08-02-2011 MinutesMINUTES
REGULAR MEETING
August 2, 2011
A Workshop and a Regular Meeting was held by the Schertz City Council of the City of Schertz,
Texas, on August 2, 2011, at 4 :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
Councilmember David Scagliola
Councilmember Cedric Edwards
Staff Present:
City Manager John Kessel
Assistant City Manager David Harris
City Secretary Brenda Dennis
CALL TO ORDER:
WELCOME / OVERVIEW:
Mayor Pro -Tern Jim Fowler
Councilmember George Antuna
Councilmember Michael Carpenter
Assistant City Manager John Bierschwale
City Attorney Michael Spain
• Presentation and discussion of the FY 2011 -12 Budget. (Staff)
Mayor Baldwin called the Workshop to order at 4:37 p.m. Mayor Baldwin recognized
City Manager John Kessel who provided opening statements by stating that he would like
to cover the process, priorities, and set expectations. Staff started working on the budget
in April and May when the departments submitted their budgets to management. In June
and July, the City Management Office and Finance Department then fine tuned the
budgets meeting with various Department Heads. August is the scheduled time for
management to go through the document with proposed tax rates, expenditures, and
revenues. Then present the proposed budget to the City Council. The proposed budget
before you amounts to $63 million total that Council will be considering. Mr. Kessel
stated that what is important for him going through this the first time on a staff level is
that we had a lot of feed back. He spent time with several focus groups, all the
department heads, some middle management, and some front line staff talking about
various issues associated with the budget; making sure he understood what was going on.
Mr. Kessel stated it was all very informative and the budget reflects items that came out
of some of the focus groups.
Mr. Kessel stated the number one priority was returning approximately $250,000 to the
fund balance this coming year. He stated we have proposed a significant larger number
for the end of the current year of $900,000 to be returned to the fund balance. Mr. Kessel
stated the second highest goal is the equitable distribution of benefits across the board for
staff; given the limited funds the city has to work with. A lot of time was spent on the
benefits package, as well as, building things for the future in that looking to see what will
be needed in the future that we need to put in place today. Finally, maintaining the AA
bond rating.
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Mr. Kessel introduced Assistant City Manager David Harris who provided the following
information regarding the proposed FY 2011 -12 budget answering questions from
Council:
Mr. Harris stated the FY 2011 -12 proposed budget is balanced structurally, conservative
and responsible, follows financial policies, maintains current service levels, and focuses
on priorities. Mr. Harris reviewed all funds, revenues, and expenses.
He stated tonight you have before you a balanced budget that would require a tax rate of
$0.4843; last year the tax rate was $0.4493. The $0.4924 is the proposed preliminary
maximum rate per $100 of value and is not subject to rollback. The proposed rate is
$0.4843 per $100; the rollback rate is $0.5335 per $100. As will be explained Tuesday,
the increase is a result of additional bond expenses.
• August 2, 2011
• August 9, 2011
• August 16, 2011
• August 23, 2011
• August 30, 2011
• October 1, 2011
1" Workshop regarding the budget
2A Workshop regarding the budget
1St Public Hearing
2 "d Public Hearing and first reading of Ordinance on
Tax Rate and Budget
Final Reading of Ordinance on Tax Rate and Budget
New Budget in Effect
Assistant City Manager David Harris provided the following additional information: The
proposed M &O $0.2993 would provide the following:
Current approved staff
Reserve Funding $250,000
Adds a Vehicle Replacement Program
20% increase in fuel expense
11% Health Insurance cost increase
I% Cost of Living Adjustment
Market Rate Wage Adjustment
3 additional Dispatch personnel
2 School Resource Officers
1 Planning Manager
13 11 Representative, part time
The proposed I &S $0.1850 would provide the following:
Aquatic Center
Soccer /Athletic Fields
Main Street/FM 78
Animal Shelter
$0.1550 goes to cover older bonds
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Tax Rate: Current: $0.4493
Effective: $0.4616
Proposed: $0.4843 —proposed budget is balanced at this rate
Rollback: $0.5335
(Additional $0.01 is ,$212, 000 revenue)
Mr. Harris proposed the following Option 2 tax rate of $0.4924:
M &O at 0.3074 and I &S at 0.1850 = 0.4924
Allows for a 2% COLA
Increase reserves by extra $70,000 (increase tax on average home value = $13,)
Mr. Harris provided information on the General Fund:
FY 2010 -11
FY 2010 -11
FY 2011 -12
Budget
Estimate
Proposed
Revenue $18,886,418
$19,510,837
$20,804,290
Expenditures $18,885,872
$18,598,752
$20,554,725
Over /under $ 546
$ 912,085
$ 249,565
Revenues $20,804,290
Expenditures $20,554,725
Increase of Fund Balance $ 249,565
Beginning Fund Balance $ 3,095,000
Ending Fund Balance $3,345,000
25% Required Policy $5,139,000
Mr. Harris stated the 2010 -11 estimate is $17,316,13; the 2011 -12 proposed budget is
$18,882,876 with an over /under of $1,566,741 - 9.05% change. The new personnel
requested are: 3 Communication officers, 2 School Resource officers, which will be paid
by SCUCISD, 1 Planning Manager and 1 part -time 311 /Representative.
Mr. Harris stated that a market study was performed and 50% of City Staff will receive a
change in grade, 25% of City Staff will receive a change in pay. The cost of the program
is $140,000 (all funds). Mr. Harris provided information on how the management broke
out the market study in that there were four (4) personnel change categories.
Mr. Harris provided information regarding the capital expenditures: Police — 6
replacement vehicles with equipment, Fire — 1 Tahoe, Marshal — 1 vehicle with
equipment, and IT — new phone system and data storage server. Mr. Harris went over
each department's budget answering questions from Council.
Finally, Mr. Harris provided the following information regarding the FY 2011 -12 budget
calendar:
July 29 File with City Secretary
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August 2
Budget workshop, vote to place preliminary tax rate on agenda,
and schedule public hearings
August 9
Budget workshop
August 16
First Public Hearing
August 23
Second Public Hearing and First Vote
August 30
Second Vote
October 1
New budget in effect
Mayor Baldwin recognized Mayor Pro -Tern Fowler who asked Mr. Harris if on the chart
regarding four (4) personnel change categories did this cover all hourly and salaried
employees. Mr. Harris stated that yes with the exception of the ones the Council sets.
City Manager John Kessel concurred and stated that staff took a lot of time looking at
everyone below the City Managers office. He stated that this does not have anything to
do with merit increases. The focus groups spent a lot of time on what was more
important: cost of living increase, adjustments on the medical insurance, merit increases,
and all of the items from internal equity to compression and also market, Mr. Kessel
further explained details addressing Mayor Pro -Tern Fowlers question.
Councilmember Edwards who stated that he agreed that the City needed to do a merit
increase explaining why. He would like to see an incentive pay be given at the
discretion of the City Manager, to allow him to structure the discretionary pay. Mr.
Kessel stated that he could and would want to structure this in a way that so that it would
not cause a disincentive. He stated the organization is very team oriented and there was a
lot of discussion as to what is good for the team. He has not seen a productivity issue. He
further stated that he would want to push for a merit base pay increase, but would want it
to be a meaningful amount.
Mr. Kessel does not want good hard working employees to get behind on their paycheck.
He stated that becomes the nature of the situation, when you do not have enough money
to divide up. How do you equitably distribute that to as many employee as possible and
create a teamwork environment? He stated with the current funds he believes the COLA
is an incentive to keep people moving in the right direction to stay motivated.
Mr. Edwards also believes the EDC budget should be more. Mr. Harris stated that the
EDC budget has been approved by the EDC Board. Mr. Edwards requested that signs be
put up regarding the ongoing CIP projects.
Mayor Baldwin recognized Councilmember Carpenter who asked how much money you
would estimate the City would need to have an effective merit based increase pool. Mr.
Kessel and Mr. Harris stated it would cost approximately an additional $250,000 in this
budget. Mr. Carpenter asked for the total spent on personnel cost; the answer was
approximately $18,636,000, this is fully burdened. If you back out and get to base salary,
the number is $14,000,000, which is a 33% burden. His point is that he would be
interested in and in favor of including and funding a one -time merit increase pool for the
employees of 1.75% of the overall cost of unburdened salaries. This is about $249,000
and look at funding the one time merit increase from the $912,000 surplus we think we
are going to have from this year, putting $662,000 back into the fund balance this year.
He would also challenge staff to find another $100,000 in savings if they can over the
course of next year, which would put us at a two -year position of putting just over $1
million back into the fund balance. He wanted to see if his colleagues would want to do
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the above and have invested money over the past few years in land/real estate and very
good projects for the City and would be in favor of taking this one step to putting some
investment back in our employees.
Mayor Baldwin recognized Councilmember Scagliola who also stated he would be
interested in something like this and make it across the board.
Mayor Baldwin recognized Mayor Pro -Tern Fowler who believes a merit increase pay
should be toward outstanding people; look to make sure outstanding people get the
appropriate % of the pool, and yet some might get none.
ADJOURNMENT WORKSHOP:
Mayor Baldwin adjourned the workshop at 6:07 p.m.
CALL TO ORDER REGULAR MEETING
Mayor Baldwin called the meeting to order at 6:15 p.m, and welcomed everyone in attendance.
INVOCATION AND PLEDGES OF ALLEGIANCE TO THE FLAGS OF THE UNITED
STATES AND STATE OF TEXAS,
Mayor Pro -Tern Fowler gave the invocation followed by the Pledges of Allegiance to the Flags
of the United States and State of Texas.
INTRODUCTIONS: (New Staff)
Introduction of Ms. Donna Thompson, new Director for the Schertz Senior Center. (G.
Logan)
Mayor Baldwin recognized Director of Parks & Recreation George Logan who introduced
Ms. Thompson. Ms. Thompson provided a briefing on her background and updated the
Council regarding recent events of the Senior Center.
CITY EVENTS
Tuesday, August 9, 2011, at 4:30 p.m. the City will be hosting another budget workshop
which will start at 4:30 p.m.
Tuesday, August 16, 2011, at 6:00 p.m. is the kick -off of the first of two public hearings;
August 23, 2011, at 6 :00 p.m. is the second public hearing.
Reminder that August 29, 2011, and August 31, 2011, are the dates set for the City of
Schertz Planning & Design Charrette.
Hearing of Residents
Mayor Baldwin recognized the following who signed up to speak:
Mr. Elia Rosetta, Encanto Mexican Grill, 6032 FM 3009, who spoke of concerns on the
road construction on FM 3009, in particular the issue of Four Oaks Lane. He requested
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Council and staff look at the possibility of adding an additional left turn lane. City
Manager John Kessel stated that he would have the City Engineer and the Traffic Safety
Advisory Board look at this issue.
Ms. Maggie Titterington, President of the Schertz Chamber of Commerce, who provided
updated information regarding the Chamber.
Mr. Robert Brockman, 1000 Elbel Road, who stated that the City had passed an
ordinance for "No Parking" on both sides of Westchester Drive and that the "No parking
Signs" need to be placed before school starts.
Discussion and/or Action Items
Minutes - Consideration and/or action regarding the approval of the minutes of the Regular
Meeting of July 26, 2011.
Mayor. Baldwin recognized Mayor Pro -Tem Fowler who moved, seconded by
Councilmembers Scagliola and Edwards to approve the July 26, 2011, minutes. The vote
was unanimous. Motion Carried.
2. Property Tax Rate — Consideration and/or action on a Record Vote on setting the
Preliminary Tax Rate for FY 2011 -12 and Scheduling of Public Hearings on the proposed
tax rate. Q. KesseI/D. Harris /J. Santoya)
Mayor Baldwin recognized Assistant City Manager David Harris who stated that action
sets the preliminary tax rate for the FY 2011 -12 as $0.4843 per $100 of value. This rate
is not subject to rollback. Mr. Harris provided the following information on Council
approving this rate:
Tax Rate Current Proposed
M &O $0.2993 $0.2993
I &S $0.1500 0.1850
Total $0.4493 $0.4843 proposed budget is balanced at this rate
Mr. Harris also proposed the following Option 2 tax rate of $0.4924 per $100 of
value is not subject to rollback:
M &O at 0.3074 and I &S at 0.1850 = 0.4924
Allows for a 2% COLA
Increase reserves by extra $70,000 (increase tax on average home value = $13.)
He stated the public hearings are set for August 16th and August 23rd. He reminded
Council that once a rate is established the Council may not go higher than this rate upon
final adoption of this tax rate.
Mayor Baldwin recognized Councilmember Edwards who moved, seconded by
Councilmember Carpenter to approve the proposed preliminary maximum rate of
$0.4843 per $100, and to schedule two (2) Public Hearings for August 16, 2011 and
August 23, 2011 -
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The vote was: Mayor Pro -Tem Fowler voting for, Councilmember Scagliola voting
for, Councilmember Antuna voting for, Councilmember Edwards voting for and
Councilmember Carpenter votingfor. The vote was unanimous. Motion passed.
3. Ordinance No. 11 -A -22 — Consideration and/or action approving an ordinance by the City
Council of the City of Schertz providing for the extension of the boundary lines of the City
of Schertz, Texas by the annexation of approximately 3,315 +/- acres, less certain
properties subject to development agreements, located east of FM 1518, South of FM 78,
and North of I -10, substantially all of which in Bexar County, Texas, as described herein,
and related matters. First Reading (M. Spain/M. Sanchez)
Mayor Baldwin recognized City Attorney Michael Spain who introduced this item stating
that this ordinance provides for the annexation of approximately 3,315± acres of land east
of FM 1518, south of FM 78 and north of IH -10 all in Bexar County. The fiscal impact of
the annexed property in ad valorem taxes is:
Tax Est. Annual Ad
Property Value Rate Valorem Revenue
Ag- Assessed 2,996,780 0.4493 $ 13,465
Non Ag- Assessed 11,522,880 0.4493 $ 51,772
TOTAL 14,519,660 $ 65,237
If all of the properties come into the City, $65,237 in Ad Valorem taxes and $0 in sales
taxes will be added to the tax rolls and the City will be responsible for providing municipal
services to these properties. Recommend approval. Timeline is as follows:
First Public Hearing: June 28, 2011
Second and Final Public Hearing: July 5, 2011
FirstReadmg _ August 2 2011
Second and Final Reading: August 9, 2011
Mr. Spain stated that there are currently 61 owners — 11 of the owners will be annexed and
there are 50 development agreements. Out of the 50 development agreements, 24 are fully
complete, 26 not complete and need other information, and that his best guess is 3 to 5
property owners may not complete everything by the deadline and will be annexed. Mr.
Spain stated that out of 3,315 total acres less the properties taking the development
agreements, he estimates between 500 and 750 acres that will actually be annexed.
Mayor Baldwin recognized Mayor Pro -Tem Fowler who moved, seconded by
Councilmember Scagliola to approve Ordinance No. 11 -A -22 on first reading The vote
was unanimous. Motion carried.
4. EMS Performance Review Contract — Consideration and/or action authorizing the City
Manager to engage a contractor to perform a performance review of the EMS Department.
(J. Kessel/D. Wait)
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Mayor Baldwin recognized City Manager John Kessel who introduced this item stating that
as a continuation of the 7 -26 -2011 workshop discussion on the EMS Department. Should
Council wish to direct staff to research and obtain the services of a qualified and
experienced EMS Consulting Agency to review EMS operations and make
recommendations to City Council on improvements. A motion could be made to seek a
qualified agency that could be used to accomplish this task in an amount not to exceed
$30,000. Mr. Kessel stated this is not a budgeted item and recommends Council discuss
this and provide their input as to the direction they wish him to take. Mr. Kessel stated that
regarding the expense and revenue side, the trend is EMS is coming out of the loss areas.
He reminded Council that now EMS has a lower density area of coverage. EMS will be
going to smaller chassis on vehicles (lower cost of these vehicles). They are looking at
travel and training across the board, which is an area that you have to be very careful with.
He stated that the figures presented at the last workshop on total profit and loss over the last
five (5) years were correct. He asked Council to allow hire and staff to go back and
conduct an external audit focusing on areas of concern. If Council is concerned about EMS
or Management practices, then Council should allow him to fund a contractor /consultant.
Mr. Kessel stated that it would be helpful to him if they would identify specific areas in
which he could take a look. Mr. Kessel stated that he would like Council to allow him to
take the opportunity to review the EMS Department and come back with a recommendation
to Council at a later date of what the City should do.
Mayor Baldwin recognized Councilmembers Edwards and Antuna who agreed to have an
outside consultant familiar with the EMS program to take a Iook top to bottom.
Mayor Baldwin recognized Mayor Pro -Tm Fowler who stated he thought it was a good
idea to have Finance look at the effectiveness and economy of skills, but does not agree it
is time to fund the $30,000 and go outside for a consultant. He stated he is willing to put
this off another year. This year, take a earnest look at the operation, ask questions of
efficiency, and find ways to get better; not focusing on response times. He also mentioned
to take a look at trade off regarding the maintenance of the vehicles. Utilize our own EMS
team to find creative ways that could improve their efficiencies.
Mayor Baldwin recognized Councilmembers Scagliola and Carpenter who stated that they
would first like to give the opportunity to the City Manager to take a look along with the
staff to find ways to save money. They stated that they didn't believe the $30,000 was
appropriate at this time. Councilmember Carpenter stated that the report of last week from
staff was to allow the City Manager to have time to look at this and agrees with Mr. Fowler
and Mr. Scagliola to let the City Manager look at this first and not spend the $30,000. Mr.
Carpenter further stated that he believes it is working correctly and what is the impetus for
prompting this concern?
Mayor Baldwin stated the concern is with the service area as stated last week; taking in
Comal and Guadalupe County, we the city are paying for these and not making these
counties paying their portion. He stated it has bothered him for some time that they are
operating at a loss and have been for several years. He believes the cities and counties that
our EMS is servicing should bear the costs associated with this and that the City, if having
to take a loss should not be the only entity absorbing this. The loss should be passed to the
cities and counties EMS is servicing. Mayor Baldwin further stated that indeed the EMS
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department has made and come up with several ways to save money, i.e., part time workers
and other programs EMS have come up with.
Mayor Baldwin recognized City Manager John Kessel who stated that he wants Council to
know that either way the City Manager's Office will be conducting an external audit of
EMS. He is open to a beginning balance to tell where we want to draw the line to scheive a
zero balance to the general fund. He further stated it is possible to pro -rate the balance
repayment giving forward up to 5 years. He with or without the consultant will look into
real numbers and savings. He requests what additional values and items the council would
like him to look at? More importantly, Council needs to feel comfortable and confident in
the EMS program.
Mayor Baldwin recognized Councilmember Antuna who moved, seconded by
Councilmember Edwards to authorize the City Manager to go out for an RFQ, also
allowing the City Manager to develop the scope of work. The vote was unanimous.
Motion carried.
5. Schertz Seguin Local Government Corporation (SSLGC) Fiscal Year 2011 -12 Annual
Budget SSLGC Resolution # SSLGC RI1 -06 - Consideration and/or action approving the
Schertz Seguin Local Government Corporation (SSLGC) FY 2011 -12 Budget, (J.
KcsseUA. Cockerell)
Mayor Baldwin recognized SSLGC Manager Alan Cockerell who introduced this item
stating that action approves the Schertz Seguin Local Government Corporation proposed
annual budget for FY 2011 -12. The total proposed budget is $5,096,675. FY 2010 -11
Budget was $4,192,174. The main increase is due to $300,000 that has been added to
transfers for future development and repair and replacement of water lines and
equipment. Recommend approval.
Mayor Baldwin recognized Councilmember Edwards who moved, seconded by
Councilmember Antuna to approve the SSLGC FY 2011 -12 Budget of $5,096,675 as
presented. The vote was unanimous. Motion Carried
6. Schertz Seguin Local Government Corporation (SSLGC) Fiscal Year 2011 -12
Water Rates SSLGC Resolution # SSLGC RII -07 Consideration and/or action
approving the Schertz Seguin Local Government Corporation (SSLGC) FY 2011 -12
Water rates. (J. KessellA. Cockerell)
Mayor Baldwin recognized SSLGC Manager Alan Cockerell who introduced this item
stating that action approves the Schertz Seguin Local Government Corporation water
rates for FY 2011 -12. The proposed water rate is $1.55 per thousand gallons. This is a
$.08 increase fi-om FY 2010 -11 and the increase is due to the increase in the number of
water leases. This rate increase was reflected in the fee schedule approved by Council on
July 12, 2011. Recommend approval.
Mayor Baldwin recognized Councilmcmber Edwards who moved, seconded by
Councilmembers Scagliola to approve the SSLGC FY 2011 -12 rate increase of $1.55 per
thousand gallons as presented. The vote was unanimous. Motion Carried
Council did not meet in executive session.
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EXECUTIVE SESSION
Called under Section 551.071 Texas Government Code Litigation, pending or contemplated
litigation; Section 551.072 Texas Government Code - Deliberation regarding the purchase,
exchange, sale, lease,'or value of real property.
RECONVENE TO REGULAR SESSION
7. Take any action deemed necessary as a result of the Executive Session.
No action was taken as Council did not meet.
Requests and Announcements
8. Requests by Mayor and Councilmembers that items be placed on a fixture City Council
agenda.
No items requested
9. Requests by Mayor and Councilmembers to City Manager and Staff for information.
Mayor Baldwin recognized Mayor Pro -Tem Fowler who requested staff take to a look at
speeding issues, as well as possible placing speed limit signs within the Kramer Farms
area, particularly on Rooster Run.
Mayor Baldwin recognized Councilmember Edwards who stated he has forwarded an
email from Anthony Blevins regarding information and development plans within
Schertz Forest. In the email, Mr. Blevins stated that this area is not equipped for cable.
Assistant City Manager John Bierschwale stated that he would get back with Mr. Blevins.
10. Announcements by Mayor and Councilmembers
Mayor Baldwin recognized the following Councilmembers:
Mayor Pro -Tem Fowler who stated that he will be out of town this Thursday and
return back sometime on Friday.
Councilmember Scagliola who announced he attended the following:
Thursday, July 28, 2011 attended the Taste of Schertz
Friday, July 29, 2011 attended the Best in Commercial Real Estate
awards luncheon.
Councilmember Antuna who announced he attended the following:
Thursday, July 28, 2011 attended the Taste of Schertz
Friday, July 29, 2011 attended the Best in Commercial Real Estate
awards luncheon.
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Councilmember Edwards who stated the Texas Tigers AA Basketball
Tournament was held at Disney World recently and that they placed 2nd out of
4000 teams. He stated that the YMCA program was a great deal.
Mayor Baldwin recognized Councilmember Carpenter who stated "Nix, meine
Biirgermeister, danke ", which he said "nothing my Mayor, thank you."
Mayor Baldwin stated that he would be out of town starting tomorrow, August 3,
2011, and returning Saturday, August 13, 2011.
11. Announcements by City Manager
Mayor Baldwin recognized City Manager John Kessel who thanked the Council for the
healthy discussions this evening and congratulations that he had another WOW moment
and is very impressed with their ability to focus on a common goal even when they
disagree on how to get there. The also thanked the Council, department heads, focus
groups, and the Finance Department for the work they did regarding the budget.
ADJOURNMENT
As there was no further action, Mayor Bal,w /vdjourned the mecting at 5:23 p.m,
Hal Baldwin, Mayor
ATTEST:
Bi ennis, C, ity Secretary
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