03-13-2018 MinutesMINUTES
REGULAR MEETING
March 13, 2018
A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on March
13, 2018, at 6:00 p.m. in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz
Parkway, Building #4, Schertz, Texas. The following members present to -wit:
Mayor Michael Carpenter
Councilmember Mark Davis
Councilmember Scott Larson
Councilmember Angelina Kiser
Staff Present:
Executive Director Dudley Wait
City Attorney Dan Santee
Mayor Pro -Tem David Scagliola
Councilmember Ralph Gutierrez
Councilmember Cedric Edwards
Councilmember Bert Crawford
Acting City Manager Brian James
Assistant to the City Manager Sarah Gonzalez
City Secretary Brenda Dennis
Call to Order — City Council Regular Session
Mayor Carpenter called the regular meeting to order at 6:00 p.m.
Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of
Texas. ( Councilmember Larson)
Mayor Carpenter announced if any student is in attendance this evening observing the meeting for
the Hal Baldwin Scholarship, the sign -up sheet is in the vestibule; be sure to sign in if you are here
for that purpose.
Presentation
Presentation regarding the Planning Excellence Award. (B. James /L. Wood)
Mayor Carpenter recognized Senior Planner Bryce Cox who stated he wanted to present the
Certificate of Achievement for Planning Excellence which was presented to the City for
2017. He read a letter (addressed to the Mayor) from the Texas Chapter of the American
Planning Association which elaborated on the specific goals met and or exceeded by the
city's Planning Staff, and city leadership. The award represents the city's commitment to
`planning' as a whole, not just staff. This is the fourth year in a row that the City has been
recognized. Mayor and Council congratulated the staff.
Plaque presentation regarding Project Warrior. ( Councilmember Gutierrez/Mayor)
Mayor Carpenter recognized Councilmember Gutierrez who stated that on February 24ffi he
and several others participated in the Selma- Schertz Salute to Service Members 5K
"Operation Comfort" Run, held at the Bluebonnet Palace. Councilmember Gutierrez
presented a plaque to the Mayor for 8 years continued support.
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Employee Recognition
Mayor Carpenter stated that each new employee will have an opportunity to say something, but it
is not required.
• Business Office - Stacey Babb — Utility Billing Clerk
• Library — Pamela Kurczewski — PT Library Circulation Clerk
• Police — Diane Deluca & Brandi Brinkman — Communication Officers
® Fleet and Facilities Services — Wyatt "Todd" Buckingham — Facilities Manager and Eric
Brown — Fleet Mechanic 1
Each department supervisor provided a brief bio to council on their new employee(s). New
employees thanked the Council for the opportunity to serve the city. Mayor and Councilmembers
welcomed the new staff members aboard.
City Events and Announcements
® Announcements of upcoming City Events (B. James/D. Wait/S. Gonzalez)
Mayor Carpenter recognized Assistant to the City Manager Sarah Gonzalez who provided
the following announcements:
Spring Cleanup
Continuing through Sunday, March 25h
Drop -off location 125 Pecan Drive 8:00 a.m. — 5:00 p.m. each day
Wednesday, March 14"
Blood Drive 7:45 am - Noon
Parking Lot — of Community Center
For more information, contact Kellie Burnam X 1430
Saturday, March 17'
Music in the Park 1:00 pm - 4:00 pm
Pickrell Park
Live music from Ravenmoor, a traditional Celtic band.
Tuesday, March 2011
Birdie Walk 8:00 am
Crescent Bend Nature Park
Annual Employee Remembrance Day 11:30 a.m.
10 Commercial Place (Outside Public Works Bldg.) Annual event where we remember city
employees who have served 10 or more years and have passed away.
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Thursday, March 22 °d
The 2018 Taste
Retama Park 5:00 pm The Taste is an annual food sampling event held at Retama Park
featuring 40+ food and beverage vendors from Schertz, Cibolo, and Selma areas.
Friday, March 23rd
Pre - Budget Retreat for City Council 8 :30 am
Civic Center
Tuesday, March 27th
Rocket Feed Grand Opening 5:00 p.m. to 5:30 p.m.
602 Main Street
Lastly, the Hal Baldwin Scholarship is open, and we are now accepting applications; for
more information go to Schertz.com. The City encourages any high school senior that is a
resident of Schertz who may want to consider public service as a career to apply. If there
are students who arrived this evening late there is a sign in sheet in the foyer.
Announcements and recognitions by the Acting City Manager (B. James)
No announcements were provided.
Announcements and recognitions by the Mayor (M. Carpenter)
No announcements were provided.
Hearing of Residents
Mayor Carpenter recognized the following individuals who spoke:
• Ms. Michele Tereletsky, 705 Marilyn Drive, who continued speaking to City Council
regarding the First Amendment. She stated that she spoke on this before and nothing has
come out from Council yet.
• Mr. Richard Elder, 4317 Willow Oak, who stated that when he went online to the
www.schertz.com website he was unable to find information about the proposed zoning
change as referenced in Item 2. He suggested that when a zoning change is happening,
information should be loaded to the website so citizens can pull up the data. He also stated
it was great to have the full packet of information on all the agenda items for each meeting.
Lastly, he pointed out that the information regarding the zoning case for this evening
references the southeast corner; it should be the southwest corner.
• Ms. Mi Lunn, 805 Aero Avenue, spoke on recent burglaries in her neighborhood and at her
residence. She also stated someone was taking her mail which she has reported to the Post
Office. Mayor Carpenter suggested she speak with our Police Chief Michael Hansen or
Executive Director Dudley Wait, both of whom were here tonight.
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® Mr. Grumpy Azzoz, 528 Wayward Pass who spoke about some of our veterans who are
involved with sporting events and have participated in places like Russia, South Korea, and
Japan. He always holds annual fundraisers for them and will do so again on April 23.
He also stated today it has been 2 years, 2 months, and 20 days to be exact since we lost a
great local businessman, Mr. (Henry) Gutierrez. People keep asking him about any more
progress on finding his assassin. We have put out a reward for information, hired a PI, etc.
Meanwhile, the family and his friends have had no closure and he feels we have failed Mr.
Gutierrez and that we are not getting anywhere. He is asking Council, as a body, to start
asking some questions and get some answers.
Workshops
® Resolution 18 -R -26- CAFR FY2016 -17 - Presentation and consideration and/or action
approving a Resolution authorizing the approval of the Comprehensive Annual Financial
Report. (B. James /J. Walters/D. Fraser)
Mayor Carpenter recognized Finance Director James Walters who introduced City Auditor
Debbie Fraser from Armstrong Vaughn and Associates who provided a PowerPoint
presentation and went through the Comprehensive Annual Report data providing the
highlights and answering questions from Council.
Mayor Carpenter encouraged Councilmembers to take time to look through the report again
and if they have more questions /concerns to contact Mr. Walters or Ms. Fraser.
Mayor Carpenter recognized Councilmember Edwards who moved seconded by
Councilmember Gutierrez to approve Resolution No. 18 -R -26. The vote was unanimous
with Mayor Pro -Tem Scagliola, Councilmembers Davis, Gutierrez, Larson, Edwards,
Kiser and Crawford voting for and no one voting no. Motion Passed.
Mayor Carpenter moved to the consent items section of the agenda.
Consent Agenda Items
Mayor Carpenter recognized Councilmember Edwards who stated he would like agenda item 2
removed for separate action noting the correction made to the ordinance that it should be the
southwest corner and not the southeast corner, as mentioned by Mr. Elder. Mayor Carpenter
recognized Mayor Pro -Tem Scagliola who stated it is the southeast corner; Live Oak Road ends at
FM 3009, the other side of the street is Dietz, if you look at the orientation of the street itself it
runs northwest to southeast. He doesn't believe a correction needs to be made. Mayor Carpenter
stated that in either case, Mr. Santee, if we have misidentified a corner or not, is it a material
problem if we proceed? City Attorney Dan Santee stated that if the legal description on the
ordinance that is being passed is correct, that is what we look to. This is for notice and he doesn't
believe there is any confusion as to what area we are talking about and they also post signs on the
property. Mayor Carpenter recognized Acting City Manager Brian James who stated in talking to
staff, and he appreciates Mayor Pro -Tem Scagliola' s comment on where the road ends, staff feels
03 -13 -2018 Minutes Page - 4 -
like they errored, that more accurately if we are trying to describe it for a particular resident they
would describe it as the southwest corner. If pulled from consent, we can make reference to
approval of it being on the southwest corner. He believes that no one was confused as to where the
property was that is up for rezone and it is not a procedural issue. Again, with the nod of approval
we will reference the southwest corner. City Attorney Santee stated that if council was going to
make a specific change, then it should be pulled from consent for separate action. Mayor Carpenter
stated, with that said, item 2 will be pulled off consent and considered separately.
Mayor Carpenter recognized Councilmember Crawford who moved seconded by Councilmember
Larson to add agenda items 11 and 12 to consent. The vote was unanimous with Mayor Pro -
Tem Scagliola, Councilmembers Davis, Gutierrez, Larson', Edwards, Kiser and Crawford
voting for and no one voting no. Motion Passed.
Mayor Carpenter stated that now items 11 and 12 will be added to the consent agenda.
1. Minutes — Consideration and/or action regarding the approval of the minutes of the regular
meeting of February 27, 2018. (B. James/B. Dennis)
3. Ordinance No. 18 -T -11— Consideration and/or action approving an Ordinance authorizing
an adjustment to transfer funds for the Operations Grant in connection with the Ace Mart
Restaurant Supply Company Performance Agreement, repealing all ordinances or parts of
ordinances in conflict with this ordinance; and providing an effective date. Final Reading
(B. James /J. Walters/K. Kinateder)
The following was read into record:
ORDINANCE NO. 18 -T -11
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AUTHORIZING AN ADJUSTMENT TO TRANSFER FUNDS FOR THE
OPERATIONS GRANT IN CONNECTION WITH THE ACE MART
RESTAURANT SUPPLY COMPANY PERFORMANCE AGREEMENT,
REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT
WITH THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE
4. Boards, Commissions and Committee Member Resignations — Consideration and/or
action accepting the resignation of Mr. Ron Washington from the Parks and Recreation
Advisory Board. (B. Dennis/Mayor /Council)
Approval of the resignation of Mr. Ron Washington from the Parks and Recreation
Advisory Board.
5. Resolution No. 18 -R -32 — Consideration and/or action authorizing the Acting City
Manager to enter into an amended agreement with Physio- Control, Inc. for the lease-
purchase of one (1) patient care monitor /defibrillator. (D. Wait/K. Long /J. Mabbitt)
03 -13 -2018 Minutes Page - 5 -
The following was read into record:
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6. Resolution No. 18 -R -31 — Consideration and/or action approving a Resolution authorizing
the submission of a grant application in an amount up to $92,203.00 to the Office of the
Governor, Homeland Security Division, for the State Homeland Security Grant Program
(HSGP). (D. Wait/K. Long)
The following was read into record:
I a will 11110 111900010Y.3
A RESOLUTION BY THE CITY COUNCIL OF THE
CITY OF SCHERTZ, TEXAS AUTHORIZING THE SUBMISSION OF A GRANT
APPLICATION IN AN AMOUNT UP TO $92,203.00 TO THE OFFICE OF THE
GOVERNOR, HOMELAND SECURITY DIVISION, FOR THE 2018 STATE
HOMELAND SECURITY GRANT (HSGP) PROGRAM; AND AUTHORIZING
THE ACCEPTANCE OF THE FUNDS, UPON AWARD.
7. Resolution No. 18 -R -33 — Consideration and/or action appointing members to the
Alamo Area Council of Governments Regional Emergency Preparedness Advisory
Committee (REPAC). (D. Wait/K. Long)
The following was read into record:
RESOLUTION NO. 18 -R -33
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
APPOINTING MEMBERS TO THE ALAMO AREA COUNCIL OF
GOVERNMENTS REGIONAL EMERGENCY PREPAREDNESS ADVISORY
COMMITTEE AND OTHER MATTERS IN CONNECTION THEREWITH
11. Resolution 18 -R -28 - Consideration and/or action approving a Resolution authorizing
Sanitary Sewer Easement Agreements with Schertz- Cibolo - Universal City Independent
School District and San Antonio One and San Antonio Three Limited Partnerships for the
use, benefit, and control of the City of Schertz for the construction and maintenance of a
wastewater line along Wiederstein Road. (B. James/K. Woodlee)
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The following was read into record:
12. Resolution 18 -R -29 - Consideration and/or action approving a Resolution authorizing a
Water Line Easement Agreement with Schertz - Cibolo - Universal City Independent School
District for the use, benefit, and control of the City of Schertz for the construction and
maintenance of a water line through the Samuel Clemens High School property. (B.
James/K. Woodlee)
The following was read into record:
RESOLUTION NO. 18 -R -29
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
APPROVING AND AUTHORIZING A WATERLINE EASEMENT AGREEMENT
THROUGH THE SAMUEL CLEMENS HIGH SCHOOL CAMPUS FROM THE
SCHERTZ- CIBOLO- UNIVERSAL CITY INDEPENDENT SCHOOL DISTRICT,
AND OTHER MATTERS IN CONNECTION THEREWITH
Mayor Carpenter recognized Councilmember Crawford who moved seconded by
Councilmember Gutierrez to approve consent agenda items 1, 3, 4, 5, 6, 7, 11 and 12 as
stated. The vote was unanimous with Mayor Pro -Tem Scaghola, Councilmembers
Davis, Gutierrez, Larson, Edwards, Kiser and Crawford voting for and no one voting
no. Motion Passed.
Discussion and Action Items
2. Ordinance No. 18 -5 -10 — Consideration and/or action on a request to rezone
approximately 1.5 acres of land from Single - Family Residential District (R -1) to Office and
Professional District (OP) located approximately 220 feet southeast of the intersection of E.
Live Oak Road and FM 3009. Final Reading (B. James/L. Wood/E. Grobe)
The following was read into record:
ORDINANCE NO. 18 -5 -10
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AMENDING THE OFFICIAL ZONING MAP BY REZONING
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• '' • / 1 / I / I R
Mayor Carpenter moved seconded by Councilmember Edwards to approve Ordinance No.
18 -5 -10 on final reading with the correction of the designation of the proper corner as
identified by staff. The vote was unanimous with Mayor Pro -Tem Seagliola,
Councilmembers Davis, Gutierrez, Larson, Edwards, Kiser and Crawford voting for
and no one voting no. Motion Passed.
8. Resolution No. 18 -R -27 — Consideration and/or action approving a Resolution authorizing
the appointment of Mr. Charles Kelm to the Schertz- Seguin Local Government
Corporation to fill the vacancy of Mr. Andrew Hunt, term to expire December 31, 2020.
(D. Wait)
The following was read into record:
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Mayor Carpenter recognized Executive Director Dudley Wait who stated Mr. Andrew
Hunt, who was appointed in 2016 has moved out of the city. The term has about three years
left - - -it will end at the close of 2020. They are recommending Mr. Charles Kelm who is an
Air Force Veteran and trained Engineer. He wishes to become involved in the community.
Mayor Carpenter recognized Councilmember Edwards who moved seconded by
Councilmember Scagliola to approve Resolution No. 18 -R -27. The vote was unanimous
with Mayor Pro -Tem Scagliola, Councilmembers Davis, Gutierrez, Larson, Edwards,
Kiser and Crawford voting for and no one voting no. Motion Passed.
9. Resolution No. 18 -R -20 — Consideration and/or action approving a Resolution authorizing
the Acting City Manager to execute and deliver a contract with CityView, an
unincorporated division of N. Harris Computer Corporation, in an amount not to exceed
$629,586 related to software and implementation services for a Community Development
System. (B. James/M. ClauserB. Cox)
The following was read into record:
RESOLUTION NO. 18 -R -20
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING THE ACTING CITY MANAGER TO ENTER INTO A
CONTRACT WITH CITYVIEW, AN UNINCORPORATED DIVISION OF N.
03 -13 -2018 Minutes Page - 8 -
Mayor Carpenter recognized Senior Planner Bryce Cox who stated this is something that is
going to work citywide for all of the departments that deal with development including the
code enforcement department.
Some of the current problems staff experiences are that the processes are complicated and
not clearly defined, information is not in a centralized repository, they must deal with
manual processes and paper hardcopies and there is limited self -help and online
convenience for our customers. Solutions include clarification and ease in development
processes and convenience to the customer. Customers can file complaints, apply for
permits, pay fees and check their project status. This eliminates them from having to
physically come in to city hall. All the data is centralized and automated. It will also
minimize errors and improve project timelines. Code enforcement will be improved, and
customer complaints can be tracked. Using this system will improve customer service and
timelines overall.
The total project will cost $714,086 over the next 5 years. The CityView contract for five
years is $629,586. The first -year expenses are projected to be $523,766. The first -year
expenses will include licensing, implementation, first year maintenance, server hardware,
user hardware, and Incode customization.
Questions were addressed from Council. Mayor and Council provided comments about the
proposed contract and software. Mayor Carpenter suggested to Council that they go out on
the website and do some search on the software.
Mayor Carpenter recognized Councilmember Scagliola who moved seconded by
Councilmember Kiser to approve Resolution No. 18 -R -20. The vote was unanimous with
Mayor Pro -Tem Scagliola, Councilmembers Davis, Gutierrez, Larson, Edwards,
Kiser and Crawford voting for and no one voting no. Motion Passed.
Mayor Carpenter moved to agenda item 14.
14. Resolution No. 18 -R -30 — Consideration and/or action approving a Resolution approving a
Resolution approving a request for a Historical Incentive Program for the Main Street Area
Grant for 533 Main Street. (B. James)
The following was read into record:
RESOLUTION NO. 18 -R -30
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
APPROVING A REQUEST FOR A HISTORICAL INCENTIVE PROGRAM FOR
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I,
Mayor Carpenter recognized Acting City Manager Brian James who stated this program is
an incentive to help property owners revitalize their buildings located on Main Street.
Some prior grants have been issued for both commercial and residential. This particular
property is the building that Bexar Waste had occupied. The grant is up to $20,000, so the
owner will pay $20,000 and the City will match that.
Mayor Carpenter recognized Councilmember Edwards who moved seconded by
Councilmember Kiser to approve Resolution No. 18 -R -30. The vote was unanimous with
Mayor Pro -Teen Scagliola, Councilmembers Davis, Gutierrez, Larson, Edwards,
Kiser and Crawford voting for and no one voting no. Motion Passed.
Mayor Carpenter moved to closed session at 7:42 p..
Closed Session
19. City Council will meet in closed session under section 551.071 of the Texas Government
Consultation with the City Attorney regarding pending or contemplated litigation:
• GVSUD vs. City of Schertz
• GVSUD vs Texas Public Utility Commission and the City of Schertz
Reconvene into ReLyular Session
Mayor Carpenter moved back into regular session at 8: 06 p.m.
19a. Take any action based on discussions held in closed session under Agenda Item 19.
No action was taken®
Mayor Carpenter moved back to the regular discussion items and moved to item 10.
10. Ordinance No. 18 -M -13 — Conduct a public hearing and consideration and/or action
approving an Ordinance amending the Code of Ordinances of the City of Schertz by
PH adopting Chapter 78, Article VII: Roadway Capital Recovery Fees, and to adopt a roadway
impact fee that may be imposed for roadway facilities in the City. The maximum
assessable impact fee per service unit is $1,647.53 in Service Area 1, $1,327.89 in Service
Area 2, $1,044.48 in Service Area 3, and $2,392.72 in Service Area 4. City Council may
impose impact fees per service unit less than or equal to those maximum amounts. First
Reading (B. James/K. Woodlee)
The following was read into record:
ORDINANCE NO. 18 -M -13
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Mayor Carpenter recognized City Engineer Kathy Woodlee who stated she had previously
briefed Council on Roadway Impact fees explaining some of the policies and
recommendations from the Capital Improvements Advisory Committee.
She introduced Eddie Haas from Freese and Nichols, the engineering consultant who has
prepared the capital improvement plans, the land use assumptions and the capital recovery
plan that sets forth and goes into the calculations and basis for the actual maximum
assessable fees that were determined. He will be explaining those numbers and answering
any questions Council has. Mr. Haas explained the program and its basis via a PowerPoint
presentation.
Mr. Haas stated the next step is to approve this on final reading; if the council does not
approve it, then it is a moot point. If tonight council can not come to an agreement or
resolution they might want to consider holding open the public hearing to a date specific if
it is something that could be considered, if you close the public hearing, you will have to
repost.
Mayor Carpenter opened the public hearing and recognized the following who spoke:
• Mr. Glen Outlaw, 3729 Forsyth Park, who spoke about keeping Schertz an
affordable place to live. Another thing to consider is the cost of owning a home; the
purchase price is one - piece, you get a mortgage and you start making payments.
The other piece of owning a home is property taxes. He would like to see a way to
lessen the burden. He stated what you see in the roadway impact fees is a way to
lessen that tax burden on all the tax payers of Schertz, existing and new. He stated
that if they chose not to do this we are going to take the whole $229,000,000
amount and drop it on the tax payers. You are now increasing the cost of owning a
home in Schertz for everyone in the city vs. if you implement these roadway impact
fees, yes there is an initial upfront charge to the new homeowner, but you take the
long look. Theoretically, you would keep those property taxes a little bit lower,
rather having to share the higher tax burden down the road. He understands
concerns about the price of new houses but feels consideration must be given to
those owners who are already here and their potential tax liability if we don't do
this.
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® Mr. Richard Elder, 4317 Willow Oak, who stated it is important to have a
mechanism to pay for the roadways that go into a new development. However, he
thinks the cost should be more realistic.
Mayor Carpenter closed the public hearing for Council comments and input.
Mayor Carpenter recognized Councilmember Larson who stated originally, he came out
against this, but tried to keep an open mind. He met with P &Z and CIAC; he did incredible
research on how this impacts others within the city. He stated that it may be a real
possibility and necessity, but he still has concerns, not a holistic approach. He stated staff
did an exceptional job. There is a need for involvement in infrastructure — a valid strong
case and need. The staff and committee did a good job; need more time to go over the
policy. He had questions on what percentage we are going to implement and to do this and
how it will impact other policies. New construction is going to go up, the cost of homes
will go up. He stated the developer isn't going to pay their fair share, it is a user -based fee.
Reality — it's a one -time fee, new neighborhood appraised value of already built will go up.
He questioned what if we get another Amazon, employees will not be able to live here. His
concern is that fees tilt the scale for small new businesses; they won't get the same, this
needs a holistic discussion. Councilmember Larson continued providing pro's and con's.
Mayor Carpenter recognized Councilmember Edwards who stated that when a developer
comes to the community, the land buyer looks at how many houses can be placed, they
conduct a proforma together to put prices on homes. He agrees this doesn't fix our problem
if we ignore it. Yes, it hurts; who is going to pay? He stated we are here to make a decision
based on the information we are given at the time going forward to help future generations.
He feels Councilmember Larson's pain and what's been vetted by different departments
and committees. Mayor Carpenter reminded Council last time this was discussed to
remember when we removed the smaller lots — we were killing development; developers
came and told us that. Development continued. People know the products of Schertz.
Councilmember Larson's research that was done, he understands what the cities have done
around us in redoing the impact fees. We realize we have to do something, we can't say
analyze analyze, analyze; at that point we get into analysis paralysis. We have to do
something, we have to make a decision.
Mayor Carpenter recognized Councilmember Davis who stated that he admired
Councilmember Larson's passion of this topic and the topic of taxes. He remembers last
year talking in their budget retreat we were talking about the budget formulation and we
went down a different path last year with looking at things that were done below the cut
line. His comment back then was, not a fan of raising taxes, but he is a fan of doing what's
right for the city. Sometimes that's making that hard decision of increasing taxes. Tonight,
we looked at approving our performance with the new planning software, that's well over
half a million dollars. He also has concerns regarding the roadway impact fees but feels it is
necessary and the right path to go. He does have concerns regarding residential rates vs.
non - residential rates, but we have done a good job of balancing it out — the bottom line. We
have had discussions on all the different fees that will impact Schertz going forward and we
03 -13 -2018 Minutes Page -12 -
will keep going down that path and maybe have to tweak it going forward, but he is sure
we are going to have other discussions down the road with forth coming budget retreats
how this plays out in the growth of the city and how it plays out on other financial aspects
such as our tax rate on the city.
Mayor Carpenter recognized Councilmember Gutierrez who stated we find ourselves at a
fork in the road. Who is going to pay for it, developers or residents, one or the other. If
developers pay for it, it's a one -time fee, if residents are paying, then every year we are
going to have to pay, pay, pay, it never stops. Even if we charge 25% the residents still
have to pay the other 75% to fix the roads. It's still not an even balance there. In service
area three that was shown, that is still not enough to fix the roads. Residents are still going
to have to pay. Councilmember Gutierrez provided examples of commercial people that
had to pay in Cibolo stating they were pretty high. Businesses will still come, it's the price
of doing business and he doesn't think it will have much of an impact in Schertz if we have
roadway impact fees.
Mayor Carpenter recognized Councilmember Scagliola who moved seconded by
Councilmember Crawford to approve Ordinance 18 -M -13 first reading. The vote was 6 -1-
0 with Mayor Pro -Tem Scagliola, Councilmembers Davis, Gutierrez, Edwards, Kiser
and Crawford voting for and Councilmember Larson voting no. Motion Passed.
Mayor Carpenter stated that this was for first reading and it will come back on final reading
at our next meeting. Mayor Carpenter recognized Acting City Manager Brian James who
stated that we are evaluating with regard to one of the roads that was not included in the
CIP because it was built and accepted by a developer, but the development of those homes
has not started. We will make some slight adjustment to the language in the ordinance
based on some discussions going back to make it a little fairer.
Mayor Carpenter stated again, this will be on final reading at the next meeting and that the
sentiment of Council that he has heard over the time we have had this discussion, this is
something we are going to want to review on a regular basis. Something we are going to
want to keep our eye on and something we are going to make sure it is working the way we
intended it to work, if there are any unforeseen consequences or cascading effects we are
going to keep our eye on it and talk about it when they come up. Acting City Manager
Brian James gave credit to the Planning and Zoning Commissioner, Mr. Richard Braud
who has been the strongest advocate of having a more in -depth discussion about impact
fees as part of our semi - annual updates. We will continue to have these conversations
moving forward.
Mayor Carpenter moved to closed session at 9:03 p.m.
Closed Session
17. City Council will meet in closed session under Section 551.087 of the Texas Government
Code, Deliberation Regarding Economic Development Negotiations; Closed Meeting. The
governmental body is not required to conduct an open meeting (1) to discuss or deliberate
03 -13 -2018 Minutes Page -13 -
regarding commercial or financial information that the governmental body has received
from a business prospect that the governmental body seeks to have locate, stay, or expand
in or near the territory of the governmental body and with which the governmental body is
conducting economic development negotiations; or (2) to deliberate the offer of a financial
or other incentive to a business prospect.
Reconvene into Regular Session
Mayor Carpenter moved back into regular session at 9:26 p.m.
17a. Take any action based on discussions held in closed session under Agenda Item 19.
No action was taken.
Councilmember Edwards left the meeting at 9:26 p.m.
Mayor Carpenter moved back to the regular discussion items and moved to item 13.
13. Resolution No. 18 -R -24 — Consideration and/or action approving a Resolution authorizing
the Acting City Manager to enter into an Agreement with the City of Seguin and the
Schertz Seguin Local Government Corporation (SSLGC) regarding the sale of excess
SSLGC water (D. Wait)
The following was read into record:
RESOLUTION NO. 18 -R -24
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING THE ACTING CITY MANAGER TO ENTER INTO AN
AGREEMENT WITH THE CITY OF SEGUIN AND THE SCHERTZ SEGUIN
LOCAL GOVERNMENT CORPORATION (SSLGC) REGARDING THE SALE OF
EXCESS SSLGC WATER AND OTHER MATTERS IN CONNECTION
THEREWITH
Mayor Carpenter recognized Executive Director Dudley Wait who stated On January 31,
2018, Mayor Carpenter received a letter from City of Seguin Mayor Keil requesting the
City of Schertz's approval for the City of Seguin to sell its share of excess SSLGC water to
a 3rd party wholesaler. The approval of the other city and SSLGC is required by the
original agreement between both cities that formed the corporation if a city desires to
directly sell SSLGC water to a 3rd parry wholesaler. Since 1999, anytime a 3rd parry
wholesaler approached either city, that city would work with the wholesaler in an attempt
to have this sale come from SSLGC. This is the first time either city has requested
approval to sell SSLGC water to another party.
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Seguin city staff discussed the possibility of this request with Schertz staff in November
2017. During discussions, Schertz staff repeatedly expressed concerns with either partner
selling SSLGC water. Schertz expressed our desire to see the 50 -50 partnership continue as
it was originally set out in the 1999 agreement, but Seguin's concern was that this was
already not occurring because of the difference in the amount of water each City was
currently consuming. Seguin's position was selling additional. water to other entities from
the excess water available in their share would actually provide Seguin benefits closer to
the ones enjoyed by Schertz (specifically lower effective water rates for SSLGC water due
to greater water sales).
Throughout continued discussions, both cities have been able to come to an agreement that
includes the following items:
1. If either partner City desires to sell excess water to a new 3rd party wholesaler, they
may do so by notifying the other City and SSLGC of the proposed sales contract.
2. If a current SSLGC customer desires to purchase additional water, both cities will
work to have SSLGC sell the additional water, if excess water is available.
3. If either city anticipates that they will need more water than their annual allotment
SSLGC can utilize excess water from the other city to meet this demand (not
spoken of in original 1999 agreement).
4. Both cities agree that SSLGC impact fees shall be used to construct a second water
take point for Schertz located in south Schertz at the location of our future elevated
storage tank. This construction will be done when Schertz requests it which will
likely be in conjunction with the construction of the parallel pipeline.
If Seguin moves forward selling SSLGC water it will provide a much greater benefit in
current rates to Seguin as compared to Schertz, however, this agreement does allow Seguin
to attempt to achieve an effective rate closer to the one Schertz enjoys. Additionally, it
insures that current SSLGC customers will continue to work with SSLGC and that any
customers that Seguin or Schertz can contract with will have an overall benefit to the entire
organization.
Staff recommends City Council authorize entering into the proposed agreement between
Schertz, Seguin and SSLGC that provides direction for future excess water sales and for a
second water take point for Schertz.
Mr. Wait addressed concerns and questions council had.
Mayor Carpenter recognized Councilmember Kiser who moved seconded by
Councilmember Scagliola to approve Resolution No. 18 -R -24. The vote was unanimous
with Mayor Pro -Tem Scagliola, Councilmembers Davis, Gutierrez, Larson, Kiser and
Crawford voting for and no one voting no. Councilmember Edwards was absent.
Motion Passed.
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Mayor Carpenter recognized Councilmember Larson who called for a point of procedure. Mayor
Carpenter answered raise your point.
Councilmember Larson asked if there was anything remaining on the agenda requiring action by
Council tonight, he doesn't believe there is but wanted to clarify this?
Mayor Carpenter answered with, he does have to go back with a couple of things. There is a
discussion workshop regarding Phase H Park Fees that is not on for action.
Councilmember Crawford has asked that we postpone item 15, Workshop Discussion regarding
governmental transparency, since it was his item that was requested, and he encourages council to
grant that request.
Item 16 is discussion only: Discussion regarding a proposed Ordinance authorizing a Franchise
Agreement with Guadalupe Valley Electric Cooperative (GVEC). On action listed on item 16.
The last remaining item we have is the additional closed session to begin discussing the
appointment or the seeking of a new City Manager, and that could be for action, but he suspects
we would not be at this point. Mayor Carpenter stated that is not exactly a procedural question nor
procedural answer, but he chose as the chair to answer it anyway.
Councilmember Larson stated that he thought there would be grace from the chair and made a
motion to adjourn seconded by Councilmember Kiser. Mayor Carpenter stated that effectively we
would not take up the remaining four items and would ask staff to roll them to the next agenda;
procedurally that is not problematic. Mayor Carpenter stated he has a motion and a second and
called for the vote. The vote was 5 -1 -0 with Councilmembers Davis, Gutierrez, Larson, Kiser
and Crawford voting for and Mayor Pro -Tem Scaghola voting no. Councilmember Edwards
was absent. Motion Passed.
Adi ournment
As there was no further business, Mayor Carpenter adjourned the meeting at 10:10 p.m.
R. Carpenter, Mayor
ATTEST:
Brenda Dennis, City ecre ary
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