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08-30-2011 MinutesMINUTES REGULAR MEETING August 30, 2011 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on August 30, 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 Staff Present: City Manager John Kessel Assistant City Manager David Harris City Secretary Brenda Dennis Mayor Pro -Tom Jim Fowler Councilmember George Antuna Assistant City Manager John Bierschwale City Attorney Michael Spain Deputy City Secretary Cynthia Raleigh Councilmember Michael Carpenter was absent. CALL TO ORDER REGULAR MEETING Mayor Baldwin called the meeting to order at 6:00 p.m. and welcomed everyone in attendance. INVOCATION AND PLEDGES OF ALLEGIANCE TO THE FLAGS OF THE UNITED STATES AND STATE OF TEXAS. Councilmember Fowler gave the invocation followed by the Pledges of Allegiance to the Flags of the United States and State of Texas. PRESENTATIONS • Proclamation Payroll Week (Rebecca Lynch) Mayor Baldwin recognized Ms. Rebecca Lynch and Ms. Dana MirabeIle with the Alamo Chapter of the American Payroll Association and presented them the proclamation for National Payroll Week. • Presentation/discussion and possible action regarding Landmark Property designations (C. Palmer) Mayor Baldwin recognized Ms. Cynthia Palmer, of the Historical Preservation Committee who carne forward stating that on July 28, 2011, the Committee met and unanimously approved the following landmark status designations: • William Schertz Mercantile Store Building (AKA: Formerly Sippel's Hardware Building), 507 Main Street, Schertz • Adolph Schertz Homestead and Schertz Cotton Farm, 321 Main Street, Schertz • Wenzel/Schwab Blacksmith Shop, 6615 FM 482, Schertz ETJ • Ferdinand Friesenhahn Home, 195 High Creek Road, New Braunfels, Schertz ETJ • Sahm Homestead and Stock Farm, 6025, 6028, and 6045 FM 482, Schertz ETJ 08 -30 -2011 Minutes All five sites are requested to be named as historical landmark sites within the City. Ms. Palmer stated that the Commission is recognizing the properties as significant landmark sites with no legal consequence. Mayor Baldwin recognized Councilmember Scagliola who moved, seconded by Mayor Pro -Tem Fowler to accept the five locations as.landmark designations. The vote was unanimous. Motion Carried. CITY EVENTS Announcements of upcoming City Events (D. Harris /J. Bierschwale) Mayor Baldwin recognized Assistant City Manager David Harris who provided the following information: - Community Planning Charrette meeting, August 31, 2011, at 6:00 p.m. - Joint meeting T1RZ, P &Z, and City Council on Tuesday, September 13, 2011, from 4 -6 p.m. - Guadalupe County Commissioners Court Redistricting meeting 7:00 p.m. at the County Annex Building on Elbel. Information is also available on the City website under public notices. - Mark your calendars for the upcoming SchertzFest September 23 and 24. Hearing of Residents Mayor Baldwin recognized the following who spoke: No one spoke. Mayor Baldwin requested that agenda item 2 be removed from the consent agenda to allow Ms. ViVi Gregg to provide Council information on the Gridiron Heroes event. Consent Agenda Action Items 1. Minutes - Consideration and/or action regarding the approval of the minutes of the Regular Meeting of August 23, 2011. 3. Schertz Seguin Local Government Corporation (SSLGC) Management Services Agreement — Consideration and/or action approving a Management Services Agreement with Schertz Seguin Local Government Corporation. (A. Cockerell) 4. Austin -San Antonio Commuter Rail District — Consideration and/or action approving the renewal of membership fee in the Austin -San Antonio Commuter Rail District. (J. Kessel/Mayor Baldwin) Mayor Baldwin recognized Councilmember Edwards who moved, seconded by i Councilmember Scagliola to approve consent agenda items 1, 3 and 4. The vote was unanimous. Motion carried 08 -30 -2011 Minutes Page - 2 - Discussion and /or Action Items 2. Resolution No. 11 -R -40 — Consideration and/or action approving a resolution designating a particular area, particular dates and particular times for the "Gridiron Heroes" special event. (J. Kessel/G. Logan) Mayor Baldwin recognized Ms. Vivi Gregg who briefed the Council on the event line up. She stated the event will raise money for spinal cord injury victims. Ms. Gregg requests the Mayor to throw out the first pitch on Friday evening at 7:00 p.m. Mayor recognized Councilmember Scagliola who moved, seconded by Councilmember Edwards to approve Resolution No. 11 -R -40. The vote was unanimous. Motion carried. 5. Resolution No. 11 -R -41 — Discussion/consideration and/or action approving a resolution amending the City's existing Purchasing Policy. Q. Kcssel/M. Spain) Mayor Baldwin recognized Assistant City Manager David Harris who stated that Section 7.08 of the City Charter states "The City Manager shall be responsible for the preparation of purchase procedures, and the procedures shall be submitted by him or her to the City Council. The City Council may accept and adopt such procedures as proposed or may adopt them with such amendments as the City Council deems necessary or may reject them in their entirety and direct the City Manager to fi►rther consider the procedures and present new proposals at a subsequent meeting. The purchase procedures may be reviewed periodically." The City Council approved a Purchasing Policy on June 19, 2007, as revised on September 4, 2007. This document serves as the framework from which most items are procured by the City. It is under this Policy that the City Manager or Assistant City Managers have exercised authority to approve purchases and execute agreements. Tonight's request is to amend the City's existing Purchasing Policy to clarify contracting authority provided that the expenditure has been approved as part of the City's budget. Proposed changes from the existing Purchasing Policy are blacklined. He stated that action requested of Council amends the City's Purchasing Policy Item 5 -C to authorize the City Manager, or his/her designee, to approve and execute contracts for total expenditures of less than $50,000, if budgeted, without obtaining approval from City Council. This item will formalize an existing practice. No fiscal impact. Recommend approval. Mayor. Baldwin recognized Councilmember Scagliola who voiced his appreciation for the clarification of this issue. Mayor Baldwin recognized Mayor Pro -Tem Fowler indicated that the 3rd party checks and balances of the auditor are being followed. Mayor Baldwin recognized Councilmember Edwards who indicated that the majority of payouts are less than $50K. He believes that the number should be $30K just for checks and balances. As a Council, it is our responsibility to look at what is being spent. 08-30-2011 Minutes Page - 3 - Mayor Baldwin questioned if every transaction is considered a contract. Assistant City Manager David Harris clarified that this is not the fact. That some payments are pursuant to a contract and others are considered contracts. Mayor Baldwin recognized Mayor Pro -Tem Fowler who indicated that he believes that it should be $50K due to the current checks and balances that are currently in place. Councilmember Scagliola suggested we compromise at $40K. Mayor indicated that there are only a few at $40K or less. Mayor Baldwin recognized Councilmember Scagliola who feels that a $ l OK buffer would keep a window that would allow more flexibility with approval. Mayor Baldwin provided his commentary that trust of the City Manager is a factor. Mayor Baldwin recognized Mayor Pro -Tem Fowler who moved, seconded by Councilmember Antuna to approve Resolution No. 11 -R -41, with the amount of $5OK, as well as correction to section 3 -E to make the Purchasing Policy uniform throughout. The vote was 3-1 with Councilmember Edwards voting no. Motion carried. 6. Ordinance No. 11 -M -28 — Discussion/consideration and/or action approving an ordinance authorizing the City Manager, and certain other designated persons to make certain budgetary transfers within an adopted budget. Final Reading (J. Kessel/M. Spain) Mayor Baldwin recognized Assistant City Manager David Harris who stated the City Council previously passed Ordinance No. 08 -T -17' authorizing the City Manager to make certain budgetary transfers within an approved budget, for intra- departmental transfers, if the total department's budget did not change. The new Ordinance No. 11 -M -28 mirrors the authorization granted in prior Ordinance No. 08 -T -17, with the following changes: (1) the transfer authorization would be granted to the City Manager and certain other designated persons as opposed to only the City Manager; (2) the requirement that the City Manager inform the City Council of the budgetary transfers within thirty (30) days of the transfer would be removed; and (3) interdepartmental transfers would be eliminated. Action requested of Council 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 Manger to inform the Council of such transfers within thirty days. Mayor Baldwin recognized Councilmember Scagliola who questioned the validity of a need of a designee and why is it time critical to appoint a designee. City Manager John Kessel answered that often time's immediate approval is needed to keep the City operating even at the City Manager's absence. Mayor Pro-Tern Fowler indicated that he believes that the checks and balances are intact within the City and sees that there is a need for this action. Councilmember Scagliola disagreed. Mayor Baldwin recognized Mayor Pro -Tem Fowler who moved, seconded by Councilmember Edwards to approve Ordinance No. 11 -M -28 final reading. The vote was 3 -1 with Councilmember Scagliola voting no. Motion carried. 08 -30 -2011 Minutes Page - 4 - 7. One -Time Merit Pool — Discus sion/consideration and/or action to reconsider the one -time merit pool of $250,000. (J. Kessel) Mayor Baldwin recognized City Manager John Kessel who indicated that this is a Council discussion item only. Mayor Baldwin opened this item up for discussion. Councilmember Edwards clarified the reason for this agenda item was the disagreement between Councilmembers on this topic. Councilmember Edwards suggested that the cost of living should be given to the troops instead of the chiefs. Questions were raised as who should be receiving this merit increase? Mayor Baldwin clarified that he would like to see a merit plan first before adding these dollars to the budget. However, if Mr. Kessel has a fair and equal plan to distribute the funds, then the Mayor will support this idea. Mayor Baldwin recognized Councilmember Scagliola who stated he would like to see the employees receive money they deserve and it does not matter how they receive it or what the plan is called, i.e. COLA or merit. He indicated that he does not see how the reserves are healthy at this time and are at a safe balance for the siphoning of funds for this program. Councilmember Scagliola suggested a tier system for the spending of these funds and with this scheme utilizing only $168K and reducing taxes for the citizens at a rate of .4800. He suggested that the $250K is divided amongst the Council and every member has $40K to spend as they wish. Mayor Baldwin recognized Councilmember Scagliola who made a motion to divide the $240 6 ways. Motion failed due to lack of a second, Mayor Baldwin recognized Councilmember Edwards who indicated that merit is an award to employees for doing something right. If we trust the City Manager with spending $50K on contracts, we should trust him to properly disburse funds for merit pay. Mayor Baldwin recognized Councilmember Antuna who indicated he did not have a problem with merit pay. He believes that employees that go above and beyond need to be recognized. Councilmember Antuna would like to see a plan on how merit pay would be implemented. After the plan is submitted, then Council can make a decision. Mayor Baldwin recognized Councilmember Edwards who stated he believes we do not have a motion on this item. He indicated that until the plan is devised and approved the money would remain in reserves. Councilmember Antuna disagreed; he believes that a plan needs to be developed first to go forth. Mayor Baldwin recognized Councilmember Scagliola who mentioned that time is running out and a decision needs to be made before the tax rate and budget is accepted. He indicated that Schertz is a municipality not a business and we should run the City in the most efficient manner and as a true non - profit organization. Councilmember Scagliola has no doubt that Mr. Kessel can present a comprehensive merit plan to the Council. Merit plans break down causing the organization to be a "good ole boys society ". Councilmember Scagliola mentioned that he works for the citizens of this City not the Council, Mayor, or Manager and that he needs to fight for their rights. He mentioned that staff went back and found extra monies in the budget, and they were conservative and found $70K. 08 -30 -2011 Minutes Page - 5 - Councilmcmber Scagliola made a motion to cap the merit pay to $200K and give $50K back to the residents. A second was made by Councilmember Fowler being able to make a comment and get clarity. Mayor Baldwin recognized Mayor Pro -Tem Fowler who mentioned that this money should go towards merit and not increase base pay and that it should be properly distributed utilizing a merit pay plan. Mayor Pro -Tem Fowler asked Finance Director Juan Santoya how much difference the $50K would make. Mr. Santoya indicated that the difference is nominal. Mayor Baldwin recognized Councilmember Antuna who once again requested a plan and indicated he will vote nay until a plan is produced. Mr. Kessel addressed the Council stating the merit pay would be based on efficiency and effectiveness within the organization. This. is a one time merit. Mr. Kessel has experience in developing performance appraisal mechanisms and we as a staff need to work through this. Merit is based on fairness and performance. Council sets the policies under the Charter, City Manager implements the policy. He will implement any policy that Council agrees to and passes. Mayor Baldwin recognized Councilmember Edwards who stated that Council passed this item already weeks ago, and now it is back because there is not a general consensus among the Council. He suggested that we wait until a plan is presented and vote for the tax rate tonight and after the plan is presented, Council can choose whether or not to go forth with the plan. Councilmember Scagliola indicated that his motion stands. Mayor called for a vote, the vote was 1 -3, with Mayor Pro -Tem Fowler, Councilmembers Edwards and Antuna voting no. The motion failed. Mayor Baldwin recognized Councilmember Edwards who moved, seconded by Councilmember Antuna to go forward with the merit program, allow City Management to develop a plan and bring it back for Council approval, and set the tax rate. Councilmember Edwards restated his motion to go ahead with the merit program of $250K and allow City Management to develop a plan and bring it back for Council approval, seconded by Councilmember Antuna. The vote was 3 -1 with Councilmember Scagliola voting no. Motion carried. S. Ordinance No. I1 -T -25 - City of Schertz FY 2011 -12 - Discussion/consideration and/or action approving an Ordinance on the proposed FY 2011 -12 Budget. Final Reading (D. Harris /J. Santoya) Mayor Baldwin recognized Assistant City Manager David Harris who introduced this item answering questions from Council. Mr. Harris stated that in accordance with the City Charter, the City Manager has submitted a budget proposal to the City Council for consideration. This is the final reading of the Ordinance regarding the adoption and approval of the FY 2011 -12 Budget. Mayor Baldwin recognized Councilmember Edwards who moved, seconded by Councilmember Antuna to approve Ordinance No. 11 -T -25 final reading. The monies for the merit fund will be set in contingency and respective funds in the individual departments until 08-30-2011 Minutes Page - 6 - further approval. The vote was 4 -0 with Mayor Pro -Tem Fowler, Councilmember Edwards, Councilmember Scagliola, and Councilmem6erAntuna voting for. Motion carried. 9. Ordinance No. 11 -T -26 -Tax Rate for Fiscal Year 2011 -12 - Discussion/consideration and/or action approving an Ordinance on the proposed FY 2011 -12 Tax Rate. Final 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. Mayor Baldwin recognized. Councilmember Scagliola who provided his commentary regarding the proposed tax rate; he did however, praise management for holding the line regarding the effective rate. Mayor Baldwin recognized Councilmember Edwards who made a motion to approve Ordinance 11 -T -26 second by Fowler setting the tax rate at $.4843 per $100 of value. The vote was 34 with Mayor Pro -Tem Fowler, Councilmember Edwards, and Antuna voting for and Councilmember Scagliola voted no. Motion carried. 10. Resolution No. 11 -R -39 — Discus sion/consideration and/or action approving a resolution authorizing the adoption of a revised City of Schertz Investment Policy (J. Kessel/J. Santoya) Mayor Baldwin stated that this item had been pulled from the agenda this evening. 11. Cancellation of the September 6, 2011 Regular Council Meeting — Discussion/consideration and/or action cancelling the Regular Meeting of September 6, 2011. (J. Kessel/D. Harris) Mayor Baldwin recognized Mayor Pro-Tem. Fowler who moved, seconded by Councilmember Antuna to cancel the September 6, 2011 regular Council meeting. The vote was unanimous. Motion carried. Mayor Baldwin adjourned into executive session at 7.•24 p.m. Councilmember Antuna left at 8:32 pm. 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, or real estate; Section 551.087 Texas Government Code - Deliberation regarding Economic Development Negotiations. RECONVENE TO REGULAR SESSION 08- 30-2011 Minutes Page -7- Mayor Baldwin reconvened into regular session at 8:49 p.m. 12. Take any action deemed necessary as a result of the Executive Session. No action taken. Requests and Announcements 13. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. None were given, 14. Requests by Mayor and Councilmembers to City Manager and Staff for information. Mayor Baldwin recognized Councilmember Edwards who asked if the pool schedule could be extended during this heat wave. City Manager John Kessel and Assistant City Manager John Bierschwale stated lifeguards are a major issue due to most of them being high school students who are back in school. The pools will remain open through the Labor Day Holiday. Parks Director George Logan indicated that the pools were considered as a cooling center over the heat wave this weekend and entry was free of charge. Mr. Kessel suggested that we should recognize those who manned and participated in the cooling centers. 15. 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 Councilmember Scagliola who said he attended the Planning Charrettes stating the program and information being provided was very educational and beneficial. 16. Announcements by City Manager Mayor Baldwin recognized City Manager John Kessel who provided the following information: Mr. Kessel stated that clean up on FM 78 is being worked on. Mr. Kessel thanked Council for putting trust in himself and his staff during the budget process. He mentioned he could not be happier and is gushing with pride. ADJOURNMENT As there was no further action, Mayor Baldwin adjourned the meeting at 9:00 p.m. 08 -30 -2011 Minutes Page - 8 - r Mayor Hal Baldwin ATTEST: Brenda Dennis, TRMC, MMC City Secretary 08 -30 -2011 Minutes Page - 9 -