ccswks 06-27-01
Schertz City Council-Special Workshop
Wednesday, June 27, 2001
The Schertz City Council convened in Special Workshop Session on Wednesday, June
27,2001 at 7:00pm in the Municipal Complex Conference Room, 1400 Schertz Parkway,
Schertz, Texas. Those present were as follows: Mayor Hal Baldwin, presiding;
Councilmembers Norma Head, Reginna Agee, Tim Swinney, and Ken Greenwald. Staff
present: Dewey Cashwell City Manager, and Norma Althouse City Secretary.
Mayor Baldwin called the meeting to order at 7:00pm.
#1 Hearing of Residents:
Roger Nichols-120 Webster stated he is very interested in the traffic recount that is
going to be done on FM3009.
Mr. Cashwell introduced the new Information Teclmology person, Mr. Rohan Pierce, and
listed all his credentials. Mayor Baldwin welcomed Mr. Pierce aboard.
#2 Discuss status of Tax Abatement regarding Coronado Paint.
Mr. Cashwell stated the business has gone in a different direction than they had hoped,
but there have been no serious changes at this point. Mr. Cashwell then asked Mr.
Marquez to explain this a little more.
Mr. Marquez explained that Coronado is selling the building with the intent of keeping
the distribution center open and leasing it to the new buyer. It would be appropriate for
City Council to consider an assignment of the abatement to the new owner. Mr. Marquez
spoke with the broker who is handling the sale of the building, and he stated Coronado
intends on staying here. They may sell the building, but move into some other empty
space in some other building. If that happens, then City Council has some decisions to
make. The Ordinance states the City could recapture the abatement, but does not have to.
Mr. Marquez noted that we need to see what unfolds first.
Mr. Swinney asked what kind of time frame is expected. Mr. Marquez stated he is
meeting with the potential new owners on Friday.
Mrs. Swinney asked if the new owner has discussed tax abatements as part of his decision
process in the purchase price. Mr. Marquez thought that they probably have not, but the
dollar amounts are not very big.
Mr. Greenwald asked if the abatement was only on the 21,000-foot addition. Mr.
Marquez answered yes.
Mr. Greenwald asked if they are still using it as a warehouse. Mr. Marquez stated yes
they are.
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Council then asked Mr. Marquez to check into it and see if anyone is still there. Mr.
Marquez said he would do that tomorrow.
Mr. Greenwald stated if this company has in fact moved out, then the City needs to
recapture.
#3 Discuss appointment of City Manager to Economic Development
Foundation.
Mayor Baldwin stated the former City Manager was a member of the Economic
Development Foundation, therefore Mr. Cashwell needs to be appointed to that position.
Action will be taken at next meeting to appoint Mr. Cashwell to this Foundation.
#4 Discuss scheduling for Strategic Planning Session.
Mr. Cashwell noted he understands that City Council would like to follow up the initial
Strategic Planning program. The next step would be to set some goals and objectives.
He suggested that if Council would like to have any effect on the upcoming budget
process then a meeting needs to be set up, possibly for a Saturday in July.
Council decided to set the meeting for July 28th.
#5 Discuss proposed zoning change along FM3009/Elbel RoadlFM78.
Mr. Cashwell reported this issue weighs upon a number of issues in the community. The
traffic report that was requested by Council came back and indicated the traffic is heavier
than what was thought.
Mr. Ken Brown-Attorney stated his firm was hired after the Planning and Zoning
meeting and has not been to a subsequent meeting. Mr. Brown noted his firm has been in
touch with the opposing neighbors and there was a meeting with Mr. Nichols. The
biggest concern with the citizens is the traffic issue. The firm then provided a traffic
impact study, but it seems that the citizens are still not happy and want that area of land
to be zoned as Office/Professional. Mr. Brown felt his client should be able to do with
the land what he wants, within reason. He also feels there is no need for that much
Office/Professional space.
Mrs. Agee asked ifthere is anything in the traffic study that tells what the total projected
traffic would be. Are those in table three? Mr. Brown answered yes they are in table
three.
Mrs. Agee commented there doesn't seem to be enough numbers here. Did they take into
account the school traffic that goes through there?
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Mr. Brown stated this facility would not generate more traffic, it would generate more
turns. People would be going in that direction anyway.
Mrs. Agee commented when you start generating turns, the probability of accidents
increases.
Mr. Brown stated there is a level of capacity at that intersection. He also noted every
intersection is rated by traffic engineering analysis and studies. The rating is from A-F
and this intersection has been rated a B.
Mr. David Steitle-Traffic Engineer commented that there is a misunderstanding of the
interpretation. The numbers do match.
Mayor Baldwin asked the engineer if he had seen the numbers that the City came up
with. Mr. Steitle replied he had.
Mr. Steitle stated he has done studies before and had told the City and the developer there
is no problem. He feels that the maximum impact would be during the hours of 7:00-
9:00am and 4:00-6:0Opm when the traffic is at the stop lights waiting to move. He stated
lunch hour is a busy period of time, but it is not the same as peak hours. He noted his
numbers are one-hour volumes and Mr. Bierschwale's numbers are two-hour volumes.
His numbers are based on turn volumes, whereas Mr. Bierschwale's are straight approach
numbers.
Mayor Baldwin asked if a comparison between the two studies has been done. He was
told it has not been.
Mr. Bierschwale noted his report was done on a non-school day. He suggested City
Council have Ed Ford review the studies.
Mrs. Agee stated Council needs to look at whether or not this rezoning fits into the
Comprehensive Land Plan for the City.
Mrs. Head agreed with Mrs. Agee and stated she did not think that these two things fit
together. She felt Council needs to look at several issues before making any decisions on
this proposed development.
Mr. Brown commented he thought the agreement was to take out that piece because it
was where the most concern was, and let the property on the other side of Elbel Road
move ahead.
There was more discussion about the traffic, pedestrians, and what type of development
should go into that area.
Mayor Baldwin stated it is not conceivable to make that entire 50-acres
Office/Professional. He also expressed concern about making new entrances onto
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FM3009. He does not want to see a similar situation here, like the one up by HEB. He
stated the City could also use a left turn lane in the middle of Elbel Road.
Mrs. Agee expressed concern about teen-age traffic around the intersection that would be
going through there 187 days out of the year.
Mrs. Head said she had spoken with David Richmond and he stated Planning and Zoning
would not be offended if Council voted to send this back to them. Mrs. Head felt there is
room for negotiation and she does not feel comfortable with an apartment complex going
in right near the railroad tracks.
Mayor Baldwin stated that Mr. Brown should communicate with Planning and Zoning
instead of the Neighborhood group. He feels that it is good that they are trying to
communicate, but it needs to be in conjunction with Planning and Zoning.
Mrs. Head asked if they get the two big tracts of land and are willing to hold off on the
little one, what is going to stop the developers from coming back in a couple of years and
saying they can't have Office/Professional services now, they will have to go to
Neighborhood Services. Mr. Brown stated he has suggested having restricted covenants
so that the neighborhood association could run it and enforce the rules.
Mr. Nichols pointed out there is no neighborhood association.
Mayor Baldwin mentioned the City has always tried to do the best they can in working
with the developers and the neighbors. He would also like to talk to the owner about the
possibility of a Post Office.
Mr. Swinney asked ifit would be economically feasible to have a large restaurant instead
of a fast food place. He was told it would be.
Mayor Baldwin made a recommendation to send this item back to Planning and Zoning
for further revi ew.
Mr. Cashwell suggested at the next meeting, Council take action on this item to send it
back to Planning and Zoning.
#6 Discuss widening and improvement of Schertz Parkway.
Mr. Cashwell noted there is a letter from the Schertz Parkway Zone Board of directors
with a recommendation to begin work as soon as possible. This will be a grand entrance
into the community. There were two other partners in the project when this started, but
they have left. The City of Schertz is the only partner that is still committed to the
original arrangement of setting aside resources generated from the increase in values of
properties. There has been significant increase to the value of homes along or near
Schertz Parkway since the time this zone was created.
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Mr. Marquez stated this zone was created in January of 1994. The value of the homes at
that time was approximately three million dollars, whereas now the value is in excess of
79 million dollars.
Mr. Cashwell commented the original plan was that the increase in value of the properties
and the revenue derived from those increases would support the development of the
Parkway. Now it is felt that the most cost-effective way would be to issue a bond for the
project. Mr. Cashwell stated that if Council chooses to do so, the project might be done
in phases (or sections) of approximately one million dollars each, with a total
commitment of around four million dollars
It was noted members of the board and bond attorneys are present to answer any
questions.
Mr. Greenwald asked if there is any update on the FEMA grant for drainage. Mr.
Simonson stated it is held up for environmental and historical checks. He stated until the
money comes in to finish the drainage, the City could build the bridge correctly and get
an outfall and an infall from the correct dimensions and have a pilot channel going.
Mr. Simonson reported the FEMA grant is a 25% match. If Schertz Parkway is done,
then the only item that would need to be rebuilt would be Elbel Road.
Mr. Cashwell commented a lot of people enjoy a pay as you go program, however it has
been shown projects like this are more conservatively done by financing the projects at
the current interest rates.
Mr. Swinney asked what effect the FED rates would have on the bond rates. Mr.
McLiney noted the rates are higher now than they were previously.
Mr. Marquez did not think the City could cover the entire debt service, but with the
completion of Jonas Woods, it would come pretty close.
Mr. McLiney distributed a sheet having to do with growth rate and dollar amounts and
reviewed the sheet, explaining where the City is now and where it would be twenty years
from now with borrowing over a twenty year period. He explained the difference in the
I&S tax rate over the years with and without the TIF bond. The I&S tax rate would
increase now, but within two years the City would be right back where they are. Mr.
McLiney felt the timing may be right now, if the City really feels a need to do this. He
noted that these figures are only for the Schertz Parkway Project.
Mr. Marquez asked Mr. McLiney ifhe was talking about CO bonds. Mr. McLiney stated
they had originally thought about doing a Tax Increment Revenue Bond, but the City
does not have enough revenue to generate it, so the next best thing would be Certificates
of Obligation.
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Mr. Jeff Kuhn explained that for a Certificate of Obligation, City Council would have to
adopt a resolution authorizing publication of notice of intention. That notice would
appear once a week for two consecutive weeks, at least 15 days prior to the date that City
Council would award the authorizing of the sale of Certificates of Obligation. In that
two-week period, if five percent of the registered voters signed a petition validly
submitted under the Texas Election code, the City Council would have to call an election
to sell the Certificates.
Mr. Cashwell commented that in his conversation with the TIP Board, they convinced
him that action on this project is long past needed. There are also so many things to be
gained from this project.
Mayor Baldwin mentioned the City is very behind on improving Schertz Parkway. This
project will add many things to Schertz and will also provide another way to get out of
Schertz in the event of another flood. There are also a number of people asking for
bicycle and jogging paths, which is a part of this project.
Council concurred that this project is way past due and very needed.
Mayor Baldwin noted that this would be planned for a future action item on the agenda.
Mr. Greenwald commented that he would like to have staff look at what other projects
will be done and the costs of those projects.
Mr. Cashwell noted whatever staff brings forward will constitute good investments, not
just spending.
#7 Executive Session: Called under Chapter 551 of Texas Govemment Code, Sub-
section 551.072, Deliberation regarding real property:
A. Hotel
B. Golf Course
An Executive Session was held from 8:54pm untillO:07pm.
#8 Action, if any, on above Executive Session:
No action taken.
Mayor Baldwin commented that last night's meeting discussed redistricting. He also
made a pitch for keeping two Commissioners, obviously there is a lot of downside to only
having one. There will be a public hearing in August. Council needs to attend. We don't
want to lose precinct four.
Mr. Cashwell
. Closing on Mixiner property next week
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. Closing on Cashwell property Friday
#9 Adjournment: There being no further business to discuss, Mayor Baldwin
adjourned the meeting at 10: 15pm.
d~~-~
Mayor, CityorSchertz, Texas
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ATTEST:
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City Secretary, City of Schertz, Texas
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