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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) 08 -23 -2011 Minutes 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. 08 -23 -2011 Minutes Page - 2 - 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 08 -23 -2011 Minutes Wage - 3 - 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 08 -23 -2011 Minutes Page - 4 - 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 08 -23 -2011 Minutes Page - 5 - - $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. 08 -23 -2011 Minutes Page - 6 - 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. 08 -23 -2011 Minutes Page -7- 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 08 -23 -2011 Minutes Page -8 - 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. 08 -23 -2011 Minutes Page - 9 - 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 08 -23 -2011 Minutes Page -10 - 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 08 -23 -2011 Minutes Page - 11 -