07-30-2013 MinutesNIINUTES
REGiTLAR MEETING
July 30, 2013
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on July 30,
2013, at 6:00 p.m., in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz
Parkway, Building #4, Schertz, Texas. The following members present to-wit:
Mayor Pro-Tem Cedric Edwards
Councilmember David Scagliola
Counciimember Sydney Verinder
Councilmember Jim Fowler
Councilmember George Antuna
Staff Present:
Executive Director David Harris
Executive Director Brian James
City Attorney Katherine Tapley
Deputy City Secretary Donna Schmoekel
Mayor Michael R. Carpenter was absent.
CALL TO ORDER:
City Manager John Kessel
Executive Director John Bierschwale
Chief of Staff Bob Cantu
City Secretary Brenda Dennis
As Mayor Pro-Tem Edwards had not arrived, Councilme~nber Scagliola called the Regular Meeting
to order at 6:00 p.m.
INVOCATION AND PLEDGES OF ALLEGIANCE TO THE FLAGS OF THE UIV~TED
STATES AND THE STATE OF TEXAS.
Councihnember Fowler gave the Invocation followed by the Pledges of Allegiance to the Flags of
the United States and the State of Texas.
Ci Events and Announcements
• Announcements of upcoming City Events (D. Harris/J. BierschwaleB. James)
Councilmernber Scagliola recognized City Secretary Brenda Dennis who provided information
regarding the upcoming November 5, 2013 Election. Ms. Dennis stated that City Council places
3, 4 and 5 were up for re-election. The first day to file was Monday, July 29, 2013 and goes
through 5:00 p.m. August 26, 2013. She stated that the candidate packet is available in her office
as well as can be found by going to the City's website at www.schertz.com and click on the
election banner.
Councilmember Scagliola recognized Executive Director of Development Brian Jarx~es who
announced that on Thursday, August 1, 2013, the Library will be closed to perform a software
update.
• Announcements and recognitions by City Manager (J. Kessel}
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Councilmember Scagliola recognized City Manager John Kessel who gave kudos to the
Police Department Staff for establishing a committee who took a survey of employees
regarding work shift schedule preferences. Working together they came up with a more
accommodating scheduling system.
Hearins of Residents:
This time is set aside for any person who wishes to address the City Council. Each person should fill
out the speaker's register prior to the meeting. Presentations should be limited to no more than 3
minutes.
All remarks shall be addressed to the Council as a body, and not to any individual member thereof.
Any person making personal, impertinent, or slanderous remarks while addressing the Council may
be requested to leave the meeting.
Discussion by the Council of any item not on the agenda shall be Limited to statements of specific
factual information given in response to any inquiry, a recitation of existing policy in response to an
inquiry, andlor a proposal to place the item on a future agenda. The presiding off cer, during the
Hearing of Residents portion of the agenda, will call on those persons who have signed up to speak
in the order they have registered.
Councihnember Scagliala recognized the following who spoke:
• Mr. Grumpy Azzoz, 528 Wayward Pass, who asked how staff had come up with the
proposed fees. Mr. Azzoz addressed his concern regarding the fees being a tax. City
Manager John Kessel stated that the general distinction between a tax and a fee is a tax has a
general applicability to all and a fee is parkicular to the user of that service.
• Mr. Mark Davis, 3644 Marietta Lane, who spoke regarding the percentage increase of
pavilion rental fees for residents and non-residents.
Consent Agenda Items
The Consent Agenda is considered to be self-explanatory and will be enacted by the Council with
one motion. There will be no separate discussion of these items unless they are removed from the
Consent Agenda upon the request 6y the Mayor or a Councihnember.
1. Minutes -Consideration andlor action regarding the approval of the minutes of the Regular
Meeting of July 23, 2013. (J. Kessel/B. Dennis)
2. Appointments/Reappointments and Resignations to City Boards, Commissions,
Committees -Consideration and/or action regarding appointments/reappointments and
resignations to City Boards, Commissions, and Committees. (J. KessellB. Dennis)
Action of Council ratified the resignations of Steven Crawford from the Traffic Safety
Advisory Commission, Shonale Burke from the Library Board, and Terry Armstrong from
the Parks & Recreation Board.
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3. Resolution No. 13-R-50 -Consideration and/or action approving a Resolution authorizing
the approval of a five year rate schedule for water and wastewater rates and other matters in.
connection therewith. (J. Bierschwale/S. Willoughby}
The following was read into retard:
RESOLUTION NO. 13-R-60
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING THE APPROVAL OF A FIVE YEAR RATE SCHEDULE FOR
WATER AND WASTEWATER RATES AND OTHER MATTERS IN CONNECTION
THEREWITH
Councilmember Scagliola recognized Councilmember Fowler, who moved, seconded by
Councilmember Scagliola, to approve the consent agenda items 1 through 3. The vote was
unanimous with Councilmembers Fowler, ,Scagliola; Antuna, and Yerinder voting yes and
no one voting na. Mayor Pra-Tem Edwards was absent Motion Carried.
Councilmember Scagliola recognized Boy Scout Michael Wesolowski who was in the audience this
evening working on his Citizenship in the Community merit badge.
Discussion and Action Items
4. Resolution Na. 13-R-57 -Consideration and/or action approving a Resolution by the City
Council of the City of Schertz, Texas authorizing and approving publication of notice of
intention to issue Certificates of Obligation; complying with the requirements contained in the
Securities and Exchange Commission Rule 15c2-12; discussion of passible bond refunding for
savings; and providing an effective date. (J. KessellJ. Bierschwale/M. McLiney)
The following was read into record:
RESOLUTION N0.13-R-57
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING AND APPROVING PUBLICATION OF NOTICE OF INTENTION
TO ISSUE CERTIFICATES OF OBLIGATION; COMPLYING WITH THE
REQUIREMENTS CONTAINED IN SECURITIES AND EXCHANGE
COMMISSION RULE 15c2-12; AND PROVIDING AN EFFECTIVE DATE
Councilmember Scagliola recognized Mr. Mark McLiney and Mr. Mark Friedman with
Southwest Securities Inc,, who introduced this item stating the Notice of Intention is the first
legal step necessary to issue Certificates of Obligation. This Resolution is giving the citizens
Notice that the Council will consider issuing an amount not to exceed $5,000,000 to finance
the costs of expanding the utility system (particularly the sewer system) in South Schertz and
for the purchase of a Public Works Building. The Notice will be published two weeks in a
row and at least 30 days after the first publication, the City Council will have the authority to
issue the CO's. This is scheduled for Tuesday September 10, 2013.
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The $3,000,000 for the Utility System Expansion will be on a 20 year schedule and will be
paid by Utility System Net Revenues (no taxes will be used) and the $2,000,000 Public
Works Building will be paid on a 10 year or less schedule with payments of approximately
$270,000 per year. Since a prior $270,000 commitment is being extinguished, there is no
new money being earmarked for this facility.
Mr. Friedman and Executive Director of Development Brian James addressed questions from
Council. Council provided their comments in approving this item.
Councilmember Scagliola recognized Councihnember Verindex, who moved," seconded by
Councilmember Scagliola, to approve Resolution No. 13-R-57. The vote was unanimous
with Councilmembers Fowler, Scagliold, Antuna, and Yerinder voting yes and no one
voting no. Mayor Pro-Tem Edwards was absent Motion Carried
5. Resolution No, 13-R-58 - Considexation and approval of a Resolution relating to
establishing the City's intention to reimburse itself for the prior lawful expenditure of funds
relating to constructing various public improvements from the proceeds of tax-exempt
obligations to be issued by the City or for the benefit of the City by the Cibolo Creek
Municipal Authority for authorized purposes; authorizing other matters incident and related
thereto; and providing an effective date (J. KesseUJ, Bierschwale/M. McLiney}
The following was read into record:
RESOLUTION NO. 13-R-58
A RESOLUTION RELATING TO ESTABLISHING THE CITY'S INTENTION TO
REIMBURSE ITSELF FOR THE PRIOR LAWFUL EXPENDITURE OF FUNDS
RELATING TO CONSTRUCTING VARIOUS PUBLIC IMPROVEMENTS FROM
THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS TO BE ISSUED BY THE CITY
OR FOR THE BENEFIT OF THE CITY BY THE CIBOLO CREEK MUNICIPAL
AUTHORITY FOR AUTHORIZED PURPOSES; AUTHORIZING OTHER MATTERS
INCIDENT AND RELATED THERETO; AND PROVIDING AN EFFECTIVE DATE
Councilmember Scagliola recognized Mr. Mark McLiney and Mr. Mark Friedman with
Southwest Securities Inc., who introduced this item stating Cibolo Creek Municipal Authority
(CCMA), the City of Schertz, and the City of Cibolo have been working on an agreement to
finance the construction of a new wastewater treatment plant to serve the 1-10 Corridor and
surrounding area. In order to proceed on a fast track, the City of Schertz has agreed to pay for
the preliminary engineering and purchase of the Iand.
The Reimbursement Resolution will allow CCMA to reimburse the City for these funds from a
future bond issue. The Bond issue is anticipated to not.exceed $7,000,000.
The CCMA Bond issue will be paid from Revenue generated from Take-or-Pay Contracts
between CCMA and the cities of Schertz and Cibolo. The terms of the agreement are
cuzxently being negotiated between the Cities. The Contracted payments will be an expense
to the City's Utility System.
Councilmember Scagliola recognized Councilmember Verinder, who moved, seconded by
Councilmember Fowler, to approve Resolution No. 13-R-58. The vote was unanimous with
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Councilmembers Fowler, Scagliola, Antuna, and Verinder voting yes and no one voting
no. Mayor Pro-Tem Edwards was absent Motion Carried.
6. Ordinance No. 13-M-27 -Consideration andlor action approving an Ordinance amending the
City of Schertz Code of Ordinances and certain other Ordinances by amending and establishing
fees for certain licenses, permits, and other services provided by the City of Schertz, providing
that this Ordinance shall be cumulative of all Ordinances as to such subject; providing for
future amendments of this Ordinance by Resolution; providing a severability clause; providing
for a penalty clause; providing a savings clause; and providing an effective date. First reading
(J. Kesse1/7. BierschwalelJ. SantoyalJ. Walters)
The following was read into record:
ORDINANCE N0.13-M-27
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AMENDING THE CITY OF SCHERTZ CODE OF ORDINANCES AND CERTAIN
OTHER ORDINANCES BY AMENDING AND ESTABLISHING FEES FOR
CERTAIN LICENSES, PERMITS, AND OTHER SERVICES PROVIDED BY THE
CITY OF SCHERTZ; PROVIDING THAT THIS ORDINANCE SHALL BE
CUMULATIVE OF ALL ORDINANCES AS TO SUCH SUBJECT; PROVIDING
FOR FUTURE AMENDMENT OF THIS ORDINANCE BY RESOLUTION;
PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR A PENALTY
CLAUSE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE
DATE.
Councilmember Scagliola recognized Budget Analyst James Walters who introduced this
item stating City Departments collect a wide variety of fees for permits, services, fines, and
other charges that are all part of the every day operations of municipal government. Since
September 2008, the fees have been incorporated into a single fee schedule.
The attached ordinance replaces Appendix C of the City code which details the fees by
department. and discloses the existing and proposed rates for each type of service. These
proposed rate changes will be effective October 1, 2013, excluding the Garbage Rates which
will be effective January 1, 2014. Staff recommends this Ordinance be approved.
The majority of the proposed fee changes in the General Fund are not expected to result in
significant revenue changes. The Food Establishment Permit change will bring in an additional
$8,000 and make this City function completely funded by their own fees and permits as
opposed to be subsidized by property taxes. The EMS fee changes will increase revenues by
$587,334. For the Water & Sewer Fund, the proposed rate increases are expected to generate
$1,070,758 in additional revenue with $634,970 of this coming from the increase in the Sewer
Rates, $104,600 from the Garbage Fees, and $331,188 from the Water Fees. These changes to
the Water and Sewer rates are in accordance with the approved Rate Study. The Garbage Fee
increase is in accardance with the signed multiyear contract with Bexar Waste. Both EMS and
the Water & Sewer Fund are self-sustaining funds and these fee increases are necessary to
support ongoing operations and maintenance.
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Mx. Walters provided a briefing on the upcoming fees answering questions from Council.
Management and staff addressed specific questions from Council regarding their department
and the increased fees proposed, ,
Councilmember Scagliola recognized Councilmembex Antuna, who moved, seconded by
Councilmember Scagliola, to approve Ordinance No. 13-M-27 on first reading.
Mayor Pro-Tem Edwards arrived at 7: Q7p.m.
Mayor Pro-Tem Edwards provided his comments and concerns regarding the proposed fee
schedule. Again, Management and staff addressed Mayor Pro-Tem Edwards's concerns and
provided information regarding the proposed increased fees,
Councilmember Scagliola called for the vote. The vote was unanimous .with Mayor Pro-
Tem Edwards, Councilmembers Fowler, Scagliola, Antuna, and Yerinder voting yes and
no one voting no. Motion Carried:
Councilmember Scagliola turned the meeting over to Mayor Pro-Tem Edwards.
7. Ordinance No. 13-T-28 -Consideration and/or action approving an Ordinance authorizing a
budget adjustment to Economic Development Fund Consulting Services - Charrette for the
Gateway Planning Group Contract; repealing all Ordinances or parts of Ordinances in conflict
with the Ordinance; and providing an effective date. First heading (J. KessellD. Gavin)
The following was read into record:
ORDINANCE NO. 13-T-28
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING A BUDGET ADJUSTMENT TO ECONOMIC DEVELOPMENT
FUND CONSULTING SERVICES - CHA,ItRETTE FOR THE GATEWAY
PLANNING GROUP CONTRACT; REPEALING ALL ORDINANCES OR PARTS
OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND PROVIDING
AN EFFECTNE DATE
Mayor Pro-Tem Edwards recognized Executive Director David Gavin of the Schertz
Economic Development Corporation who introduced this item stating that in 2010, the City
of Schertz contracted with Gateway Plaru~ing Group ("Gateway"} to undertake planning
efforts for the City of Schertz. The project included planning for North and South Schertz,
Sedona, FM 78 and Main Street study areas. The total contract included snot-to-exceed-
limit of $$63,324. As part of the agreement, the Schertz Economic Development Corporation
("SEDC") agreed to fund 70% of the North and South Schertz, FM 78 and Main Street study
area expenses and select expenses relating to the Sedona study area. The total SEDC
Gateway planning budget is not to exceed $58b,82b.80.
Mr. Gavin stated as of March 2013, the SEDC's current year budgeted amount for the project
had been exhausted for Gateway expenses, Rather than making several budget adjustments ~
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the SEDC chose to wait until the project was complete and to make one budget adjustment
for the project.
In working under the City's Planning & Development Services Deparhnent, Gateway has
requested $51,675.86 to fmalize the project. Including the amount requested to complete the
project, the SEDC will pay a total of $446,793.78 for the project which is $140,033.02 less
than the total amount previously approved.
Mr: Gwin stated action requested of Council is to approve an additional $50,909.10 for line
item 620-966-541410 resulting m a new current year budget of $90,909.10. Once funds have
been made available staff will submit payment in full to Gateway far their planning services
on this project.
The Fiscal Impact is $50,909.10, which will be taken from reserves to close out the SEDC's
obligation of $586,826.80 to Gateway PIanning Group. The money will be added to the
current Consulting Services line item 620-966-541410 resulting in a total budget of
$90,909.10. There will be no additional expenses in this or future fiscal years for this
project. Staff recommends approval. Mr. Gwin addressed questions from Council and
reiterated that this item only deals with Economic Development funds.
Mayor Pro-Tem Edwards recognized Councihnember Scagliola, who moved, seconded by
Councilmember Fowler, to approve Ordinance No. 13-T-28 on first reading, The vote was
unanimous with Mayor Pro-Tem Edwards, Councilmembers Fowler, Scagliola, Antuna,
and Verinder voting yes and no one vating no. Motion Carried
Roll Call Vote Confirmation
Mayor Pro-Tem Edwards recognized City Secretary Brenda Dennis who recapped the votes for the
agenda items 1 through 7.
Requests and Announcements
8. Announcements by City Manager
• Citizen Kudos
• Recognition of City employee actions
• New Departmental initiatives
No further announcements provided.
9. Requests by Mayor and Councilmembers that items be placed on a future City Council
agenda.
No items requested.
10. Requests by Mayor and Councilmembers to City Manager and Staff for information.
Mayor Pro-Tem Edwards asked when Council would be revisiting the item regarding an
exclusive contract with Bexar Waste. City Manager John Kessel stated that staff is waiting
on confirmation that each Councilmember has had the opportunity to speak with staff and
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Mr. Gutierrez regarding this issue. He stated once those conversations have been confirmed
he will put together an item for discussion.
11
Mayor Pro-Tem Edwards asked if there was a way the City could assist our local contractors
in providing contact information on the businesses that are coming in to Schertz allowing
them the opportunity to work and earn some of those contracts. Mayor Pro-Tem Edwards
suggested something like a contractor fair or vendor fair for our local businesses. Executive
Director of Development Brian James stated that certainly the City can work with purchasing
to get the word out to our local contractors so that they have the opportunity to work with the
businesses coming in, He also stated that another component is getting the information to
our Chamber to provide this information as well to promote our small businesses.
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 Pro-Tem Edwards recognized Councilmember Fowler who stated he attended the
following:
• Saturday, July 27, 2013, Hai and Barbara Baldwin remembrance fund raising event,
hosted by Grumpy's Mexican Cafe. Councilmember Fowler thanked Mr, Grumpy
Azzoz and former City Manager Don Taylor for hosting the event.
• Today, Tuesday, July 30, 2013, attended the opening of Ben Tech Solar Pool Heating.
Mayor Pro-Tem Edwards recognized Councilmember Scagliola who stated he attended the
following:
Thursday, July 25, 2013 - Crossvine Groundbreaking Ceremony.
Saturday, July 27, 2013, Hal and Barbara Baldwin remembrance fund raising event,
hosted by Grumpy's Mexican Cafe. Councilmember Scagliola also thanked Mr.
Grumpy Azzoz and former City Manager Dan Taylor for hosting the event.
Mayor Pro-Tem Edwards recognized Councilmember Antuna who thanked Mayor Carpenter
and Councilmember Verinder for attending the Alamo Area Council of Governments Greater
Bexar County Council of Cities meeting last week. He stated that the presence of the Mayor
and Councilmember Verinder made a big impact.
Councihnember Antuna apologized for not being able to attend the Hal and Barbara Baldwin
fund raising event. He stated that he sent out information about naming the Schertz Post
Office after Mayor Baldwin as he was instrumental in getting it built. He stated should staff
members need information on how to go about naming the Schertz Post Office after Hal
Baldwin, he would be happy to assist. ~
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Councilmember Antuna thanked Executive Director of Economic Development David Gwin
and the Economic Development Corporation for helping Ben Tech Solar Pool and Heating
Company with their needs.
Mayor Pxo-Tem Edwards recognized Councilmember Verinder who stated he attended the
following:
• Monday, July 29, 2013 - -Audit Committee Meeting. Counciimember Vexinder
complimented staff.
Councilmember Verinder also apologized for not being able to make the fundraising
event Saturday held in honor of Hal and Barbara Baldwin.
Mayor Pro-Tem Edwards stated he attended the Audit Committee meeting Monday as well
and complimented staff for putting such a quality packet together. Mayor Pro-Tem Edwards
also showed photos of himself and his son when he took Cedric Jr. to the United States
Military Academy at West Point last week.
Mayor Pro Tem Edwards recessed the regular meeting into executive session at 7:45 p.m.
Executive Session
Called under:
Section 551.071 Texas Government Code Deliberation regarding litigation, pending or
contemplated litigation; and Consultations with the City Attorney regarding advice on Iegal
matters;
Section SSL072 Texas Government Code -Deliberation regarding tfae purchase, exchange,
sale, lease, or value of real property, or real estate;
Section 551.074 Texas Government Code -Deliberation regarding personnel matters, policies,
duties, employment, and evaluation of certain public officials and employees;
Section 551.087 Texas Government Code -Deliberation regarding Economic Development
Negotiations.
Reconvene into Re Iar Session
Mayor Pro-Tem reconvened into regular session at 8:.11 p.m.
12. Take any action deemed necessary as a result of the Executive Session.
No action taken.
Mayor Pro-Tem Edwards announced that he has decided to run again for re-election and has
filed with the City Secretary.
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Adjournment
As there was no further business, the meeting was adjourned at 8:13 p.m.
r ro-Tem, e ric Edw s
AT~T'E T:
~ ,
~- ~
City ecretary, Brenda Dennis ~,
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