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.
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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
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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.
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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)
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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
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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
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• 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
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