08-12-2014 MinutesMINUTES
REGULAR MEETING
August 12, 2014
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on
August 12, 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 David Scagliola
Councilmember Jim Fowler
Councilmember Matthew Duke
Mayor Pro -Tem John and Councilmember Edwards were absent.
Staff Present:
Deputy City Manager John Bierschwale
Chief of Staff Bob Cantu
City Secretary Brenda Dennis
City Manager John Kessel
Executive Director Brian James
City Attorney Charles Zech
As a quorum was not present at 6:00 p.m., Mayor Carpenter stated that he would wait until 6:10
p.m., and proceed with everything on the agenda but without action. Mayor Carpenter stated that
he heard from Councilmember Duke and he is on his way and will wait to call the meeting to
order.
Councilmember Duke arrived at 6:15 p.m.
Call to Order
Mayor Carpenter called the Regular Meeting to order at 6:15 p.m.
Texas (Pastor Cory Webb, Everyday Christian Fellowship Church, Cibolo)
Pastor Cory Webb 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 (J. BierschwaleB. James)
Mayor Carpenter recognized Executive Director of Development Services Brian
James who provided the following announcements and upcoming events:
o Thursday, August 14, 2014, tad City of Schertz Community Budget meeting,
Schertz United Methodist Church, 3560 Roy Richard Drive (FM 3009), from 7 -9
p.m.
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o Thursday, August 14, 2014, Northeast Partnership Meeting, Olympia Hills Golf
and Conference Center, 1-1:30 a.m. Please RSVP to the City Secretary's office if
you will be attending.
o Thursday, August 14, 2014, Chamber After Hours Mixer, Hosted by GVEC, 908
Curtiss Avenue, 5:30 — 7:00 p.m..
o Tuesday, August 19, 2014, Schertz Chamber Luncheon, Schertz Civic Center,
11:30 a.m., please let Brenda or Donna know if you will be attending.
• Announcements and recognitions by City Manager (J. Kessel)
Mayor Carpenter recognized City Manager John Kessel who provided information
and recognized members of EMS, Fire and Police who assisted in responding to a bus
that was stranded on IH 35 loaded with 38 kids and 10 adults who were returning to
Austin from a day trip to Six Flags. He personally recognized the efforts of Officer
Michael Rapier and commended him for his efforts in collaborating with the different
departments, Police and EMS, who also responded with assistance. He stated this is a
tremendous example of Schertz in Action! Officer Rapier wasn't just concerned about
traffic and keeping them safe ... he realized they had additional physical needs that he
couldn't provide for. Knowing EMS's capabilities, Officer Rapier asked them to
come help take care of their physical needs. Once EMS arrived and realized it was
larger than our resource could safely manage on the side of an interstate highway, the
EMS staff reached out to the Fire Department and came up with a novel approach that
got everyone off the highway and into a much more comfortable and safe
environment to wait for their replacement ride to arrive.
Mr. Kessel stated the cooperation of the public safety agencies in this incident is not
something new or unusual; it happens every day ... but the circumstances of this event
shows how well we work together in all types of circumstances to meet the needs of
those who rely upon us.
As Officer Rapier was on duty this evening at the Council meeting, City Manager
John Kessel had Officer Rapier come in to be recognized. Mayor and Council
thanked Officer Rapier for his quick response as well as thanked all those in the Fire,
Police and EMS Departments.
Hearing of Residents:
Mayor Carpenter recognized the following who spoke:
Mrs. Maggie Titterington, Schertz Chamber President who came forward providing
information on the 2 "d Annual Senior Gala stating the event grossed $16,650, the
expenses were $8,171.00 netting a profit of $8,477.96. Mrs. Titterington also updated the
Council on the Schertz Idol event. Mrs. Titterington stated that Schertz Idol made a
donation to the Schertz Senior Meal program of $3,153.00. The total amount raised for
the Senior Meal program is $11,630.96.
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Mrs. Titterington introduced Miss Morgan Russell, Cadette Girl Scout with Troop 1176,
Schertz, Cibolo and Marion who she met and is working on her Silver Project.
Miss Morgan Russell, Troop 1176, who came forward providing information on her
project called StoryWalk and seeking donations toward the project. The StoryWalk
consists of pages of a children's picture book that are mounted on signs and posted along
a walking trail. Parents and children walk along the trail and read a story together. The
StoryWalk encourages children to read as well as promotes physical health. She is
creating the first permanent StoryWalk installation in south Texas in cooperation with the
Schertz Parks Board and Schertz Public Library. She stated that she has received
permission from authors and publishers to use six popular children's books. The cost to
produce and mount the first book will be $2,250.00 since that will include the sign posts,
hardware, and installation. Additional books will cost $25.00 per page or $500 per book.
She has already collected over half of the money needed for the installation and printing
of the first book. The total cost for five (5) books is $2,500. She stated you can sponsor a
single page, a number of pages, or a whole book. All donors' names will be displayed on
her project. Morgan thanked Library Director and her mentor Melissa Uhlhorn for her
assistance with the project.
Mayor and Council came down from the dais and congratulated Morgan on her project.
Workshop
• Presentation and discussion of the FY 2014 -15 Proposed Budget. (J. Kessell J. Walters)
Mayor Carpenter recognized Senior Budget/Finance Analyst James Walters who
provided a PowerPoint presentation on the proposed FY 2014 -15 budget. The following
information was included:
General Fund Revenues
Property Taxes
$ 9,288,520
Sales Tax
7,346,170
Fees
2,814,366
Franchises
1,986,159
Fund Transfers
1,878,881
Permits
1,175,803
Inter - Jurisdictional
708,392
Miscellaneous.
462,650
Licenses
91,229
Library Fines
31,000
Other taxes
31.000
Total Revenues
$25,814,170
Mr. Walters stated that 36% represents property taxes, 28% represents sales taxes, 11 %
represents fees, and the others represent the rest
08 -12 -2014 Minutes Page - 3 -
General Fund Expenses
General Government
$ 7,364,919
Internal Service
3,789,517
Police
5,776,509
Fire Rescue
3,488,849
Inspections
588,744
Marshal Service
662,603
Streets .
1,056,219
Parks & Recreation
1,380,331
Library
846,896
Animal Services
505,717
Total Expenses
$25,460,304
Mr. Walters stated that General Government make up 28 %, Police make up 23 %, Fire
Rescue make up 14 %, Internal Service make up 15 %, and the others make up the rest.
General Fund.
Revenues
$25,814,170
Expenditures
25,460,304
Increase of Fund Balance
353,866
Beginning Fund Balance
5,936,141
Ending Fund Balance
6,290,008
25 %Reserve Policy
$ 6,142,323
Mr. Walters stated 25% reserve policy is for recurring operational expenses. This does
not include identified one -time expenses such as studies or irregular capital purchases.
M &O $0.3164 — Total Change in Expenditures
$ 203,000
New Employees
$ 54,015
Small Expanded Programs (10,000 or less)
$ 794,800
Large Expanded Programs (over 10,000)
$ 300,000
Act on Compensation Study
$ 770,000
Continued Existing Staffine Levels & Programs
$2,121,815 Total Increase
$ 353,500 Reserve Funding
M &O $0.3164 — New Personnel
$ 26,000 2 Seasonal Park Workers
$ 45,000 Accountant
$ 93,000 2 additional mechanics
$ 39,000 Building Maintenance Worker I
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$203,000 Total New Employees
M &O $0.3164 — Small Expanded Programs
$ 1,500
Baby Changing Stations
$ 2,500
Lync Implementation
$ 5,250
Portable AC Unit
$ 11,200
Fleet Equipment
$ 19,565
Laptops, Tablets, Printers, and Servers
$ 14,000
2 Defibrillators
$ 54,015
Total Small Expanded Programs
M &O $0.3164 - Large Expanded Programs
$ 327,200
Vehicle Replacements
$ 36,000
Planning Tracking Software
$ 109,600
Replace 1/3 of Self Contained Breathing Apparatus
$ 30,000
Additional Landscaping Services
$ 21,000
Animal Adoption Trailer (City Portion = $10,000)
$ 50,000
New/Replacement Desks & Minor Renovations
$ 150,000
Building Repairs — Admin. Bldg. and Parking lot, and Fire Station 2
$ 20,000
May Charter Election
$ 50,000
FM 1518 Funding Study (I -10 to FM 78)
$ 794,800
Total New Programs
M &O $0.3164 — Reserve Funding
$ 169,000
Vehicle Replacement
$ 24,500
A/C Replacement
$ 25,000
Server Replacement
$ 35,000
Phone System Replacement
$ 100,000
Unassiened Fund Balance
$ 353,500 Total Reserve Funding
Departmental Budget Information:
City Council
Expenses
2013 -14 Estimate
$ 87,240
2014 -15 Budget
$106,675
% Change
22.3% - Increase due to an additional election in May for
Charter Amendments
City Manager
Expenses
2013 -14 Estimate
$ 946,589
2014 -15 Budget
$ 869,113
% Change
-8.2% - The vacant Executive Director salary was used to
fund positions in other departments
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Municipal Court Expenses
2013 -14 Estimate $389,264
20.14 -15 Budget $393,267
% Change 1.0% - 9 month funding of a vacant Court Clerk & increase
in Court costs
Customer Relations 311 Expenses
2013 -14 Estimate $110,123
2014 -15 Budget $115,428
% Change 4.8% - No change in operations
Planning & Zoning Expenses
2013 -14 Estimate $153,327
2014 -15 Budget $158,810
% Change 3.6% - No change in operations
Legal
Expenses
2013 -14 Estimate
$360,000
2014 -15 Budget
$360,000
% Change
0.0% - Expecting no change in legal services
General Services
Expenses
2013 -14 Estimate
$1,018,364
2014 -15 Budget
$ 998,780
% Change
-1.9% - Continue to phase out EDC's coverage of the
% Change
maintenance of the emergency services building
Continue door lock replacement program
By handling more general maintenance services in house
the need for outside maintenance services decreases
City Secretary
Expenses
2013 -14 Estimate
$179,287
2014 -15 Budget
$188,600
% Change
5.2% - Increase due to merit and other personnel related
expenses
Non - Departmental
Expenses
2013 -14 Estimate
$2,155,553
2014 -15 Budget
$2,733,829
% Change
26.8% - Set contingencies to $180,00
Beginning in FY2014/15 is the Amazon.com property tax
incentive with will be offset by additional revenue
Fund building repairs for Station 2 and the Admin. Bldg.
08 -12 -2014 Minutes Page - 6 -
L_
Mr. James stated that contingencies were set at .8% of the total General Fund expenditure
budget.
Non- Departmental cont....
• Fund a design for the Administration Parking lot drainage issues
• Sets up a budget to act on the results of the Compensation Survey
• Allows for the replacement of old workstations in the City
• Provides funding to finish the Compensation Study and the Street Impact Fee
Study
• Provide funding for the Steve Simonson Volunteer Luncheon and the Festival of
Angels
• Provide funding for a study of FM 1518
Public Affairs Expenses
2013 -14 Estimate $265,217
2014 -15 Budget $310,185
% Change 17.0% - This increase is caused by full year funding of the
new Events Specialist (This position will be offset by a
75% reimbursement from the Hotel Tax Fund)
Records Management Expenses
2013 -14 Estimate $ 55,862
2014 -15 Budget $ 63,748
% Change 14.1 % - Increase the amount of contractual document
Schertz Magazine
2013 -14 Estimate
2014 -15 Budget
% Change
Engineering
2013 -14 Estimate
2014 -15 Budget
% Change
GIS
2013 -14 Estimate
2014 -15 Budget
% Change
Police
2013 -14 Estimate
2014 -15 Budget
% Change
scanning and shredding
Expenses
$ 383,582
$ 405,591
5.7% - Increase in printing costs
Expenses
$295,297
$338,243
14.5% - Full year funding of the new engineer position
authorized at mid -year
Expenses
$142,612
$155,778
9.2% - Purchase new operation equipment
Expenses
$5,441,901
$5,776,509
6.1% - Promotional Testing
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Additional vehicle replacement on schedule
Uniform replacements
Replace 5 patrol cameras and 4 patrol computers
Replace Live Scan, the electronic finger printer scanner
Fire Rescue Expenses
2013 -14 Estimate $3,053,200
2014 -15 Budget $3,488,849
% Change 14.3% - Replace Chief s Vehicle
Replace Battalion Chiefs Vehicle
Replace SCBA's I" of 3 phases
Replace 2 Defibrillators using a lease
Inspections
Expenses
2013 -14 Estimate
$ 501,741
2014 -15 Budget
$ 588,744.
% Change
17.3% - Replace Inspector Vehicle, Full year funding for
the Plans Examiner
Marshal Services
Expenses
2013 -14 Estimate
$ 635,953
2014 -15 Budget
$ 662,603
% Change
4.2% - Purchase of new laptops & tablets for use in field
Includes development costs to program ticket writers for
Code Enforcers
Public Works — Streets Expenses
2013 -14 Estimate $1,103,047
2014 -15 Budget $1,056,219
% Change -4.2% - Increase in street maintenance materials & repairs
Replacement of Vehicle
Personnel services increased due to the turnover seen in
FY2013/14
Parks, Recreation
& Community Services
2013 -14 Estimate
2014 -15 Budget
% Change
Swimming Pools
2013 -14 Estimate
2014 -15 Budget
% Change
Expenses
$771,873
$924,817
19.8% - Includes full year funding of the Parks Director
Replaces a vehicle
Adds additional third party landscaping services
Expenses
$253,078
$253,078
0.0% - No change in the pool operations contract
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Event Facilities Expenses
2013 -14 Estimate $ 140,609
2014 -15 Budget $ 156,046
% Change 11.0% - Increase advertising with a focus on weddings &
local magazines & joumals
Purchase replacement equipment for the facilities
Library Expenses
2013 -14 Estimate $844,030
2014 -15 Budget $846,896
% Change 0.3% - No change in operations
Animal Services Expenses
2013 -14 Estimate $ 463,541
2014 -15 Budget $ 505,717
% Change 9.1% - Increase due to additional costs of new Animal
Adoption Facility (Utilities, Maintenance, Animal Care
supplies)
Purchase of Adoption Trailer if the donation goal reaches
$9,000
Information Technology Expenses
2013 -14 Estimate $1,481,100
2014 -15 Budget $1,628,478
% Change 10.0% - Includes all upgrades to the internet lines in the
General Fund
Includes the increase in the mobile data plans for the
General Fund
Includes new planning tracking software for P &Z
Includes Zoll RMS Migration'
Purchase additional equipment
Replaces second half of network switches
Upgrade firewall
Purchase video streaming hardware
Human Resources Expenses -
2013-14 Estimate $391,518
2014 -15 Budget $425,403
% Change 8.7% - Additional advertising for vacant specialized
positions
Full year funding for the FWA outsourcing contract
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Finance
2013 -14 Estimate
2014 -15 Budget
% Change
Purchase &
Asset Management.
2013 -14 Estimate
2014 -15 Budget
% Change
Fleet Services
2013 -14 Estimate
2014 -15 Budget
% Change
Expenses
$466,515
$539,478
15.6% - Increase due to
Accountant 1 position
Expenses
10 month funding of new
$267,158
$275,433
3.1% - No change in operations
Expenses
$507,106
$651,651
29.1% - Funding of a new Mechanic 1
Funding of a new Mechanic 1 reimbursed by the EMS
Fund
Addition of a fund to replace broken down vehicles
Building Maintenance Expenses
2013 -14 Estimate $324,433
2014 -15 Budget $269,074
% Change -17.1 % - Funding for a new Worker 1 position and vehicle
FY2013/14 included funding for the security and
audio /visual upgrades to the Council Chambers
City Assistance
Expenses
2013 -14 Estimate
$ 87,648
2014 -15 Budget
$ 80,000
% Change
-8.7% - Decrease due one -time expenses related to City
taking over operation of the Senior Center occurring in
FY2013/14
Senior Center
Establishing a budget of $46,390 to operate during the first quarter of FY2014/15 while a
decision is reached about the future operations of this program.
Special Events Fund
2013 -14 Estimate
Revenues
$174,783
08 -12 -2014 Minutes Page - 10 -
Expenses
$184,801
2014 -15 Budget $153,800 $153,800
% Change 42.0% - 16.8%
Decrease is due to the completion of the Hal Baldwin Memorial Plaza in FY2013/14
PEG Fund
Revenues Expenses
2013 -14 Estimate $119,572 $ 83,052
2014 -15 Budget $209,000 $209,000
% Change -74.8% 151.6%
Master Communication Plan will continue in FY2014/15 and will partially be funded
with reserves.
Interest & Sinking Debt Fund
Mr. Walters stated that there was a jump in FY2008/09 and FY2010 /11 due to the bond
refund.
Interest & Sinking Debt Fund
Revenues Expenses
2013 -14 Estimate $5,617,253 $5,596,775
2014 -15 Budget $5,707,276 $5,636,157
% Change 1.6% 0.7%
The increase in expenses is due to a debt issuance for Public Works Equipment
Business Office Expenses
2013 -14 Estimate $619,211
2014 -15 Budget $682,347
% Change 10.2% - Increase due to the additional costs of online
transaction fees
Water & Sewer Administration
Mr. Walters showed a graph of revenues and expenses from FY2004/05 through budget
FY2014/15.
Expenses
2013 -14 Estimate $16,399,970
2014 -15 Budget $17,106,216
% Change 4.3% - CCMA increased their service charges by 9.5%
Funds are added to act on the Compensation Study which
should also reduce turnover
The City's contribution as a member of CVLGC will
increase since another City backed out of the corporation
Water & Sewer Administration
Waste contractor expense increases but is offset by additional revenue
- This increase is based on an increase in services and is not a fee increase
08 -12 -2014 Minutes Page - 11 -
Debt service increases to replace aging Public Works Equipment through a debt issue
Water & Sewer will also be replacing 2 vehicles
Drainage Fund
Mr. Walters showed a graph of the revenues and expenses from FY2005/05 through
budget FY2013/14.
Revenues Expenses
2013 -14 Estimate $1,067,891 $ 854.453
2014 -15 Budget $1,159,200 $1,094,618
%Change 8.6% 28.1%
No change in fees
Debt Service will increase with a debt issuance to purchase Public Works equipment
Capital Recovery - Water
Revenues Expenses
2013 -14 Estimate $885,500 $122,000
2014 -15 Budget $885,500 $536,109
% Change 0.0% 339.4%
No change in revenue expected
Projects to be funded in FY2014/15 include improvements to the Live Oak Pump
Capital Recovery - Sewer
Revenues Expenses
2013 -14 Estimate $ 726,099 $ 128,185
2014 -15 Budget $1,160,497 $1,160,497
% Change 59.8% 805.3%
Revenue will increase with a transfer from reserves to fund new projects
Projects to be funded in FY2014/15 include Town Creek Phase III Finish out
EMS Fund
Mr. Walters showed a graph of the revenues and expenses FY2014/15 through budget
FY2014/15. He stated the drop in revenue in FY2010 /11 is when we changed accounting
practices to net contractual allowables against revenue instead of recognizing them as an
expense.
EMS Fund Revenues
2013 -14 Estimate $7,594,942
2014 -15 Budget $8,186,919
% Change 7.8%
Increase expected in transports
No change in fees
EMS Fund Expenses
08 -12 -2014 Minutes Page - 12 -
2013 -14 Estimate $6,550,421
2014 -15 Budget $8,151,501
% Change 22.9%
Increase in expenses related to the increase in transports
Included funds to act on Compensation Study
Debt Service will increase with the issuance of debt to pay for new ambulances
Equipment for the ambulances will be paid from revenues
Increase in interfund.charge to pay for a new Mechanic
Schertz Economic Development Corporation
Mr. Walters showed a graph in revenues and expenses FY2004/05 through budget
FY2014/15. He stated the graph shows the Sysco Road project as well. The FY2009 /10
revenue spike is from the tax notes for the Sysco project. The corresponding expense
spike is show in FY2010 /11. The other spike in FY2006/07 was the 2007 bond proceeds.
The expense spike in FY2013/14 is related to the Amazon.com Incentive.
Schertz Economic Development Corporation
Revenues Expenses
2013 -14 Estimate $3,547,357 $3,074,554
2014 -15 Budget $3,692,257 $3,023,810
% Change 4.1% -1.7%
Sales taxes are projected to increase by 4 %.
Expense increase for land purchase and Schwab Road Extension
Offset by the one -time Amazon.com incentive payout in FY2013/14
Hotel Occupancy Tax Fund
Mr. Walters showed a graph of expenses and revenues FY2004/05 through budget
FY2014/15. Mr. Walters stated that FY2008/09 spike was to help fund the Kramer
House renovation.
Parkland Dedication
Revenues
Expenses
2013 -14 Estimate
$129,000
$ 40,000
2014 -15 Budget
$100,000
$ 60,000
% Change
-22.5%
50.0%
Revenue decrease due to fewer developments,
which result in less parkland dedication
fees.
Projects for FY2014/15 include: Pavilions for the upcoming Dog Park and for the Skate
Park, and Crossvine Park improvements includes a granite trail and two park benches.
Tree Mitigation
Revenues Expenses
2013 -14 Estimate $227,968 $ 45,000
2014 -15 Budget $116,335 $116,125 _
% Change -49.1% 158.1%
08 -12 -2014 Minutes Page - 13 -
Revenue will increase due to a one -time transfer from reserves to fund new projects.
Projects to be funded in FY2014/15 are trees for the Soccer Complex, E. Live Oak Road,
Ball fields, and the Arroyo Verde Drainage project.
Library Advisory Board
Historical Committee
Revenues Expenses
2013 -14 Estimate $ 3,100 $ 3,008
2014 -15 Budget $ 11,100 $11,100
%Change 258.1% 269.0%
Funding and budget increased for additional training for all committee members.
Parks & Recreation Foundation
Revenues Expenses
2013 -14 Estimate $305,521 $233,430
2014 -15 Budget $304,850 $297,900
% Change -0.2% 27.6%
Expenses increase in order to grow the Jubilee and SchertzFest and to provide
improvements to parks in Schertz.
Mayor Carpenter recognized City Manager John Kessel who stated that one of the things
you see that is not necessarily readily understood is that the percentage increase comes
from our estimated budget completion date to the proposed budget. He stated we start
each year with an approved budget and then we go throughout the year and try and
complete the goals that we have set for ourselves. He stated that one of the things we
work very hard at, as staff, is to achieve all those goals under budget. He stated that you
can recognize what a difference it is from some public agencies that have the philosophy
that you will spend every penny that you are budgeted or you will not get it the next year.
We do not have that philosophy; we recognize that every dollar that we don't spend we
can put back into our reserve account, which can be held for a rainy day or it can be used
to purchase vehicles on a cash basis. It is important to understand that we don't look at
this as money we should spend; we look at it as money that we should try to return back
to the taxpayers.
Mr. Kessel asked Mr. Walters if he knew the amount we are expecting to return back this
year. Mr. Walters stated the amount is about $2 million. Mr. Kessel stated that if you
look at the different departments and you see the estimate column and actual approved
budget all totaled, $2 million dollars was saved by city staff as part of the budget process
08 -12 -2014 Minutes Page - 14 -
Revenues
Expenses
2013 -14 Estimate
$ 32,506
$ 32,400
2014 -15 Budget
$ 33,060
$ 30,000
% Change
1.7%
-7.4%
Fewer operating equipment purchases needed in
FY2014/15.
Historical Committee
Revenues Expenses
2013 -14 Estimate $ 3,100 $ 3,008
2014 -15 Budget $ 11,100 $11,100
%Change 258.1% 269.0%
Funding and budget increased for additional training for all committee members.
Parks & Recreation Foundation
Revenues Expenses
2013 -14 Estimate $305,521 $233,430
2014 -15 Budget $304,850 $297,900
% Change -0.2% 27.6%
Expenses increase in order to grow the Jubilee and SchertzFest and to provide
improvements to parks in Schertz.
Mayor Carpenter recognized City Manager John Kessel who stated that one of the things
you see that is not necessarily readily understood is that the percentage increase comes
from our estimated budget completion date to the proposed budget. He stated we start
each year with an approved budget and then we go throughout the year and try and
complete the goals that we have set for ourselves. He stated that one of the things we
work very hard at, as staff, is to achieve all those goals under budget. He stated that you
can recognize what a difference it is from some public agencies that have the philosophy
that you will spend every penny that you are budgeted or you will not get it the next year.
We do not have that philosophy; we recognize that every dollar that we don't spend we
can put back into our reserve account, which can be held for a rainy day or it can be used
to purchase vehicles on a cash basis. It is important to understand that we don't look at
this as money we should spend; we look at it as money that we should try to return back
to the taxpayers.
Mr. Kessel asked Mr. Walters if he knew the amount we are expecting to return back this
year. Mr. Walters stated the amount is about $2 million. Mr. Kessel stated that if you
look at the different departments and you see the estimate column and actual approved
budget all totaled, $2 million dollars was saved by city staff as part of the budget process
08 -12 -2014 Minutes Page - 14 -
throughout the year. Mr. Kessel stated that staff takes this very seriously to try and save
dollars in the budget, it is a city wide focus and we are very proud of this.
The percentages are a bit misleading because they are coming from our end of year
estimates which are lower than our actual approved budget. He wanted to present this
because it is not readily apparent if you didn't know that part of the puzzle.
Mayor Carpenter recognized Couneihnember Scagliola who stated that last year when
they ran the model it was projecting a little doom and gloom knowing we would not
replenish our reserve fund, and now the projections show that we will be replenishing the
reserve fund. Councihmember Scagliola asked how do you account for the delta on the
model they were using last year and the model we are using this year. Mr. Walters replied
that one of the reasons we reached our goal this year is because we had a lot of one time
sales tax payments due to building construction. This tax goes to the city in which the
building is located not where the company originates from. Examples of these are
Amazon.com, Sysco and Caterpillar. The sales tax on the construction materials and
services all came to the City of Schertz. On the newer model we have a higher tax rate
than we had last year.
Councilmember Scagliola asked about the $300,000 Compensation study. What is it
about, has it been accomplished, and is the money paying for what we find or is it to fund
a study? City Manager John Kessel stated this is a project City Council funded mid- year
to develop an RFQ to look at the job classifications by job type and descriptions and then
look at the market and see where we stand in regard to our competition. Once it is
completed it is likely there could be a need for salary adjustment in some cases. This will
be a future policy decision; should we pay our employees the average of that, 60% or 40
% of that average? We wanted to make sure we had a placeholder should city council
decide that the compensation levels are not adequate based on the facts and data from the
study that you would have funds available and would not have to dip into reserves. If
Council says we don't need to make changes then that money would go back into the
general fund and not be spent. Since the study was funded mid -year it is not completed
yet but we do have an RFP drafted and completed. When we get the proposals back we
will make a selection and have information back maybe in March for Council to consider.
Councihnember Scagliola asked how much of the $300,000 the study is costing. Mr.
Walters stated the budgeted amount for the study was $80,000. Mayor Carpenter added
that $300,000 is going to be discretionary money for Council to use as compensation for
the employee base should we find from the study that this is the appropriate action. Mr.
Kessel stated we are trying to not make salary changes based only on emotions but rather
make data based decisions in alignment with other market compensation levels. It is a
standard way of making compensation decisions.
Councilmember Scagliola stated he thought it was interesting that the tentative results
from the recent Employee Engagement Survey reflected pay as the primary concern of
employees. His main concern was he did not want to see any of this $300,000 going
toward doing another study. He feels we have been told too many times by analysts what
we already know. We have several other studies going on right now and he believes we
08 -12 -2014 Minutes Page -15 -
have enough expertise in -house without having to hire any outside help, The $300,000
makes the assumption that this is about what it is going to cost and therefore this money
is being held in reserve thus depriving us of some other opportunities. This amounts to
about one cent on the tax base which could be given back to the residents or get down to
the effective rate.
Mr. Walters answered Councilmember Scagliola's question about the vehicle
replacement fund stating that the $327,000 in the budget proposal is for purchasing new
vehicles next year. There is a separate vehicle replacement fund in this years' budget
where they are proposing to put an additional $169,000 that includes funds for all
vehicles we purchased in the past 4 years as well as 2 fire engines; so when we need to
replace those vehicles we already have funds saved. This money is set aside in its own
investment account which is part of the reserve fund.
Mr. Walters provided explanations regarding fund balances in court and building
maintenance in response to an inquiry regarding these items from Councilmember
Fowler.
Mayor Carpenter recognized Councilmember Duke who referred back to the
Compensation Study in regard to the $300,000 set aside for this purpose. He wanted to
clarify that this money is simply a plug number and is not a maximum amount. Mr.
Walters confirmed that as true. Mr. Kessel added that it could in fact be twice that
amount, depending on what the study reflects in the end. It is dependent on 1) what the
study shows our compensation might be and 2) it is a policy of the city council to
determine whether that is reasonable compensation or not. He feels the $300,000 is a
comfortable estimated figure to put out there for now.
Councilmember Duke asked if we had any contingency plans in case the study comes out
on the high side. Mr. Kessel answered that we can consider two different alternatives.
One is if we have been able to drive the economic engine again like we did this year or
we can break it into several years, such as half one year and the other half on a second
year. We can also work our way through it with a series of benchmarks such as shifting
5% each year. This really helps identify areas where certain positions are underpaid. This
will help those individuals have a fair shake. Since 2008, the economy has now heated
up and we need to find ways to keep employees and be competitive in hiring and
retaining staff.
Mayor Carpenter recognized Councilmember Scagliola who stated we do need to retain
and promote staff from within but we need to discuss what the definition of a competitive
salary is. The Employee Engagement survey says that pay is a primary concern amongst
employees in this city. We do need to address it but unfortunately the only time we seem
to talk about it is during the budget process. Sometimes it may come across that he is
against employee compensation but that is not the case. It is just that there is a time and
place for everything.
08 -12 -2014 Minutes Page - 16 -
Mayor Carpenter stated he agreed with Councilmember Scagliola that we absolutely have
the skill set in -house to tackle any study but one of the reasons we have chosen outside
entities to take a look at our organization is that we would have to gather a number of
folks from different departments and take them away from their normal job duties at least
to some degree. We don't have the luxury to do that. A second reason is that an outside
entity has a higher level of precision at their disposal. They can measure -their findings
against what they have done before and they don't have to learn how to do it. They can
do it better, faster, cheaper and with greater precision and we don't have to sacrifice any
city staff time. In regard to compensation, we do want to retain and attract the best
employees. The definition of competitive is absolutely a policy decision this body has to
make. There is a thing out there called job satisfaction and a thing out there called
compensation. They rarely come to an equal point of equilibrium where everyone feels
they are perfectly compensated and perfectly satisfied with their job at the same time.
Job satisfaction, we will find from our recent survey, indicates the compensation is a little
skewed but we have a high job satisfaction rate. This has an effect on how they see their
salary. We have to be careful so people don't leave because they just can't say no to
another job elsewhere offering more compensation. This is the equilibrium decision we
are going to have to find. We may have to address this over a period of several years.
Mayor Carpenter recognized Councilmember Fowler who asked if there was anything in
the budget that addresses the need to train our employees for advancement in preparation
for eventual turnover of personnel. Mr. Kessel suggested we pull out the training budgets
from the different departments and put those in a special presentation for next week. In
the recent Employee Engagement Survey, while pay was the top negative perception,
employee development was one of our highest scores. So the perception of the
employees is that this organization helps them in their development and they feel they
have the opportunity to grow. Some employees are happy in the position they are in but
others want to take on more challenges to move up the ladder. Therefore, this is not a
one -size fits all situation for our employees, but an individualized effort for each one.
Mr. Walters provided the information below on what the budget calendar looks like:
Budget Calendar FY 2014/15
July 31 File with City Secretary, Budget Workshop
August 5 Budget Workshop, vote to place a preliminary tax rate on the agenda, and
schedule public hearings
August 6 First Community Budget Presentation — Civic Center
August 12 Budget Workshop
August 14 Second Community Budget Presentation - Schertz United Methodist
Church
August 19 First Public Hearing
August 26 Second Public Hearing, First Vote
September 2 Second Vote and adoption of the budget and tax rate
October 1 Budget goes into effect
08 -12 -2014 Minutes Page • t7-
Consent Agenda Items
1. Minutes - Approve the minutes of the regular meeting of August 5, 2014. (J. Kessel/B..
Dennis)
2. Ordinance No. 14 -8-41 — Consideration and/or action approving an Ordinance amending
the Comprehensive Land Plan associated with a revision to the Parks Master Plan. Final
Reading (B. James/L. Wood)
The following was read into record:
ORDINANCE NO. 14-S-41
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AMENDING THE COMPREHENSIVE LAND USE PLAN AND OTHER
MATTERS IN CONNECTION THEREWITH
Mayor Carpenter recognized Councilmember Fowler who moved, seconded by
Councilmember Scagliola to approve the consent agenda items 1 and 2. The vote was
unanimous with Councilmembers Fowler, Scagliola, and Duke voting yes and no one
voting no. Mayor Pro -Tem John and Councilmember Edwards were absent. Motion
Carried.
Discussion and Action Items
3. Resolution No. 14 -R -68 — Consideration and/or action approving a Resolution regarding
the acceptance of a bid and authorizing the purchase of two (2) new ambulances. (J.
Bierschwale/D. Wait)
The following was read into record:
RESOLUTION NO. 14 -R -68
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AUTHORIZING THE BID AWARD AND PURCHASE OF
AMBULANCES FROM PROFESSIONAL AMBULANCE SALES AND SERVICE
AND OTHER MATTERS IN CONNECTION THEREWITH
Mayor Carpenter recognized EMS Director Dudley Wait who introduced this item stating
on April 15, 2014, City Council directed the EMS Department to seek bids to purchase
two (2) ambulances. This was an increase over the FY 2014 budget which had the
financing of one ambulance approved in it. Staff was to elicit bids and then come back to
City Council with the results. The bid documents were prepared with the cooperation of
EMS, Purchasing and Fleet Services. Several items were asked to be well detailed and
explained as to how the bidding vendors would meet the City's requirements. Bids were -
08 -12 -2014 Minutes Page -18-
received from four vendors: Lone Star Emergency Vehicles (our previous vendor),
Professional Ambulance Sales and Service, Frazer Inc:, and Siddons Fire Rescue. Based
upon these two critical items, we determined that both Frazer and Siddons bids were
disqualified. These are listed with what chassis they bid on and their individual bid prices
on the attached bid sheet as backup in Council packet.
Staff determined that the Horton ambulance sold by Professional Ambulance is the
highest quality ambulance submitted. The attention to detail in their bid package
preparation along with history and reputation of Horton as a builder and Professional
Ambulance as a dealer has solidified this recommendation. Staff recommends approval
of the Resolution for the ordering and purchase of two (2) new ambulances from
Professional Ambulance Sales and Services. Staff recommends approval.
Mayor and Council asked questions regarding the number of ambulances we have in
operation now versus what we will have in the future with the new purchases. Mr. Wait
provided information how the newer and older ambulances would rotate through the
retention and reserve process.
Mayor Carpenter recognized Councihnember Duke who moved, seconded by
Councilmember Fowler to approve Resolution No. 14 -R -68. The vote was unanimous
with Councilmembers Fowler, Scagliola and Duke voting yes and no one voting no.
Mayor Pro -Tem John and Councilmember Edwards were absent. Motion Carried.
Roll Call Vote Confirmation
Mayor Carpenter recognized City Secretary Brenda Dennis who recapped the votes of items 1
through 3.
Requests and Announcements
4. Announcements by City Manager
o Citizen Kudos
o Recognition of City employee actions
o New Departmental initiatives
Mayor Carpenter recognized City Manager John Kessel who stated he wanted to point
out that on the last agenda item the single most important part of that whole discussion
was where Mr. Wait said he worked with Jonathan Harshman in Fleet to develop the
program. The process they went through was very significant in determining a lot of
facts that were data driven, such as what units cost money and how much money were
spent on new units. The result is a very smart decision that changed the van chassis type
to address a suspension issue, a concern on the fleet side, but still met the EMS goals. It
also developed a plan to address the most expensive of the units. More subtly, an item in
the proposal had two mechanics. No one on council has asked why do we need two
mechanics? One of those mechanics is a public safety mechanic specifically trained for,
police, fire, and EMS vehicles to work on keeping those items moving. This was
08 -12 -2014 Minutes Page -19-
addressed in discussion when we realized we had only .one- size - fits -all mechanics.
Previously, we have sent out all our specialized vehicles for repair as we do not have a
specialized mechanic trained in this area. By hiring in -a specialist, we can now bring this
expertise in house at a lower cost and experience better efficiencies for the different
departments.
5. Requests by Mayor and Councilmembers that items be placed on a future City Council
agenda.
Mayor Carpenter asked that in the next week or two an item be placed on the agenda for a
discussion on seating a charter commission to look at a number of things such as
considering expanding the number of councilmembers.
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 Councilmember Fowler who stated he attended the
following:
Friday, August 8, 2nd Annual Senior Center Gala Fundraiser
Tuesday, August 12, 3`d meeting on Natatorium with the School District
Mayor Carpenter recognized Councilmember Scagliola who stated he attended the
following:
Friday, August 8, 2 "d Annual Senior Center Gala Fundraiser
Saturday, August 9, Schertz Idol Grand Finale
Mayor Carpenter stated that they had met earlier in the day with Judge Nelson Wolff of
Bexar County and members of his staff and the Economic Group to establish rapport with
them. He stated knowing that as south Schertz between Highway 78 and Interstate 10
continues to grow and develop, that this part of our city will experience the most change
in the future. The meeting was very positive and we want to continue to reach out to our
neighbors and discuss our hopes and desires for the future.
Adiournment
As there was no further business, the meeting was adjourned at 8:0
08 -12 -2014 Minutes Page - 20 -
Michael R. Carpenter, Mayor
a Dennis, City Secretary
08 -12 -2014 Minutes Page - 21 -