Loading...
04-15-2014 MinutesMINUTES SPECIAL JOINT AND REGULAR MEETING April 15, 2014 A Special Joint Meeting with the Schertz Economic Development Corporation Board and a Regular Meeting were held by the Schertz City Council of the City of Schertz, Texas, on April 15, 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 Councilmember Cedric Edwards SEDC Members Present: President Tim Brown Director Sydney Verinder Director Grady Morris StaffPresent: Executive Director John Bierschwale Executive Director David Gwin City Attorney Charles Zech Deputy City Secretary Donna Schmoekel Mayor Pro -Tern David Scagliola Councilmember Daryl John Councilmember Matthew Duke Director Roy Richard Director Marvin Thomas City Manager John Kessel Executive Director Brian James Chief of Staff Bob Cantu City Secretary Brenda Dennis Call to Order - Special Joint Meeting (City Council and Schertz Economic Development Corporation meeting) Call to order by each Governing Body. Mayor Carpenter called the Special Joint Meeting of the City Council and the Schertz Economic Development Corporation to order at 6:00 p.m. Schertz Economic Development Corporation President Tim Brown called the Special Joint Meeting of the City Council and the Schertz Economic Development Corporation to order at 6:00 p.m. Invocation and Pledges of Allegiance to the Flags of the United States and State of Texas. Councilmember Fowler provided the invocation followed by the Pledges of Allegiance to the Flags of the United States and the State of Texas. 2. Discussion and possible action regarding the sustainability of our successes with the Schertz Economic Development Corporation. (M. Carpenter /SEDC) 04 -15 -2014 Minutes Page - t - Mayor Carpenter stated that he had asked for the joint meeting with the Economic Development Corporation due to having two new Councihnembers since the election last November and that there are new members on the Economic Development Corporation Board and at the same time the City is experiencing very strong economic development successes. Mayor Carpenter stated he wanted to make sure they had the opportunity for any Councilmember or Economic Development Board member who wanted to comment on that in a public forum. The Texas Open Meetings Act indicates that we do not have private conversations and talk City business except in an open session, and that is why we have it listed. Mayor Carpenter stated he would like to put Councilmember Edwards on the spot as he knows the upcoming commentary will be robust and would like Councilmember Edwards to make a first comment on our economic development efforts and what we are trying to accomplish. He then will give each member on the Economic Development Corporation Board and City Council the opportunity to do the same. Mayor Carpenter recognized Councilmember Edwards who stated that since he and others have joined the Council they decided they would be very pro - business as well as protect our residents. Some of the things they have incorporated are the public - private partnerships. The partnerships have done very well for the City, and believe that is the way they should go moving forward. It is a great opportunity for the City to lower the costs for our citizens as well as get the biggest bang for our buck. Mayor Carpenter recognized Councilmember Fowler who stated he attends the board meetings from time to time and he finds them interesting and exciting because of the forward thinking. He also sees that Council and the Economic Development Board are thinking outside the box. He stated he appreciates the board and especially appreciates David Gwin. Councilmember Fowler stated that Mr. Gwin serves on the Texas One Board as well, and he is trying to draw companies into our state. Texas is one of the major states that businesses are coming to. Our City is going to grow with or without us. It is going to be dependent on how we make it grow. The Council relies on the decisions of the Economic Development Corporation, because it is a matter of trust, and believes they do their due diligence. He wanted the Economic Development Corporation to know they can expect the same thing from the Council. Mayor Carpenter recognized Mayor Pro -Tern Scagliola who stated he was over at the Chamber of Commerce today and was talking about corporate social responsibility. Municipalities are in a unique position because on one hand you are supposed to run the City like a business, and on the other hand a municipality is really not a business. So how do you balance your fiscal responsibility with your social responsibilities? How do you balance the need for providing services with the need of providing quality of life to your citizens? The answer to that is "Economic Development." He is appreciative that we have some of the best minds in the City sitting on the Economic Development Corporation Board. Mayor Pro -Tem Scagliola thanked the board and thanked David Gwin the Economic Development Director. Mayor Carpenter recognized Councilmember Duke who echoed what Mayor Pro -Tem Scagliola said, which is the balancing of fiscal responsibility with social responsibility. 04 -15 -2014 Minutes Page -2- He stated that one of the things he was always impressed with was the group examined every opportunity as an investment, not just a financial investment but how would the business partner be for the community. There were many times where opportunities were presented from a fiscal analysis you would say it was a good deal, but from a community and social analysis it was not. The business did not match the community. Other big cities have taken those projects and have paid the price. He believes as they go forward to continue to have that mentality that we are investing not only in the business but also in our community. Staying focused and making sure that we are wise with our investment. Make sure we have the resources to leverage the Amazons of the world. Mayor Carpenter recognized Economic Development Corporation President Tim Brown who stated everything that has been discussed earlier is what they think about in their meetings. When opportunities are provided to the City, we have to take a look at it both financially and socially. He believes that this is being done very well. They thanked David Gwin and staff for keeping them on track. They do the majority of the heavy lifting on a day to day basis and provide them with good guidance when they meet so that they can make those important decisions. Mr. Brown commented on the makeup of the Economic Development Corporation Board stating that without their experience they would not be competent to make those decisions. Mr. Brown thanked the Mayor and Council for the opportunity. Mayor Carpenter stated that first and foremost Councilmember Fowler made a very valid point, the City Council trusts the Economic Development Corporation. He stated for those who are visiting this evening and are not familiar with the group, these are citizens, residents, friends and our neighbors that serve, those who are looking out for our best interests. He stated to Councilmember Dukes point, there may be a great financial opportunity that is brought before the Economic Development Corporation, but if it is not a fit for this community and what the community aspires to be and remain we don't want that business: What we are fundamentally as a City, the City of Schertz as we come to know it for the last 55 years, as well as what we envision the City will look like for our children, the Economic Development Corporation is looking out for us every time. Things that on paper might look good, to Councilmember Dukes point; possibly being a huge positive financial impact to the City, but that it might have the potential to ruin what we have built as a community. The Economic Development Corporation safeguards that balance. Mayor Carpenter stated that the Council needs to know when the Economic Development Corporation needs things. The Council is ready to think outside the box with you. If you need other tools, other things at your disposal to continue the success, ask us, let's get together and figure out how we can do it. We have had the great success with having GE Oil and Gas, Sysco Foods, Caterpillar and Amazon.com coming essentially over the last 3 or so years. This is an amazing wave we are riding. Those waves don't come along every year, or every few years, they can be rare and few and far between. We have to ride that wave as long as we can. It will propel us financially into the future for years after everyone one in this room has gone. That is part of our job. It is an exciting time. The position that we have gotten to recently, where the balance of what we have to ask our residents to pay in taxes and what we are able to generate from our business community from sales tax have come into a good balance. 04 -15 -2014 Minutes Page - 3 - This means if there is an economic downturn, with the balance, the fluctuations that happen for us as a City in aggregate are minimized. It is a risk migrator to have that balance of revenue and taxes. Mayor Carpenter expressed his exuberance and excitement at what is happening in the City in regards to economic development. Mayor Carpenter thanked the board for safeguarding the balance and putting the City on the path of long term sustainability for our children and grandchildren, so that they will have the opportunity in the future. Mayor Carpenter recognized Mr. Ken Greenwald, who in the earlier years brought water into the City. The companies would not be coming here if we did not have the water. Finally, Mayor Carpenter stated that the Economic Development Corporation is a significant contributor to the long term success of the City of Schertz. Mayor Carpenter recognized Economic Development Board Member and Judge Roy Richard who came forward stating that if you want to help them, to please keep our Director, David Gwin. He commended City Manager John Kessel for how Economic Development is being run and should be run, and his assistance in spearheading economic development. Judge Richard stated they are on the right track and need to continue. Mayor Carpenter stated that before they adjourned into executive session he would like to mention that if students were here this evening participating in the Hal Baldwin Scholarship, to please sign the sheet that is in the back. Mayor Carpenter recognized Eagle Scout Candidate Ryan Braden of Troop 51 who was in the audience this evening, stating that he was here this evening working on his Communication merit badge. Executive Session Mayor Carpenter adjourned the City Council Special Joint Session into Executive Session at 6:25 p.m. Schertz Economic Development Corporation President Tim Brown adjourned the SEDC Special Joint Session into Executive Session at 6: 25 p.m. 3. City Council and the Economic Development Corporation will meet in closed session under section 551.087 Texas Government Code, Deliberation regarding Economic Development Negotiations with business prospects E -003 and E -004. Reconvene into Special Joint Session Mayor Carpenter reconvened into the City Council Special Joint at 7:15 p.m. Schertz Economic Development Corporation President Tim Brown reconvened into the SEDC Special Joint Session at 7:15 p.m. 3. a. Take any necessary action based on discussions held in closed session under Agenda Item number 3. 04 -15 -2014 Minutes Page - 4 - No action taken. Adiournment 4. Both Governing bodies adjourn Special Joint Meeting. Mayor Carpenter adjourned the Special Joint Meeting at 7:15 p.m. EDC President Tim Brown adjourned the Special Joint Meeting at 7:15 p.m. Call to Order Councilmember Duke left the meeting at 7:15 p.m. Mayor Carpenter called the Regular Meeting to order at 7:16 p.m. City Events and Announcements • Announcements of upcoming City Events (J. Bierschwale /B. James) Mayor Carpenter recognized Executive Director Brian James who provided the following announcements and upcoming events: • Thursday, April 17, 100'h Birthday Celebration and Proclamation (Lorna Schertz Dawson ), Silver Tree Nursing and Rehabilitation — 930 FM 3009, 2:00 p.m. • Thursday, April 17, Chambers After -Hours Mixer New Haven Assisted Living & Memory Care, 2300 FM 3009, 5:30 to 7:00 p.m. • Saturday, April 19, Absolute Jazz, Pickrell Park, 2:00 to 9:00 p.m. • Save the Date: Sunday, May 18, EMS Golf Tournament, Olympia Hills Golf Club, registration begins at 10:00 a.m. • Announcements and recognitions by City Manager (J. Kessel) Mayor Carpenter recognized City Manager John Kessel who recognized and thanked City Secretary Brenda Dennis who conducted an expanded Board and Commission recruitment fair this year by calling it a Community Volunteer Fair. He stated Ms. Dennis encouraged and invited many other volunteer agencies to attend along with our City Boards and Commissions. He also stated she recruited a team to assist her with this event. Mr. Kessel stated it was well attended and one of the best that we held so far. Mr. Kessel mentioned that this was the third year we hosted this event, and each time we look back at the past events and see what we did that made it a success and what we could do to make it better next time. Ms. Dennis stated that she wanted to thank the following who assisted her: Donna Schmoekel, Mary Spence, Celina Blair, Sandy Bryant, Sherry Davis, Melvin and Connie Broth. Those present stood to be recognized. Mr. Kessel stated that we have a lot of discussions as a City as to how to get more involvement of our community, and the place where it should start is by encouraging citizens to volunteer and participate. 04 -15 -2014 Minutes Page -5- Hearin of Residents: Mayor Carpenter recognized the following who spoke: Ms. Maggie Titterington, Schertz Chamber President and Resident who came forward announcing the success of the Chamber Luncheon today with Ms. Nandita Berry, Texas Secretary of State coming to speak to us about Texas. Ms. Titterington also provided information on the Chamber's upcoming events. Ms. Titterington stated as a resident she wanted to commend the Planning and Zoning Commission for listening to the residents when they have concerns regarding a development and for making real decisions that complement the City. Mayor Carpenter thanked Ms. Titterington for being able to get the third Secretary of State in a row to come speak in our City. Mr. Mark Davis, 3644 Marietta Lane, who came forward speaking about agenda item 4, Resolution 14 -R -37. He spoke on the concern for the particular agenda wording, and how you had to navigate through several pages of the agenda on the website to get to the supporting materials for this resolution. Mr. Davis stated in the supporting materials it reads that "the City is considering issuing up to $3,000,000 of Certificates of Obligation for the purpose of constructing a recreation pool and related facilities that will enhance the planned competition pool." It continues stating that "the City will enter into an agreement with the YMCA that will help offset the debt service with annual payments from the YMCA. The Certificates of Obligation will pledge that ad valorem taxes be used to repay the Obligations, but if payments from the YMCA are sufficient then there will be no impact on the City's tax rate." He stated that as a resident and taxpayer his concern is the smallest word in that paragraph, "if'. If the payments from the YMCA are not sufficient, then that will be an impact on our property taxes. He stated this is potentially a $3,000,000 obligation on top of the $6,000,000 that was already approved on a bond referendum. As a taxpayer, his concern is this is not good information going out to the City. It takes too much effort to get to that level of detail in the agenda materials to find out what you were talking about. His other concern is the wording of the resolution in the supporting information. He would think that before we talk about obligating the City to potentially $3,000,000 that they would hear more about the agreement with the YMCA. Specifically what are the plans for their participation in the program, what limitations are involved, and what happens down the road if the YMCA and the City goes their separate ways? His last concern is as a Parks and Recreation Advisory Board Member. This is a significant Parks and Recreation item that to the best of his knowledge wasn't brought before them. He would think that a parks and recreation project to the tune of $3,000,000 would at some point been a discussion point on the agenda of the Parks and Recreation Advisory Board so those members could weigh in and give their input to the City Councils future actions. 04 -15 -2014 Minutes Page - 6 - Mr. Robert Brockman, 1000 Elbel Road, who spoke on the agenda language of Item 2 and requested additional language be added in the future to an agenda item so that citizens could tell what street they were talking about. Workshop Discussion and possible action regarding the need for an additional new ambulance, and options to purchase in FY 2014. Q. Bierschwale/D. Wait) Mayor Carpenter recognized EMS Director Dudley Wait who introduced this item stating in the EMS Department budget FY 2014, City Council approved the purchase of one new ambulance by financing up to $150,000 for four years. While planning the purchase of this new unit to take our fleet to eight reliable ambulances, we had another ambulance reach a point that Fleet Services can no longer support keeping it in service as a safe and reliable reserve unit. With a growing need for a fifth unit in service during peak times and truly a need for a sixth unit at times, we need to now acquire two (2) new ambulances so that we can have a fleet of eight (8) reliable in- service ambulances. This will place our fleet at 133% of anticipated peak unit hour need which is a level recommended by Fitch in our recent consultant report. Mr. Wait stated the two newest ambulances that we purchased, manufactured by Crestline out of Canada, continue to have a few minor issues. Difficulties in getting these addressed combined with the recent reorganization and changes in manufacturing and pricing at Crestline cause us to look at other builders that could meet our needs. We have found at least three vendors (Braun Ambulance, Demers Ambulance and Horton Ambulance) that can build an appropriate unit to meet our needs. We are looking at an identical patient module box to be placed on either a Chevy Van chassis or a Mercedes Sprinter Van chassis based upon chassis availability and cost. To assure we will get the best possible pricing on these units, we would recommend making our final decision through a sealed bid process. The due process we have done to date leads us to believe we can acquire these two units at an approximate cost of $150,000 each. This does not include a stretcher or stair chair ($15,000 per ambulance) or other disposable and non - disposable equipment. Radios for two ambulances were included in the recent P25 radio purchase (one for the planned new unit and one for the ambulance no longer in service). In review of our current operational status and our approved budgeted funds, we have found the following options to fit this purchase within the currently approved budgeted funds for FY 2014. First, our FY 2014 budget had funds available to replace our field supervisor vehicle ($80,000) and to purchase the Road Safety Driver Monitoring System ($96,000). After discussing with staff, we feel that we could delay both of these purchases until FY 2015 and use these funds ($176,000 total) to make the allocation of a second ambulance possible immediately. 04 -15 -2014 Minutes Page - 7 - After reviewing our current financial performance with the Finance Department and with City Management, the EMS Department would like to discuss two options with City Council for making this additional purchase this year: Increase the currently approved financing from $150,000 to $225,000, for four years and using $75,000 cash as a down payment on the purchase. This will leave $101,000 of reallocated budget funds that could be used to complete the purchase of needed equipment for the second ambulance and put approximately $75,000 into reserve at.the end of the fiscal year for future ambulance replacements; OR, Use the reallocated funds to pay cash for the second ambulance and only finance the original amount of $150,000 for the purchase of the first new unit. The $176,000 of reallocated funds should allow for the purchase of the ambulance and needed equipment but would leave no additional dollars available for additional reserves. Mr. Wait stated staff would recommend that we pursue obtaining bids for the purchase of two new ambulances. Once the final cost is known, staff will return to Council in early May with the total cost of two ambulances and the cost of financing the debt versus paying cash. At that time, we will seek Council's approval of the best vendor to build two new units and to approve the best course of action on how to complete the purchase. Mayor Carpenter asked Financial Advisor Mark McLiney if this was a financially sound approach. Mr. McLiney stated that when you do bonds, this is too small of an amount to do a typical obligation bond, but it is a possibility for a lease purchase which is similar to a bond and is done on an operational side. He thought we could get a 2 '/4 interest rate or less. Two banks he knows said yes they could do that. Financing rates right now are very low. Councilmember Fowler expressed concern that this had not been brought up to Council before when they became aware of the problem. Mr. Wait said they had originally asked for one more ambulance because they knew Number 270 was no longer serviceable. They knew Number 261 had problems but were hoping to get two or three more years out of it. Looking at all their options leading up to tonight, they decided it would be best for the long term to just get two new units rather than one new and one used unit. Staff has been doing research to figure all this out and are coming forward with the two best options for Council to consider. Councilmember Scagliola recognized they had done their research and the two options presented tonight sounded reasonable. Councilmember Edwards concurred. He said he recommended that we take out a loan at 2/1/4 percent and move forward post haste. Mayor Carpenter summarized that what Mr. Wait was asking of Council is to grant permission to go out for bid and bring that information back and talk to Council again about how we can make the purchase. Hearing no dissent, Mayor Carpenter directed that we go out to bid and see what we can find. 04 -15 -2014 Minutes rage - 8 - • Discussion regarding the proposed Enclosed Community Swimming Pool and Aquatic Facility of Competition Quality. (B. James) Mayor Carpenter recognized Executive Director of Development Brian James who introduced this item stating they wanted to update Council on the proposed Enclosed Community Swimming Pool and Aquatic Facility of Competition Quality. He stated in 2010 voters approved a $6.625 million dollar bond to construct an enclosed Community Swimming Pool and Aquatic Facility of Competition Quality. We have been in discussions with the YMCA and Schertz- Cibolo- Universal City Independent School District (SCUCISD) to partner with them to maximize its construction and end user potential. Staff has worked with Marmon Mok Architects on a master plan and it was estimated that it would take about 6 -9 months for architectural design and 14 -18 months for construction. The plan would provide for the competition pool, a zero entry pool, relocating the plash pad, and parking. Estimated cost of combined facility as envisioned is approximately $9 million. However, we won't have an exact cost until we actually go out and start spending money. Another thing to remember about this is that it is located in the flood plain and that will add costs to the project to be compliant. We already have an Interlocal Agreement with SCUCISD where they will be contributing $1.625 million in exchange for a 15 year lease, rent free. Hours of use and specific improvements to the natatorium will be determined through a separate agreement. The $1.625 million can be used as the City determines appropriate. We have a diverse community with diverse needs. How do we meet everyone's needs? This is likely to be our only indoor aquatic facility. We want to avoid outgrowing it anytime soon. However, this will not be a gold plated facility. Let's maximize the use of it and find partnerships that make sense to help us. We currently have agreements with the YMCA to help operate the pools at Pick rell Park and Northcliffe. The City pays the YMCA $179,878 annually for this purpose. The total annual budget for the pools for 2013 -14 is $254,503. Two proposed agreements for the YMCA is 1) Amended and Restated Schertz Recreation Center, and 2) Community Pool License Agreement and Outdoor Pools Management Agreement. These agreements cover both proposed indoor bodies of water and both outdoor pools and Recreation Center. The City will pay the YMCA $380,000 annually to operate the Recreation Center and indoor pool facilities as well as an additional $100,000 as a grant to help lower the cost of memberships for Schertz citizens. If the Recreation Center and pools generate excess revenue after expenses, then the grant by the City may be reduced by 20 %. The City will continue to pay $179,878 to operate the two outdoor pools and will retain revenues from gate receipts, season passes and concessions as is currently the case. There is also a provision that the City may close one of those pools if deemed necessary. The Northcliffe pool is convenient to those residents in the neighborhood and the one at Pickrell Park is just tremendously well used. However, the provision here is to give us flexibility going forward. YMCA would set rates for non - Schertz members. Schertz rates would not go up more than 2% annually. Initial memberships for Schertz residents will be waived but they would then be responsible for their annual membership fee. The City will issue a minimum of an additional $2 million in taxable bonds. The YMCA will pay the City $100,000 annually which will be used to pay off the bonds. The YMCA membership provides access to the Recreation Center and pools. It will be a package deal 04 -15 -2014 Minutes Page - 9 - and not separate memberships. Schertz residents can use the pool twice a year free. The agreement outlines the repair and maintenance obligations for each (City and YMCA) but City is responsible for capital repair. The next steps are to have a Parks and Recreation Board meeting to bring those members on board with what we are doing and being clearer when putting things on the future Agendas. Pending Council's approval, Owners Representative Phil Gaudreau has already been working with architecture firm Marmon Mok Architects to generate a contract to do the initial design of the facility and bring on a construction manager so we are balancing as we go through the design process. These are the next steps going forward. We will need to finalize the agreement with the YMCA, have Council approve it and issue the bonds and finalize an agreement with the school district. Mayor Carpenter recognized Councilmember Fowler who asked if we had a signed contract with the YMCA at this time and if we agreed to the $2 million doesn't that put us in a situation where we are obligated but we don't have a good contract? Mr. James said that there is a process we have to follow and a time frame to get everything queued up. Financial Advisor Mark McLiney stated this notice of intention lets voters know in advance because it will be published two weeks in a row. It does not issue the debt. It is the first legal step in order to sell the debt. Mr. McLiney stated on June 3, 2014, we would come to Council with interest rates and the sale document and supporting Ordinance authorizing it. Mr. James reiterated that we will not issue bonds until we have a signed contract. Mayor Carpenter recognized Councilmember Scagliola who stated the 2010 bonds were about $6.6 million which included the relocation of the Playscape. There is about $5.5 million left. By partnering with the YMCA and SCUCISD it appears we have an opportunity to have a $9 million dollar facility. Mr. James said yes, we spent money on the Playscape and will spend money on design and soil testing but there are still some unknowns in regard to the flood plains and we must meet our obligations. The goal is to pull in the money from the YMCA and SCUCISD and have a facility that most people are satisfied with. Mayor Pro -Tem Scagliola pointed out we have an established relationship with the YMCA and they have not let us down. Mr. James agreed it does help solidify our partnership with them. There is no better track record than what the YMCA has. Mayor Carpenter recognized Councilmember Edwards who pointed out our accomplishments with the pool in Pickrell Park which was constructed in 1974, the construction of the Civic Center and the new Animal Adoption Center on Community Circle, and stating that all these cost money. He stated we cannot get to design without these obligations, correct? Mr. James said there is risk in going forward but every Council has had to deal with this. There is a cost to running all these services. Sometimes it is contracted out and sometimes City staff runs it. There is always maintenance cost by either adding people or partnering with other sources. So far we don't have anyone in mind for the natatorium and it is probably not within our staff s qualifications to do it. The buildings and systems of today are more complicated. The current Parks and Recreation employees already have a lot on their plate and do not have the training for what we are going to be building. 04 -15 -2014 Minutes Page -10 - Mayor Carpenter stated we passed a bond in 2010 and have spent years evaluating what is the best for the community. He wrote down several concepts: 1) Make no mistakes or keep them to the barest minimum. We've learned when we spend taxpayer's money we better do it well and do it right the first time so we don't incur more costs down the road. 2) Build the correct project that meets the needs of the most possible stakeholders without going so far that we adequately meet the needs of none of them. This is a delicate balance that we have worked on for years. 3) We have to ensure that the people, who are paying for the construction of the project and paying the taxes, pay the least for the access to it. 4) Ensuring long term sustainability and cost - effective maintenance and operation. 5) We cannot build a project that saddles the next team with unnecessary problems due to our poor planning. What we have done well is we have built the most that we can and should build without overbuilding. Our job, whenever we spend taxpayer money is that we mitigate our risks, both short term and long term. We have done that with the 1970's baseball fields. We have entered into public - private partnerships since early on and this has allowed us to do more with less. When we sit up here on the dais and act like it's our money that we are spending, we tend to get things right. He said after looking at all the options and what we have come to know with the school district and YMCA, it is a good deal for the City. The YMCA has also done a good job for the City and been around a long time. It is time for us to move forward and we have a responsibility to respond to the voters. Councilmember Fowler asked for clarification on the fiscal impact. Mr. James stated that ultimately the City is obligated to pay for the bonds at the end of the day. The way this is structured though, is that the YMCA's payment to the City would wind up being the payment for the bond. Mark McLiney of Southwest Securities stated if we proceed with the issuance of the certificates of obligations, ($2 or $3 million) based on the interest; there will be an annual debt service obligation. The monies from the School District and YMCA can be used to offset the payments. Anything short would have to come from other City resources. City Manager John Kessel stated we will have a fairly close estimate of how much we need to issue and what the interest will be prior to issuing that debt. The further along we get with the project, the closer we will get this figure. We need to proceed with the design so we can have the knowledge of whether we will have enough money for the facility we want. Councilmember Fowler asked if we could not finalize a contract until we get an idea of what the cost is going to be. Mr. James stated that the contract with the YMCA includes language that acknowledges that if the cost is very different than what we anticipated we would regroup at that point and figure out what to do. Mayor Carpenter stated we have already embarked upon this project and expended some of the funds from the bond to move the Playscape. Once we have a bond election and issue and sell the bonds, we are obligated to produce that project. City Attorney Charles Zech confirmed we were obligated to follow through with the project it was directed for. Mayor Carpenter stated it is time for us to move forward. 04 -15 -2014 Minutes Page - 11 - Consent Agenda Items Mayor Carpenter recognized Mayor Pro -Tem Scagliola who requested Item No. 2 be removed off the Consent Agenda. Councilmember Edwards left the Dais. 1. Minutes - Approval of the minutes of the regular meeting of April 8, 2014 (J. Kessel1B. Dennis) 3. Resolution No. 14 -R -38 — Approve a Resolution authorizing a modification to the existing construction contract for the construction of three baseball fields, an equipment storage building and associated support systems. Q. Kessel/P. Gaudreau) The following was read into record: RESOLUTION NO. 14 -R -38 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A MODIFICATION TO THE EXISTING CONSTRUCTION CONTRACT FOR THE CONSTRUCTION OF THREE BASEBALL FIELDS, AN EQUIPMENT STORAGE BUILDING AND ASSOCIATED SUPPORT SYSTEMS AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized Councilmember Fowler, who moved, seconded by Mayor Pro- Tern Scagliola, to approve the consent agenda items 1 and 3. The vote was unanimous with Mayor Pro -Tem Scagliola, Councilmembers Fowler and John voting yes and no one voting no. Councilmember Edwards had left the Dais and Councilmember Duke was absent. Motion Carried. Discussion and Action Items Councilmember Edwards returned to the dais. 2. Ordinance No. 14 -D -16 — Approve an Ordinance amending the Code of Ordinances of the City of Schertz, Texas to prohibit parking from the driveway of the Oaks of Green Valley II Shopping Center to the bridge structure on the north side of the road, approximately 115 feet. Final Reading (K. Woodlee/L. Busch) The following was read into record: 04 -15 -2014 Minutes Page -12- ORDINANCE NO. 14-D-16 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 REVISING ARTICLE V, SECTION 86 -149 PARKING PROHIBITED ON ROADWAYS MAINTAINED BY THE CITY OF SCHERTZ; AND PROVIDING AN EFFECTIVE DATE. Mayor Carpenter recognized Mayor Pro -Tem Scagliola who stated that there were some unresolved questions from last week and he wanted an update from staff. Executive Director of Development Brian James recommended Council move forward with the no parking as written in the ordinance last week. Staff will go back to the Transportation Safety Advisory Commission (TSAC) and advise them of Council's concerns. He will have TSAC look at any kind of additional striping or signs, and go back and speak with the building owner about potentially expanding the parking in the grassy area off to the side. He stated moving forward with what we currently have lets us take that first step toward a solution. Mayor Pro-Tern Scagliola stated this was a good start but he thought it would be better to have no parking painted on both the North and South sides of the curb and that should be our starting position. He then made a motion that they approve Ordinance No. 14 -D -16 with the stipulation that we have no parking red zones on both the north and south sides of the street. A second was made by Councilmember Edwards. City Attorney Charles Zech interjected at this point stating he preferred that Council simply approve the Ordinance as written which addresses the north side of the street and then next week bring back another ordinance that addresses the south side of the street. The reason is that it gives the public sufficient notice of the action about to be taken. On the advice of the City Attorney, Mayor Pro-Tern Scagliola and Councilmember Edwards withdrew their motions. City Manager John Kessel also advised approving the existing Ordinance tonight because of the life safety issue it addresses with the sight and visibility problem of traffic flow. A second Ordinance can be presented next week addressing the south side of the street. After that, all information can be presented to TSAC to update them on the information at hand and get their buy -in. Mayor Carpenter made a motion, seconded by Mayor Pro -Tem Scagliola, to approve Ordinance No. 14 -D -16 on final 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. 4. Resolution No. 14 -R -37 — Consideration and/or action approving a Resolution 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. (J. Kessel/M. McLiney /A. Friedman) The following was read into record: 04 -15 -2014 Minutes Page - 13 - RESOLUTION NO. 14 -R -37 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 Mayor Carpenter recognized Southwest Securities Financial Advisor Mark McLiney who introduced this item stating the City is considering issuing up to $3,000,000 of Certificates of Obligation for the purpose of constructing a recreation pool and related facilities that will enhance the planned competition pool. The City will enter into an agreement with the YMCA that will help offset the debt service with annual payments from the YMCA. The Certificates of Obligation will pledge that ad valorem taxes be used to repay the Obligations, but if payments from the YMCA are sufficient then there will be no impact on the City's tax rate. Staff recommends approval. Mayor Carpenter recognized Mayor Pro -Tem Scagliola, who moved, seconded by Councilmember Fowler to approve Resolution No. 14 -R -37. 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. 5. General Obligation Bonds - Presentation and consideration and/or action by Southwest Securities, the City's Financial Advisor, regarding refunding the City's General Obligation Bonds, Series 2006 for Debt Service Savings and authorizing the City Staff and Financial Advisor to proceed with the refunding. (J. Kessel/M. McLiney /A. Friedman) Mayor Carpenter recognized Southwest Securities Financial Advisor Mark McLiney who introduced this item stating that over the previous months, they have been discussing the ability to refund a portion of the outstanding General Obligation Bonds, Series 2006 for debt service savings with City Staff as interest rates have continued to remain near historic lows. The City's current outstanding Series 2006 General Obligation Bonds, which are supported by ad valorem taxes, become callable on February 1, 2016. The City can issue new Bonds and Refund the existing Obligations in advance of their call date and achieve debt service savings. Based upon today's interest rates a new Refunding Bond would save the City approximately $612,000 or $47,000 per year. Staff recommends that the City Council approve the City's financial advisors to proceed with the necessary steps to refund the Series 2006 Bonds and present the Council with final interest rates and savings at the City's regularly scheduled May 20, 2014 City Council meeting where final action will be taken by the Council. Mayor Carpenter recognized Councilmember Edwards, who moved, seconded by Councilmember Fowler, to approve the City's financial advisor advice and proceed with the necessary steps to refund the Series 2006 Bonds and present the Council with the final interest rates and savings at the May 20, 2014 City Council meeting. The vote was 04 -15 -2014 Minutes Page - 14 - unanimous with Mayor Pro -Tem Scagliola, Councilmembers Fowler, John, and Edwards votingyes and no one voting no. Councilmember Duke was absent Motion Carried 6. Resolution No. 14 -R -36- Consideration and/or action approving a Resolution approving a Landscape Construction and Maintenance Agreement with the Texas Department of Transportation regarding the Landscaping of the Comal Settlement Historical Marker. (B. James /S. Willoughby) The following was read into record: RESOLUTION NO. 14 -R -36 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A LANDSCAPE CONSTRUCTION AND MAINTENANCE AGREEMENT WITH THE TEXAS DEPARTMENT OF TRANSPORTATION REGARDING THE LANDSCAPING OF THE COMAL SETTLEMENT HISTORICAL MARKER, AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized Executive Director of Development Brian James and Public Works Director Sam Willoughby who introduced this item stating the Schertz Historical Preservation Committee and Comal Settlement Association petitioned Texas Department of Transportation ( "TxDOT ") to allow their groups to install and maintain landscaping around a Comal Settlement Historic Marker at the intersections of Old Nacogdoches Road and FM 482. TxDOT requires a "Landscape Construction and Maintenance Agreement" agreement with the City of Schertz to accept responsibility for the work. The Agreement requires the City to ensure that "adequate insurance for payment of damages which might result during Facility activities" be provided. Initially the City had planned to enter into an "Acknowledgement of Conditions for Landscape Maintenance Work" Agreement with the Schertz Historical Preservation Committee and Comal Settlement Association to perform all of the labor, installation, and maintenance in the area. The requirement for provision of adequate insurance proved problematic. As such it is agreed that the City will host volunteer work days to organize, oversee and supervise the installation and maintenance of the landscaping. The two groups will purchase the landscaping materials. Volunteers will need to sign waivers/hold harmless agreements to participate in the work days which will be supervised by a City employee. Fiscal impact is less than $1000 per year in staff time. Staff recommends approval. Director of Public Works Sam Willoughby briefly reiterated the contents of the "Landscape Construction and Maintenance Agreement" required by TxDot with the City of Schertz to accept responsibility for the work to maintain the landscape area around the historical marker. Mayor Carpenter recognized Mayor Pro-Tern Scagliola who moved, seconded by Councihnember Edwards, to approve Resolution No. 14 -R -36. 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. 04 -15 -2014 Minutes Page -15- Roll Call Vote Confirmation Mayor Carpenter recognized Deputy City Secretary Donna Schmoekel who recapped the votes for items 1 through 6. Requests and Announcements Announcements by City Manager • Citizen Kudos • Recognition of City employee actions • New Departmental initiatives City Manager John Kessel stated he went to a portion of the YMCA's National Conference in San Antonio last Thursday and he spoke at one of their sessions. The session was about how to form more public- private partnerships between municipalities and YMCA organizations. It has been discovered that neither cities nor YMCA's can accomplish the level of facility output desired separately, but together they can accomplish more. The president of YMCA in Toronto Canada, who is over all the YMCA's in the country was present and asked for advice in regard to forming public - private partnerships for the Pan American games in Toronto. Mr. Kessel stated we are seen in Schertz as being an international leader in making these partnerships work. We were one of the few cities who have accomplished this partnership with the YMCA and now there are others who are following suit. A lot of eyes are looking at the innovation and we are being held up as a model by the YMCA as well. 8. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. Mayor Carpenter stated he would like us to revisit a topic brought up at Council before about honoring former mayors and other community members; in particular, Former Mayor Bueker. He suggested we schedule this in about two weeks as a general discussion and action item. 9. 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 Carpenter recognized Mayor Pro -Tern Scagliola who stated he attended the following events: • April 11, Randolph Family Dental Ribbon Cutting, 3900 FM 3009 04 -15 -2014 Minutes Page - 16 - • April 15, Schertz Chamber Luncheon, Schertz Civic Center • April 15, Animal Adoption Center -Grand Openine, 800 Community Circle Mayor Carpenter recognized Councilmember Fowler who stated he attended the following events: • April 10, Community Volunteer Fair, 3900 FM 3009 • April 11, Randolph Family Dental Ribbon Cutting, 3900 FM 3009 • April 14, George Logan Retirement Lunch, Pickrell Park • April 15, Schertz Chamber Luncheon, Schertz Civic Center • April 15, Animal Adoption Center -Grand Opening, 800 Community Circle Mayor Carpenter stated he wanted to mention two charity event items. On May 10, 2014, the Randolph Area Christian Assistance Program will be conducting a Food Drive which will be headed by the National Association of Letter Carriers. They have been providing food to the needy in the various community areas for the past 30 years. If you have a chance, please stop by and give them words of encouragement for their efforts. The second item is a letter he received from the United States Department of Interior, National Park Service at Lyndon B. Johnson National Historic Park, thanking Schertz Paramedic Brandon Hill, who organized a team of other emergency medical technicians (EMTs) from Schertz who offered their time to watch over the other 1,500 participants in the LBJ 100 Bicycle Tour. He thanked the Schertz volunteers who showed support for this event and represented our City. Adiournment As there was no further business, the meeting was adjourned ag_5 Mayor, Michael R. Carpenter A 1 Secretary, Brenda Dennis ' 04 -15 -2014 Minutes Page -17-