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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. 8 -18 -2015 Minutes Page-1- 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. 8 -18 -2015 Minutes Page - 2 - • 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 8 -18 -2015 Minutes Page - 3 - 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. 8 -18 -2015 Minutes Page - 4 - 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 8 -18 -2015 Minutes Page - 5 - 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. 8 -18 -2015 Minutes Page - 6 - 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. 8 -18 -2015 Minutes Page - 8 - 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. 8 -18 -2015 Minutes page - 9 - 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. 8 -18 -2015 Minutes Page - 10 - 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 -