Strategic Planning Session 08-10-02
STRATEGIC PLAdd~,GSESSION
AUGUST 10, 2002
The Schertz City Council convened in a Strategic Planning Session on Saturday, August
10,2002 at 8:30 a.m. in the GVEC Conference Room, 908 Curtiss Ave., Schertz, Texas.
Those present were Mayor Pro-Tern Reginna Agee, presiding; Councilmembers Norma
Head; Steve Simonson; Tony Wilenchik and Ken Greenwald. Absent: Mayor Hal
Baldwin. Staff present were Interim City Manager Mark Marquez, City Secretary Norma
Althouse, Economic Development Director Amy Madison, Finance Director Vijay Jain
and Public Works Director John Bierschwale. Mark McLiney of Southwest Securities
was also present. One citizen, Robert Brockman of 4505 Grand Forest, was present for
the session.
Preceding the meeting, coffee, juice, pastries and cookies were enjoyed by all.
#1 CALL TO ORDER
Mayor Pro-Tern Reginna Agee called the meeting to order at 8:40 p.m.
#2 Presentation of I&S Management.
Mark McLiney of Southwest Securities was at the meeting for this presentation. Mr.
McLiney provided handouts to those present showing the impact of additional debt if the
City of Schertz assumes a $0.\0 Interest & Sinking Fund Tax Rate and a similar chart if
the City of Schertz assumes a $0 12 Interest and Sinking Fund Tax Rate. The charts
showed, among other things, Taxable Values, I&S Tax Rate, I&S Revenues, and
Available Revenues. He also provided a chart ofI&S Revenues at $0.10 from the year
2003 through 2027, leveling off starting the seventh year.
Mr. Marquez addressed the situation of putting capital items in M&O and stated the
solution is not short term. He stressed the City needs to get comfortable with its tax rate
and its growth rate. The solution might involve going to the voters.
Mr. Simonson observed that if the City assumes the growth period is longer than
projected, they would have to build up the reserves. Mr McLiney indicated that is
correct. Mr. Simonson then asked if this would be based on total valuation and Mr.
McLiney replied yes. The City needs to have a capital budget and I&S is the best way to
manage that.
Mr Wilenchik inquired about tax abatements and was told by Mr McLiney they do
count against assessed valuations. It is best to anticipate that housing is going up. Mr.
Marquez went on to say the City had to make some serious cuts in its budget. They need
a swimming pool and sub-stations for the Fire Department. He is concerned about the
method they used for purchasing some land. They used cash. He would like to make the
fund balance whole again. They need to replenish reserves.
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Mr McLiney also stressed the need to protect the A+ bond rating. The better the rating,
the better the interest rates. As far as the tax issue, the City has had some reimbursement
resolutions. Council needs to be aware of every step that has been taken. The City needs
to take advantage of growth.
Mr. Greenwald mentioned that the City of Schertz and the City of Seguin both fronted
quite a bit of money to get the water project moving forward.
Mayor Pro-Tern Agee commented they also have to manage the M&O along with the
I&S. Mrs. Head noted that at the Community Forum, about 75% of those present raised
their hands in favor of an increased tax rate.
Mr. McLiney ended his presentation by saying he feels confident his fIrm's solution
would be benefIcial to the City. He thanked Council for their time.
At this time, Council took a short break.
After the break, Mayor Pro-Tern Agee suggested the Executive Session, Item #9, be
moved up as the next item so Amy Madison didn't have to wait any longer to make her
presentation. Council agreed.
#9 EXECUTIVE SESSION: Called under Chapter 551 Texas Government Code,
Sub-Section 55 I 067 - Deliberation regarding economic development negotiations.
An Executive Session was held from 9:35 a.m. until 10:35 a.m.
#10 Action, if any, on above Executive Session.
No action was required.
#3 Fire Sub-Station
Mr Marquez commented there is a defInite need for a fIre sub-station and they have
debated about the best way to provide one. Chief Friesenhahn says they need to man it
with twelve people, but Mr. Marquez felt they could do it with only six. He also felt they
could look at mid-year for the sub-station, but not the manning.
Mrs. Head remarked there were lots of choices in Chief Friesenhahn's presentation to
Counci several weeks ago. Mr. Bierschwale noted they already own 10 acres ofland in
the IH-35 north area. It may be possible to sell 8 acres and use the funds to build the sub-
station. He then commented the ideal location for a sub-station in the southern part of the
City is the Ware-SeguinlPfeil Road area.
Mayor Pro- Tern Agee pointed out if they're looking at building a sub-station, the first
priority should be the IH-35 north area.
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Mr. Wilenchik said he knows they're in the business of acquiring land. Should they be in
the business of selling it? Mr. Marquez indicated it would be appropriate in this case. He
also added they are looking for Council's view on this. Should we do the north one now
and the south one in perhaps three years? Mr. Bierschwale mentioned Dudley Wait is
working with the City of Live Oak regarding their new facility. It is only four minutes
from our water tower.
Mrs. Head asked if Council wants the tax rate to go down and they didn't think so.
Mr. Marquez then noted the revenue from Cibolo is becoming a political issue and we're
not sure we want to continue taking their money It amounts to $50,000 per year. There
may come a time when our reserves may have to choose between Schertz and Cibolo.
The consensus of Council was to pursue, as soon as possible, what's needed for the first
sub-station up north and then concentrate on the second one in the south.
Mayor Pro-Tern Agee indicated we probably can't get a sub-station for a minimum of six
months. We need to get the firms together to see whether or not we can afford one up
north and then one in three years down south. If we can afford one down south in less
than three years, the timetable can be moved up.
Mr. Bierschwale mentioned Paul Brown, one of the owners of some property along IH-35
north, is willing to get involved if other players are involved. Both Mr Simonson and
Mr. Bierschwale showed Mr Wilenchik the location on the map of the property being
talked about.
Mr Greenwald suggested exploring all options - other land as well. Mrs. Head observed
there may be some properties we could sell for acquisition of a better property for a new
Post Office.
#4 Bond Election
Mr Marquez stated they do not have a plan. He doesn't think they have time to put a
bond election together until next August. There are several approaches they could take.
They could request bonding authority, but as funds allow. They could also pick one
project that's appropriate. Mrs. Head added they could also pick multiple projects and let
the citizens decide. They do, however, need adequate time to educate the average citizen.
Mr. Simonson also suggested they look at 4B money. Mr. Marquez reminded them the
rules change when the population hits 25,000.
Mayor Pro-Tern Agee pointed out whether they take it to the voters or not, they would
have the same I&S figures. Mr. Greenwald mentioned of the biggest problems is getting
together a bond committee that can absorb all the information and go out and explain it to
the voters. Mrs. Head wondered if a public forum would be a good way to start the
education process for a bond election. The rest of Council thought it would be.
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Mayor Pro-Tern Agee thought we're looking at next August as the earliest possible date,
if even then. She suggested checking the list of citizens who served on the previous
bond committee A committee needs to be formed to speak with citizens and get back to
Council with recommendations.
Mrs. Head mentioned the 4-B Board had appropriated money for a study Has it gone
anywhere yet? Mr. Jain answered it is still on hold. Mr. Marquez indicated they need to
schedule a 4-B meeting in early September.
Mayor Pro-Tern Agee commented they need to get a committee together to form a focus
group. Mr Marquez agreed and added they need a conceptual plan. He asked if Council
had anyone in mind. Among those listed by Council were Josh (last name unknown) of
Randolph Brooks Federal Credit Union, Ramon Cook, D.C.Morgan, Mark Roberts, Leon
Jones, Johnie McDow, Nancy Jones, Clovis Haddock, Robert Brockman, Robert Cantu,
Max Newsome and Harry Bauman.
#5 Presentation by Councilwoman Head.
This item was discussed while those attending ate lunch, which consisted of sandwiches
and chips from Schlotsky's.
Mrs. Head reported on a conference she had attended where a presentation was made by
John Nalbandian of the University of Kansas. She distributed handouts giving a
summary of a high performing Council, characteristics of politics and administration and
the gap between professional and political learning. Mrs. Head found his presentation
very interesting. His main focus was on what Councils do, why it is hard, and how they
can do it better.
Mr Simonson expressed the desire for Council to be better informed about what's going
on with other Boards and Commissions in the City. A good example is Planning and
Zoning. If Council could just get a good synopsis, they would have a better
understanding of current issues.
There was discussion about the fact that the agenda used to list City Manager's Report,
Iterns by Council and Items by Mayor. The Open Records law changed all that. Mr.
Marquez promised to check with Michael Spain to see if there's some way to word the
caption whereby these items could still be discussed at meetings.
#6 Review oflast year's goals and objectives.
The priorities set up by Council at last year's Strategic Planning Session were as follows:
1 Storm Water
2. Recreation Facilities and Programs
3. Technology
4. Economic Development
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5. City Staff (positions and Employees)
6. Regional Issues
7. Grants
8. Public/Private Partnerships
The priorities were reviewed one by one by Mr. Marquez:
# I, Storm Water
It was, "'1M ,ed they are awaiting a FEMA grant, which will fix a lot, but not all We will
still have major drainage issues. The biggest problem remains to be the Cibolo Creek and
Mr. Marquez thought you have to go through the Corp of Engineers to work out a
solution to the Creek. Mr. Bierschwale stated you also have to abide by the rules of the
Floodplain Ordinance. Council decided to keep Storm Water as #1.
#2. Recreation Facilities and PrOlrramj!
Mr. Marquez noted the Parks and Recreation Director position has been filled by Jason
Hall Mr. Hall is a very bright young man. He is quite impressed with him. He already
has a lot of good plans for the elderly as well as other age groups. Mr Greenwald
commented he would take Mr. Hall to the next BVY A meeting and introduce him to the
Board. Council decided to keep Recreation Facilities and Programs as #2.
#3. Technolollv
Mr. Marquez commented the City is in the process of acquiring new hardware and
software from Incode. They are also planning to purchase a LaserFiche program. There
is a possibility in the future of providing PC's to each Council person. Mayor Pro-Tern
Agee asked if there are any integrity issues involved with furnishing those PC's and was
told there are not. Mrs. Head suggested sending those in the Technology Department to
classes so they can stay updated on the latest techniques. Mr. Marquez advised they are
already doing that. Council decided to keep Technology as #3.
#4. Economic Development
Mrs. Head commented the new Director is now in place in the Economic Development
Department and economic development is an ongoing process. Mr. Marquez felt
Economic Development should stay at #4 and Council agreed.
#5 Citv Staff (Positons and EmnJovees)
Mr Marquez reported this priority is almost completed and could probably go down
further on the list. Mrs. Head inquired if each department head has a person picked to
replace them in cases of emergency, and if not, suggested they do that. They have seen
what can happen when this policy is not in place. Mr. Marquez advised that some of the
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changes in water billing, for example, moving some personnel from the water yard up to
City Hall. has worked out real well. At the moment, Council decided to leave City Staff
(positions and Employment) as #5.
#6 Relrional Issues
Mr Marquez remarked they are trying to maintain this priority. The City is not an island.
We need to work with our neighbors. The City has maintained its affiliation with
AACOG and the San Antonio Corridor Council as well as other organizations.. The
question was asked if they had maintained their affiliation sith MPO since Steve
Simonson retired and Mr. Marquez replied yes, Mr. Youngblood is involved with MPO.
Mr. Greenwald reminded Council the City needs to be prepared to be a water broker. Mr.
Simonson mentioned the citizens and Council need to be apprised of the Aviation bridge
situation. Mr. Marquez also commented we need to know TXDoT better. Mrs. Head
remarked we never see the people from TXDoT. Mrs. Agee reported that TSAC sees
them. Mr. Simonson noted there needs to be better dissemination of information from
City Council to staff and vice-versa. Mayor Pro-Tern Agee agreed and said if they are
more informed, they can step in sooner to avoid possible problems We need to cooperate
with surrounding areas. The staff can do the leg work, but it's really up to Council to see
that some things are accomplished. The Council decided to keep Regional Issues as #6.
Council then asked that Annexation be Itern #7.
Mr Marquez advised the law now requires that you have an annexation plan in place. He
felt there is no big need to annex developed areas. There are, however, some areas we
need to think about annexing. One that comes to mind is Rittiman Addition. Mr.
Simonson added that Rittiman Addition already has water and sewer Also, if they were
annexed, the Inspection Department could move forward in getting it cleaned up. Mr.
Bierschwale also mentioned one of the previous problems has now been taken care of
with the construction of the new road.
#8. Grants
Mr. Marquez admitted he's not sure how to deal with grants (the federal ones have so
many strings attached) and is not sure it needs to be this level of a priority. Council felt
Grants should stay as #8.
#9. Pnhlic!Private Partnershios
Mr. Marquez stated this definitely needs to be a day-to-day consideration. W need to be
more aware of it in our dealings and keep in touch with elected officials. Council
decided to leave PubliclPrivate Partnerships as #9.
Mayor Pro-Tem Agee observed that some of the priorities they've discussed could be
divided into two parts - immediate goals and long-term goals.
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Mr Jain mentioned including Communications in the list. Mrs. Head said she thought
the website, the newsletter, and the telephone could all be rolled into Technology .
Mr. Marquez advised he has moved the Customer Care function to Rita Duprat-Waldo.
He will be changing her title, but doesn't know to what yet. Evelyn Boggess and Karen
Choina will be working on water billing. Mayor Pro-Tern Agee requested a wiring
diagram of the organizational layout at City Hall.
Regarding Customer Care, Mr. Simonson asked if there's anything that could be done
about the entrance. Mayor Pro-Tem Agee asked if the reorganization up front has been a
good workable set up. Mr Marquez replied it has not and they are trying to come up
with a better solution.
Mr. Marquez then mentioned GASB 34 and Mr. Wilenchik verified it is a mandate, not a
priority. Mr. Wilenchik went on to say he doesn't know if property acquisition needs to
be a priority. Mr. Marquez commented opportunities arise now and then and property
acquisition could possibly be considered part ofPubliclPrivate Partnerships, even part of
Grants.
After further discussion, Council decided to move Item #5 up to #4 and move Item #4
down to Item #5.
The priorities as they now stand are as follows:
#1. Storm Water
#2. Recreational Facilities and Programs
#3. Technology
#4 City Staff (positions and Employees)
#5. Economic Development
#6. Regional Issues
#7 Annexations
#8. Grants
#9. Public!Private Partnerships
#1 I ADJOURNMENT
There being no further business to discuss, Mayor Pro- Tem Agee adjourned the meeting
at 2:05 p.m.
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ATTEST
~-Aj~
City Secretary, city of Schertz, Texas
(2(L;u
Mayor Pro-Tem, City of Schertz, Texas
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