08-30-2016 MinutesMINUTES
REGULAR MEETING
August 30, 2016
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on August 30,
2016, 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 Mayor Pro -Tem Cedric Edwards
Councilmember Jim Fowler Councilmember Grumpy Azzoz
Councilmember Daryl John Councilmember Robin Thompson
Staff Present: City Manager John Kessel
Executive Director Brian James Executive Director Dudley Wait
City Attorney Charles Zech Deputy City Secretary Donna Schmoekel
Assistant to the City Manager Sarah Gonzalez
Call to Order — City Council ReLyular Session
Mayor Carpenter called the meeting to order at 6:01 p.m.
Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas.
(Senior Adult Chaplain Jim Hough, Community Bible Church)
Chaplain Hough 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/S. Gonzalez)
Mayor Carpenter recognized Executive Director Dudley Wait who provided the following
announcements:
• Wednesday, August 31, Blood Drive, City Hall Parking Lot, 8 -11:30 a.m.
• Monday, September 5, City Offices will be closed due to the Labor Day Holiday.
• Thursday, September 8, Northeast Partnership, Olympia Hills Golf and Conference
Center 11:30 a.m.
• Tuesday, September 13, City Council meeting, 6 :00 p.m.
• Tuesday, October 4, National Night Out
Election Reminders for voters:
1) Last Day to Register to Vote —Tuesday, October 11, 2016.
2) First Day of Early Voting — Monday, October 24, 2016.
3) Last Day of Early Voting — Friday, November 4, 2016.
4) Election Day — Tuesday, November 8, 2016.
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® Announcements and recognitions by City Manager (J. Kessel)
Mayor Carpenter recognized City Manager John Kessel who recognized Police Officer
Amanda Catoe who on July 19, 2016 responded to a house fire call. She went to work
assisting the Fire Fighters with setting up the hoses, etc. City Manager John Kessel thanked
her and all the other rescue personnel who responded.
Presentation
® Presentation and recognition of Planning Certificate of Achievement for 2016. (B. James)
Mayor Carpenter recognized Director of Planning & Community Development Lesa Wood
who came forward explaining the award and read the letter that was mailed to Mayor
Carpenter regarding the award. The following members of the Planning & Community
Development Department who were also present were Senior Planner Bryce Cox, Planner I
Channary Gould and Planner I Emily Grobe. Mayor and Council congratulated them on such
an excellent achievement.
Hearing of Residents
Mayor Carpenter recognized the following individuals who spoke:
® Mr. Robert Brockman, 1000 Elbel Road, who addressed the Council regarding the new
school zone lights. He stated that in some areas the trees are blocking the signals. City
Manager John Kessel stated that he would have this checked out.
Consent Agenda Items
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 23, 2016. (J. KesselB. Dennis)
2. Ordinance No. 16 -S -27 - Consideration and/or action approving an Ordinance regarding an
amendment of Part III, Schertz Code of Ordinances, Unified Development Code (UDC)
Article 9 Site Design Standards, Article 10 Parking Standards and Article 14 Transportation.
Final Reading (B. James /L. Wood/B. Cox)
The following was read into record:
ORDINANCE NO. 16 -S -27
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AMENDING THE CODE OF ORDINANCES, UNIFIED DEVELOPMENT CODE
(UDC) SECTION 21.9.5 EXTERIOR CONSTRUCTION AND DESIGN STANARDS,
SECTION 21.9.7 LANDSCAPING, SECTION 21.9.8 SCREENING AND FENCING,
SECTION 21.9.9 TREE PRESERVATION AND MITIGATION, SECTION 21.10.4
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SCHERDULE OF OFF - STREET PARKING REQUIREMENTS, SECTION 21.10.8
OFF - STREET LOADING/UNLOADING REQUIREMENTS, SECTION 21.14.3
ADDITIONAL DESIGN REQUIREMENTS, AND SECTION 21.16 DEFINITIONS
PROVIDING A REVERSIONARY CLAUSE; PROVIDING A REPEALING CLAUSE;
PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY CLAUSE;
AND PROVIDING AN EFFECTIVE DATE.
3. Ordinance No. 16 -S -28 - ZC2016 -006 - Consideration and/or action approving an
Ordinance on a request to rezone approximately 14 acres of land generally located 705 feet
west of the intersection of FM 482 and Hubertus Road, from Manufacturing District,
Light (M -1) to Agricultural District (AD). The property is specifically described as 13.17
acres out of the Rafael Garza Survey No. 98, Abstract No. 175, City of Schertz, Comal
County, Texas. Final Reading (B. James /L. Wood/B. Cox)
The following was read into record:
ORDINANCE NO. 16 -S -28
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AMENDING THE OFFICIAL ZONING MAP BY REZONING APPROXIMATELY 14
ACRES OF LAND FROM MANUFACTURING DISTRICT, LIGHT (M -1) TO
AGRICULTURAL DISTRICT (AD).
Mayor Carpenter recognized Councilmember Fowler who moved, seconded by
Councilmember Azzoz to approve consent agenda items 1 -3. The vote was unanimous with
Councilmembers Fowler, Azzoz, John and Thompson voting for and no one voting no.
Mayor Pro -Tem Edwards was absent for this vote as he had not arrived. Motion passed.
Discussion and Action Items
Mayor Pro -Tem Edwards arrived at 6:17 p.m.
4. Resolution No. 16 -R -69 — Consideration and /or action approving a Resolution authorizing an
Interlocal Agreement between the City of Schertz and the City of Seguin. (D. Wait)
The following was read into record:
RESOLUTION NO. 16 -R -69
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING THE CITY MANAGER TO ENTER INTO AN INTERLOCAL
AGREEMENT BETWEEN SCHERTZ, SEGUIN AND THE SCHERTZ SEGUIN
LOCAL GOVERNMENT CORPORATION OUTLINING THE COST ALLOCATION
METHODS FOR REPAYING DEBT ASSOCIATED WITH TWO EXPANSION
PROJECTS OF THE SCHERTZ SEGUIN LOCAL GOVERNMENT
CORPORATION, AND OTHER MATTERS IN CONNECTION THEREWITH
Mayor Carpenter recognized Planning & Zoning Commissioner Ken Greenwald who stated he
wanted to thanlc Mayor Carpenter of Schertz and Mayor Keil of Seguin, Schertz City Manager
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John Kessel, Schei-tz Executive Director Dudley Wait and other city staff members of both
Seguin and Schertz who worked many hours (even over the weekend) to develop and ready
the paperwork that is being submitted this evening to finalize this process. We now need
approval for the funding for the second project of the proposed original three projects.
Hopefully, everything will be signed tonight by both cities. He thanked everyone again for all
the time that was put into this project.
Mayor Carpenter recognized Executive Director Dudley Wait who provided a PowerPoint
presentation regarding the history and future plans of SSLGC. He stated the Schertz Seguin
Local Government Corporation (SSLGC) was founded in 1999 as a non - profit water supply
corporation by the cities of Schertz and Seguin. This partnership has successfully delivered
high quality drinking water to both cities since 2003.
During this time, as the City of Schertz has grown and SSLGC has contracted with other
communities for both drinking water as well as transporting other entities drinking water, it
has become obvious that the time for expansion has arrived.
For the last five years, the SSLGC has been planning and beginning development on two
projects. The first is a second well field located in Guadalupe County, just over the border
from our Gonzales well fields. This second field will eventually deliver an additional 5,000 -
6,000 acre feet of drinking water which will become necessary for Schertz in order to continue
to provide adequate levels of drinking water to its citizens.
Additionally, in 2011, SSLGC entered into an agreement to treat and transport 12,000 acre
feet of water annually for the San Antonio Water System (SAWS). The SAWS water, from
their own well field, currently takes up approximately 50% of the pipeline capacity in the
original 36" pipeline that runs from the booster pump station south of Seguin to Schertz.
Transporting this additional water has had a significant financial value to both cities over the
last 5 years, but SSLGC is beginning to struggle with enough pipeline capacity to move
adequate water to Schertz during the high peak summer months. As a result, the second
project that SSLGC is preparing to undertake is the building and installation -of a second
pipeline to be a minimum diameter of 36" as well.
This second pipeline will ensure that we have adequate pipeline capacity to meet our future
water needs through SSLGC and CVLGC and will allow us to sell excess water to other
communities for many years to come.
The Schertz/Seguin Local Government Corporation has applied with the Texas Water
Development Board through its SWIFT Program for funding of the Guadalupe Project and
Parallel Pipeline Project. The application has been finalized to include the following
components; (1) Low Interest Loan in the amount of $43,670,000.00 and (2) TWDB
Participation loan in the amount of $22,830,000.00 totaling $66,500,000.
To date, SSLGC has invested approximately $12,860,364 in the Guadalupe well field project.
These expenditures include land, water leases, bond expenses, engineering, permitting and
legal fees. Seven well permits have also been acquired with associated water rights.
Attached to Resolution 16 -R -69 is a proposed Interlocal Agreement between Schertz and
Seguin that outlines the cost allocation of how both of these projects will be funded by
08 -30 -2016 Minutes Page - 4 -
SSLGC, Schertz and Seguin. This agreement is necessary so that each City's officials have a
clear understanding of how these projects will be paid for.
Highlights of this Agreement include that the second pipeline will be paid for by SSLGC and
will be incorporated into all eligible rates of all payers. The Guadalupe Well Field debt will
be paid for by Schertz and any other users of the Guadalupe Well Field and the cost of water
from this well field will have its own rate structure that ensures that all costs of this new water
will be paid by the consumers of the water. In addition, the agreement contains language that
requires SSLGC, Schertz and Seguin to annually discuss these funding plans to evaluate any-
other rate structures that would benefit SSLGC and both cities.
Although this agreement will result in higher rates to the water users of the Guadalupe Well
Field, the City has the potential to pursue different cost structures to help minimize the impact
to our rate payers annually over the next thirty years.
The City of Schertz is a member of the SSLGC. It is through the SSLGC that the City
provides water to its citizens. Approval of this resolution and agreement will ensure that the
future water needs of the city are met for several years.
This action will have a fiscal impact on the City of Schertz by increasing our water rates.
These rate increases are necessary to continue to provide water that is needed in the future.
Staff recommends approval. Executive Director Dudley Wait addressed questions and
comments from Council.
Mayor Carpenter recognized Councilmember Azzoz who moved, seconded by
Councilmember Fowler to approve Resolution No. 16 -R -69. The vote was unanimous with
Mayor Pro -Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson voting
for and no one voting no. Motion passed.
5. Resolution No. 16 -R -65 — Consideration and approval by the City Council of the City of
Schertz, Texas (A) approving resolutions previously adopted by the Board of Directors of the
Schertz/Seguin Local Government Corporation (1) authorizing the request of financial
assistance from the Texas Water Development Board through an application for State Water
Implementation Fund for Texas and Board participation programs for the purpose of planning,
designing, and constructing utility system improvements to assist in the implementation of the
state water plan; ratifying such application as well as the terms and conditions set forth
therein; and acknowledging the application's submission to the Texas Water Development
Board; and (2) approving the execution of respective financing agreements pertaining to the
State Water Implementation Fund for Texas and Board participation programs and a Master
Agreement pertaining to the Board participation program by the Board of Directors of the
Schertz /Seguin Local Government Corporation and authorizing the Mayor and City Secretary
of the City of Schertz, Texas to execute on behalf of the City of Schertz, Texas any and all
necessary documents and certificates; (b) ratifying, reconfirming, and readopting the
provisions of a Regional Water Supply Contract executed between the City of Schertz, Texas,
the City of Seguin, Texas, and the Schertz /Seguin Local Government Corporation; and
(c) approving other matters in connection therewith; and providing an effective date. (D.
Wait /A. Cockerell/M. McLiney /A. Freedman)
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The following was read into record:
RESOLUTION NO. 16 -R -65
(A) APPROVING RESOLUTIONS PREVIOUSLY ADOPTED BY THE BOARD OF
DIRECTORS OF THE SCHERTZ /SEGUIN LOCAL GOVERNMENT
CORPORATION (1) AUTHORIZING THE REQUEST OF FINANCIAL
ASSISTANCE FROM THE TEXAS WATER DEVELOPMENT BOARD THROUGH
AN APPLICATION FOR STATE WATER IMPLEMENTATION FUND FOR TEXAS
AND BOARD PARTICIPATION PROGRAMS FOR THE PURPOSE OF PLANNING,
DESIGNING, AND CONSTRUCTING UTILITY SYSTEM IMPROVEMENTS TO
ASSIST IN THE IMPLEMENTATION OF THE STATE WATER PLAN; RATIFYING
SUCH APPLICATION AS WELL AS THE TERMS AND CONDITIONS SET FORTH
THEREIN; AND ACKNOWLEDGING THE APPLICATION'S SUBMISSION TO
THE TEXAS WATER DEVELOPMENT BOARD; AND (2) APPROVING THE
EXECUTION OF RESPECTIVE FINANCING AGREEMENTS PERTAINING TO
THE STATE WATER IMPLEMENTATION FUND FOR TEXAS AND BOARD
PARTICIPATION PROGRAMS AND A MASTER AGREEMENT PERTAINING TO
THE BOARD PARTICIPATION PROGRAM BY THE BOARD OF DIRECTORS OF
THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION AND
AUTHORIZING THE MAYOR AND CITY SECRETARY OF THE CITY OF
SCHERTZ, TEXAS TO EXECUTE ON BEHALF OF THE CITY OF SCHERTZ,
TEXAS ANY AND ALL NECESSARY DOCUMENTS AND CERTIFICATES; (B)
RATIFYING, RECONFIRMING, AND READOPTING THE PROVISIONS OF A
REGIONAL WATER SUPPLY CONTRACT EXECUTED BETWEEN THE CITY OF
SCHERTZ, TEXAS, THE CITY OF SEGUIN, TEXAS, AND THE
SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION; AND (C)
APPROVING OTHER MATTERS IN CONNECTION THEREWITH; AND
PROVIDING AN EFFECTIVE DATE
Mayor Carpenter recognized Executive Director Dudley Wait who stated the Schertz/Seguin
Local Government Corporation ( SSLGC) has applied with the Texas Water Development
Board through its SWIFT program for funding of the Guadalupe Project and Parallel Pipeline
Project. The application has been finalized to include the following components; (1) Low
Interest Loan in the amount of $43,670.00 and (2) TWDB Participation in the amount of
$22,830.00.
SSLGC has invested approximately $12,860,364 in the Guadalupe project to date. These
expenditures include land, water leases, bond expenses, engineering, permitting and legal
fees. Seven well permits have been acquired with associated water rights.
The City of Schertz and the City of Seguin are worldng to develop an Interlocal Agreement
for debt service allocation. Mr. Wait introduced Financial Advisor Marls McLiney who came
forward to provide additional details on the Water Development Boards Program which
facilitates funding for large water projects in the state. There are two loans they are looping at:
(1) a deferred interest loan 2) the SWIFT Loaning Program for funding new projects. He
explained the borrowing rates and stated that they plan to close and fund in November 2016.
He complimented Schertz city staff for helping to bring this negotiation process to conclusion.
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The SSLGC Board is scheduled to take action at a special called board meeting on August 29,
2016. The City of Schertz is a member of the SSLGC. It is through the SSLGC that the City
provides water to its citizens. Approval of this funding application will ensure the future
water needs of the city are met.
Mayor Carpenter recognized Councilmember Azzoz who moved, seconded by
Councilmember John that the City Council approve a Resolution authorizing and ratifying
various actions and Resolutions previously approved by the Schertz /Seguin Local
Government Corporation. The vote was unanimous with Mayor Pro -Tem Edwards,
Councilmembers Fowler, Azzoz, John and Thompson voting for and no one voting no.
Motion passed.
6. Resolution No. 16 -R -70 — Consideration and/or action approving a Resolution authorizing
the signing of a Letter of Permission for BCFS Health and Human Services Emergency
Management Division to acquire a Texas Department of State Health Services EMS Provider
License. (D. Wait/D. Wait)
The following was read into record:
RESOLUTION NO. 16 -R -70
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING THE SIGNING OF A LETTER OF PERMISSION FOR BCFS
HEALTH AND HUMAN SERVICES EMERGENCY MANAGEMENT DIVISION TO
ACQUIRE A TEXAS DEPARTMENT OF STATE HEALTH SERVICES EMS
PROVIDER LICENSE, AND OTHER MATTERS IN CONNECTION THEREWITH
Mayor Carpenter recognized Executive Director Dudley Wait who stated in 2013, the Texas
Legislature passed HB 3556 to reduce the amount of healthcare fraud that was present in the
EMS industry across the State. One section of this Bill required any new EMS Provider to get
a letter of permission from the jurisdiction within which the organization was going to be
located and operate. This letter requirement put the onus on the local jurisdiction to attest that
a new EMS Provider would not adversely affect the current EMS Providers operating within
the jurisdiction and that a new provider would also help fulfill a need within the jurisdiction.
Since the passage of this bill, the City has not received any requests for a letter of permission
until now. Approximately two (2) years ago, BCFS Health and Human Services Emergency
Management Division (BCFS) leased property off of F.M. 3009 to place all of their
emergency response equipment and to base their Emergency Management Division from that
location. Since this time, BCFS has worked with Schertz public safety agencies to help us be
better prepared for disasters and to assist with various tasks around the City. This culminated
during the July 4th Jubilee when the BCFS large incident command trailer was used for the
coordination of the public safety functions related to the holiday events.
BCFS's Emergency Management Division specializes in the sheltering, feeding and caring for
those displaced due to manmade or natural disasters. They are internationally known and
work hand in hand with local jurisdictions to perform these vital functions all over the world.
Recently, BCFS proposed licensing two ambulances with the Texas Department of State
Health Services to be used during sheltering operations to reduce the impact on the local
08 -30 -2016 Minutes Page - 7 -
public safety agencies that are often inundated with responding to the disaster within its
borders. This plan will be tremendously useful to local jurisdictions when and if needed.
In order to implement this plan, BCFS must have a letter of permission to operate within a
jurisdiction in order to get their initial license. This same piece of legislation also allows an
EMS Provider to operate anywhere during a declared disaster. This means that BCFS needs
this letter of permission from the City, even though they may never operate their ambulances
on our streets. This would then allow them to respond to disasters across the State with their
ambulances.
Secondary to this request, BCFS has offered these ambulances, as they have their other
equipment, to be used by the City of Schertz during any event that may require additional
support. Staff recommends approval of Resolution 16 -R -70 authorizing the Mayor to sign the
letter of permission for BCFS Health and Human Services Emergency Management Division
to complete their licensing application for an EMS Provider License.
Mayor Carpenter recognized Councilmember Fowler who moved, seconded by Mayor Pro -
Tem Edwards to approve Resolution No. 16 -R -70. The vote was unanimous with Mayor
Pro -Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson voting for and
no one voting no. Motion passed.
7. Ordinance No. 16 -S -31 — Conduct a public hearing and consideration and /or action
PH approving an Ordinance imposing a moratorium on property development due to a need to
prevent a shortage of essential public facilities generally in the area from IH -10 to
approximately 2,000 feet North of Lower Seguin Road between FM 1518 and the western
boundary of the City Limits. Final Reading (B. James/B. James)
The following was read into record:
ORDINANCE NO. 16 -S -31
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
IMPOSING A MORATORIUM ON BOTH RESIDENTIAL AND COMMERICAL
PROPERTY DEVELOPMENT DUE TO A NEED TO PREVENT A SHORTAGE OF
ESSENTIAL PUBLIC FACILITIES GENERALLY IN THE AREA FROM IH -10 TO
APPROXIMATELY 2,000 FEET NORTH OF LOWER SEGUIN ROAD BETWEEN
FM 1518 AND THE WESTERN BOUNDARY OF THE CITY LIMITS PROVIDING A
REVERSIONARY CLAUSE; PROVIDING A REPEALING CLAUSE; PROVIDING A
SEVERABILITY CLAUSE; PROVIDING A PENALTY CLAUSE; AND PROVIDING
AN EFFECTIVE DATE.
Mayor Carpenter recognized Executive Director Brian James who stated the Texas Local
Government Code, Section 212 Subchapter E Moratorium on Property Development provides
that in certain circumstances cities may impose a moratorium on property development in the
event that there may exist a demonstrated need to prevent a shortage of essential public
facilities or a significant need for public facilities. In order to impose a moratorium certain
notices and public hearing requirements must be met within a specified time flame. The
imposition of the moratorium is based on written findings that provide evidence
demonstrating the extent of the need beyond the estimated capacity of existing essential public
08 -30 -2016 Minutes Page - 8 -
facilities or a significant need for public facilities that is expected to result from new property
development.
As City Council is aware the City of Schertz is experiencing tremendous growth in southern
Schertz. Much of this area is located in the flight path of Joint Base San Antonio Randolph.
Base operations present unique hazards as are outlined in the 2015 Joint Base San Antonio
Randolph Land Use Study, especially considering the bird strike hazard which Council
adopted per Resolution 15 -R -96 that includes strategies and timeframes to mitigate these
hazards. While the City is in the process of planning for a Fire Station 43 in this area, the
particular hazards from JBSA Randolph necessitate additional measures to ensure this hazard
is mitigated. These hazards associated with JBSA Randolph operations and existing
development patterns create a significant need for public facilities, in particular fire facilities.
A failure to provide these facilities given the current land uses, zoning, and land use
designations coupled with Base operations would result in an overcapacity of these facilities
that are detrimental to the health, safety, and welfare of residents of Schertz.
In order to impose the moratorium, Council must hold this public hearing, a public hearing
must be held at the Planning and Zoning Commission on August 24, and again at City Council
on August 30th; this is the second public hearing. This will allow the imposition of a
moratorium for up to 120 days while the City works to alleviate the problem of a lack of
capacity of fire facilities in this area. Attached is the written report required by the Texas
Local Government Code.
City Council approved this on first reading at their meeting of August 23, 2016. Staff
recommends approval of the second reading of this ordinance.
Mayor Carpenter opened the public hearing and recognized the following who spoke:
® Mr. Robert Brockman, 1000 Elbel Road, who stated he would like to see a map regarding
this area and have it made available for the public to view.
As no one else spoke, Mayor Carpenter closed the public hearing for council comments.
Mayor Carpenter recognized Councilmember Fowler who concurred with Mr. Brockman
about wanting to see a map of the area. Executive Director Brian James stated staff is going to
prepare a packet consisting of a map for anyone who comes in. He said they would also be
glad to e -mail that packet to the councilmembers to look at.
Mayor Carpenter recognized Councilmember Thompson who moved, seconded by Mayor
Pro -Tern Edwards to approve Ordinance No. 16 -S -31 final reading. The vote was
unanimous with Mayor Pro -Tem Edwards, Councilmembers Fowler, Azzoz, John and
Thompson voting for and no one voting no. Motion passed.
8. Public Hearing on Proposed Budget for FY 2016 -17 — Conduct a public hearing and
consideration and/or action regarding the adoption of the FY 2016 -17 Budget. (Second
PH required public hearing) (J. Kessel/J. Walters)
Ordinance No. 16 -T -29 — Consideration and/or action approving an Ordinance on the
proposed FY2016 -17 Budget. First Reading (J. Kessel /J. Walters)
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The following was read into record:
ORDINANCE NO. 16 -T -29
AN ORDINANCE ADOPTING A BUDGET FOR THE FISCAL YEAR BEGINNING
OCTOBER 1, 2016, AND ENDING SEPTEMBER 30, 2017, IN ACCORDANCE WITH
THE CHARTER OF THE CITY OF SCHERTZ, TEXAS; PROVIDING FOR THE
FILING OF THE BUDGET; PROVIDING THAT THIS ORDINANCE SHALL BE
CUMULATIVE OF ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE;
AND PROVIDING AN EFFECTIVE DATE.
Mayor Carpenter recognized Assistant Finance Director James Walters who stated in
accordance with applicable statutes and the City Charter, the City Manager submitted a
budget proposal to the City Council for consideration. The City Council held the first public
hearing on August 23, 2016 on the proposed FY 2016 -17 budget, including the budget of the
Schertz Economic Development Corporation.
This is the second public hearing and first reading of the budget ordinance. Council will take
the second and final vote to adopt the proposed City FY 2016 -17 budget at the next regularly
scheduled Council meeting on September 6, 2016 at 6:00 P.M. in the City Council Chambers.
Mr. Walters provided a PowerPoint presentation with the following highlights:
RECENT BUDGET PRESENTATONS:
3 Community Presentations
August 1 lth — Corbett Jr. High
August 17th — North Community Center
August 18th — Schertz United Methodist Church
Budget Workshop
- August 9th — Council Chambers
* Questions or requests for more information, see him in the staff room in the back after
the public hearing.
ALL FUNDS — REVENUES
General Fund
Special Events Fund
PEG Fund
Water & Sewer Fund
EMS Fund
Drainage Fund
Hotel Tax
08 -30 -2016 Minutes Page -10 -
$28,524,850
130,350
113,300
20,594,058
9,044,267
1,148,200
611,452
Park Fund
185,000
Tree Mitigation
142,000
Capital Recovery Water
1,040,600
Capital Recovery Sewer
625,500
I &S Fund
6,614,581
Other Funds
34,810
SEDC
3,738,260
Grand Total
$72,547,228
ALL FUNDS — EXPENSES
General Fund
$28,516,699
Special Events Fund
130,350
PEG Fund
108,600
Water & Sewer Fund
20,574,656
EMS Fund
8,928,351
Drainage Fund
1,122,764
Hotel Tax
260,995
Park Fund
185,000
Tree Mitigation
142,000
Capital Recovery Water
156,000
Capital Recovery Sewer
235,500
I &S Fund
6,614,581
Other Funds
33,750
SEDC
2,062,617
08 -30 -2016 Minutes Page - 11 -
Grand Total $69,071,863
NEW EMPLOYEES
® 3 Firefighters for Station 3 (approved August 2nd)
® 3 Police Officers
® 2 Paramedics
® 1 IT Employee
® Make a Seasonal Park Worker regular Part Time
® Make a Part Time Facilities Technician Full Time
CHANGE MEMO
® General Fund:
-All of the 4.9% Health Insurance increase covered by City
- Vehicle for New Patrol Officer
- Replace Police Cameras
- Additional Funding for the Junior Fire Academy
- Making a Seasonal Park Worker a Regular Part Time employee
- Additional Funding for Library Materials
- Moving a Facilities Technician I from Part Time to Full Time
® Parkland Dedication:
- Additional Funding to cover the Playscape Restroom Project
GENERAL FUND
Revenues
$28,524,850
Expenditures
28,516,699
Increase of Fund Balance
8,151
Beginning Fund Balance
9,295,054
Use of Vehicle Replacement
- 43,278
Ending Fund Balance
9,259,927
25% Reserve Policy
$7,105,737
2016 — 5 YEAR FORECAST
Revenue 26,523,587 28,481,572 29,658,342 30,808,595 32,017,014 33,456,752
Expense 25,293,887 28,516,669 29,837,859 30,719,131 31,752,872 32,883,265
08 -30 -2016 Minutes Page -12 -
Reserve 1,229,700 (35,127) (179,517) 89,464 264,141 573,487
Funding
M &O Fund 9294,904 9,259,777 9,080,260 9,169,724 9,433,865 10,007,352
Balance
25% Goal 6,233,322 7,105,737 7,435,715 7,676,033 7,913,218 8,182,066
Mr. Walters announced that the final vote will be held on Tuesday, September 6, 2016.
Staff recommends that the Mayor open the public hearing, take comments, and then close the
public hearing. Staff further recommends that the City Council approve first reading of
Ordinance No. 16 -T -29, adopting the budget for the fiscal year beginning October 1, 2016 and
ending September 30, 2017.
Mayor Carpenter opened the public hearing and recognized the following who spoke:
® Mr. Glen Outlaw, 3729 Forsyth Park, who had a couple of questions:
1) What is the dollar amount that we saved on the insurance?
2) If we would have reduced the budget by that much versus redistributing it,
what would the effect have been on the tax rate?
® Mr. Ken Greenwald, 205 Westchester, who stated he did not see anything in the
budget regarding the fire truck.
As no one else spoke, Mayor Carpenter closed the public hearing allowing staff an
opportunity to answer those questions followed by any Council comments.
Mayor Carpenter recognized Assistant Finance Director James Walters who stated there was
about $125,000 worth of savings with the projected health insurance versus the actual amount.
Since $325,000 is about $0.01 of the tax rate, it would be less than a half of one cent if we
reduced taxes instead. One cent is about $20 on the average home so you could say a little less
than $10 would be the savings on the individual homeowner's tax bill.
City Manager John Kessel addressed the question on the fire truck by pointing out that this is
actually the parade truck whose engine has been determined to be a complete loss. It will cost
about $10,000 to rebuild the engine. They are hoping to get it done sometime next year. The
job will be outsourced.
Mr. Walters continued addressing several questions from council.
08 -30 -2016 Minutes Page -13 -
Mayor Carpenter recognized Councilmember Thompson who moved, seconded by
Councilmember Fowler to approve Ordinance No. 16 -T -29 first reading. The vote was
unanimous with Mayor Pro -Tem Edwards, Councilmembers Fowler, Azzoz, John and
Thompson voting for and no one voting no. Motion passed.
9. Public Hearing on Proposed Tax Rate — Conduct a public hearing and consideration and /or
PH action regarding the adoption of the FY 2016 -17 Tax Rate. (Second required public hearing)
(J. Kessel /J. Walters)
Mayor Carpenter recognized Assistant Finance Director James Walters who stated at the
August 9, 2016 regular session 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 $0.3168
and the I &S portion of $0.1743. The proposed rate is not subject to rollback.
In accordance with Chapter 26.05(d) of the State's Property Tax Code, a governing body must
hold two public hearings on the tax rate if the proposed tax rate exceeds the lower of the
Effective or Rollback Tax Rate. In this case the hearings are required as the proposed rate
exceeds the effective rate.
The first required public hearing was held on August 23, 2016, at the regular session of City
Council. The second required public hearing will be conducted at the August 30, 2016 regular
City Council session.
During the final tax rate adoption process Council can approve a lower rate at that time;
however they will not be able to approve a rate higher than this without republishing the
notices and holding additional public hearings. Due to timing constraints set by the State Tax
Code 26.05(a), the latest council could set a new preliminary rate is August 30, 2016 without
calling special meetings.
The proposed maximum rate maintains quality service to residents and businesses and
provides growth in service offerings based on input staff received from Citizens and Council
from Retreats, Community Meetings, and elections. The current property tax rate is $0.4911
per $100 valuation. The proposed maximum tax rate will remain the same at $0.4911 per $100
valuation. The M &O portion of the property tax rate will increase to $0.3168 from $0.3159
per $100 valuation. The I &S portion will decrease to $0.1743 from $0.1752 per $100
valuation.
Mr. Walters provided a PowerPoint presentation with the following highlights:
Tax Rate:
Effective: Is a calculated rated that would provide the
taxing unit with about the same amount of
revenue it received in the year before on
properties taxed in both years.
Rollback:
08 -30 -2016 Minutes Page - 14 -
Is a calculated maximum rate allowed by law
without voter approval.
Current: The rate currently adopted by the City.
Proposed Max: The maximum rate set at which the final adopted
rate cannot exceed.
Tax Rate:
Effective: $0.4803
Rollback: $0.5080
Current: $0.4911
Proposed Max: $0.4911 Proposed budget is balanced at this rate
$0.01 is equal to $325,598 revenue or $20.00 on the average Home.
Target Tax Rate:
Tax Current
Rate
M &O $0.3159
I &S $0.1752
Total $0.4911
Proposed
Maximum
$0.3168 For day to day operations
$0.1743 To pay the City's debt
$0.4911
FY2015 -16 City Tax Rate:
®
At $0.4911 —
Existing residents average tax bill:
2015 Tax Bill = $913.45 Avg Home Value $186,000
2016 Tax Bill = $934.32 Avg Home Value $190,250
Increase =$ 20.87
New Residents Average Tax Bill 2016 Tax Bill = $982.20 Home value of
$200.000
2016 Property Taxes
08 -30 -2016 Minutes Page - 15 -
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Mr. Walters provided the following regarding the Budget Calendar for FY 2016 -17:
August 5 File with City Secretary
August 9 Budget Workshop, set the preliminary tax rate, and schedule public hearings
August 11 First Community Budget presentation— Corbett Jr. High School
August 17 Second Community Budget presentation — North Community Center
August 18 Third Community Budget presentation — Schertz United Methodist Church
August 23 First Public Hearing
August 30 Second Public Hearing and first vote
September 6 Second vote
October 1 Budget goes into effect
08 -30 -2016 Minutes Page - 16 -
Staff recommends that the City Council approve Ordinance No. 16 -T -30 approving the Fiscal
Year 2016 -17 Proposed Tax Rate on first reading. The motion is "I move that property taxes
be increased by the adoption of a tax rate of $0.4911, which is effectively a 2.2% increase in
the tax rate."
Ordinance No. 16 -T -30 — Consideration and /or action approving an Ordinance on the
proposed FY 2016 -17 Tax Rate. First Reading (J. Kessel/J. Walters)
The following was read into record:
ORDINANCE NO. 16 -T -30
AN ORDINANCE APPROVING THE APPRAISAL ROLL; SETTING THE TAX
RATE; LEVYING AND ASSESSING GENERAL AND SPECIAL AD VALOREM
TAXES FOR THE USE AND SUPPORT OF THE MUNICIPAL GOVERNMENT OF
THE CITY OF SCHERTZ, TEXAS; APPORTIONING THE LEVIES FOR SPECIFIC
PURPOSES; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN
EFFECTIVE DATE.
Mayor Carpenter opened the public hearing and as no one spoke closed the public hearing for
Council comments. There were no comments fiom Council.
Mayor Carpenter recognized Councilmember Azzoz who moved, seconded by
Councilmember John that the property taxes be increased by the adoption of a tax rate of
$0.4911, which is effectively a 2.2% increase in the tax rate, approving Ordinance No. 16 -T-
30 on first reading. The vote was unanimous with Mayor Pro -Tem Edwards,
Councilmembers Fowler, Azzoz, John and Thompson voting for and no one voting no.
Motion passed.
Roll Call Vote Confirmation
Mayor Carpenter recognized Deputy City Secretary Donna Schmoekel who provided the roll call
votes for agenda items 1 -9.
Requests and Announcements
10. Announcements by City Manager
• Citizen Kudos
• Recognition of City employee actions
• New Departmental initiatives
Mayor Carpenter recognized City Manager John Kessel who stated he just wanted to say that
the water item (SSLGC) began around 2006. It has taken this long to get to this point. He
appreciates Executive Director Dudley Wait's many hours of work on this in the past 1.5
years and he has brought the project forward, continually keeping his eye on the goal. He
extended his sincere appreciation for all his hard work.
08 -30 -2016 Minutes Page - 17 -
11. Future Agenda Item Request for City Council: This is an opportunity for City Council
members to request that items be placed on a future agenda. No discussion of the merits of
the item may be taken at this time. Should a Council Member oppose placement of the
requested item on a future agenda, the Mayor, without allowing discussion, shall ask for the
consensus of the other City Council members to place or not place the item on a future
agenda.
Mayor Carpenter recognized Councilmember Fowler who stated he would like us to revisit
one of our Ordinances, 15 -F -18 which has to do with our waste disposal services from Bexar
Waste. Some areas of the city are zoned for containers to be picked up once a week and others
twice a week. He thinks we could benefit by having hash pickup twice a week in some more
areas. Mayor Carpenter stated staff could provide a presentation on this at some future date.
12. 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
Mayor Carpenter recognized Mayor Pro -Tem Edwards who provided his congratulations to
the Bank of San Antonio whose ribbon cutting he attended on August 24.
Mayor Carpenter recognized Councilmember Fowler who stated the Love Where You Live
Program is moving along very well. They are working on several upcoming projects. They
recently completed demolition at the Cabana Drive residence location. The next phase is to
stabilize the carport. They are moving along on that project very well.
Mayor Carpenter recognized Councilmember Azzoz who stated the retaining wall on
Savannah Drive came out really great. The appearance is very nice and clean. Good job!
Mayor Carpenter recognized Councilmember Thompson who stated he attended the Bank of
San Antonio ribbon cutting last week and the officials at the bank were very impressed with
the number of city staff executive team members and elected officials who attended. They
were surprised, impressed and very pleased with the City of Schertz. A new tenant looking at
renting in that same facility was there and will most likely sign their lease as a result of this
great turnout by city officials.
Mayor Carpenter recognized Executive Director Dudley Wait who stated he just received
word that the City of Seguin just got out of their executive session and they passed the
SSLGC water project items unanimously. Mayor Carpenter thanked everyone who was
involved; this is a huge deal for this city!
Adi ournment
Mayor Carpenter adjourned the meeting at 7:15 p.m.
08 -30 -2016 Minutes Page - 18 -
ichael R. Carpenter, Mayor
ATTEST:
i
Donna Schmoekel, Deputy City Secretary
08 -30 -2016 Minutes Page - 19 -