02-26-2003 Schertz City Council - Workshop Session
Wednesday, February 26, 2003
The Schertz City Council convened in workshop session on Wednesday, February 26,
2003 at 7:00pm in the Municipal Complex Conference Room, 1400 Schertz Parkway,
Schertz, Texas. The following members were present: Mayor Hal Baldwin, presiding,
council members Carl Douglas, Steve Simonson, Reginna Agee, Tony Wilenchik and
Ken Greenwald. Staff members present were City Manager Mark Marquez and Deputy
City Secretary Mary Ybarra.
Mayor Baldwin called the meeting to order at 7:00 p.m.
#1 Hearing of Residents:
Robert Broekman~ 4505 Grand Forrest made the following comments.
· In regard to item #8, City Manager's vacation he jokingly said it was denied.
· Asked if the new bridge had been sanded down during the freeze on Tuesday, he was
advised it had and potholes also repaired.
· Made note of RV parked at Public Works yard, it's been parked for sometime, is there
plans for it. He was advised yes, possibly auction item.
· Commented he would like to see a one-way sign at Post Office as you exit the
parking lot and mail drop off area. He believes this might cause problems for non-
residents. He was advised the issue would be looked at.
·
#2 Discussion regarding audit report for Fiscal Year ended September 30, 2002.
Nancy Vaughn of Armstrong, Vaughn & Associates was present. She reviewed the
General Fund Revenues and Expenditures, pointing out General Fund revenues were
short of budget amount of $7 million plus. She noted the ad valorem and sales tax held
steady, which was helpful. Expenditures were kept under the budget amount to the good
of $621,000 plus. She noted at year end a 23% increase from the year before on monthly
average expenditures. This left 5.2 months in the city reserve fund, which are available to
appropriate for next year. In her opinion this is a very sound reserve. She also reviewed
the Water and Sewer and EMS fund totals. Ms Vaughn explained the Water and Sewer
showed more depreciation in operating expenses, more than before due to taking on
assets of municipal utility districts (Northcliffe area). She indicated a 9% increase on
expenditures then the year before. She pointed out EMS receivables have grown
considerably from the year before due to collections done in house and will monitor
improvements.
Ms Vaughn then reviewed the Management Report. She identified sufficient estimates to
the EMS receivables and allowance for uncollectible debt. Indicated significant audit
adjustments and will elaborate on their significance. Pointed out several internal control
matters, one of which is material weakness. There is insufficient reconciling procedures;
account receivable ledgers, etc. It's vital this gets corrected. She suggests adopting policy
requiring monthly reconciliation and assigning one individual to insure documentation
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and recordation. Data shows that the budget reconciliation is in need of reconciling on
interim basis. After being questioned by Mayor Baldwin on details, Ms Vaughn
explained that budget amendments were posted; however with no reconciliation
procedure in place, it's difficult to perceive if totals agree. In this case, totals did not. The
same can be said for NSF check collections, and procedures in implementing prepaid
expenditures. Again, reconciliation played a large factor in these instances. The City also
failed to amend budget for fire truck purchase. There are checks over three years old and
recommends-voiding stale checks after one year. Ms. Vaughn indicated the city adopted a
policy (voiding stale checks), however policy is not being followed. There is good news
on a discrepancy (found last year) with Waste Management, city f'mal received a
replacement check. In random review of cash disbursement process, it was found that in
some instances, procedure is not being followed. She recommends reviewing procedures
with staff, insuring a clear understanding of true line of authority. Ms. Vaughn was
advised as well as council, that procedure policy is in review stages and would be brought
to council at a later date. She mentioned no non-compliance with the Investment Policy.
Councilmember Simonson pointed out reconciliation was an issue at last audit and recalls
someone was brought in to assist. Was the issue not resolved? Ms. Vaughn explained the
issue at the time was cash reconciliation (due to software issue). Cash reconciliation was
done, however; no reconciliation is apparent for anything else. She further explained
reconciliation took place at the same time as audit, and is fairly certain the numbers
presented are accurate. However, much time was spent making sure the numbers were
accurate.
Mayor Baldwin made mention that as far as he can remember it's been a continuing
problem, that books are not ready for auditor. He believed the issue had been resolved,
apparently it has not. In his opinion books should be ready, when additional time is spent
(reconciling), there are additional expenses. Ms. Vaughn explained there hasn't been any
added expenses (firm didn't feel it was appropriate). However, a considerable amount of
time has been spent, which wasn't anticipated. The issue must be resolved.
Mayor Baldwin suggested convening with the audit committee as soon as possible and
asked Ms Vaughn if she could attend. He was advised she could. It's imperative the
committee works out a possible solution. He isn't quite clear on problems, is there lack of
personnel, and if a certified public accountant is in house and books are still not ready,
there is def'mitely concern.
In conclusion, Ms. Vaughn stated the city was in good financial shape and if council
didn't have further questions, the audit would be ready for Council approval.
Council agreed they would be ready for this item to be included on next Tuesday night's
agenda for approval, and thanked Ms. Vaughn for her time and effort.
#3 Discussion regarding final reading of Health Ordinance.
Mr. Marquez noted no changes to the above ordinance.
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Council advised they would be ready to take action at Tuesday's meeting.
#4 Discussion regarding Bond Ordinance.
Mr. Mark McLiney explained that new legislation allows approval of bond ordinance on
one reading, which Council may opt to do at next meeting. The language in the ordinance
follows all previous ordinances, and procedure, which are clean and clear. The language
is attorney language, however, if council has questions, or if he can explain any part of
ordinance he would be happy to do so. He pointed out the ordinance specially states the
bond will not exceed $3.5 million. This gives the city some leeway; published notice of
intent showed amount of $3,360,000. Mr. McLiney noted that in speaking with rating
agency, (Schertz being A+), he was informed that very few communities of this size
(Schertz) are A+. One reason Schertz is A+ is due to historical fiscal management.
Mr. McLiney then explained the bidding procedures and what would take place. Bidding
will take place in City Hall via the intemet (live connection) and fax bids will be
accepted. Bidding will commence at 1:30 p.m., 4'h March 2003. If Council desires to be
present, he encourages them to do so; it's a very interesting procedure. It was suggested
posting an agenda, in case of a quorum. He added that bid award would be subject to
council approval at this evenings Council meeting. Mr. McLiney noted all numbers were
run at 4 3/4% and he is looking at a possible rate of 4% or under.
#5 Discussion regarding public hearing on proposed changes to Unified
Development Code, Article XI, Platting.
Mr. Marquez noted changes to the above request. ADA sidewalk requirements changed
from 4' to 5' width, and cul-de-sac expansion to 100' radius diameter. The expansion is to
accommodate emergency service vehicles. Public Hearing is scheduled for next Tuesday
night's agenda. These changes are necessary and require the public hearing process.
Council had no questions or comments on the issue.
#6 Discussion regarding EMS uncollectible accounts.
Mr. Marquez advised of approved write-off procedures in regard to EMS uncollectible
accounts. Amount before Council is $311,326.28 from year 2001. He added that Council
has been briefed on this matter at previous meetings. Mr. Wait has reviewed figures and
recommends write-off of the above amount. He emphasizes, that because funds are
written off doesn't mean funds are gone forever. Attempts to collect will continue.
At this time, Mr. Marquez deferred to Dudley Wait EMS Director. He was asked to speak
on Medicare and Medicaid contractual write-offs. At this time, he can not give a precise
figure due to insufficient records from previous collection agency. This will change soon,
due to billing done in-house. He explained that Medicare/Medicaid recipients are billed
like everyone else. However, the bill (Medicaid) is reimbursed at only 80% of $300, even
if bill is more, which in all cases it is. By law the remainder has to be written off.
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Medicare will only pay $111, and again everything above that amount by law is written
off.
Mr. Wait reported that the first in-house billing was done last week and that the new
billing supervisor is doing a great job, not only with clients, but also internally with
paramedics.
Council agreed they would be ready to take action on issue at Tuesday night's meeting.
#7 Discussion regarding first reading of Court of Record Ordinance.
Mr. Marquez advised that at this time, agenda item would be tabled until such time that
City Attorney and Judge Padgett come to some understanding relative to court of record
ordinance.
In brief discussion, relative to the need of court of record, and other issues involved
Council suggests asking Judge Padgett to present her case on the issue at a future
meeting.
#8 Items by City Manager
General Announcements
a. City Manager's Vacation
b. Water Event
c. Projects Update
· Advised he would be taking a short vacation March 27 -31. He will be attending a
wedding reception in Denver for his daughter given by her in-laws.
· Commented there is no reschedule date for water event. The "Big Splash" was
canceled due to bad weather on 20~ February. Possibly a Saturday date is being
considered. Memo to Council of specific dates will be placed in council packet for
review.
· Mentioned that due to bad weather April completion of Schertz Parkway has been
extended to May or possibly June. He noted section of Schertz Parkway would have
to be re-paved due to damage relative to weather.
· Noted memo in council packet explains the new water and what residents are to
expect. Employees have been briefed on the water disinfecting process - chloramines
versus chlorine. Questionnaire as part of packet answers in detail the most asked
questions and concerns. There will also be a mail out to residents as part of the water
bill explaining in detail the new water disinfecting process.
· Mentioned the City is in the works of turning in documents (claim) to Bankruptcy
court, relative to DMG Quest. City is in search process to locate another company in
the immediate area.
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· Advised of Legislative Conference scheduled Friday, 21st March in New Branufels. If
anyone is interested in attending, let us know.
· In regard to Bond package and (2) ambulance purchase package, does council have
questions or concerns in regard to bigger (ambulance) and or the price tag. Council
advised there was no problem or concerns, however would like to see bids before any
decision is made.
· Advised of target date of March 10, to plug into the system.
· Advised of Executive Session scheduled on next Tuesday night's meeting. Discussion
on SAFES Issue.
#9 Items by Council
General Announcements
Couneiimember Douglas
Liaison Schertz EDC
Reported on attending (last week) Security Service Credit Union groundbreaking. It was
a good turn out despite the weather. At that time, he was informed of plans for two more
bank institutions, Bank of America and Broadway Bank in the area.
Advised of 4 1/2 hours orientation last week with City Manager Mark Marquez. Very
informative, learned much about the City, and thanked Mr. Marquez for his time. In his
visit with Mark and having read audit report, he believes Council can come to some type
of resolution relative to the audit.
Couneilmember Simonson
4-B Board
Liaison BVYA
Councilmember Simonson had no comments.
Councilmember Agee
4-B Board
Liaison Schertz Housing Authority
Liaison Schertz Library Board
Commented on the flooding on Live Oak Road, which happen in the matter of 20
minutes.
Councilmember Wilenchik
4-B Board
Liaison Schertz Humane Society
Liaison HOA Coalition
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Mentioned the Humane Society schedule of the Doggy Dash, March 3rd at Pickrell Park.
Park reservations have been confirmed. He also mentioned attending Greenshire HOA
held at GVEC.
Councilmember Greenwald
4-B Board
Ex-officio P & Z Commission
Ex-officio SSLG Corp.
Made mention of (received call) Johnny Miller, Northcliffe residents and his concern
regarding State Insurance Board relative to ISO rating. If council recalls, State Farm
Insurance is the only firm in Texas that basis it's rating on zip code. Because Northcliffe
lies in a different zip code then Schertz the rates are higher. Council was advised Amy
Madison would be addressing council on the Post Office issue (zip code), possibly at next
meeting. Mr. Miller also voiced concern relative to light issue. Apparently, the cost of
repair to Chelsea Street light would be approximately $20,000. Council agreed to see if
project could be doable from Bond money or other avenues. Mr. Greenwald advised Mr.
Miller that certain issues weren't going to happen over night The newly annexed area (not
only year) will not be forgotten. Things take tinge.
Mr. Greenwald asked what was status with NBU Franchise, and was advised, remiss. It
was pointed out that GVEC would be putting up lights in their section. If NBU would
refuse to establish fi'anchise, the City of Schertz can extend the firanchise. It was
suggested that City contact GVEC or CPS to see if they were willing to take over the
area, which would give the City some leverage when contacting NBU. There is a need to
play hardball with NBU.
Reported that Planning and Zoning canceled their meeting due to weather conditions on
Tuesday.
#10 Items by Mayor
General Announcements
28 of the audit committee
Mayor Baldwin asked to possibly schedule meeting on Friday th
and Ms. Nancy Vaughn if possible. It was agreed that meeting would be schedule if all
parties could attend. Time of 3:00 p.m. or after was good for everyone.
Mentioned he would be making presentation to Commissioner Tommy Addison on
Friday, Live Oak Community Center, 11:30 a.m.
#11 ADJOURNMENT
There being no further business to discuss, Mayor Baldwin adjourned the meeting at 8:55
p.m.
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ATTEST:
Dep]~ty C~y Se~Jetary, City of Schertz, Texas
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