02-18-2014 MinutesMINUTES
REGULAR MEETING
February 18, 2014
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on February
18, 2014, 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 Michael Carpenter
Councilmember Jim Fowler
Councihnember Cedric Edwards
Staff Present:
Executive Director John Bierschwale
Executive Director Brian James
Chief of Staff Bob Cantu
Deputy City Secretary Donna Schmoekel
Councilmember Matthew Duke was absent.
Call to Order
Mayor Pro -Tem David Scagliola
Councihnember Daryl John
City Manager John Kessel
Executive Director David Harris
City Attorney Charles Zech
City Secretary Brenda Dennis
Mayor Carpenter called the Regular Meeting to order at 6:03 p.m.
Invocation and Pledges of Allegiance to The Flags of The United States and The State of
Texas
Minister William Prather, Resurrection Baptist Church, provided the invocation followed by the
Pledges of Allegiance to the Flags of the United States and the State of Texas.
City Events and Announcements
• Announcements of upcoming City Events (D. Harris /J. Bierschwale/B. James)
Mayor Carpenter recognized Executive Director of Support David Harris who stated "The
Gauntlet has been thrown!" Hear ye, hear ye, eleven days until the Wilenchik Walk for Life.
One team from each category that raises the most donations will be pampered with lunch
cooked by the City Management and served by the Public Affairs Department. Departments
have been paired into two groups; large and medium. The categories are listed as: Large
Teams: Fire, Police, EMS, and Public Works - Engineering - Business Office; Medium Teams:
Animal Services - Parks, HR -EDC- Finance - Purchasing, Development Services, GIS, & IT,
Public Affairs, General Services; Library, Marshal and Court, City Management Office, City
Council, and City Secretary Office.
Mr. Harris also provided the following announcements and upcoming events:
Thursday, February 20, 2014, City Council Budget Retreat has been rescheduled to
Thursday, February 27, 2014, 1:00 p.m. to 5:00 p.m. at the Schertz North Center.
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• Saturday, March 1, 2014, Wilenchik Walk for Life, 7:30 a.m. to 11:30 a.m., meet at
Samuel Clemens High School parking lot.
• Announcements and recognitions by City Manager (J. Kessel)
Mayor Carpenter recognized City Manager John Kessel who thanked all the staff members
who participated in the production of State of the City video. Mr. Kessel mentioned that the
video would be placed on the, home page of the city's website. He stated this was an exciting
video where we spoke on the achievements of the City for 2013.
Mr. Kessel recognized Finance Director Juan Santoya who was presented the Certificate of
Achievement for Financial Reporting from the Government Finance Officers Association
(GFOA) in reporting for the past 28 years. Mr. Kessel congratulated Mr. Santoya and his
department for the achievement.
Presentation
• FY 2012 -13 Comprehensive Annual Financial Report (CAFR) (J. Kessel/J. Santoya & D.
Fraser)
Mayor Carpenter recognized Mrs. Debbie Fraser, CPA, of Armstrong, Vaughan &
Associates, provided a briefing on the recent audit, thanking the Finance Department and
City staff.
Mrs. Fraser provided information on the City of Schertz and the Economic Development
Corporation General Fund revenues and expenditures versus budget as well as the
information from the prior year. She also provided information on the General Fund change
in fund balance to each. She stated the City increased their revenue a little over 1 million
dollars. Primarily the increase occurred in taxes, an effort between sales and ad valorem tax.
She provided information on the various revenue segments and what was brought in. She
provided information regarding the expenditures stating that the City spent less than what
was budgeted in the amount of $900,000. Mrs. Fraser stated the City did not exceed their
projected budget.
Mrs. Fraser pointed out the City's Fund balance increase of $2,040,389 compared to what
was budgeted $356,050 resulting in an ending fund balance of $6,017,206, up from last year.
Unassigned fund balance is sufficient to cover approximately 2.5 months of expenditures.
The City's goal is 3 months of expenditures and the City is almost there.
Mrs. Fraser stated the Economic Development Corporation (EDC) brought in $400,000 more
than was budgeted resulting in total revenue for the year of $3,224,441, they budgeted
$2,837,710. Their expenditures versus the budget, EDC spent $1,199,243 they budgeted
$2,356,279, resulting with $1,157,036 under budget. Economic Development Corporation
change in fund balance actual was $6,142,208 versus the $4,598,441 that was budgeted,
resulting in an under budget amount of $1,684,339.
Mrs. Fraser provided information on the Enterprise funds operating revenues and expenses as
well as the non - operating revenues and expenses. The following was provided:
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Water & Sewer EMS Total
Operating Revenues
Fees charged to users 17,640,390 4,459,600 22,099,990
Other charges 55,937 0 55,937
Total Operating Revenues 17,696,327 4,459,600 22,155,927
Water & Sewer EMS Total
Operatine Expenses
Personnel
1,809,382
2,781,261
4,590,643
Water purchase
1,739,708
0
1,739,708
Sewage treatment
5,808,897
0
5,808,897
Administration
4,711,382
407,178
5,118,560
Contract Services
205,080
140,194
345,274
Supplies & maintenance
278,825
473,764
752,589
Depreciation
1,845,962
138,325
1,984,287
Total Operating Expense
16,399,236
3,940,722
20,339,958
Enterprise Funds Non - operating Revenues & Expenses
Water & Sewer EMS Total
Revenue Expenses
Investment Earnings
52,744
345
53,089
Lease income
198,322
0
198,322
Miscellaneous
373,805
92,394
466,199
Interest Expense
(383,843)
(9,804)
(393,647)
Amortization Expense
(171,792)
(8,919)
(180,711)
Total Non - operating
69,236
74,016
143,252
Enterprise Funds Change in Fund Net Positions
Water & Sewer
EMS
Total
Operating Revenues
17,696,327
4,459,600
22,155,927
Operating Expenses
16,399,236
3,940,722
20,339,958
Non - operating Net Revenues
69,236
74,016
143,252
Income
1,366,327
592,894.
1,959,221
Transfers In (Out)
(25,140)
0
(25,140)
Capital Contributions
1,301,235
0
1,301,235
Changes in Net positions
2,642,422
592,894
3,235,316
Beginning Net positions
61,416,351
322,451
61,738,802
Net Positions at End of Year
64,085,773
915,345
64,974,118
She stated that beginning fiscal year 2014, the City will have to record their unfunded
liability on the financial statements.
Mrs. Fraser stated there were no major comments to let you know, they are just asking on
your reconciliations you take off some of the old stale dated checks, your procedures in the
municipal court improved from the previous year with issuing less manual receipts, due to
opening two cash registers at the court window.
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Lastly, Mrs. Fraser stated one very interesting fact is the City went from half a month of fund
balance operating expenses in 2009 to two and half months in 2012. This is something to be
very proud of City Manager John Kessel stated that this is very important; the City has had
some discussions about what our goal should be. Currently it is set at 25 %, which is three
months operating budget in the general fund. The City was down 1.2 million and now it is
up around 4.3 million and we have a way to go. We did a quick catch up this year when-we
had some opportunities which will help achieve the goal if we stay on task, which in tam will
allow us to do things with those monies other than putting it back into savings. Certainly the
fact that we utilize those savings over the previous years tells us that it is important to have,
on the other hand we want to be mindful that we don't want to have too much. That's always
the balance and that is why Council set the goal of 25 %. It looks like we made huge steps,
and we have, but we are not there yet.
Mayor Carpenter recognized Councilmember Edwards who stated that they had talked
several years ago about fixing things, making sure we would be able to do things
systematically as our fiscal health improved as well as the economy. This is a move in the
right direction tonight with the audit report results. Councilmember Edwards thanked the
finance department, all the department heads, and guys and gals on the ground, saying we
asked you to tighten your belt, do more with less, you did, and it was appreciated. You are
setting the City up for a tremendous future.
• Presentation regarding the review of Health and Medical Broker Services (J. Kessel/J. Smith)
Mayor Carpenter recognized Human Resource Director Josh Smith who stated it is the City's
practice to review third party services every few years to ensure that the City, its citizens, and
its employees are receiving the very best in customer service and value. It is the obligation of
city staff to ensure we are conducting our due diligence when we select 3rd party services that
affect our customers, whether these customers are internal or external.
He stated it has come time for staff to review our Insurance Brokerage Services. The last
time this service was reviewed was in September of 2009. Again, like other services, we
believe that it is appropriate to review this service every few years to ensure that our
employees are receiving value and service of the highest quality because this service, in
particular, has a direct impact on the level of quality our employees receive in regard to
health benefits.
Some of the services an insurance brokerage firm provides include only some of the
following:
1. Assisting with benefit plan development
2. Issuing and/or assisting with Requests for Proposals for 3`d party, benefit insurance
carriers
3. Negotiating insurance rates with 3`d party benefit carriers
4. Assisting with wellness initiatives
5. Reconciling and paying monthly benefit bills
6. Assisting employees with annual and new hire benefits open enrollment
7. Assisting in benefit and wellness communication to employees
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Staff will be issuing a Request for Proposal to compare services and costs among competing
brokerage firms. Our current brokerage firm has been informed of the city's intention to
move forward with an RFP, which staff plans to release within the next few business days.
Mr. Smith stated we wanted to make sure that Council was aware of this review we are about
to undertake.
Mayor Carpenter recognized City Manager John Kessel who thanked Mr. Barnard for the
work he has been performing for the City over the last five years. He stated that whenever he
had a question or needed some information, Mr. Barnard was available to assist.
• Presentation and discussion regarding the Buffalo Drive Traffic Issues (Item requested by
Councilmember Edwards. (B. James/K. Woodlee/L. Busch)
Mayor Carpenter recognized Engineer -in Training Larry Busch who provided an update on
the Buffalo Drive traffic issues stating that as a result of removing the schools zones on
Schertz Parkway and moving it to Elbel, the flow and congestion of traffic has been
eliminated. The crosswalk on Buffalo Drive will be moved down to Pecan Drive which will
also assist in traffic issues. Staff performed peak hour observances of the traffic flow and
saw no problems with individuals wanting to turn left onto Schertz Parkway. The traffic
issues were taken to the Transportation Safety Advisory Committee and they recommended
no changes or improvements. Councilmember Edwards thanked staff for their report as well
as the Transportation Safety Advisory Commission.
Hearing of Residents:
Mayor Carpenter recognized the following who spoke:
• Mrs. Maggie Titterington, Schertz Chamber President who provided information on
upcoming events of the Chamber which included some of the following:
- Tuesday, February 18, 2014, Chamber Luncheon where Cities of Schertz,
Selma and Cibolo provided their FY 2013 State of the City Address.
- Thursday, March 20, 2014, The Taste "Down Home" Schertz Civic Center
5:00 p.m. to 8:00 p.m., Tickets are on sale now.
- Tuesday, March 18, 2014, Schertz Chamber of Commerce Luncheon,
TxDOT will be speaking - 11:30 a.m. to 1:00 p.m.
- Friday, March 28, 2014 Employer Compliance Workshop, Schertz
Chamber 8:00 a.m. to noon.
- Tuesday, April 15, 2014 Schertz Chamber Luncheon special speaker is
Secretary of State Nandita Berry.
Mrs. Titterington also stated that she has been invited to attend the 12`h Flying Wing
ceremony.
Consent Agenda Items
I Minutes - Consideration and/or action regarding the approval of the minutes of the regular
meeting of February 11, 2014 (J. Kessel/D. Schmoekel).
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2. CAFR FY 2012 -13 — Consideration and/or action regarding the approval of the FY 2012 -13
Comprehensive Annual Financial Report (CAFR). (J. Kessel/J. Santoya & D. Fraser)
3. Ordinance No. 14 -D -04 — Consideration and/or action approving an Ordinance amending
the City's Code of Ordinances by adding Hickory Lane to Article V, Section 86 -149 Parking
Prohibited on Roadways Maintained by the City of Schertz; and providing an effective date.
Final Reading (B. James/L. Busch)
The following was read into record:
ORDINANCE NO. 14 -D -04
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
PROVIDING THAT THE CODE OF ORDINANCES OF THE CITY OF SCHERTZ,
TEXAS BE AMENDED BY ADDING HICKORY LANE TO ARTICLE V, SECTION
86 -149 PARKING PROHIBITED ON ROADWAYS MAINTAINED BY THE CITY
OF SCHERTZ; AND PROVIDING AN EFFECTIVE DATE.
4. Ordinance No. 14 -T -05 - Consideration and/or action approving an Ordinance authorizing
additional funding for the P -25 Radio Transition; repealing all ordinances or parts of
ordnances in conflict with this Ordinance; and providing an effective date. Final Reading (B.
Cantu/J. Walters)
The following was read into record:
ORDINANCE NO. 14 -T -05
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING ADDITIONAL FUNDING FOR THE P -25 RADIO TRANSITION;
REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT
WITH THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE
5. Resolution No. 14 -R -07— Consideration and/or action approving a Resolution creating and
providing 2014 funding to the Hal Baldwin Scholarship, and appointing members to the 2014
Hal Baldwin Scholarship Committee. (B. Cantu/S. Gonzalez)
The following was read into record:
RESOLUTION NO. 14 -R -07
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
CREATING AND PROVIDING 2014 FUNDING TO THE HAL BALDWIN
SCHOLARSHIP, AND APPOINTING MEMBERS OF THE 2014 HAL BALDWIN
SCHOLARSHIP COMMITTEE, AND RESOLVING OTHER MATTERS IN
CONNECTION THEREWITH
Mayor Carpenter recognized Councilmember Fowler, who moved, seconded by
Councilmember Edwards, to approve Consent Agenda items 1 -5 as presented. The vote was
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unanimous with Mayor Pro -Tem Scagliola, Councilmembers Fowler, John, and Edwards
voting yes and no one voting no. Councilmember Duke was absent Motion Carried
Discussion and Action Items
6. Ordinance No. 14 -T -06 — Consideration and/or action approving an Ordinance by
authorizing a project budget and budget adjustment for the Hal Baldwin Memorial Plaza
construction project. First Reading (D. Harris/D. Harris)
The following was read into record:
ORDINANCE NO. 14 -T -06
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING A BUDGET ADJUSTMENT TO ESTABLISH ADDITIONAL
EXPENDITURES IN THE 2013 -14 BUDGET IN THE AMOUNT OF $52,857
RELATED TO THE HAL BALDWIN MEMORIAL PLAZA CONSTRUCTION
PROJECT; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN
CONFLICT WITH THIS ORDINANCE AND PROVIDING AN EFFECTIVE DATE
Mayor Carpenter recognized Executive Director of Support David Harris who introduced this
item stating tonight's action requests establishing a project budget and a budget adjustment
from the Hotel Occupancy Tax Fund in the amount of $36,072 to partially fund the Hal
Baldwin Memorial Plaza. The balance of the funds are coming from donations raised,
$16,785. The total project budget is $52,857.
After this transfer, the Hotel Occupancy Tax Fund will have a projected year -end balance of
$411,439. Staff recommends approval of first reading.
Mayor Carpenter stated that staff is targeting a completion date on May 1, 2014, so that we can
have an official ribbon cutting on Saturday, Election Day, May 3, 2014, which would mark the
20`h anniversary of when Mayor Baldwin was first elected to his post.
Mayor Carpenter recognized Councilmember Edwards, who moved, seconded by
Councilmember Fowler, to approve Ordinance No. 14 -T -06 on first reading. The vote was
unanimous with Mayor Pro -Tem Scagliola, Councilmembers Fowler, John, and Edwards
voting yes and no one voting no. Councilmember Duke was absent Motion Carried
Roll Call Vote Confirmation
Mayor Carpenter recognized Deputy City Secretary Donna Schmoekel who recapped the votes of
items 1 through 6.
Requests and Announcements
7. Announcements by City Manager
• Citizen Kudos
• Recognition of City employee actions
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• New Departmental initiatives
No further announcements provided.
Requests by Mayor and Councilmembers that items be placed on a future City Council
agenda.
No items requested.
9. Announcements by Mayor and Councihnembers
• 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 Carpenter recognized Mayor Pro -Tem Scagliola who stated he attended the following
events:
Wednesday, February 12, 2014 — FM 3009 & FM 78, Ribbon Cutting Urgent
Care & Occupational Health Centers of Texas.
Thursday, February 13, 2014, Northeast Partnership meeting, where on behalf of
Mayor Carpenter who spearheaded the resolution, presented a resolution to
influence the House of Representatives to delay a very costly flood insurance
program and return some of the subsidies to the residents. He stated no sooner
did he finish presenting it when they moved to approve it. Mayor Pro -Tem
Scagliola thanked Mayor Carpenter for initiating this action and thanked the
Northeast Partnership for supporting it.
Thursday, February 13, 2014, attended the Republic Lincoln Day Dinner —
Schertz Civic Center, he stated it was a super event.
Tuesday, February 18, 2014 — Schertz Chamber of Commerce Luncheon, City
Managers from Schertz, Selma and Cibolo had an opportunity to brag about their
cities. Mr. Kessel did us proud. Special thanks to Publications Editor Chuck
McCullough for his dedicated services as our designated "shutter bug."
Mayor Carpenter recognized Councihnember Fowler who stated he attended the
following:
Wednesday, February 12, 2014 and Thursday, February 13, 2014 — attended the
Joint Land Use Study Public Workshop for Randolph. He stated they discussed
28 different areas where the cities and the military were concerned with. Those in
attendance and as a group voted on which areas were high priority comparing
them to the areas the public had looked at on Wednesday. He stated that there
was a close correlation between both groups. He stated that a final analysis of the
data will be conducted and the Executive Board will start making a decision on
which one of the projects they will try to do this year.
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Mayor Carpenter recognized Councilmember Edwards who reminded everyone that
Early Voting had begun.
Mayor Carpenter thanked Mayor Pro -Tem Scagliola for attending the Northeast
Partnership meeting this past week. Mayor Carpenter stated he also had an
opportunity to visit the Senior Center. He stated that over time we will need
volunteers as we rebuild that facility. This is a great opportunity, in separating
ourselves with the Foundation, we have taken the reigns and we all, including staff,
citizens, and volunteers will do well with this. Mayor Carpenter stated there are two
employees that the city asked to take on double duty to man the Senior Facility; Mrs.
Sandy Bryant and Mrs. Sherry Davis. Mayor Carpenter thanked them publically in
the forum and for the record for what they are doing at the Senior Center, it is an
integral part of what we are as a community and frankly the City could not do it with
out the two of you.
Mayor Carpenter stated with regard to House Resolution 3370, with regard to flood
insurance, not only did the Northeast Partnership pass the resolution encouraging our
members of Congress to pass this by- partisan bill, which will give relief to dozens of
homeowners here in Schertz. A much need relief to the point that there are citizens
that may be paying twice as much for their house with mortgage and flood insurance,
most of the citizens will not be able to make that transition and make that kind of
payment. Mayor Carpenter encouraged everyone to call upon their elected
representatives in Washington to pass House Resolution 3370. Mayor Carpenter also
stated that he has written and sent letters to all Representatives to support the
resolution.
Executive Session
Council did not meet in Executive Session.
Adiournment
As there was no further business, the meeting was adjourne2iael
R. Carpenter, Mayor
ATTEST:
r ,0 v-ouu
Brenda Dennis,, City Secretary
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