. 14. Announcements by City Manager • Recognition of City employee actions • New Departmental initiatives Mayor Baldwin recognized City Engineer Larry Dublin who provided the following update on Wiederstein and Dietz Bridge, stating it should be open after Labor Day. Mayor Baldwin recognized Assistant City Manager Bierschwale who stated the City of Cibolo is doing a major traffic rerouting due to construction on their Main Street project. He stated the City will be seeing some traffic jams and to not be alarmed if they see Cibolo PD sitting at FM 3009 and FM 78, as well as FM 3009 and Borgfeld Road. Mayor Baldwin recognized City Manager Don Taylor who stated that Council would notice in their packet information provided by TML Risk Pool that the City will be receiving $50,882 back in equity returns for 2009/10 from Workers' Compensation, Liability, and Property. Equity return checks will be issued in December 2010 and thanked the Asset Management Department Team for an outstanding job. The City has received $252,517 in equity returns since 2003-2004. ADJOURNMENT i As there was no further action, Mayor Baldwin adjourned e m ting at 9:31 p.m. 8-24-10 Minutes Page -12 - Hal Baldwin, Mayor ATTEST: Brenda Dennis, TRMC, CMC City Secretary 8-24-10 Minutes Page -13 - i .