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08-09-2011 MinutesMINUTES REGULAR MEETING August 9, 2011 A Workshop Meeting and Regular Meeting were held by the Schertz City Council of the City of Schertz, Texas, on August 9, 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 Pro -Tem Jim Fowler Councilmember George Antuna Councilmember Michael Carpenter Staff Present: City Manager John Kessel Assistant City Manager David Harris City Attorney Katherine Tapley Mayor Hal Baldwin was absent, CALL TO ORDER Councilmember David Scagliola Councilmember Cedric Edwards Assistant City Manager John Bierschwale City Attorney Michael Spain City Secretary Brenda Dennis Mayor Pro-Tem. Fowler called the workshop to order at 4:37 p.m. WELCOME / OVERVIEW • Presentation and discussion of the FY 2011 -12 Budget. (Staff) Mayor Pro-Tem. Fowler recognized City Manager John Kessel who provided the following opening comments: • Mr. Kessel would like the Council to know that in regards to the stock market, staff continues to monitor the market and they will adjust expenditures accordingly, if there is a concern of revenues being affected. The stock market is unstable at this point. However, not all the news is bad for cities. The ten year treasury has dropped from 2.5% to 2.18%. This is what the City needs to watch. As it goes down, it affects the cost of borrowing money for municipalities. If we can afford it, this may be a good time to sell bonds. We are in a good place to be; investors will be looking to put their money into a stable area with job growth. We will have a strong demand on bonds and we can sell them at low interest rates. Revenue will continue from sales tax and historically has been relatively stable even during a downed economy. Our forecasts are conservative and we are comfortable and confident at where we stand today. Mr. Kessel stated that management had a telephone conference with Bond Counsel (Mark McLiney) this afternoon. Mr. Kessel recommended to Council that Schertz continue to stay on course, but be diligent and aware and do not judge the Texas and the local Schertz market by the up and down of the national economy or of the stock market. Mr. Kessel wanted to reinforce to Council that Schertz is in a different economic situation than the National Economy prior to the budget workshop beginning. Councilmember Edwards agreed with what Mr. Kessel and the City is doing at this time. He reiterated that we are in a much better place than other parts of the country. 08 -09 -2011 Minutes Mr. Kessel introduced Assistant City Manager David Harris who reviewed the proposed FY 2011 -12 budget stating that Council has received this evening corrected and updated information for their budget workbooks. Mr. Harris went over the proposed budget answering questions. Mayor Pro -Tern Fowler recognized Councilmember Edwards who stated that only one slide has changed from last week's presentation. Councilmember Edwards would like to ask Council to focus on the one change from last week, which was the Proposed I &S Tax Rate slide. Councilmember Edwards stated that if everyone has gone over their workshop information and has done the calculations themselves, it would be best if Council focused only on the changes. The members of Council agreed to this request. Mr. Harris suggested that the Council debate and discuss the issue of whether or not to start all bond projects at this point and sell bonds to cover these costs. The other option would be to tackle one project at a time and hold off on selling bonds and delay increasing the I &S rate in future years. Mr. Kessel indicated that staff is not by any means suggesting that we do not start these quality of life projects, however, they are asking direction from Council on how to proceed. The design of the Athletic Fields and Animal Shelter are well under way and the City is starting to work on the Aquatic Center. This is the time to decide on whether to sell bonds and proceed with the Aquatic Center or focus on the two projects that are underway now. Councihnember Carpenter suggested that we march forward on the Athletic Fields, Animal Shelter, and Aquatic Center and hold off on other projects as we see what is going on in the economy. It is logical that if the City needs to back off, the Athletic Fields is the project to back down and do these in phases. George Logan, Director of Parks and Recreation, has confirmed that the fields could be done in phases at this point to save money. Councilmember Edwards believes that we should move forward with the projects that the bonds have been sold for (Animal Shelter and Aquatic Center) and, depending on the economy, consider holding off on selling further bonds at this point until those are complete. George Logan indicated that the critical phases that need to be addressed with the Athletic Fields are the soccer parking lot and restroom facilities. Mayor Pro -Tern Fowler confirmed with George Logan the phases that would occur with the Athletic Fields would be soccer fields first and baseball fields second. Assistant City Manager Harris said that in order to maintain a. 18 5 0 tax rate and take on in future years the second half of bond payments, our tax base would have to grow by $270 million or the rate may need to be increased to .2100. City Manager Kessel indicated that it would be about a two to three year turn around in the economy to be at this point. Councilmember Carpenter suggested that turn around point would probably be at least 15 months before any major changes in the economy would be realized. Mr. Harris reviewed the budget calendar. Mr. Kessel reminded Council that he will not be present at the August 16, 2011 meeting as he will be in Chicago with the Texas One mission trip with the Governor's Economic Development office. Mayor Pro -Tem Fowler questioned the proposed new staff additions, asking for emphasis to be giving towards priority. Mr. Harris indicated that staff has discussed several budget saving moves. Mr. Harris indicated that, in the past, staff was challenged with saving 10% and the City was able to achieve this mark. Mr. Harris indicated that if we need to hold off on hiring for three or six months, City management will discuss and make a decision at that point. Mr. Kessel said that efficiencies and effectiveness would be saved far beyond what would be spent in salary for 08 -09 -2011 Minutes Page - 2 - some positions. He also indicated that staff will rank the order of need of the new positions, but does not feel that we need to react at this point and need to move forward with the current plan. Mayor Pro Tem Fowler indicated that he has no issues with seeing increases in salary and staff in the budget this year. Mr. Harris stated that at the request of Council at the last meeting, staff is still looking into a way to come up with the $250,000 for a one -time merit increase pool and will be getting back to Council. Councilmember Carpenter indicated that as a policy decision, the City has spent three years of setting aside our normal practice of merit increases for employees. Councilmember Carpenter believes that it would be appropriate to set aside $250,000 from the $912,000 that City employees saved due to cut backs on their budgets for a pool for merit increases for the employees who have given outstanding performances during the past three year period when no increases were provided. Councilmember Carpenter would like for Management and Finance to come back with figures to achieve this. Councilmember Edwards agreed with Councilmember Carpenter and does believe that merit increases are a good thing to do with the City Manager's discretion. Mr. Kessel indicated that the City can use merit increases to increase teamwork and performance, when done in an appropriate way. Councilmember Edwards believes that it is important to reward efficiency, productivity, and synergy. Councilmember Carpenter requested that the Council allocate a dollar amount, decide what to do, and provide a high level of guidance for this one time merit increase pool to reward the outstanding performers across the organization. Councilmember Scagliola indicated that merit increases sound good, but, fundamentally speaking if the City was a business, things would be different. This is a service oriented municipality. He mentioned that creating a merit increase pool would result in a caste system within the City. Councilmember Scagliola indicated that the merit increase looks good on paper, but in reality it will cause issues within the team of employees. Councilmember Antuna suggested that Management massage this issue a bit longer and present the suggestions they come up with. Councilmember Carpenter indicated that the City is in the customer service, the public safety business, the efficiency business, and the money saving business. Anybody who contributes to these in an outstanding manner should be treated just Iike someone who is making money in the private enterprise. It is private sector discipline in the public sector. He does not agree to rewarding everyone equally. Councilmember Carpenter indicated that Council needs to allocate the funds, but Ieave it up to the Management, Finance, and legal staff to come up with the appropriate manner to distribute these funds appropriately. Mayor Pro-Tern Fowler suggested that Management present a recommendation to Council in two weeks. Mr. Kessel indicated that the recommendation will be fair and outline the recommended goals of efficiency, productivity, and synergy. ADJOURNMENT WORKSHOP Mayor Pro -Tem Fowler adjourned the workshop at 5:34 p.m. CALL TO ORDER REGULAR MEETIN G Mayor Pro -Tem Fowler called the meeting to order at 6:02 p.m. 08 -09 -2011 Minutes Page - 3 - INVOCATION AND PLEDGES OF ALLEGIANCE TO THE FLAGS OF THE UNITED STATES AND STATE OF TEXAS. Councilmember Carpenter gave the invocation followed by the Pledges of Allegiance to the Flags of the United States and State of Texas. PRESENTATION • MDA Fundraiser Information (Chief Covington & Leon Sposari) Mayor Pro -Tern Fowler recognized Fire Chief David Covington who introduced Lieutenant Leon Sposari with 4083 Schertz Professional Fire Fighters Association who came forward providing information regarding the upcoming MDA fundraiser. Lt. Sposari introduced Ms. Lori Lynn Ellano with MDA who came forward thanking the City for their support. CITY EVENTS • Announcements of upcoming City Events (D. Harris /J. Bierschwale) Mayor Pro -Tom Fowler recognized Assistant City Manager David Harris who announced the following upcoming events: - August 14, 2011 —Employee Picnic at the Schertz YMCA, start time is 5:00 p.m. - August 29, 2011, and August 31, 2011, kick -off of the Planning and Design Charette. Hearing of Residents Mayor Pro -Tem Fowler recognized Mr. Michael Dahle, 9120 E. FM 1518, who spoke on the annexation item, thanking the Mayor and Council for sponsoring the citizen workshops and for their responsiveness to the citizen's requests. Mr. Dahle also reminded Council and staff to modify the UDC to reflect the changes and modifications that were made to the development agreements reflecting Agriculture - assessed property for consistency in the rules. Discussion and /or Action Items Minutes - Consideration and/or action regarding the approval of the minutes of the Workshop and Regular Meeting of August 2, 2011. Mayor Pro-Tern Fowler recognized Councilmember Carpenter who moved, seconded by Councilmember Scagliola to approve the August 2, 2011, minutes. The vote was unanimous. Motion Carried 2. Ordinance No. 11 -M -24 - Consideration and/or action approving a Ordinance amending Chapter 62 of the City of Schertz Code of Ordinances authorizing the City Manager to authorize City employees to engage in certain curbside solicitations. First Reading (J. Kessel/M. Spain) 08 -09 -2011 Minutes Page -4- Mayor Pro -Tem Fowler recognized City Attorney Michael Spain who introduced this item stating that the City Manager requests that City Council authorize the City Manager to (i) establish and implement rules for City employees or City employee groups designated from time to time by the City Manager to solicit donations from the public through curbside appeals for identified City projects or-public charities, (ii) coordinate any such curbside appeals with the Chief of Police, and (iii) inform the City Council in advance of each such authorized curbside appeal. Mr. Spain stated that action authorizes the City Manager to establish and implement rules, coordinate with Chief of Police, and inform Council regarding City employees or City employee groups soliciting donations from the public through curbside appeal. Recommend approval. Mayor Pro -Tem Fowler recognized Councilmember Carpenter who moved, seconded by Councilmember Edwards to approve Ordinance No, 11 -M -24 on first reading. The vote was unanimous. Motion Carried 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. Final Reading (M. Spain/M. Sanchez) Mayor Pro -Tem Fowler recognized City Attorney Michael Spain who introduced this item stating this ordinance provides for the annexation of approximately 3,315+ acres of land east of FM 1518, south of FM 78 and north of IR -10 substantially in Bexar County less any properties subject to Development Agreements in that area. 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 $ 655237- 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. Mr. Spain stated that the City has been working since May on this annexation and this is the largest annexation the City has been involved with. Mr. Spain stated that after all the development agreements have been received, the actual acreage not annexed due to Development Agreements is 2,906 acres and that the City is annexing actually a little over 400 acres. Mr. Spain recognized City Attorney Katherine Tapley who was present, stating he wanted to thank her and City staff for their work on this project. Recommend approval Mayor Pro-Tem. Fowler recognized Councilmember Carpenter who moved, seconded by Councilmember Edwards to approve Ordinance No. 11 -A -22 on final reading. The vote was unanimous. Motion Carried 05 -09 -2011 Minutes Page - 5 - 4. Ordinance No. 11 -D -23 — Consideration and/or action approving an Ordinance designating a "No Parking Zone " - 94' East and 40' West of the closed gate on Livingston Drive, this item was requested by SCUCISD. First Reading (L. Dublin) Mayor Pro -Tem Fowler stated that as requested by Schertz Cibolo Universal City School District, action dedicates a "No Parking Zone" approximate to the closed gate on Livingston Drive to prevent traffic back up and congestion in this area that is utilized by busses and day -care vehicles to enter the school for drop -off and pick -up of students. No fiscal impact. Mayor Pro-Tern Fowler recognized Councilmember Edwards who moved, seconded by Councilmember Carpenter to approve Ordinance No. 11 -D -23 on first reading. The vote was unanimous. Motion Carried 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. Mayor Pro -Tem Fowler announced that there was no need for an Executive Session. RECONVENE TO REGULAR SESSION 5. Take any action deemed necessary as a result of the Executive Session. No action taken as Council did not meet. Requests and Announcements 6. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. No items requested 7. Requests by Mayor and Councilmembers to City Manager and Staff for information. Mayor Pro -Tem Fowler recognized Councilmember Scaghola who asked if TSAC had taken a look at the speeding issue on Country Club Blvd., he had mentioned at last weeks meeting. City Manager John Kessel stated that staff is still preparing items to be taken to TSAC and should have answers for Council once they meet. Mayor Pro -Tem Fowler stated he would like staff to look into the possibility of installing another speed bump on Morning Drive around the swimming pool area. He stated that he had received information on speeding specifically that school buses are speeding. Announcements by Mayor and Councilmembers • City and community events attended and to be attended 08 -04 -2011 Minutes Page - 6 - • 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 No announcements provided at this meeting. 9. Announcements by City Manager Mayor Pro -Tern Fowler recognized City Manager John Kessel who stated he received a letter from the Garden Ridge Police Department and the Citizens Police Academy Alumni Association thanking the Schertz EMS for participating in their National Night Out that was held on August 7, 2011. The City of Schertz has the same bond rating as the United States of America. Additionally, the City's cost of funds may go down due to the ten year treasury that has dropped in the past couple of days. ADJOURNMENT As there was no further action, Mayor Pro -Tern Fowler adjourned the meeting at 6:30 p.m. Ma r Pro -Tern Fowler ATTEST: O—DDe-nnnis-, TRMC, MW City Secretary 08 -09 -2011 Minutes Page - 7 -