08-23-2011 MinutesMINUTES
REGULAR MEETING
August 23, 2011
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on
August 23, 2011, at 6:00 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
Councilmember Michael Carpenter was absent.
Staff Present: City Manager John Kessel
Assistant City Manager David Harris
City Secretary Brenda Dennis
CALL TO ORDER REGULAR MEETING
Mayor Pro -Tem Jim Fowler
Councilmember George Antuna
Assistant City Manager John Bierschwale
City Attorney Michael Spain
Mayor Baldwin called the meeting to order at 6:00 p.m.
INVOCATION AND PLEDGES OF ALLEGIANCE TO THE FLAGS OF THE UNITED
STATES AND STATE OF TEXAS.
Mayor Pro -Tem Fowler gave the invocation followed by the Pledges of Allegiance to the Flags
of the United States and State of Texas.
Mayor Baldwin welcomed Clay Wallace Boy Scout with Troop 512 and his father Jeff Wallace
who were in the audience this evening.
PRESENTATION
• Development Services Department Update (M. Sanchez)
Mayor Baldwin recognized Development Services Director Michelle Sanchez who
provided a briefing and update regarding the activities of the Development Services
Department. Ms. Sanchez introduced her team members who were present this evening.
• MPO IH 35 Northeast Corridor Update (L. Dublin)
Mayor Baldwin recognized City Engineer Larry Dublin who provided a brief PowerPoint
on the status and overview of the IH 35 Northeast Corridor as presented by TxDot.
CITY EVENTS
• Announcements of upcoming City Events (D. Harris /J. Bierschwale)
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Mayor Baldwin recognized Assistant City Manager David Harris and Assistant City
Manager John Bierschwale who announced the following upcoming events:
- August 29, 2011, and August 31, 2011, kick -off of the Planning and Design
Charette, 6 :00 p.m. at the Civic Center.
Hearing of Residents
Mayor Baldwin recognized the following who spoke:
• Ms. Maggie Titterington, President, Schertz Chamber of Commerce (SCOC), who
provided information regarding the upcoming Chamber Events.
• Mr. Robert Gibson, 3 517 McAlister, who addressed Council regarding the budget.
• Mr. Robert Brockman, 1000 Elbe] Road, who addressed Council on the I I% increase in
insurance costs and item 3 regarding BOA. Would it take a super majority' vote for
variance requirements? Just as an FYI the doors are closed at the MetroCom Chamber.
Discussion and/or Action Items
1. Minutes - Consideration and/or action regarding the approval of the minutes of the Regular
Meeting of August 16, 2011.
Mayor Baldwin recognized Councilmember Edwards who moved, seconded by Mayor Pro -
Tem Fowler to approve the minutes of August 16, 2011. The vote was unanimous.
Motion carried.
2. Bid Award - Bid # I1- ENGR- 28 -C -05 — RuraI Roads — Phase I - Ware Seguin Road
at FM 1518 - Consideration and/or action awarding a bid for the Rural Roads, Phase I,
Ware Seguin Road at FM 1518 to Wagner Materials & Construction. (J. Bierschwale/L.
Dublin)
Mayor Baldwin recognized City Engineer Larry Dublin who introduced this item stating
action awards the bid for the Rural Roads Phase I project to Wagner Materials &
Construction. Project includes reconstruction of Ware Seguin Road from FM 1518 to Old
Ware Seguin Road at Schertz Forest. Project includes road widening, driveways, and a
new pavement section. Fiscal impact of $128,382 to be paid for from the 2006 Street
Bonds. Recommend approval.
Considerable discussion followed between the Management, Council, and staff regarding
the need to reaffirm that the amount of $128,382 is a not to exceed amount of the bid
award. Discussion continued regarding the possibility of needing to add a 10% contingency
amount to this project for change orders. Was this included in the bid? It was made clear
that the contractor "Wagner Materials & Construction" bid for $128,382 did not include
any contingency money, should they go over this amount. Therefore, the City would not be
authorized to approve any change orders to this project.
Management and - Council discussed the total project budget for this item and the need for a
separate resolution to approve the total project budget. Management and Council
concurred to place a resolution on the next agenda.
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Mayor Baldwin recognized Councilmember Edwards who moved, seconded by
Councilmember Antuna to award the bid to Wagner Materials & Construction not to
exceed the amount of $128,382 and any amount over this should be approved by Council.
The vote 3 -I with Mayor Pro -Tem Fowler voting no. Motion carried.
3. Resolution No. 11 -R -38 — Consideration and/or action approving a resolution approving
the amended and restated Board of Adjustment Rules of Order and Procedures. (M.
Spain/M. Sanchez)
Mayor Baldwin recognized Development Services Director Michelle Sanchez and City
Attorney Michael Spain who introduced this item stating that action approves proposed
changes to the Board of Adjustment Rules of Order and Procedure to help facilitate and
streamline the meetings and operations of the BOA. No fiscal impact. Recommend
approval.
Mayor Baldwin recognized Mayor Pro-Tern Fowler who moved, seconded by
Councilmember Scagliola to approve Resolution No. 11 -R -18. The vote was unanimous.
Motion carried.
4. Ordinance No. 11 -M -27 - Consideration and/or action approving an ordinance authorizing
the City Manager, or his/her designee, to approve, authorize, and execute contracts
involving total City expenditures of less than $50,000. First Reading (J. Kesscl/M. Spain)
Mayor Baldwin recognized City Manager John KesscI who stated as a continuation of the
previous item discussion, this item is to clean up the administration processes associated
with contracts. The current City Charter requires all contracts to be approved by City
Council; the past practice has not been the case to send all contracts to City Council. Mr.
Kessel provided examples of the types of contracts. Per the Charter all contract approvals
need to go to Council for approval; this would involve many items coming before Council
for approval. Mr. Kessel stated that the maximum that could be approved without going
through the bid process is $50,000; he is not suggesting that this is the correct amount, and
Council can discuss and approve what amount he can authorize.
Mayor and Council discussed this in length and upon that discussion recommended that the
limit be set at $50,000 with a provision by resolution to extend, as well as clarify the
designees,
Mayor Baldwin. recognized Councilmember Edwards who moved for approval of
Ordinance 11 -M -27 and that the amount not to exceed is $5,000 for any contract without
obtaining Council approval and the designees be the order of succession of the policy.
More discussion followed regarding the number of contracts and their amounts. More
information is necessary for Council to fully understand the number of contracts that are
approved, so that they can make a clear recommendation regarding the dollar amount of
approval. Councilmember Edwards withdrew his motion.
Mayor Baldwin recognized City Attorney Michael Spain who stated that this happens a
couple of times a week and states that this is set up for first reading and suggests Council
pass this on first reading. Next week is set up for final reading. In the interim, Finance can
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do research and provide you information on what the past history has been. He suggested
that the only modification he recommends to the ordinance would be the reference to the
succession of designees in the absence of the City Manager; the Council could modify it or
pass it. It is important to start memorializing something that Mr. Kessel is comfortable
with the Charter, rather than just putting this on hold. Mr. Spain stated that he would
suggest two changes to the Ordinance: 1) would be to make it clear as to which the
designees are, and 2) to permit this Ordinance to be extended by resolution and approve on
first reading.
Mayor Baldwin recognized Councilmember Scagliola who moved, seconded by Mayor
Pro -Tom Fowler to approve Ordinance No. 11 -M -27 first reading of $50,000 with the two
changes of being able to extend by resolution and clarification of designees. The vote was
unanimous. Motion carried.
5. Ordinance No. 11 -M -28 — Consideration and/or action approving an ordinance authorizing
the City Manager, or his/her designee, to make budgetary transfers within an adopted
budget. First Reading (J. Kessel/K. Spain)
Mayor Baldwin recognized City Manager John Kessel who again stated this was a house
keeping item. Action amends Ordinance 08 -T -17 authorizing the City Manager to make
certain budgetary transfers within an approved budget by allowing the transfer
authorization to be granted by the City Manager or his /or her designee, as opposed to only
the City Manager. The amendment also removes the requirement of the City Manager to
inform the Council of such transfers within thirty days. No fiscal impact. Recommend
approval.
Mayor Baldwin recognized Councilmember Scagliola who stated the designation of
designees need clarification.
Mayor Baldwin recognized Councilmember Antuna who requested that transfers be held
within the same department to not allow interdepartmental transfers.
Mayor Baldwin recognized Councilmember Edwards who moved, seconded by
Councilmember Antuna that in line with the continuity of the City Charter approves
Ordinance No. 11 -M -28 first reading with clarification of designees and eliminating
paragraph B. The vote was unanimous. Motion carried.
6. Public Hearing Fiscal Year 2011 -12 Budget — Conduct a public hearing and
consideration and/or action approving the City of Schcrtz FY 2011 -12 Budget. (Second
required public hearing) (D. Harris /J. Santoya)
Ordinance No. 11 -T -25- City of Schertz FY 2011 -12 - Consideration and/or action
approving an Ordinance on the proposed FY 2011 -12 Budget. First Reading (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 the City
Charter, the City Manager has submitted a budget proposal to the City Council for
consideration. This is the second of two required public hearings and the first of two
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required votes regarding the adoption and approval of the FY 2011 -12 Budget. Mr.
Harris provided the following calendar:
August 16 —1St Public Hearing
August'23 `2 °d Pubhc Ilearmg and l Vote
August 30 — 2" d Vote
October 1 — New Budget in Effect
Mr. Harris provided the following overview for Council: Mr. Harris stated that on August
2, 2011, the Council approved a preliminary tax rate for consideration not to exceed
$0.4843 per $100 value and set public hearing dates. This is the second of two required
public hearings and the first of two required votes regarding adoption of the FY 2011 -12
budget.
Mr. Harris reviewed all funds, revenues, and expenses. He explained the increase
is a result of additional bond expenses. He presented the following regarding the
proposed tax rate:
Tax Rate Current Proposed
M &O $0.2993 $0.2993
I &S $0.1500 $0.1850
Total $0.4493 $0.4843
He stated the proposed. M &O $0.2993 provides the following:
- Current approved staff
- Reserve Funding $250,000
- Adds a vehicle replacement program
- 20% increase in fuel expense
- 11 % health insurance cost increase
- 1% Cost of Living Adjustment
- Market Rate Wage Adjustment — 50% staff will receive a change in grade, 25%
staff will receive a change in pay
- 3 additional Communication Officers
- 2 School Resource Officers (funded by SCUCISD)
- 1 Planning Manager
- 1 311 Representative, part time
- 1 Crossing Guard, part time
The proposed I &S $0.1850 provides the following:
- Aquatic Center
Soccer /Athletic Fields
Main Street/FM 78
Animal Shelter
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- $0.1550 goes to cover older bonds
Capital Expenditures (Capital Outlay):
- Police — 6 replacement vehicles with equipment
- Fire —1 Tahoe
- Marshal — i vehicle with equipment
- IT -- new phone system, and date storage server
- Engineering —1 Track
Merit Program:
- Performance Based
Evaluations, Teamwork, Productivity
- Awards
"A", "B ", "C" merit awards
Employee of the Year or on- the -spot
Mayor Baldwin opened the public and recognized the following:
• Mr. Chuck Shumaker, 2405 Melvanie, who supports the need of additional
Communication Officers, but believes only two (2) are needed. He suggested
ways of saving. I
• Mr. Robert Gibson, 3517 McAlister Lane, who stated he is happy that the City
maintained the M &O as well as the 1 &S rate, but an increase is an increase. Find
ways to hold the tax rate and not increase them. Look for more ways to be
progressive without raising taxes.
• Mr. Robert Brockman, 1000 Elbel Road, who stated that the City Management
and staff have done an excellent job with the budget and supports it.
Mayor Baldwin closed the public hearing as no one else wished to speak and opened it up
for Council comments.
Mayor Baldwin recognized Councilmember Edwards who thanked Mr. Shumaker and Mr.
Gibson for their commentary this evening. He further stated the Council indeed cares for
their citizens and the community, but there are specific goals they have to adhere to and
part of that are the recently approved bonds. Councilmember Edwards also stated that he
would like Council to have input on who receives the merit increases.
Mayor Baldwin recognized Mayor pro -Tem Fowler who stated that he recently had the
opportunity to visit the Communication Department and supports the decision of the
additional staff.
Mayor Baldwin recognized Councilmember Scagliola who stated that he is in favor of
providing a merit increase for the employees, and as noted there is an excess of $250,000 in
reserves. He would like that amount to be divided out six ways and allow Council to
distribute their portion as they see fit.
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Mayor Baldwin recognized Mayor Pro -Tern Fowler who mentioned that as you finalize the
merit pay program, to think about those that just show up and those that go above and
beyond their scope of work.
Mayor Baldwin asked what would be the cost of an additional I% increase in salary for the
average employee.
Mayor Baldwin recognized City Manager John Kessel who stated that the current program
proposed in the budget included several things. First, some employees will be receiving a
market adjustment, these are based on where employees fall within that market study
conducted so that we can stay competitive and insure exceptional employees do not move
on to other communitics, as well as allow the City to hire the very best.
Furthermore, should those market adjustments be in excess of the COLA, which have been
capped, then these employees will not be eligible for the 1 % COLA. This makes the COLA
pool available to the balance of the employees.
Mr. Kessel further stated that there are a number of employees that are not included in the
program: himself, the two Assistant City Managers, the City Secretary, Deputy City
Secretary, and others such as Mr. Spain and the Judges. The program includes department
heads and part-time employees.
Mayor Baldwin stated that his recommendation would be to forget merit pay increases this
year, increase the COLA to an additional percent making it a 2% COLA to all employee
salaries. Then later down the road, allow the City Manager to look at merit increases and
come up with a solid program to get salaries moving again. He believes the 1% COLA is
not enough.
Councilmember Edwards stated that should this happen now, you have increased the
salaries for this budget. Each time this is done it will further increase the salaries and affect
future budgets. He stated that as point of order, the Council has already made a motion to
take $250,000 and come up with a one -time merit pool to be distributed and allow
management to come back to Council with their recommendation. If you want to change
this, it would require another motion.
Councilmember Scagliola stated that he agrees with the Mayor that the 1% COLA is good
and if you want to match a merit at 1% that would not kick up the pay scales for everyone;
that way they would be getting an equivalent of a 2% COLA, which would be exactly what
they provided last year. He suggested putting this on the back burner and figure out what
the extra 1% merit pay would cost and give the reset back to the residents, or keep it in
reserves or divide it 50150.
Mayor Baldwin recognized Financial Analyst James Walters who stated that in answer to
the Mayor's question of what it would cost for an extra 1% on the average salary of
$60,000 would be $600 and some change, $50 per month, $25 per check, take 30% off for
taxes and insurance, which each employee would get $20.00 per check, which is a
weighted cost. Total cost for all employees to receive a 2% COLA would be roughly
$252,000.
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Mayor Baldwin recognized City Attorney Michael Spain who stated that the Council has
already set aside the $250,000 and if you want to reconsider this, it will have to go back to
Council for reconsideration. City Manager John Kessel concurred and what the actual
direction would be for Management is to place this on the next agenda for reconsideration.
Mayor Baldwin recognized Mayor Pro -Tem Fowler who stated that he disagrees with the
Mayor in giving the employees an additional 1% COLA; and that the one time merit pool
keeps the salaries going up. It is like a bonus and would require the management to
distribute this according to what is fair to the employees allowing management to come up
with the program.
Mayor Baldwin recognized Mayor Pro -Tem Fowler who moved, seconded by
Councilmember Scagliola to approve Ordinance No. I 1 -T -25 on first reading, adopting the
budget for fiscal year beginning October 1, 20.11 and ending September 30, 2012 as
presented by staff understanding the merit situation is yet to be defined and will be brought
back for consideration at the next meeting. The vote was Mayor Pro -Tem Fowler,
Councilmember Scagliola, Councilmember Antuna and Councilmember Edwards voting
for. Motion Carried
7. Public Hearing on Proposed Tax Rate for FY 2011 -12 — Conduct a public hearing and
consideration and/or action regarding the adoption of the FY 2011 -12 Tax rate. (Second
required public hearing) (D. Harris /J. Santoya)
Ordinance No. 11 -T -26 -Tag Rate for Fiscal Year 2011 -12 - Consideration and/or action
approving an Ordinance on the proposed FY 2011 -12 Tax Rate. First Reading (D.
Harris /J. Santoya)
Mayor Baldwin recognized Assistant City Manager David Harris who stated this is the
second of two required public hearings regarding the adoption of the FY 2011 -12 Tax
Rate. At the August 2, 2011, regular session, the City Council voted to establish a
proposed maximum tax rate of $0.4843 per $100 of value. The budget is balanced
structurally, conservative and responsible; it follows financial policies, maintains current
service levels, and focuses on priorities.
Mr. Harris stated that the information regarding the tax rate was included in the budget
presentation and had no further comments.
Mayor Baldwin opened the public hearing and recognized the following:
Mr. Roger Gibson, 3517 McAlister Lane, who spoke opposing the tax increase.
Mr. Robert Brockman, 1000 Elbel Road, who spoke in favor of the increase.
Mayor Baldwin closed the public hearing as no one else spoke. Mayor Baldwin opened it
up for Council discussion and recognized the following:
Mayor Baldwin recognized Councilmember Scagliola who stated that he applauded staff
for fmding areas within the budget to fund the merit without tapping into the reserves. He
stated that he still believes there is a little bit of surplus and with that in mind would like to
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make a motion to set the tax rate for 2011 -2012 at 0.4800. The motion died for lack of
second.
Mayor Baldwin recognized Councilmember Edwards who asked for clarification as it is
being stated that the City has a surplus, and in fact he thought there was a deficit in the
reserves and could someone explain.
Mayor Baldwin recognized Assistant City Manager David Harris who stated if Council
goes forward with the current budget as presented and with the merit pay disbursed through
the various departments; instead of putting back $250,000 they would actually be putting
back $150,000.
City Manager John Kessel stated very clearly that the City has a policy that states that they
will have 25% in reserves for emergencies to operate for a period of time, and that the City
is in deficit about 10% towards meeting that goal. This represents four months of operating
expenses if they have zero revenue coming in. When he refers to a deficit what he is
referring to, they balance their budget in order to put money back into those the reserves.
City staff presented a budget that had a certain amount identified to go into reserves, it
could be perceived as excess revenue or as this pool of money for utilizing for anything,
reducing taxes, giving increases in salaries, giving it toward projects, but they earmarked
this specifically to go back into reserves to get back to our goal of 25 %.
Mayor Baldwin recognized Councilmember Edwards who moved, seconded by Mayor
Pro -Tern Fowler to approve Ordinance No. 11 -T -25 on first reading setting the tax
rate at $0.4843. The vote was Mayor Pro -Tem Fowler, Councilmember Antuna and
Councilmember Edwards voting for, with Councilmember Scamliola votinP no.
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 Baldwin announced that there was no need for an Executive Session.
RECONVENE TO REGULAR SESSION
8. Take any action deemed necessary as a result of the Executive Session.
No action taken as Council did not meet.
Requests and Announcements
9. Requests by Mayor and Councilmembers that items be placed on a future City Council
agenda.
No items requester.
10. Requests by Mayor and Councilmembers to City Manager and Staff for information.
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Mayor Baldwin recognized Councilmember Edwards who asked for an update on the final
results of the 4th of July Jubilee. Assistant City Manager John Bierschwale stated that they
are still receiving and collecting money and will have a report to Council at a later date.
He also stated that recently the SCUCISD School Board had discussed their participation in
the Natatorium project. Have reached a decision to participate? Assistant City Manager
John Bierschwale stated that they have not made a decision and City staff will work with
the School Board to provide the information they requested. Afterwards, the staff will
come back to Council with that information.
11. 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
Mayor Baldwin recognized Mayor Pro -Tem Fowler who stated he recently attended the
Housing Authority board meeting and they have been finalizing the inspections on the
improvements being made. He also stated that he attended the Parks & Recreation
meeting on Monday.
Mayor Baldwin recognized Councihnember Scagliola who stated he recently attended the
ribbon cutting for Physical Therapy Center on FM 3009 last week.
Mayor Baldwin recognized Councihmmber Antuna who just wanted to give kudos that
he saw the Library was recently painted.
12. Announcements by City Manager
Mayor Baldwin recognized City Manager John Kessel who stated that he had a very
successful trip to Chicago with the Secretary of State to visit and meet with several top
decision makers to bring jobs to Texas, specifically Schertz. He stated it was extremely
valuable to get exposure to a very high level set of staff of the corporate search for new
sites as well as continue to make sure Schertz has an outstanding relationship with the
Governors office.
Mr. Kessel also stated they are down to four finalists for the EDC Director position and
will be conducting interviews this Friday and next Friday. They have chosen a panel to
conduct the interviews which includes himself, Assistant City Manager David Harris, the
Mayor, Mayor -Pro Tem, and the EDC Board Chair.
Mr. Kessel stated Council was forwarded an email regarding EMS and that if they have
questions to please contact him. He stated staff is continuing with the project.
Lastly, he received two letters complimenting staff: (1) letter from a recently annexed
citizen specifically thanking the City of Schertz and complimenting staff for the
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exceptional care and attention, (2) letter from Turner Construction, whose is building the
Caterpillar facility, who thanked the team involved in the permitting process.
Mayor Baldwin mentioned that on Friday morning he will be involved in a morning
broadcast interview on KTSA 550AM radio regarding the upcoming South Schertz Charrette.
ADJOURNMENT
As there was no further action, Mayor Baldwin ad' urned the meeting at 9:40 p.m.
Mayor Hal aldwin
ATTEST:
renda Dennis, TRMC, MMC City Secretary
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