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ccreg 08-04-1998 . . . REGULAR MEETING OF THE CITY COUNCIL AUGUST 4, 1998 The Schertz City Council convened in Regular Session on Tuesday, August 4, 1998 at 7:00 p.m. in the Municipal Complex Council Chambers, 1400 Schertz Parkway, Schertz, Texas. The following members were present: Mayor Hal Baldwin, presiding; Council members Pia Jarman; Joe Potempa; Norman W. Agee, Sr.; Timothy Swinney and Ken Greenwald. Staff present were City Manager Kerry Sweatt and City Secretary Norma Althouse. Mayor Baldwin welcomed Council member Agee back and then asked everyone to rise and join him in the Pledge of Allegiance to the Flag. #1 HEARING OF RESIDENTS: Those citizens wishing to speak on agenda items (other than public hearing items) or items not on the agenda, will be heard at this time. . George Mower of 501 Brooks, saying he had attended the meeting of the TIF Board last night, wanted the details pertaining to the resignation of Joe Potempa from that Board. Mr. Potempa explained he has been a volunteer for the City for many years and has enjoyed serving on the Planning and Zoning Commission, the Board of Adjustment and the TIF Board. He had asked to be appointed to the TIF Board and Council appointed him and he later became the Chairman. Some questions arose regarding his service on the Board of Adjustment and the TIF Board and Mr. Sweatt was asked to have the City Attorney investigate the situation. As it turns out there's a law dating back to 1928 which says if you are an appointing official, which he is since he's a Councilmember, you can't appoint yourself. He has now resigned from both the Board of Adjustment and the TIF Board. Mr. Mower wondered about the representatives on the TIF Board from the school district and from the County and Mr. Potempa told him he could only speak for the City. The School Board appointed their representative and the County Commissioners appointed their representative. Mr. Mower then commented he was surprised at Mr. Potempa's forthrightness about the situation. #2 Consider and take action on final reading of following ordinances pertaining to the UDC: A. Revisions to Article VI, Density and Dimensional Requirements, Article XI, Platting, and Article XVI, Administrative Procedures; and B. Revisions to Article XVI, Board of Adjustment. . -275- . . . A. Mayor Baldwin introduced an ordinance and read the caption as follows: ORDINANCE NO. 98-5-24 BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS PROVIDING THAT THE UNIFIED DEVELOPMENT CODE, ORDINANCE NO. 96-S-28, CITY OF SCHERTZ, TEXAS BE AMENDED BY REVISING ARTICLE VI, DENSITY AND DIMENSIONAL REQUIREMENTS, SECTION 5, BUILDING SEPARATION (RESIDENTIAL); ARTICLE XI, PLATTING, SECTION 31, SIDEWALKS; ARTICLE XVI, ADMINISTRATIVE PROCEDURES, SECTION 5, PROCEDURES FOR ZONING CHANGES, SECTION 6, PUBLIC HEARING- PLANNING AND ZONING AND SECTION 7, PUBLIC HEARING-CITY COUNCIL; AND PROVIDING A REPEALING CLAUSE. Mr. Greenwald moved to approve the final reading of the Ordinance revising the Unified Development Code, Article VI, Density and Dimensional Requirements, Article XI, Platting, and Article XVI, Administrative Procedures as described in the above caption. Mrs. Jarman seconded the motion, which carried with the following votes: . AYES: Councilmembers Jarman, Potempa, Agee, Swinney and Greenwald. NAYS: None. B. Mayor Baldwin introduced an ordinance and read the caption as follows: ORDINANCE NO. 98-5-25 BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS PROVIDING THAT THE UNIFIED DEVELOPMENT CODE ORDINANCE NO. 96-5-28, CITY OF SCHERTZ, TEXAS BE AMENDED BY REVISING ARTICLE XVI, MEMBERSHIP AND APPOINTMENT, SECTION 8, BOARD OF ADJUSTMENT; AND PROVIDING A REPEALING CLAUSE. Mrs. Jarman moved to approve the final reading of an Ordinance revising the Unified Development Code, Article XVI, Membership and Appointment, Section 8, Board of Adjustment. Mr. Swinney seconded the motion, which carried with the following votes: AYES: Councilmembers Jarman, Potempa, Agee, Swinney and Greenwald. . NAYS: None. -276- . . . #3 BID AWARD: Consider and take action on bids for 45hp diesel boring machine for Public Works Department. Mr. Sweatt advised this had been discussed at the workshop last week. The City solicited bids and only one was received. After review, however, it is recommended the bid be awarded to International Boring Inc. in the amount of $37,513.16. Mr. Greenwald moved to award the bid for a 45hp diesel boring machine for the Public Works Department to International Boring Inc. in the amount of $37,513.16. Mr. Swinney seconded the motion. Before the vote, Mayor Baldwin asked if any attempt had been made to see why no one else bid. Mr. Willoughby from the Public Works Department stated they had talked with one other possible bidder, but had not received a bid from them. At this time the vote was taken and the motion carried as follows: AYES: Councilmembers Jarman, Potempa, Agee, Swinney and Greenwald. NAYS: None. . #4 Consider and take action on the following service contract agreements: A. Guadco MUD No.1; and B. Guadco MUD NO.2 A. Mr. Sweatt advised that Guadco MUD NO.1 has requested that the City do their billing and repair and be their water/wastewater operator. The City has gone through Guadco MUD No. 1 's records and investigated them and come up with a proposed agreement for services between the two entities. According to the terms of the agreement, they will pay the City a fee not to exceed $40,000 - $20,000 of which shall be paid before the initial start up for various items and services listed in the agreement. They will also pay the City a monthly fee to equal 15.36% of the gross water and wastewater charges billed by the City for the MUD District and various other services as listed in the agreement. The Board of Directors of the MUD District is aware of the regulations and approval of the agreement is recommended. . Mr. Swinney moved to approve an Interim Interlocal Agreement for Professional WaterlWastewater Management and Field Services between the City of Schertz, Texas and GUADCO Municipal Utility District NO.1. Mr. Greenwald seconded the motion, which carried with the following votes: -277 - . . . AYES: Councilmembers Jarman, Potempa, Agee, Swinney and Greenwald. NAYS: None. B. Mr. Sweatt related the City has served 14 months now as the operator for Guadco MUD NO.2 through an Interim Interlocal Agreement. When they were approached by MUD No. 1 for the same services, they felt it appropriate to have the two contracts mirror each other. Guadco MUD No. 2 pays a fee of 16.39% of gross water and wastewater charges billed by the City for the MUD District and various other services as listed in the agreement. They have already paid the start up costs. This proposed agreement is for a twelve month period of time. Guadco MUD No. 1 has 692 accounts and Guadco MUD NO.2 has 150 accounts. Mr. Swinney moved to approve an Interim Interlocal Agreement for Professional WaterlWastewater Management and Field Services between the City of Schertz, Texas and GUADCO Municipal Utility District NO.2. Mrs. Jarman seconded the motion. . Before the vote, Mayor Baldwin asked if, in the event of a major break or catastrophe, the MUD District has to pay the charges and was told by Mr. Sweatt they do. At this time the vote was taken, and the motion carried with the following votes: AYES: Councilmembers Jarman, Potempa, Agee, Swinney and Greenwald. NAYS: None. #5 ORDINANCE: Consider and take action on first reading of Ordinance making assignment of tax abatement from Genuine Parts, Inc. to Atlantic Financial Group. Mayor Baldwin introduced an ordinance and read the caption as follows: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AMENDING CITY OF SCHERTZ ORDINANCE 98-T -14 TO ASSIGN THE BENEFITS OF A TAX ABATEMENT FROM GENUINE PARTS CORPORATION TO ATLANTIC FINANCIAL GROUP, LTD., A PROPERTY OWNER IN THE CITY OF SCHERTZ. . -278- . . . Mr. Sweatt informed Council that Genuine Parts qualified for a tax abatement, was granted one by Council, and has asked that it be revised to make Atlantic Financial Group, Ltd. the beneficiary of the abatement. This is not an uncommon practice. Atlantic Financial Group, Ltd. is based in Dallas. They have economic development incentives and have participated in other cities. The lease is triple net - the benefits must be passed onto the lessee. The City feels it is a good deal. Mr. Greenwald moved to approve the first reading of an Ordinance assigning the benefits of a tax abatement from Genuine Parts to Atlantic Financial Group, Ltd. Mr. Agee seconded the motion. Mr. Swinney asked exactly what is a triple net lease. Mr. Sweatt replied it is a real estate term. It means all the costs such as taxes and maintenance will be folded in. Mr. Swinney then asked if this is of benefit to anyone. Mr. Sweatt answered he assumes there's some benefit. At the end of the lease, Genuine Parts has the option to buy the building. Mr. Swinney observed it seems like we're giving the tax abatement and the investors are benefiting. Mr. Sweatt reminded him the benefits will passed along to the lessee. . Mr. Potempa mentioned that Genuine parts is doing the hiring and we gave them a tax break for a certain amount of time. Mr. Sweatt explained this is Genuine Parts' option. The only reason the City is dealing with it is because Atlantic Financial owns the building. Both parties have met all the conditions. Mayor Baldwin pointed out we did the same thing for Security Capital. Mr. Sweatt questioned what difference it makes if Atlantic Financial meets the conditions for an abatement. Mr. Agee answered the Council may not have granted an abatement to Atlantic Financial if they weren't going to let the benefits trickle down to others. Mr. Potempa thought Council should look at these tax abatements in the future with the idea in mind that something like this may occur. He then asked if the City is giving retail establishments an abatement. Mr. Sweatt replied the Economic Development Commission is currently looking into changing the requirements. After further discussion about capital investment and industrial taxes, the vote was taken and the motion carried as follows: AYES: Councilmembers Jarman, Potempa, Agee, Swinney and Greenwald. NAYS: None. . -279- . . . #6 BID AWARD: Consider and take action on awarding bid for water/sewer line relocation along FM 78. Mr. Sweatt apologized for not having the bid amounts at the workshop last week, but indicated they would like to award this work as soon as possible. Bids were opened on July 30, 1998 and four (4) were received. Based on the tabulations and a review, it is recommended the bid be awarded to Pipelayers, Inc. Sam Willoughby of Public Works and City Engineer Ed Ford are here tonight to answer any questions. Mr. Ford related that Pipelayers, Inc. has been around for a while. He has known about them for 20 years. There's never been a problem with them and they do excellent work on both large and small jobs. Mr. Swinney wondered if in the process of relocating there's a chance of running into major problems with other lines. Mr. Ford replied the contractor must notify all utilities to come out and mark their locations. All the plans have been submitted to other utility entities. Mr. Greenwald inquired if they know where they're going to put drainage. Mr. Ford replied there will be storm sewer drainage all along FM 78. . Mr. Potempa asked when it is anticipated the project will start. Mr. Ford answered it will start within two weeks after the contract documents are returned to the City. They then have 10 days to be on the ground and have to get all their schedules to Ford Engineering within two weeks. The actual construction should start within 30 days and be completed within 90 days. Mr. Potempa noted this sure will mess up the traffic on FM 78. Mayor Baldwin asked if they will be cutting or boring and Mr. Ford replied it will be an open cut. Mr. Swinney moved to award the bid for the water/sewer line relocation project along FM 78 to Pipe Layers, Inc. in the amount of $531,581.60. Mr. Greenwald seconded the motion, which carried with the following votes: AYES: Councilmembers Jarman, Potempa, Agee, Swinney and Greenwald. NAYS: None. #7 CITY MANAGER'S REPORT . Reported that on August 6th at 4:30 p.m., the physical therapy business behind Pic-N-Pac will hold an open house. . . Stated that the court date on the condemnation of the Holman property was today. The amount recommended by the court was $77,000. The City had -280- . . . offered $62,000. The City now owns the property and Mr. Holman will probably appeal for more money. Money will be the only issue discussed in the future. . Related that City Inspector Ken Anderson's daughter competed in the National Championship in softball and the team won. It is his understanding she will be asked to try out for the National Olympics. #8 ITEMS BY COUNCIL Mr. Potempa: . Encouraged everyone to read Chief Smith's comments in the Newsletter. Mr. Aaee: . Commented he's happy to be back. Mr. Swinney: . . Remarked that along FM 3009 there's a camouflage jeep for sale that has been there for months. Mr. Sweatt pointed out it is on the property owner's land. Mr. Greenwald: . Mentioned the residents on the south end of Oak Street want the City to look at the possibility of a three-way stop coming off Lori Lynn. They're supposed to submit something to us in writing. . Informed Council that John Reidy is the new president of BVY A. #9 ITEMS BY MAYOR Referred to a draft of the agenda for the groundbreaking Saturday morning for the new emergency services buildings, and asked how many invitations had been sent out. Mr. Sweatt replied they sent out somewhere between 150 and 175. The Mayor then inquired if they're asking for RSVP's and Mr. Sweatt answered they are not. #10 ADJOURNMENT There being no further discussion, Mayor Baldwin adjourned the Regular Session at 8:09 p.m. . -281- . . . Following the Regular Session, the Council convened in Special Workshop Session in the Municipal Complex Conference Room, 1400 Schertz Parkway, Schertz, Texas. #1 HEARING OF RESIDENTS No one had signed up to speak. #2 Discuss City Manager's FY 1998/99 budget recommendations. Mr. Sweatt advised that the budget recommendations for FY 1998/99 were filed with the City Secretary in accordance with the terms of the City Charter and State law. The total budgeted expenditures for all funds is recommended to be $9,560,148. Revenues in each fund meet or exceed proposed expenditures. . Budget workshops are scheduled at the conclusion of each meeting in August and through September 1 st if needed. Due to recent changes in the property tax code, it is necessary to hold a separate public hearing on the tax rate as the proposed budget anticipates more ad valorem tax income than was received for the tax year of 1997. That public hearing is scheduled for September 9th. The calculated effective tax rate (35.44 cents per $100 value) is below the 1997 rate, but due to assessed property values, the ad valorem tax income is anticipated to be greater than in 1997. The public hearing for the budget is scheduled for September 15th and at that time, Council will vote on the tax rate and on the budget. Council was agreeable to the public hearing dates. Mr. Sweatt went on to say the budget workshops can go as long or short as Council pleases. Some of the figures were reviewed and it was mentioned the personnel figures were not included. Mr. Potempa asked when they would be ready and Mr. Sweatt replied the consultant who did the salary study will be at the next workshop. Mr. Swinney inquired how the City is coming on offering disability benefits and Mr. Sweatt answered those are not included in this budget. Mr. Swinney then indicated they should look closely at the possibility of offering disability benefits. There was discussion on this with Mayor Baldwin asking Mr. Swinney if he is suggesting disability benefits be added to the employee package and Mr. Swinney replying he thinks that's a possibility that needs to be considered. Mr. Potempa thought they need to check into it further. . Some of the revenues and expenditures were discussed and reviewed and Mr. Potempa asked how much the City is going to raise the water bill. Mr. Sweatt answered he will go into the details when they get to the discussion of water/wastewater. One of the items discussed was SAFES and Mr. Sweatt asked for any advice Council may have regarding SAFES's contract with Randolph Air Force Base. -282-