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08-28-2018 MinutesMINUTES REGULAR MEETING August 28, 2018 . A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on August 28, 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 Bert Crawford Staff Present: Executive Director Dudley Wait City Attorney Dan Santee Councilmember Kiser was absent. Call to Order — City Council Regular Session Mayor Pro -Tem David Scagliola Councilmember Ralph Gutierrez Councilmember Cedric Edwards Acting City Manager Brian' James Assistant to the City Manager Sarah Gonzalez City Secretary Brenda Dennis Mayor Carpenter called the regular 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. (Councilmember Larson) Before the prayer, Councilmember Larson read an excerpt from the late Senator John McCain's farewell message as a reminder of why he (and so many others) serve in the public capacity of ail elected official. Councilmember Larson continued afterwards with 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 Assistant to the City Manager Sarah Gonzalez who provided the following announcements: Thursday, August 30th TML Region 7 Dinner Meeting 5:30 pin (dinner served at 6:30 pmt Seguin Public Library. Please see the City Secretary's Office for more information. Monday, September 3rd City Offices Closed In Observance of Labor Day 08 -28 -2018 Minutes Page - 1 - Tuesday, September 4th and 11' City Council Meeting 6:00 pm Council Chambers Thursday, September 13th Northeast Partnership Meeting 11:30 am Olympia Hills Golf Course and Conference Center Friday /Saturday, September 101 and 15th Schertz Q, Pickrell Park Annual BBQ Cook -off, live music, carnival, family zone, fireworks, and more -0 Announcements and recognitions by the Acting City Manager (B. James) No announcements were made. • Announcements and recognitions by the Mayor. (M. Carpenter) No announcements were made. Hearing of Residents Mayor Carpenter recognized the following who spoke: • Ms. Mary Whitfield Burk, 3737 Pebble Beach, who thanked Council for approving the recommendation of naming the city's latest park after her. At the park's opening, she had three generations of family in attendance; everything was designed in good taste. She also thanked Council for restoring the caboose (train) on Hwy 78. Lastly, she once again thanked everyone who voted for her as a namesake for the newest park. • Mr. Brandon Zuercher, 119 Hollering Pass, who spoke about short and mid term rentals. He is currently in the Air Force and working at Randolph AFB. For clarity, he stands before them tonight as a resident/taxpayer and does not represent the Air Force on this matter in any way. He feels short-term rentals are de- stabilizing to neighborhoods, do not promote a sense of community nor do they promote normal neighborhood interactions. He provided several examples, some of which violate city ordinances. Examples are in regard to illegal parking, code violations (unkempt lawn, irrigation waste), house values, -etc. He asked Council to consider passing laws regarding this matter. • Mr. Pat Connelley, 9116 Trail Stem, who referenced Section 90.142 Definition Single Family Residence means single family dwelling unit authorized under the City zoning regulations. He stated the previous speaker was correct when he stated the Air Force provides housing for their members. He asked Council to look into this problem. • Mr. Ryan Wolff, 11902 Hollering Pass, who also spoke on the short-term rental problems . and stated it is a safety /environmental issue. The structures are not designed for an 08 -28 -2018 Minutes Page - 2 - occupancy load of this nature. The Fire Codes are addressing this and it is a life safety concern. He also spoke about the parking problems. He asked Council to address it. Ms. Alicia Casiano, 12308 Lattice Cove, who also spoke against the allowance of short term rentals in the city neighborhoods zoned as single family residential. She spoke about the city goals listed on the website, protecting local quality of life. The owners of the short term rental properties are ignoring the goals and vision of the city and pay no mind to the restrictions in place. Allowing them to ignore the current ordinances is setting a dangerous precedent. One of these homes has already had multiple police visits. They increase noise and traffic. These establishments will not preserve and protect local quality of life. • Ms. Lea Jacobson, 8518 Ivy Curl, who spoke about her choice to live in the city since 1995. She asked Council to regulate the short-term rental business by allowing it only in certain areas of the city. She stated Austin is working to strengthen short term rental restrictions and ' outlaw it in certain neighborhoods. They are increasing in popularity. However, her neighborhood, The Crossvines, is a single neighborhood area and they would like to keep it that way. Mr. Dusty Cole, 11931 Hollering Pass, who spoke of living next to a rental with 7 or more individuals /cars from different states, etc. There is a constant stream of strangers and parking issues. He read the definition of a single- family residence. He also spoke of parking and the problems with irrigation flooding the lawns and walkways. Sprinklers run morning through evening every day of the week. How are they to be protected from the constant stream of strangers, noise, and other nuisances? They do not abide by the rules the other residents abide ,by. He asked Council to protect the local residents. Joe Hoffer, 9319 Winding Bloom, a practicing attorney in San Antonio. He spoke on behalf of about 8 of his neighbors. This is about enforcing the zoning ordinances of the City of Schertz. This is about enforcing the rules and about waiver. There are quality declarations, covenants, deeds and restrictions that are very specific and do exclude this type of use. However, the HOA is limited and can't act fast. The zoning ordinances can act quicker. He is asking the city to enforce these ordinances and help the residents. This is not about the Air Force personnel, it is about you can't waive the declarations and restrictions that are the law. If the zoning ordinances need to be strengthened, then do so. Our restrictions and declarations have the correct language in them so it should be enforceable. Lastly, it is a community /neighborhood safety issue. Mr. Brent Bolter, 2633 Cloverbrook Lane, who stated rumor has it that there was a finding on the legality of the recording that was done on a conversation between the Mayor and a Councilmember and he was trying to get a confirmation of `true or not true'? He just wanted to re -state his feelings that the recording was unacceptable and not honorable. It is underhanded, -it is politics, it is down in the gutter. Even if it is eventually found to be legal, it was completely out of line. He will speak later in the evening during the Public Hearings on the budget matter. 08 -28 -2018 Minutes Page - 3 - Workshop ® Discussion regarding Short and Mid -Term Rentals. (B. James /L. Wood/B. Cox) Mayor Carpenter recognized Senior Planner Bryce Cox who stated on May 1, 2018 City Staff gave a presentation and workshop on short term rentals to City Council. The outcome of the May 1, 2018 workshop was for staff to monitor this issue and return to council if there was a change. At the time, the focus was on short term rentals which generally are defined as any rentals that are for periods of less than 30 consecutive days to an occupant, typically in a residential home. They may or may not be owner- occupied. This concept has become increasingly popular and is supported by multiple booking websites such as Home Away, VRBO and Air B &B. Short-term rentals are required to pay hotel occupancy tax (HOT). The City's Unified Development Code (UDC) does not make reference to short -term rentals and the interpretation that staff has taken toward short-term rental of residential houses is to consider it a one family dwelling land use as the home is being used in the same or similar way to how it would be used if it was owner occupied. Staff has received a complaint related to one short-term rental and several complaints on 2 mid -term rental properties. Both short-term and mid -term rentals do not appear to be prevalent within the City. The mid -term rental specific complaints have been toward properties being rented as "PIT" pads which are intended to be used for pilots in training at Randolph Air Force Base. These rentals are typically greater than a month but less than 6 months. Additionally, the homes that have been reported appear to be leased per bedroom as opposed to renting the entire property. The City's UDC has a definition for a Boarding House which is defined as: Boarding House - A building other than hotel, motel, or an apartment hotel where, for compensation and prearrangement for a definite period, meals or lodging and meals are provided for three (3) or more persons, but not exceeding twenty (2 0) persons. A boarding house however is not referenced in the permitted use table in UDC Sec.21.5.8. The interpretation that staff has taken is to consider these mid -term rentals as a one family dwelling land use as the home is being used in the same or similar way to how it would be used if it was owner occupied. General concerns included in complaints received by staff include: 1) Amount of people, 2) Lots of cars parked in the road, 3) Blocking driveways or sidewalks, 4) Trash and debris, 5) Decreased proper values. What is next? At this time, it appears to be a relatively isolated issue and it is staff's understanding for the property area with the most complaints (Crossvine) that the HOA is currently addressing the issues. Staff will continue to monitor short and mid -term rental 08 -28 -2018 Minutes Page - 4 - activity and keep City Council updated. Meanwhile, staff is seeking direction from Council. Mayor Carpenter asked City Attorney Dan Santee if their office could educate Council on what state law says and what we can or can't do as a municipality and what they see that other cities are doing -- in the next meeting or two. He is also going to ask his state representative and state senator to find out if the state legislature is going to take some action that will give us some uniform direction. He encouraged all councilmembers to do the same. Mr. Cox addressed questions and comments from Council. Mayor Carpenter moved to agenda Item 18. 18. Ordinance No. 18 -S -29 — Conduct a public hearing and consideration and/or action PH approving an Ordinance regarding a request of a Specific Use Permit and associated conceptual site plan to allow a Convenience Store with Gas Pumps on an approximate 0.93 -acre site. The property is more specifically described as Lot 6, Block 1 of the Tri- County Business & Industrial Park Unit IA Subdivision; City of Schertz, Guadalupe County, Texas; located at 1750111135. First Reading (B. James/L. Wood/E. Grobe) The following was read into record: ORDINANCE NO. 18 -S -29 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS TO APPROVE A SPECIFIC USE PERMIT TO ALLOW FOR OPERATION OF A CONVENIENCE STORE WITH GAS PUMPS AT 1750111135, SCHERTZ, GUADALUPE COUNTY, TEXAS Mayor Carpenter recognized Planner I Emily Grobe who stated the property owner is requesting approval of a Specific Use Permit and associated conceptual site plan to allow a convenience store with gas pumps, on an approximate 0.93 acre lot located at 17501 IH 35 and more specifically described as Lot 6, Block .1 of the Tri- County Business & Industrial Park Unit lA Subdivision. The proposed development includes a 3,150 square foot convenience store with six (6) gas pumps (7- Eleven), and a 966 square foot car wash. The subject property is currently developed as a fast food restaurant (Jack -In- the -Box). The owner is proposing to demolish and develop the new building, gas canopy, and car wash. Access to the site will be through three driveways, two that are existing drives (one located off FM 3009, and one. located on 1113 5 frontage road) and one proposed drive (located off the shared access easement to the rear of the proposed building). The subject property is currently zoned General Business (GB). The City's Unified Development Code (UDC) includes Table 21.5.8 Permitted Uses, which identifies different land uses that are permitted within each zoning district. The General Business (GB) zoning district permits convenience stores with gas pumps, subject to approval of a Specific Use Permit. Specific Use Permits allow for discretionary approval by City Council for uses with unique or widely varying operating characteristics or unusual 08 -28 -2018 Minutes Page - 5 site development features. Approval of a Specific Use Permit authorizes a property owner to submit subsequent development applications. On August 8, 2018 the Planning & Zoning Commission recommended approval of the project. A public hearing notice was published in the San Antonio Express ,News on August 13, 2018. ' Prior to the Planning & Zoning Commission meeting, nine (9) public hearing notices were mailed to surrounding property owners. Staff has received one response in favor of the development and no responses opposed or neutral to the request. The subject property is adjacent to an existing convenience store with gas pumps immediately to the west, existing fast food restaurant to the north across a shared access easement, and FM 3009 right of way to the east, and IH 35 frontage road to the south. Additionally, across the FM 3009 right of way is another convenience store with gas pumps. This property and all adjacent properties are designated for commercial uses and zoned General Business (GB). The comprehensive land use plan identifies this area as Commercial Campus which is intended for lower intensity commercial and office uses between major intersections as a buffer between the highway and the adjoining neighborhoods. The proposed convenience store with gas pumps is a land use that is compatible with the existing convenience store with gas pumps, restaurant, and right of way land. The Planning and Zoning Commission conducted the public hearing on August 8, 2018 and offered a unanimous recommendation of approval. Ms. Grobe went over the landscaping proposal, store structure, number of parking spaces, canopy and proposed drive area. Staff recommends approval in accordance with P &Z Commission's recommendations. Ms. Grobe introduced the applicant representative, Ms. Karen Mitchell from Mitchell Planning Group, LLC. who provided a short presentation to Council showing the proposed site redevelopment. She provided some background information on the company (7- Eleven) which is an established widely known corporation. They are also getting into the E- Commerce business where you download an app and can have a product delivered to you. She also provided information on the `Hill Country' design of the building/Canopy and the added landscaping design. The company is known for designing it's merchandising plan specifically to the community it is located in. Mayor Carpenter opened the public hearing and recognized the following individuals: Mr. Dana Eldridge, 2628 Gallant Fox Drive who stated we already have a lot of convenience stores (Valero), plus Walmart, and HEB. He suggested another location for this applicant. He also feels the landscaping can become an `overgrown' problem and you just don't need two gas stations next to each other. Mr. Robert Brown, 2800 Berry Patch, who stated he also feels it is a bad spot due to the merge lane coming off FM 3009 East. This is already a traffic problem area. 08 -28 -2018 Minutes Page - 6 - Mr. Daniel Ortega, 2724 Poplar Grove, who stated he respectfully disagrees with the two prior speakers. Seven - Eleven is a national company who has done their analysis on that place. He agrees it could potentially cause some traffic problems, however, if the analysis checks out, it will be okay. He thinks the landscaping is a good idea if it is maintained. Mr. Pat Connelley, 9116 Trail Stem, who stated the pictures showed mature trees in the front island. In front of that area are power lines and telephone lines. In regard to the digital delivery, HEB is already doing the same thing. Mr. Brent Bolter, 2633 Cloverbrook Lane, who stated based on our past zoning battles and in light of the Evo situation and people being upset in Cibolo, he has become aware of if a property owner wants to sell a property and all the approvals are done, basically they say here you go, buy it and then they do their thing. What he heard tonight was there are three other entities (fast food entities) interested in this same property. What he believes he heard is they are not going to require any approvals. To him then, it boils down to do you want another fast food place there, because they will not need to go before anyone else for approval. They will go in, do their thing and tweak the property a bit and that is it. Ms. Monica Harris/Kreiser, 11909 Trail Hollow, who stated when her and her husband came in this evening they did not know half of what was happening in their community. Their homes and community are beautiful but when this investor bought the homes in their community where the majority of them served in the military and worked hard to own homes as beautiful as they are, it is a slap in their face. We all have to follow the rules. Mayor Carpenter pointed out this public hearing is for Item 18 only. As no one else spoke, Mayor Carpenter closed the public hearing for Council Comments. Council had several comments and questions involving, the sign replacement, dumpster location, drainage near the FM 3009 driveway entrance, car wash stacking space, tree landscape design, the role of Council in this decision and business investment concepts. Mayor Carpenter recognized Councilmember Larson who moved seconded by Councilmember Gutierrez to approve Ordinance No. 18 -5 -29 on first reading. The vote was 4 -2 -0 with Mayor Pro -Tem Scagliola and Councilmembers Davis, Gutierrez, - Larson voting for and Councilmembers Edwards and Crawford voting no. Motion Passed. Councilmember Kiser was absent. Consent Agenda Items Mayor Carpenter recognized Councilmember Crawford who requested agenda item 11 be pulled for separate action and he also mentioned that regarding item 3 the appointment to the Economic Development Corporation that Mr. Daniel Ortega was in the audience this evening. Minutes — Consideration and/or action regarding the approval of the minutes of the Special Retreat meeting of August 3, 2018 and the minutes of the Regular meetings of August 7, 08 -28 -2018 Minutes Page - 7 - 2018 and August 14, 2018, and minutes of the Special Community Budget meetings of August 16, 2018 and August 22, 2018. (B. Dennis) APPROVAL OF THE FOLLOWING MINUTES: 1. SPECIAL RETREAT MEETING —AUG. 3, 2018 , 2. REGULAR COUNCIL MEETING — AUG. 7, 2018 3. REGULAR COUNCIL, MEETING —AUG. 14, 2018 4. SPECIAL COMMUNITY BUDGET MEETING — AUG. 16, 2018 5. SPECIAL COMMUNITY BUDGET MEETING —AUG, 22, 2018 2. Ordinance No. _18 -T -28 — Consideration and/or action approving an Ordinance by the City Council of the City of Schertz Texas authorizing an adjustment to the Fiscal Year 2017- 2018 Budget, repealing all ordinances or parts of ordinances in conflict with this ordinance; and providing an effective date. Final Reading (B. James /J. Walters) The following was read into record: ORDINANCE NO. 18 -T -28 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN ADJUSTMENT TO THE FISCAL YEAR 2017 -2018 BUDGET, REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE 3. Appointments to the various City Boards, Commissions and Committees — Consideration and/or action appointing Mr. Daniel Ortega to the Economic Development Corporation Board. (B. Dennis/Mayor- Council) APPOINTMENT OF MR. DANIEL ORTEGA TO THE ECONOMIC DEVELOPMENT CORPORATION. 4. Resolution No. 18 -R -88 — Consideration and/or action approving a Resolution authorizing an agreement for Management Services between the City of Schertz and the Schertz- Seguin Local Government Corporation. (D. Wait/A. Cockerell/A. Briggs- Beard) The following was read into record: RESOLUTION NO. 18 -R -88 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN AGREEMENT FOR MANAGEMENT SERVICES BETWEEN THE CITY OF SCHERTZ AND THE SCHERTZ/SEGUIN LOCAL GOVERNMENT CORPORATION WITH SCHERTZ/SEGUIN LOCAL GOVERNMENT CORPORATION, AND OTHER MATTERS IN CONNECTION THEREWITH 08 -28 -2018 Minutes Page - 8 - 5. Resolution No. 18 -R -111 — Consideration and/or action approving a Resolution authorizing an Interlocal Agreement between the City of Schertz and the Drug Enforcement Administration for two Task Force Officers. (D. Wait/M. Hansen) The following was read into record: RESOLUTION NO. 18 -R -111, A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AGREEMENTS WITH THE DRUG ENFORCEMENT ADMINISTRATION, AND OTHER MATTERS IN CONNECTION THEREWITH 6. Resolution No. 18 -R -112 — Consideration and/or action approving a Resolution authorizing a Memorandum of Understanding between the City of Schertz and the Children's Advocacy Center of Comal County, Inc. (D. Wait/M. Hansen) The following was read into record: RESOLUTION NO. 18 -R -112 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AGREEMENTS WITH THE CHILDREN'S ADVOCACY CENTER OF COMAL COUNTY, INC., AND OTHER MATTERS IN CONNECTION THEREWITH 7. Resolution No. 18 -R -113 — Consideration and/or action approving a Resolution authorizing an Interlocal Agreement between the City of Schertz and the Guadalupe County Attorney in reference to the disposition of seized property and contraband. (D. Wait/M. Hansen) The following was read into record: RESOLUTION NO. 18 -R -113 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN INTERLOCAL AGREEMENT WITH THE GUADALUPE COUNTY ATTORNEY, AND OTHER. MATTERS IN CONNECTION THEREWITH 8. Resolution No. 18 -R -115 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas authorizing an Interlocal Agreement between the City of Schertz and the Texas Department of Public Safety; Disposition Services, Law Enforcement Support Office for the acquisition of surplus property. (D. Wait/M. Hansen) The following was read into record: 08 -28 -2018 Minutes Page - 9 - RESOLUTION NO. 18 -R -115 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING INTERLOCAL AGREEMENTS WITH THE TEXAS DEPARTMENT OF PUBLIC SAFETY FOR THE ACQUISITION OF SURPLUS PROPERTY, AND OTHER MATTERS IN CONNECTION THEREWITH 9. Resolution No. 18 -8116 — Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas authorizing expenditures with Motorola totaling n.o more than $85,000 for communication equipment during the 2017 -2018 Fiscal Year and other matters in connection therewith. (D. Wait/K. Long) The following was read into record: RESOLUTION NO. 18 -R -116 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING EXPENDITURES WITH MOTOROLA TOTALING NO MORE THAN $85,000.00 FOR COMMUNICATION EQUIPMENT DURING THE 2017- 2018 FISCAL YEAR AND OTHER MATTERS IN CONNECTION THEREWITH 10. Resolution No. 18 -R -117 — Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas authorizing additional expenditures with Ford Engineering, Inc. in a total project amount not to exceed $60,013 for design, bid, and construction Phase Engineering Services for the FM 1103 Water.and Waste Water Line Relocation Project in advance of the FM 1103 Road Widening Project. (D. Wait /J. Hooks) The following was read into record: RESOLUTION NO. 18 -R -117 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING ADDITIONAL EXPENDITURES WITH FORD ENGINEERING, INC., IN A TOTAL PROJECT AMOUNT NOT TO EXCEED $60,013 FOR DESIGN, BID, AND CONSTRUCTION PHASE ENGINEERING SERVICES FOR THE FM 1103 WATER AND WASTE -WATER LINE RELOCATION PROJECT IN ADVANCE OF THE FM 1103 ROAD WIDENING PROJECT. 12. Resolution No. 18 -R -119 — Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas authorizing a program and expenditures as provided for in the Performance Agreement between the City of Schertz Economic Development Corporation and Titan Lookout LLC. (B. James/K. Kinateder) The following was read into record: 08 -28 -2018 Minutes Page -10 - RESOLUTION NO. 18 -R -119 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A PROGRAM AND EXPENDITURES AS PROVIDED FOR IN THE ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT BETWEEN THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION (THE "SEDC ") AND TITAN LOOKOUT LLC (THE "COMPANY"); AND OTHER MATTERS IN CONNECTION THEREWITH 13. Resolution No. 18 -R -120 — Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas authorizing the Acting City Manager to enter into an. agreement for the purchase of in- car/body worn video systems. (D. Wait/M. Hansen) The following was read into record: RESOLUTION NO. 18 -R -120 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE ACTING CITY MANAGER TO ENTER INTO AN AGREEMENT FOR THE PURCHASE OF IN-CAR / BODY WORN CAMERA SYSTEM BUNDLES AND ESTABLISHING A MAXIMUM NOT TO EXCEED PURCHASE AMOUNT OF $121,600 FOR FISCAL YEAR 2017/2018 AND OTHER MATTERS IN CONNECTION THEREWITH. Mayor Carpenter recognized Councilmember Davis who moved seconded by Councilmember Crawford to approve consent items 1 -10, 12 & 13. The vote was unanimous with Mayor Pro -Tem Scagliola, Councilmembers Davis, Gutierrez, Larson, Edwards and Crawford voting for and no one voting no. Motion Passed. Councilmember Kiser was absent. Discussion and Action Items 11. Resolution No. 18 -R -118 — Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas authorizing the Acting City Manager to submit a proposal to JBSA Randolph for Ambulance Services. (D. Wait /J. Mabbitt) The following was read into record: RESOLUTION NO. 18 -R -118 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE ACTING CITY MANAGER TO SUBMIT A PROPOSAL TO JBSA- RANDOLPH FOR AMBULANCE SERVICES, AND OTHER MATTERS IN CONNECTION THEREWITH 08 -28 -2018 Minutes Page - 11 - Mayor Carpenter recognized EMS Director Jason Mabbitt who stated they have been observing this for about one year watching for the RP to go out. The cost they are submitting will cover six paramedics, an ambulance and all associated equipment for the ambulance. This would be the sixth ambulance for the city that could also respond off base to any place in our service area. It is a huge benefit for us. Councilmember Crawford pointed out that we have to be equipped to handle two calls simultaneously at the base. Mr. Mabbitt said all the ambulances back each other up so if a second call comes in they will send the next closest unit to the base. Acting City Manager Brian James stated that just to be clear, they will not be housing an ambulance at Fire Station No. 3, at least not in the beginning. Mr. Mabbitt stated the units back each other up from Schertz, Marion, Live Oak, Universal City, etc. They answer about 300 calls per year on base. The contract requires a response time of within 12 minutes. He does not see a problem with that. Mayor Carpenter recognized Councilmember Edwards who moved seconded by Councilmember Gutierrez to approve Resolution No. 18 -R -118. The vote was unanimous with Mayor Pro -Tem Scagliola, Councilmembers Davis, Gutierrez, Larson, Edwards and Crawford voting for and no one voting no. Motion Passed. Councilmember Kiser was absent. 14. Ordinance No. 18 -M -30 — Consideration and/or action approving an Ordinance amending the City Council Rules of Conduct and Procedure related to the appointment of the Mayor Pro-Tern Position. First Reading (B. Dennis/Mayor- Council) The following was read into record: ORDINANCE NO. 18 -M -30 AN ORDINANCE BY THE CITY OF SCHERTZ AUTHORIZING AND AMENDING CITY COUNCIL, RULES OF CONDUCT AND PROCEDURE; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE No discussion between Councilmembers was held on this item. Mayor Carpenter recognized Councilmember Crawford who moved seconded by Mayor Pro -Tem Scagliola to approve Ordinance No. 18 -M -30 on first reading. The vote was unanimous with Mayor Pro -Tem Scagliola, Councilmembers Davis, Gutierrez, Larson, Edwards, and Crawford voting for and no. one voting no. Councilmember Kiser was absent. Motion Passed. 15. Ordinance No. 18 -M -31 - Consideration and /or action approving an Ordinance amending the City Council Code of Ethics related to the procedure for conducting inquiries. First Reading (B. Dennis/Mayor- Council). 08 -28 -2018 Minutes Page -12 - The following was read into record: ORDINANCE NO. 18 -M -31 AN ORDINANCE BY THE CITY OF SCHERTZ, TX AMENDING CITY COUNCIL CODE OF ETHICS; AMENDING SECTION 3 PROCEDURE FOR CONDUCTING INQUIRIES REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT WITH THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE No discussion between Councilmembers was held on this item. Mayor Carpenter recognized Councilmember Crawford who moved seconded by Councilmember Larson to approve Ordinance No. 18 -M -31 on first reading. The vote was unanimous with Mayor Pro -Tem Scagliola, Councilmembers Davis, Gutierrez, Larson, Edwards, and Crawford voting for and no one voting no. Motion Passed. Councilmember Kiser was absent. 16. Public Hearing on Proposed Budget for FY 2018 -19 — Conduct a public hearing PH regarding the adoption of the FY 2018 -19 Budget. (First required public hearing) (B. James /J. Walters) Mayor Carpenter recognized Finance Director James Walters who provided a short PowerPoint presentation on both the budget and the tax rate proposal, answering or addressing any questions from Council. Councilmember Edwards left the meeting at 7.47p.m. Mayor Carpenter opened the public hearing and the following individuals spoke: Mr. Brent Bolter, 2633 Cloverbrook Lane, who stated there had been talk about cutting some items or programs from the budget. He feels there are some things that could be cut, such as Shred Day. In regard to the cost of the magazine ($100K) he thinks there are other options out there that would cost less money. However, just by cutting a few items from the budget will not get us where we need to be. He feels there is a need to raise the tax rate to get where we need to be. Also, he prefers the city take money out of his pocket rather than the state or federal governments. At the city level, he can at least see differences and results. He questioned the money we are spending on parks versus streets. Then he would like to see some results from the city on what the tax money is going for. He also asked about the disabled vet exemption; this was an eye opener. He is 20 percent disabled but he still pays some taxes on the property he owns. Mr. Daniel Ortega, 2724 Poplar Grove, who encouraged Council to take a good look at what the things are that we really need to operate the city. A park is a `want' not a `need'. We need a true assessment of what needs we have. People generally do not want higher taxes. 08 -28 -2018 Minutes Page - 13 - Property values continue to go up. He is not necessarily against a tax hike; however, he would like for Council to take a good hard look at everything. Mayor Carpenter closed the public hearing and moved to Item 17 of the agenda. 17. Public Hearing on Proposed Tax Rate – Conduct a public hearing regarding the adoption of the FY 2018 -19 Tax Rate. (First required public hearing) (B James /J. Walters) PH Mayor Carpenter recognized Finance Director James Walters who introduced this item stating the proposed tax rate is listed on the public notice and is $0.5146. Mayor Carpenter opened the public hearing, and as no one came forward to speak he closed the public hearing. Mayor Carpenter recognized Councilmember Larson who stated he actually had a formal presentation to make and went down to the podium. His presentation included the grouping of the following WANTS and NEEDS in our lives: Economic Needs —i.e., Housing costs, Public Safety (Police, Fire, EMS), Roads, School Supplies Economic Wantsi.e., Vacations, Free (document) Shredding, New Parks /Trails, Paper (Schertz) Magazine, Retirement, Kids College Fund, Chiropractor Visit Which wants are more important? The next topic was `Scarcity'.. The world has limited means to meet unlimited wants, so we must always make choices. His research produced the following data: • Schertz Median Income, $72,463 • Schertz Median New Home, $260,000 • Average monthly mortgage payment, $1,929 • Median age, 36 years • People per household, 2.92 According to his calculations, the total monthly income is around $5,012, total fixed expenses, about $4,985, leaving a difference left over of $27. A $100 annual increase in city property taxes can consume 30% of a family's discretionary budget. In 2017 the average percentage value change on appraisals was 40.07% (according to SA Express News). A new home buyer will see their property tax obligations increase by 127% before they pay off their home. Over the 30 -year mortgage period you will pay the government more than the price you paid for the home. $316,158 vs. $260,000. It will also impact renters more. He feels there should be more focus on roads and our parks are not maintained to the level we would like. The solution: 1) spend less money on parks /recreation, 2) spend more money on roads. He provided a chart of the funds spent on parks by Cibolo, San Antonio, Universal City, and Schertz. Schertz was the highest at $68 /person. Our Parks Department 08 -28 -2018 Minutes Page - 14 - is spread way to thin and cannot keep up with the maintenance they need. His proposals are: • Eliminate Shred Days $10,000 • Close one of the three pools $$150,000 • Stop free lunch for non - residents (Senior Center) $40,000 • Make Schertz Magazine 100% digital $115,000 • Reduce the number of parks • Stop adding new parks He feels we should keep the tax rate where it is and make some hard decisions about how we think about parks. Focus on a few and have the rest as greenspaces. Mayor Carpenter recognized the following who provided their comments /questions: Councilmember Crawford, who pointed out that Item 2 of the current agenda is to move some un -used funds from the vacant Assistant Parks Director position to the pedestrian routes and bike lane project fund. Councilmember Crawford spoke about taxes and appraisals increasing in his own private life which will affect future choices he also needs to make. Councilmember Gutierrez spoke about the city's. businesses. With the proposed rate the city businessowners will pay $5,146 per million on their property tax. It has been stated our businesses are paying 51% of our tax liability, which is $6.6 million. Also, manufacturers and industrial businesses account for 79% of our sales tax ($6.5 million). A total of $15 million— businesses account -for over 50% of the entire city budget. When we talk about property tax, we tend to overlook this. If there were no city businesses, our tax liability would be .8643 cents per household compared to the .5146. The economic impact these businesses have on our community is impressive and sometimes overlooked. Growth occurs when new money enters this community. However, a tax liability that is set to high can deter new development. Next year he would like to see what our businesses have to say about proposed taxes. He also spoke about the tax rate and the city's debt liability /payments and the needs of the city and residents. Mayor Pro -Tem Scagliola stated he voted against the .5146 rate; to approve it removes any further incentives to look for more saving options. He supports Councilmember Larson in a lot of things he says we can cut. He liked it when the city adopted a 5 -year budget plan. However, he didn't see it aligning with a spending needs cycle. Where is the focus? Quality of Life? Focus on infrastructure, wages? Where are we putting our emphasis? We have to make tough choices. How much more can we cut? There are more things that are still doable. Councilman Davis stated he agrees with a lot of the concepts brought forward by Councilman Larson. However, he also looks at the big picture. In the past five years the tax rate has gone down in the city. If we had kept the tax rate at what it was just five years ago and maintained that rate, the conversations we are having now probably would not exist. Last year he was a big advocate for asking staff to present a budget that was for what they 08 -28 -2018 Minutes Page -15 - think the city needs. He has several concerns. Costs go up every year for everybody and we need a budget to address that. We have to be aware of our revenues and what can be brought in and how to use it to our advantage. He agrees with Councilmember Larson that there are things we can have discussions about. He liked the idea of converting the pools to splash pads -it would be a good discussion to have — however it would be costly, $150,000 and there would still be operating and maintenance costs. He spoke of the neighboring cities but said they need to still look at what is best for Schertz. He spoke about our past tax rates and said he still thinks it is time for a small adjustment and look at reducing the ratio of our I &S to our M &O. However, we will never be debt free. He doesn't know of any other city that is. Councilmember Larson spoke again to clarify that he does not think this is a failure of city staff in any way. They have faithfully and exceptionally executed the guidance given to them by Council. He asked for the slides to be brought up again for what we could get with the different tax rates. He offered a challenge to his colleagues. He spoke of the item of a city `Parks Program Guide' at a cost of $15,000. Here is the challenge of having not enough money for basic maintenance in our parks, but yet we are allocating $15K towards printing some park guides? Here is where he wants to challenge Council, not staff. These types of situations need to be looked at - -does this really make sense? Councilmember Crawford asked Finance Director James Walters if he read the budget slides right, we have $81.3 million for FY 2018 -19 with the proposed tax rate of 0.5146 of which 33.5 of that is M &O and 47.8 million is interest sinking fund. Mr. Walters replied that out of the $81 million budget $33.5 million is the general fund -42% of which is funded from the property taxes and then the I &S portion is $6.6 million. He supplied a chart of the Budget percentages. Mr. Crawford's other comment for council was that if we don't fix some of these things that need to be fixed, they will only get more expensive. He is unsure how much needs to be cut and what needs to be cut. To his fellow council-members he wants to know what are we trying to say? Acting City Manager Brian James spoke saying council comments this evening have been very accurate and on- point. Staff feels that continuing to do business as in the past is not sustainable. Fundamentally, it is about what kind of community do we want and what are we willing to pay for? Some communities say they want a lower tax rate and fewer wants or reduced needs. Other communities say we don't want to just focus on what we need. Inherently, it is a balancing act. Communities are very diverse. Staff has probably not been totally clear with council in the past about some of the challenges the city is facing. The focus of this budget has been on maintenance of existing facilities. We are a fairly lean staff and tend to work our people hard. Staff can probably be more optimistic with our revenue projections and in finding savings throughout the year. However, he cautions that this is well and good only until it is not well and good anymore. Staff is looking for direction here and it is their job to come up with a list of cuts but would like guidance on what these items would be. We have had a significant depression of our revenues over the years and only a portion of that is made up in this year's proposed tax increase. Staff will continue to look for more efficiencies. The proposed tax rate for this 08 -28 -2018 Minutes Page - 16 - year will hopefully allow us to provide the community with want they want in regard to needs and wants. Councilmember Crawford spoke briefly about how we changed our direction/focus around 2011 to be the community we wanted to be. Mr. James added that if council approves this proposed tax rate it does not mean we go on a spending spree, but rather we start catching up on some needs and break the cycle of getting further behind. Mayor Carpenter commented that taxes have increased regularly in the past seven years due to the rise in property appraisals, not by raising the rate. Councils before and after all of us have had these same conversations and struggles each year. There is no perfect answer. What has been constant for Schertz has been the growth —since 1958. He thanked Council and complimented them for their dialog and effort and willingness to be open and frank with each other on this matter. He remind everyone that the state does require us to set a tax rate and we do not get to back away from that. We also do have to set our budget. As in the past, we have also generally done mid -year budget adjustments over time. He asked Council to set the rate and then we can enter into regular dialogue throughout the year in the way we spend our. money. He thanked Council one more time for their diverse discussions and gallant efforts performed with respect and restraint. Acting City Manager Brian James provided a brief explanation of how staff develops the budget, establishes it, recommends the rate, etc. Throughout the year, quarterly changes and redirection of funds can and generally are brought before council for approval. Councilman Larson still expressed his concerns regarding setting a tax rate now and then deciding where we spend that money later. He feels Council still has not given the.. appropriate direction to staff to make the difficult choices staff has to make to have the needed amount of resources to work on city projects. Mayor Carpenter reiterated we must by state law set a tax rate and follow the dates given. However, the budget itself can still be adjusted throughout the year with Council approval. Roll Call Vote Confirmation City Secretary Brenda Dennis provided the Roll Call Vote Confirmation for agenda items 1 -18. Workshop Discussion and possible action regarding the City of Schertz Interview Committee. (B. Dennis) (Item requested by Council to be brought back) Mayor Carpenter stated that since there was not a full council present for this discussion that it be put back on for next week's discussion. 08 -28 -2018 Minutes Page - 17 - ® Presentation, discussion and direction regarding the Fall Council and HOA Presidents meeting. (B. Dennis) Mayor Carpenter recognized City Secretary Brenda Dennis who provided a brief PowerPoint presentation regarding the proposed upcoming September 18, 2018 City Council and HOA President's Special meeting answering questions and gathering information from Council. It was the consensus of Council to move forward with the recommendations that were presented and proceed with scheduling and setting up the meeting. Closed Session Mayor Carpenter convened into closed session at 9:30 p.m and stated they would take a five (S) minute recess before convening. 19. City Council will meet in closed session under Section 551.074 of the Texas Government Code, Personnel Matters to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of the City Manager. 20. 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 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. • Project E -044 Reconvene into Regular Session Mayor Carpenter reconvened into regular session at 10:27p.m. 19a. Take any action based on discussions held in closed session under Agenda Item 19. No action taken. 20a. Take any action based on discussions held in closed session under Agenda Item 20. Requests and Announcements • Announcements by the Acting City Manager. No announcements were made. 08 -28 -2018 Minutes Page - 18 - • Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. No requests were made. • 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 No announcements were made. 21. Information available in City Council Packets - NO DISCUSSION TO OCCUR • Update regarding recycling. • Pending informational items. Adiournment As there was no further business, Mayor Carpenter adjourned e meeting at 10:28 p.m. �K Zz'e Michael R.. Carpenter, Mayor ATTE-�T: BrendaDennis, City Secretary 08 -28 -2018 Minutes Page -19 -