08-18-2015 MinutesMINUTES
REGULAR MEETING
August 18, 2015
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on
August 18, 2015, at 6:00 p.m., in the Hal Baldwin Municipal Complex Council Chambers, 1400
Schertz Parkway, Building #4, Schertz, Texas. The following members present to -wit:
Mayor Pro -Tem Jim Fowler
Councilmember Daryl John
Councilmember Robin Thompson
Staff Present:
Executive Director Brian James
Executive Director Bob Cantu
City Secretary Brenda Dennis
Mayor• Carpenter was absent.
Call to Order
Councilmember Grumpy Azzoz
Councilmember Cedric Edwards
City Manager John Kessel
Executive Director Dudley Wait
City Attorney Charles Zech
Mayor Pro-Tern Fowler called the meeting to order at 6:00 p.m.
OpeninjZ Prayer and Pledges of Allegiance to the Flags of the United States and the State of
Texas (Councilmember Daryl John)
Councilmember Daryl John provided the opening prayer 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 (B. James/D. Wait /B. Cantu)
Mayor Pro -Tern Fowler recognized Executive Director Bob Cantu who provided the
following announcements:
• Tuesday, August 25, Drawing for Place on the November 3rd Ballot — 9:30 a.m. City
Secretary's office.
• Friday, August 28, TML Region 7 Meeting, City of Balcones Heights Justice Center,
3300 Hillcrest Drive; 5:30 p.m. RSVP to City Secretary's Office by August 20.
• September 22 -25, Annual TML Conference, San Antonio
• October 3 -18, Fall Cleanup, more information to come.
The City of Schertz will be holding its' General Election on November 3, 2015 for the
purpose of electing Council Members in Place 3, Place 4 and Place 5.
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Any candidate desiring to have his or her name on the official ballot shall file with the
City Secretary no later than Monday, gust 24, 2015 by 5:00 p.m., an application in
writing requesting that his or her name be placed on the Official Ballot. The term of
office for said vacancies will expire November 2017.
Candidate packets are available in the City Secretary's office or can be found online at
www.scheitz.com.
• Announcements and recognitions by City Manager (J. Kessel)
Mayor Pro -Tem Fowler recognized City Manager John Kessel who stated he wanted to
say thank you to Randolph Air Force Base (RAFB), 435th Fighter Pilot Training
Squadron for coming out last Friday and doing some work (cleanup & landscaping) at the
Schertz Housing Authority, Veterans Memorial Plaza, and the Chamber of Commerce.
Afterwards they came back and went to the Senior Center to help serve lunches and
visited with the residents. This was a big deal for the Air Force and an even bigger deal
for the community. He thanked all the participants of the 435th.
Hearing of Residents
Mayor Pro -Tem Fowler recognized the following individuals who spoke:
• Mr. William Frampton, 408 Apache Ledge, Cibolo, who stated he would like to see some
type of recognition for Mr. Felix Guerra who is the owner /proprietor of the physical
therapy unit here on Schertz Parkway. Mr. Guerra was instrumental in getting Mr.
Frampton to seek emergency care when he discovered during a routine physical therapy
exam that Mr. Frampton's vital signs were signals of a more serious nature. Mr.
Frampton wound up having blood clots in both his lungs. He believes Mr. Guerra saved
his life and the doctors at the Methodist hospital agree with him.
• Mr. Reed Carr, 3509 Columbia Drive, Northcliffe, who spoke about needing two signs in
their neighborhood addressing no overnight truck (18 wheelers) parking. They are asking
for a sign at both the fiont and back entrances of the subdivision. The second thing is a
need for ADA compliant ramps at the intersection of Turnabout and Cherry Tree across
from the city park. They also have a lot of issues with vehicles parking on the wrong side
of the streets and blocking sidewalks. He also mentioned an abandoned house, an
abandoned car on Charleston Street, and speeders on Wedgewood Street. They would
also like to have some dog poop bags /boxes. They had met with the City Marshal on
June 26 who said they would set up a meeting with them. Maybe one of you can convince
them to actually call us back.
• Mr. Glen Outlaw, 3729 Forsyth Park, who wanted to thank council one more time for
their action on employee compensation. However, the question you may want to ask is
how we got in this position in the first place. Every time the City does a salary survey we
are behind. In his opinion part of the problem is the city's reliance on merit raises which
simply move people along the pay scale without affecting the pay scale itself. We need to
somehow keep the pay schedule moving so it stays comparable to our competitors.
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• Ms. Linda Woodruff, 5509 Columbia, Cibolo, who discussed Bexar Waste Companywho
has left some bad stains down Columbia Drive and also the street behind that one. The
streets are horrible. She requested that someone come out and look at it.
• Ms. Charleen Lacey, 609 Planters Pass, who addressed some comments made last week
about the food being served at the senior center. The food is not bad, it is a nutritional
lunch. For most seniors this is their one hot meal of the day. They have added a side
salad to the meals now and it is a good addition to the menu. Your individual likes or
dislikes of a certain food item does not make the entire meal bad. It is not bad food.
• Ms. Phyllis Willman, 3544 Peachtree Lane, who stated at last week's meeting she was
unable to hear what any councilmember said and/or anyone who came up to the podium
and spoke. She asked a few people sitting near her and each one of them stated they did
not hear the speakers either. The mayor was the only one they heard and that is because
he spoke directly into the microphone. She said if it is important for us hear, everyone
should please speak directly into the microphone(s).
• Ms. Doreen Bowers, 2608 Hidden Grove, who provided council with a handout and
talked about the water situation and what is going on in our neighboring cities. The
handouts are from the Wilson County News and are about a project to enlist the aid of
buying water from Wilson County. She is concerned about how they are going about it.
She read excerpts from the newspaper article and stated that the Carrizo and Edwards
Aquifers are not the same type of aquifer. With heavy rain, the Edwards Aquifer can
recharge itself in weeks but the Carrizo Aquifer recharges very slowly and the effects of.
over pumping can take a lifetime to rebound. She just wants to make council aware of
this in case they are involved in some of these discussions with other parties.
• Ms. Maggie Titterington, Schertz Chamber of Commerce, who thanked the RAFB 435th
Squadron for their recent landscaping improvements at the Visitors Center.
She stated we also now have a new Schertz Idol, Ms. Rylee Krkosa, a student at Incarnate
Word University, and she will be performing at the next Chamber Luncheon. They will
be giving 80% of the proceeds raised from that event to BVYA.
Representative John Kuempel spoke at today's luncheon about the open carry law and
other business legislation including Proposition 7, which deals with transportation stable
funding. The Schertz Chamber supports this.
The Chamber is in partnership with JBSA Randolph who had a wish list for their Air
Show coming up on October 31 and November 1. They have 350 performers and have
split this number with San Antonio and have found business sponsors in Schertz who will
provide lunches for two days to our half of the performers.
As the filing draws to a close the Chamber will be hosting a `Meet the Candidates' for the
City of Schertz on October 14, 2015 at 6:30 p.m. at the Schertz Civic Center Bluebonnet
Room. Tim Brown will be the moderator and Randolph Brooks Federal Credit Union is
sponsoring the event with some light refreshments. All candidates for City Council and
the Schertz Cibolo Universal City Independent School District are invited to attend.
Consent Agenda Items
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Mayor Pro -Tem Fowler stated that staff has asked that item 2 be removed fiom the consent
agenda for separate action.
The Consent Agenda is considered self - explanatory and will be enacted by the Council with one
motion. There will be no separate discussion of these items unless they are removed from the
Consent Agenda upon the request of the Mayor or a Councilmember.
1. Minutes - Consideration and/or action regarding the approval of the minutes of the
Regular Meeting of August 11, 2015. (J. Kessel/B. Dennis)
3. Ordinance No. 15 -T -26 — Consideration and /or action approving an Ordinance authorizing
a budget adjustment for construction of the Woodland Oaks Retaining Wall Construction in
the amount of $134,800. Final Reading (B. James /K. Woodlee)
The following was read into record:
ORDINANCE NO. 15 -T -26
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AUTHORIZING A BUDGET ADJUSTMENT FOR CONSTRUCTION OF
THE WOODLAND OAKS RETAINING WALL CONSTRUCTION IN THE
AMOUNT OF $134,800; REPEALING ALL ORDINANCES OR PARTS OF
ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND PROVIDING
AN EFFECTIVE DATE
Mayor Pro -Tem Fowler recognized Councilmember Azzoz who moved, seconded by
Councilmember Edwards to approve the consent agenda items 1 and 3. The vote was
unanimous with Mayor Pro-Tent Fowler, Councilmembers Azzoz, John, Edwards
and Thompson voting for and no one voting no. Motion passed.
Discussion and Action items
2. Ordinance No. 15 -M -25 — Consideration and /or action approving an Ordinance
amending the City of Schertz Code of Ordinances establishing fees for certain licenses,
permits, and other services provided by the City of Schertz. Final reading (J. Kessel /J.
Santoya/J. Walters)
The following was read into record:
ORDINANCE NO. 15 -M -25
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AMENDING THE CITY OF SCHERTZ CODE OF ORDINANCES AND
CERTAIN OTHER ORDINANCES BY AMENDING AND ESTABLISHING FEES
FOR CERTAIN LICENSES, PERMITS, AND OTHER SERVICES PROVIDED
BY THE CITY OF SCHERTZ.
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Mayor Pro -Tern Fowler recognized Senior Budget Analyst James Walters who stated that
after the first reading was approved they met with Dan Jackson who recommended a
Cibolo wholesale rate of 3.27. This rate, which was on page 13, was originally presented
as going from 2.27 to 2.41. This rate was calculated based on the potential cost of service
of supplying Cibolo with a wholesale water rate which we currently do not do but if we
did and took that rate into the future we would be ready to go. That was the only change.
Currently, there is no fiscal impact associated with that. If Cibolo takes the option to
purchase water at a wholesale rate in the future this is the rate they would be charged.
Mayor Pro -Tern Fowler recognized Councilmember Thompson who moved, seconded by
Councilmember Edwards to approve Ordinance No. 15 -M -25 final reading. The vote
was unanimous with Mayor Pro -Tem Fowler, Councilmembers Azzoz, John,
Edwards and Thompson voting for and no one voting no. Motion passed.
4. Ordinance No. 15 -11-27 — Consideration and /or action approving an Ordinance
amending Chapter 14 of the City of Schertz Code of Ordinances to adopt a trap, neuter,
and release program and certain regulations with respect thereto; adding definitions;
repealing all Ordinances or Resolutions or parts of Ordinances or Resolutions in conflict.
First Reading (M. Harris /S. Roman)
The following was read into record:
ORDINANCE NO. 15 -11-27
AN ORDINANCE AMENDING CHAPTER 14 OF THE CITY OF SCHERTZ
CODE OF ORDINANCES TO ADOPT A TRAP, NEUTER, AND RELEASE
PROGRAM AND CERTAIN REGULATIONS WITH RESPECT THERETO;
ADDING DEFINITIONS; REPEALING ALL ORDINANCES OR RESOLUTIONS
OR PARTS OF ORDINANCES OR RESOLUTIONS IN CONFLICT;
PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE
DATE.
Mayor Pro -Tem Fowler recognized Animal Services Manager Sharma Roman who stated
Animal Services is requesting to implement a Trap- Neuter -Return Program for stray and
feral cats. Statistics show that the program will greatly reduce the number of stray, un-
neutered, un- vaccinated animals in a colony and keep new cats from entering the colony.
Implementing this program is an effective and humane way to stabilize community cat
populations. Cats are humanely trapped and taken to a veterinarian, where they are
neutered and vaccinated. Kittens and socialized cats are placed into loving homes.
Healthy, adult cats are returned to their colony site, where they are often provided
continuing care by volunteers.
A feral cat caregiver is a volunteer, uncompensated person who agrees to facilitate the
trap, neuter and return program. They will follow the rules and regulations set forth by
Animal Services and will be responsible for providing food, water and shelter for the cats
in the colony. A permitted caregiver will be responsible for trapping and transporting the
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cats for spay /neuter /vaccinations. They will also provide Animal Services with updates
on the colonies.
Animal Services will provide traps to the caregivers for this purpose of the program. Ms.
Roman stated the cost of additional traps are $75. The department will also fund all
spay /neuter /vaccinations for the cats in the program. On average, the cost per cat will be
$65 -$75. Grant money and additional funding from non - profit organizations has been
identified to offset the spay /neuter costs. The overall impact includes: healthier outdoor
cats, reduced number of litters of stray kittens, and reduction of euthanasia of
feral /unwanted cats. Staff recommends approval. Ms. Roman addressed questions from
Council.
Mayor Pro -Tern Fowler recognized Councilmember Azzoz who stated that this is a great
idea and a positive response on how we are moving forward with the problem.
Mayor Pro -Tern Fowler recognized Councilmember Azzoz who moved, seconded by
Councilmember John to approve Ordinance No. 15 -H -27 on first reading.
Mayor Pro -Tem Fowler recognized Councilmember Edwards who asked if the cats
would be microchipped or inventoried in any manner. Ms. Roman stated that they will be
tipped on their left ear. She stated that they would be able to recognize them if that cat is
part of that colony. He also asked if they carne up with an actual cost for the program.
Ms. Roman stated they have not come up with an actual cost at this time. She stated the
first year out they have several volunteers stepping up who are willing to help us and
want to help support the program. What she would like to do is revisit this in a year and
report back to the Council or before that time if needed and let them know where they are
on the program and how much this program is going to cost.
Councilmember Edwards asked Councilmember Azzoz if he would restate his motion to
include an annual report.
Mayor Pro -Tem Fowler asked if we had any idea today as to how many cats we have
running around. Ms. Roman stated that it is hard to tell and the only thing she can tell you
is the intake of feral cats is more than half of what they bring into the animal shelter and
they are not adoptable. She stated that she does work with other agencies and individuals
do take some of them as barn cats and again they do euthanize the ones that are not
adoptable. She stated that it is tough to get them all placed. An estimation of feral cats
brought in monthly is around 35 to 40.
Mayor Pro -Tem Fowler recognized Councilmember Azzoz who moved, seconded by
Councilmember John to approve Ordinance No. 15 -H -27 first reading, to include adding
an annual report. The vote was unanimous with Mayor Pro -Tem Fowler,
Councilmembers Azzoz, John, Edwards and Thompson voting for and no one voting
no. Motion passed.
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5. Resolution No. 15 -R -74 — Consideration and/or action approving a Resolution
authorizing the City Manager to enter into a contract with the YMCA of Greater San
Antonio for maintenance and operation of the Schertz Area Senior Center. (B. James /C.
Van Zandt)
The following was read into record:
RESOLUTION NO. 15 -R -74
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AUTHORIZING THE CITY MANAGER TO ENTER INTO A
CONTRACT WITH THE YMCA OF GREATER SAN ANTONIO FOR
MAINTENANCE AND OPERATION OF THE SCHERTZ AREA SENIOR
CENTER AND OTHER MATTERS IN CONNECTION THEREWITH
Mayor Pro -Tem Fowler recognized Executive Director Brian James who stated that last
week the Council was updated on where we stood with the Senior Center. We reminded
Council that staff had put out the Request for Proposal (RFP) and staff was
recommending the YMCA be awarded the contract to operate the Senior Center.
Council's direction was to go out and speak to the seniors over the next week and get
their take on this. Staff did this and one of the representatives of the YMCA came and
spoke to them. The feedback from the seniors was positive. Based on the feedback staff
is recommending that we move forward with the agreement. One question that was
asked was to make sure we have an out clause, and we do have that out clause. The City
has the ability at no cause to sever the contract so there is not an issue there.
Mayor Pro -Tem Fowler recognized Councilmember John who asked what the period was
for the out clause. Mr. James stated that it was five days' notice.
Mayor Pro -Tem Fowler recognized Councilmember Azzoz who stated that he had read
the contract and saw the attachment titled portfolio and asked if this was a five year
contract. Mr. James answered yes. Councilmember Azzoz stated for clarification that we
could sign a contract and in a month from now we could decide to sever the contract with
any reason given. Mr. James concurred. Councilmember Azzoz asked that when we sent
this out for bid, how was it advertised and how was it posted. Mr. James answered that
we posted this on the City's website where we normally post items for bid and we made
those interested aware of the RFP, we did not send out notices, but did receive calls from
entities on it. This is generally how we post items, but he will say that there are
companies that typically go to cities websites to look for those bids and notify folks in the
industry that they are there.
Councilmember Azzoz also stated that he is looking at the cost of $174,000 and Mr.
James stated that yes in the 5th year. Councilmember Azzoz asked how many Schertz
residents' percentage wise visit our center versus non - residents.
Mr. James answered that the statistics are about 50% residents and 50 % non - residents;
the Schertz taxpayers are paying for it 100 %. Councilmember Azzoz asked if other cities
8 -18 -2015 Minutes Page - 7 -
are contributing to our center. Mr. James answered no not at this time. Councilmember
Azzoz stated this means the taxpayers of Schertz are carrying the financial burden. Mr.
James concurred. Councilmember Azzoz agreed that this needs to happen but he doesn't
know if he wants to put the burden on our taxpayers and that is his number one concern.
The number two concern is that he doesn't want one entity to be in control of a lot of our
functions in the city, he likes diversifying things. In looking at the requirements of the
senior center he doesn't like the word "minimal office supplies" because minimal could
be just a laptop and he would like for it to be more specific before we should put this on
our taxpayers and he wants to get it right. He believes we really need to put it out again
for bids and find another source. He believes that it is going to take three to four
individuals to do this. The $174,000 plus other expenses is too much money for him to
say let the City of Schertz absorb this cost. The fairness is not there and he is having
difficulties agreeing to this. He is encouraging his colleagues to look at the cost and
again he doesn't like the idea of one entity controlling a lot of our city functions.
Mr. James stated he had very valid points. He said if we can get the YMCA to get the
senior center up and running, then maybe we can talk to the other cities to see if they will
contribute to its operational costs. We have already established a good relationship with
Cibolo and Selma in regard to the library and if we can make a good case for the senior
center, we can talk to those cities that have residents attending the facility and see if they
can contribute proportionately. If this is the direction Council wants staff to pursue then
in six months and giving the YMCA three months to get going, then staff will proceed to
have discussions with the cities that have residents attending our senior facility.
Councilmember Azzoz stated he recommends looking at this again and putting something
in the paper to seek other bids and also communicate to the surrounding cities.
Mayor Pro -Tem Fowler asked what we were paying the past contractor. Mr. James said
it was under $40,000 per year. However, our seniors had an expectation of a certain level
of service, but it ultimately came down to having the money available to provide those
additional services and activities.
Mayor Pro -Tem Fowler recognized Councilmember Edwards who stated that he knows
that they had $40,000 we were paying the other entity; however the bulk of the
fundraising dollars that our seniors were doing that entity was taking the bulk of the
proceeds, so our seniors did not see that money back into our community. He said that
joint facilities have worked in every organization we have; public and private entities
have worked and this is not an issue. He doesn't want to see the city hire and start an
elderly care division and if we get to that recreational part of it as well, we have a great
relationship with BVYA and YMCA, we have great partners and great contractors who
have come in to do our street repairs etc. Councilmember Edwards stated that he doesn't
see us not going forward with this contract. We have been sitting on the fence with the
seniors too long and our seniors deserve better. Councilmember Edwards wants to move
forward and we need someone from our home town, and Freddy with the YMCA is from
Schertz and has a direct link with the senior center.
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Mayor Pro -Tem Fowler recognized Councilmember Thompson who echoed
Councilmember Edwards comments that the YMCA has proven their reputation within
the city. If the City has the ability to get out of the contract at any time, we are in good
shape. In regard to the previous costs we were paying, some of the things our previous
contactor would not pay for were the ballasts to be replaced. The seniors had to sell
popcorn and not turn the money in to replace the ballasts.
Councilmember Thompson made a motion that we adopt this resolution and move on
because our seniors deserve it. The motion was seconded by Councilmember Edwards.
Mayor Pro-Tern Fowler stated that we have a motion and a second and asked for other
comments. Mayor Pro-Tern Fowler recognized Councilmember Azzoz who stated he
believes that we have to be transparent and there is still work to be done. He asked
Councilmember Thompson to withdraw his motion and lets work on this more because
he is not going to put the burden on the Schertz taxpayers knowing that only 50% of our
seniors use it. It is unfair practice for him to vote on an issue like this and it is not fair for
us to absorb this cost without us looking into this more thoroughly.
Mayor Pro-Tern Edwards stated to whom much is given, much is required. Would we
cancel our contract with our Library, would we cancel our contract with our public
works, would we cancel our contract with our EMS? We have mutual aid, if our
neighbors needed water would we sit here and talk about our wholesale rate of our
abutting cities, Selma, Live Oak, Converse? If they were in a situation that was dire,
would you come and complain about the water rate at that point? We would talk about it
later, but do what's right first and then we would discuss the cost. Although this is not an
emergency, we have been operating in this situation far too long for our seniors.
Mayor Pro -Tem Fowler recognized Councilmember Azzoz who asked that on section 7
under termination, it says "by the City, at will and without cause upon not less than five
(5) days written notice to the contractor" so he asked could we revisit this again? He
asked if the cities of Cibolo, Seguin, Universal City or other surrounding cities say that
they are not going to assist in the funding, where do we go from there? Mr. James
answered we have two options: we could keep funding the senior center with the YMCA
as is, or we could cancel the contract and put another one out for bid with different levels
of services. You would certainly have the ability given it is the Schertz Senior Center to
say that this is only for our residents to use and you would not have to let folks from
other communities use the senior center. That is an option you have. Certainly if one of
the cities participates and the other didn't we could sit down with the YMCA and say we
are interested in re- negotiating the contract and then they would have the option to say no
they do not want to do that and we could cancel the contract. They could say that the cost
is too great, we would have to scale down; they may entertain that. They may say this is
the level we are willing to operate the senior center at and this is what we think it will
cost to do it right and if we did not agree, then we could cancel the contract.
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Confirmation was provided by the City Attorney that the contract had a five day out
clause for no reason. Councilmember Azzoz stated that if this is the case he agrees to do
this but if issues arise out of this, he would ask to revisit the matter.
Mr. James stated that we can certainly start approaching those others sooner, and his
thought would be to let the YMCA get on board before we start approaching them. One
last point he made is that Cibolo and Selma, who are the bigger users, as he mentioned
before, they also contribute to our Library. They do not have to do that. We receive
money from Guadalupe County to support our Library. Part of Guadalupe County's
requirement is that we have to let folks in Guadalupe County use it. Again, Cibolo views
it as the right thing to do. Mr. James stated that he appreciates Councilmember Azzoz's
concerns and is optimistic that the other cities will help us. After further discussion,
Councilmember Azzoz stated he is now in agreement to move forward with the contract,
but he is looking after our interests and our seniors.
Mayor Pro -Tem Fowler asked what our current operating costs were. Mr. James stated
that the operating costs are harder to calculate, but we budgeted about $70,000, and how
we currently are saving some money operating it is that Chuck VanZandt and Sandy
Bryant are doing `triple duty' of things that they do. These folks are saving the city a
bunch of money by running ragged and doing that; again he believes they do a really
good job given the fact that they have three jobs that they have to do. We also rely very
heavily on our seniors to pitch in and do a lot of the things that we do at the center. We
want our seniors to be involved and to have a say in matters and we made this very clear
to the YMCA. We want our seniors to feel like it is their center. We also want them to
be able to come in and say, this is fun, relaxing, and enjoyable, and this is not a job. The
budget amount is $70,000 but frankly it is not a real number because we rely too heavily
on a couple of staff people and the seniors. He cannot provide a real cost because it under
appreciates these folks. This is a credit to our staff and the care that they have.
Mayor Pro-Tem. Fowler recognized City Manager John Kessel who provided a comment
about other cities participation. He stated that if the cities do in fact agree to participate it
is likely that it will not be until next fiscal year because they won't have that money in
their budget this year; it is unlikely that they could account for that. However, we could
approach them and ask if they could do a mid -year budget adjustment sometime in
March. They may be willing to do this if they have some `found' money, but realistically
it would be something that they would put in the line items for next year's budget. These
cities have the same budget process that we have.
As there was no further discussion and as moved above, Mayor Pro -Tem Fowler had
recognized Councilmember Thompson who moved, seconded by Councilmember
Edwards to approve Resolution No. 15 -R -74. Mayor Pro -Tem Fowler called for the vote.
The vote was unanimous with Mayor Pro -Tem Fowler, Councilmembers Azzoz,
John, Edwards and Thompson voting for and no one voting no. Motion passed.
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6. Public Hearings on Proposed Budget for FY 2014 -15 — Conduct a public hearing
regarding the adoption of the FY 2015 -16 Budget. (First required public hearings) (J.
Kessel /J. Walters)
Mayor Pro -Tem Fowler recognized Senior Budget Analyst James Walters who stated that
City Council must hold public hearings on the proposed budget for FY 2015 -16, and the
first public hearing is being held tonight, August 18, 2015. The second public hearing
will be conducted at the August 25, 2015 regular meeting. The third public hearing will
be held September 1, 2015.
Mr. Walters provided a PowerPoint presentation regarding the highlights of the budget
which included the following:
FY 2015 -16 Proposed Budget
Budget Goals:
• Balanced Structurally
• Conservative and Responsible
• Follows Financial Policies
• Maintains Current Service Levels
• Focuses on priorities
Management Practices:
• Focus on priorities — Maintain appropriate fund balance
• Team Input — Departments, Council and Citizens
• Forward looking — planning for future revenues and expenses, consider project
schedules, 5 year forecast, long term debt model
Key City 5 Year Goals 2015
• Building repairs
• Fire Station 3
• Compensation Study
• Bond Election
• Strategic Staffing levels
• Focus on Competing existing programs
• Maintain reserves
Budget Highlights
• Classification & Compensation study
• Firefighter Ramp up Program
• Fire Apparatus (Debt Service)
• First year use of vehicle replacement fund — affecting general services, marshal,
streets, parks and animal services
• Southeast Water storage tank and distribution lines
• Additional Sewer lines and lift station
8 -18 -2015 Minutes Page - 11 -
Upcoming Capital Projects
e $15 Million in the upcoming bond election
- Fire Station #3
- FM Road Improvements
Additional $10 Million to be issued by Council
- Other roadway and infrastructure maintenance
All Funds — Revenues
General Fund
$26,568,977
Special Events Fund
131,800
PEG Fund
252,500
Water & Sewer Fund
18,902,115
EMS Fund
7,744,797
Drainage Fund
1,380,620
Hotel Tax
593,277
Park Fund
111,229
Tree Mitigation
40,250
Capital Recovery Water
3,477,141
Capital Recovery Sewer
3,643,712
I &S Fund
6,091,375
Other Funds
355,390
SEDC
3,528,562
Grand Total
$72,821,745
All Funds — Expenses
General Fund
$26,180,517
Special Events Fund
131,800
PEG Fund
252,500
Water & Sewer Fund
18,855,871
EMS Fund
7,471,850
Drainage Fund
1,220,951
Hotel Tax
259,330
Park Fund
34,800
Tree Mitigation
27,000
Capital Recovery Water
3,477,141
Capital Recovery Sewer
3,343,712
I &S Fund
5,821,418
Other Funds
322,990
SEDC
2,659,502
Grand Total
$70,059,382
8 -18 -2015 Minutes Page - 12 -
Fund Balance/Equity
FY 2015 -16
Estimated Beginning
balance
Net Change
Budgeted Ending
balance
General Fund
$6,911,098
$147,372
$7,058,470
Special Events Fund
73,803
- 10,000
63,803
PEG Fund
493,463
- 145,500
347,963
I &S Fund
733,023
269,957
1,002,980
Water & Sewer Fund
3,381,415
- 453,756
2,927,659
Capital Recovery Water
5,172,348
- 2,550,541
2,621,807
Capital Recovery Sewer
4,046,501
- 3,077,712
968,789
Drainage Fund
1,132,963
- 54,251
1,078,712
EMS Fund
975,653
272,726
1,248,379
SEDC
8,653,932
869,060
9,522,992
Hotel Tax Fund
783,780
329,872
1,113,652
Park Fund
210,958
76,429
287,387
Tree Mitigation
459,533
13,250
472,783
Library Fund
63,071
-4,960
58,111
Historical Committee
9,567
0
9,567
Parks & Rec Foundation
111,337
32,360
143,697
General Fund Revenues
Property Taxes
$10,252,766
Sales Taxes
7,036,724
Fees
2,486,122
Franchises
2,221,153
Fund Transfers
1,921,266
Permits
1,249,839
Inter - Jurisdictional
783,847
Miscellaneous
462,000
Other taxes
40,100
Licenses
84,160
Library Fines
31,000
Total Revenues
$26,568,977
Property taxes make up 39 %, Sales Tax 27 %, Fees 9 %, Franchise 8% and Fund transfers
7% all others make up the rest.
General. Fund Expenses
General Government
$ 7,057,767
Internal Service
3,795,021
Police
6,211,375
Fire Rescue
3,720,308
Inspections
693,360
Marshal Service
717,794
Streets
1,181,397
Parks & Recreation
1,350,793
Library
877,288
Animal Services
575,414
8 -18 -2015 Minutes Page - 13 -
Total Expenses $26,180,517
General Government makes up 27 %, Police 24 %, Internal Service 14 %, Fire Rescue 14%
all others make up the rest.
General Fund
Revenues
Expenditures
Increase of Fund Balance
Beginning Fund Balance
Use of Vehicle replacement
Ending Fund Balance
25% Reserve Policy
$26,568,977
26,180,517
388,460
6,911,098
- 241,088
7,058,470
6,501,138
M &O $0.3159
Total Change in Expenditures
$150,000 New Employees
$380,400 Large Expanded programs (over 10,000)
$600,000 Act on Compensation Study
$329,600 Continue Existing Staffing Levels & Programs
$1,460,000 Total Increase
$389,000 Reserve Funding
M &O $0.3159
New Personnel
$150,000 3 Firefighters — Ramp up Program Station #3
$150,000 Total New Employees
M &O $0.3159
Large Expanded Programs
$260,400 Vehicle Replacement
$150,000 Replace Remaining SCBA's
$20,000 Expanded Election
$380,400 Total Large Expanded Programs
M &O $0.3159
Reserve Funding
$169,000
Vehicle Replacement
$25,000
A/C Replacement
$25,000
Server Replacement
$35,000
P &Z Software
$35,000
Phone System Replacement
$100,000
Unassigned Fund Balance
$389,000
Total Reserve Funding
8 -18 -2015 Minutes page -14 -
Sales Tax
General Fund
FY 2013 -14
Actual
$7,032,044
2015 — 5 Year Forecast
FY 2014 -15
Estimate
$6,961,724
-1% +1%
FY 2015 -16
Budget
$7,036,724
5 Year Summary — I &S Fund
® At I &S Rate of $0.1752:
- Includes $15 million bond package from elections in 2015
- Includes additional CO Bonds for infrastructure
- The lowest fund balance is $149,811 in FY 2017/18
- Rate could fluctuate based on the actual growth of the tax base and the results
from the bond election but at a reduced rate due to the model
Change Memo
• Made adjustments to act on Year 1 of the Classification study recommendations
• Updated Parks and Pools in the General fund for a full year Director Funding in
place of the pool liner
The pool liner funding will come out of the current year budget
® IT in the General Fund will increase for additional cable costs
Updated Water & Sewer Fund projects
-Will now only budget for the next phase of Northcliffe waterline replacement
A copy of the proposed FY2015 -16 Budget can also be found on line at
w.scliertz.com. A paper copy is available for viewing in the City Secretary's office
and at the Schertz Library.
Mayor Pro -Tern Fowler opened the public hearing and recognized the following who
spoke:
® Mr. Robert Brockman, 1000 Elbel Road, who addressed a question regarding
where the Senior Center budget of $150,000 is at. Mr. Walters stated that the
initial $150,000 is under the City Assistance Header for FYI 5-16. Mr. Brockman
also asked where the Rollback rate number comes from.
8 -18 -2015 Minutes page -15 -
Mayor Pro -Tem Fowler stated that Mr. Walters will address Mr. Brockman's
question regarding the rollback number when they get to the Public Hearing on
the Proposed Tax rate.
As no one else spoke, Mayor Pro-Tern Fowler closed the public hearing for Council
comments.
Mayor Pro -Tem Fowler announced that the next public hearing and first vote will be
conducted August 25, 2015.
7. Public Hearings on Proposed Tax Rate — Conduct a public hearing regarding the
adoption of the FY 2015 -16 Tax Rate. (First required public hearings) (J. Kessel /J.
Walters)
Mayor Pro -Tem Fowler recognized Senior Budget Analyst James Walters who stated that
in accordance with Chapter 26 of the Texas Tax Code the City Council must hold two (2)
public hearings on a proposed tax rate. Tonight is the first required public hearing.
Mr. Walters stated at the August 4, 2015 regular session of the City Council, by record
vote, established a proposed preliminary maximum tax rate of $0.4911, per $100 of
value, with the M &O rate at $0.3159 and the I &S portion of $0.1752. The proposed rate
is not subject to rollback. Mr. Walters provided a PowerPoint presentation with the
following highlights answering questions from Council:
FY 2015 -16 Proposed Tax Rate
2015 Property Values
2014 Adjusted Taxable Value $2,748,857,464
2015 Equivalent Taxable Value $2,932,054,997
2015 New Improvements + $97,748,649
2015 Adjusted Taxable Value $3,029,803,646
Difference $ 280,946,182
Mr. Walters provided a graph regarding the 2015 Property Taxes accessed by the
different entities in each county.
City Tax Rate
Tax Rate Current
M &O $0.3164 To operate general City services
I &S $0.1810 Pays for the City's 's debt
Total $0.4974 The combined tax rate seen on the tax bill
8 -18 -2015 Minutes Page -16 -
City Tax Rate
Effective: The tax rate which, on average, will keep the tax bill the same as in
2013.
Current: The rate currently adopted by the City.
Proposed Max: The maximum rate set at which the final adopted rate cannot
exceed.
Rollback: The rate if exceeded allows citizens to initiate a rollback election.
The results of this election can reduce the adopted tax rate back to
the rollback rate.
City Tax Rate
Effective: $0.4664
Current: $0.4974
Proposed Max: $0.4911 Proposed budget is balanced at this rate.
Rollback: $0.4912
$0.01 is equal to $302,980 revenue or $18.53 on the average home.
Proposed Tax Rate Breakdown
Tax Rate Current
M &O $0.3159 To operate general City services
I &S $0.1752 Pays for the City's debt
Total $0.4911 The combined tax rate seen on the tax bill
FY2015 -16 City Tax Rate
At $0.4911
2014 Tax Bill = $866.47 Avg Home Value $174,200
2015 Tax Bill = $909.52 Avg Home Value $185,200
Increase =$ 43.05
2014 Tax Bill = $497.40 Home Value of $100,000
2015 Tax Bill = $491.10 Home Value of $100,000
Decrease = $ -6.30
Mr. Walters showed a graph of Schertz Historic tax rates.
Mr. Walters showed the following budget calendar FY2015 -16:
August 18
First Public Hearing
August 25
Second Public Hearing, First Vote
September 1
Third Public Hearing, Second Vote
October 1
Budget goes into effect
Mr. Walters addressed Mr. Brockman's question regarding where does the roll back
number come from and how it is calculated.
8 -18 -2015 Minutes Page -17 -
Mayor Pro -Tem Fowler opened the public hearing and as no one spoke, closed the public
hearing.
As no one else spoke, Mayor Pro -Tem Fowler closed the public hearing for Council
comments. Mayor Pro -Tem Fowler announced that the next public hearing and first vote
will be conducted August 25, 2015,
Roll Call Vote Confirmation
Mayor Pro -Tem Fowler recognized City Secretary Brenda Dennis who provided the roll call vote
information for agenda items 1 through 5.
Requests and Announcements
8. Announcements by City Manager
• Citizen Kudos
• Recognition of City employee actions
• New Departmental initiatives
No further announcements were provided.
9. Requests by Mayor and Councilmembers that items be placed on a future City Council
agenda.
Mayor Pro -Tem Fowler recognized Councilmember Azzoz who stated last week they
discussed going to three meetings a month and his opinion is as an example of tonight's'
meeting with all the public hearings it is much easier to cancel a meeting if we do not
have a lot on an agenda and we could cancel as well as inform the public.
Councilmember Azzoz also asked City Manager John Kessel to provide him information
on the 2 million dollars given to us from TxDOT for the work on the FM 3009 sidewalks.
He has not received the information. Mr. Kessel stated that we can certainly discuss this
and next week we can provide the update.
Councilmember Azzoz stated that he wanted to compliment Senior Budget Analyst
James Walters on the incredible job he has done presenting the budget and explaining it
thoroughly. He thanked Mr. Walters for a job well done and also complimented
everyone who participated.
Mayor Pro -Tem Fowler requested an item be placed on the agenda in two weeks for
discussion of a summer dress decor. He stated that during the summer months we should
consider a common sense dress decor up on the dais to either wear one of our short sleeve
shirts or another shirt. During July, August and September he sees no reason why we
should be wearing coats and ties or being so mixed in what we wear. He understands the
difference between work attire as you dress for the job or you dress for the position.
8 -18 -2015 Minutes Page - 18 -
During the summer months when it gets up into the 100's we should at least talk about
this. Councilmember Edwards asked if he would like to have this in the policies and
procedures because we are going to have this discussion coming up soon. Mayor -Tem
Fowler stated that yes as a future item on the agenda.
10. Announcements by Mayor and Councilmembers
• City and community events attended and to be attended
• City Council Committee and Liaison Assignments (see assignments below)
• Continuing education events attended and to be attended
• Recognition of actions by City employees
• Recognition of actions by community volunteers
• Upcoming City Council agenda items
Mayor Pro-Tern Fowler recognized Councilmember Edwards who stated that he is back
from dropping off his second son at West Point, who will be playing ball there. He stated
that he just graduated from his Cadet basic training and has now been accepted into the
Core of Cadets. Councilmember Edwards stated that is two, he has to work on two more.
Mayor Pro-Tern Fowler recognized Councilmember Thompson who stated the City in
conjunction with Hospice held the 70th Memorial Anniversary of the end of World War II
at the Veterans Memorial stating this was an excellent ceremony honoring our veterans
and acclamations to all those that made it happen.
Mayor Pro-Tern Fowler concurred with Councilmember Thompson regarding the 70th
Memorial. He stated that the ceremony was solemn and brought back a lot of memories
when his dad was in the Navy.
Mayor Pro -Tem Fowler stated that one last announcement from him is that he will not be
in attendance next week as he has personal business he will be taking care of.
Adjournment
Meeting was adjourned at 7:45 p.m.
Jlm Fowler, Mayor Pro-Tern
(
t �—P 1 r X1 /1 �ti► _ ___
Brenda Dennis, City Secrecy
8 -18 -2015 Minutes Page - 19 -