ccspecwksp 05-31-2000
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SPECIAL WORKSHOP SESSION OF THE SCHERTZ CITY COUNCIL
MAY 31, 2000
The Schertz City Council convened in Special Workshop Session on Wednesday, May
31, 2000 at 7:00 p.m. in the Municipal Complex Conference Room, 1400 Schertz
Parkway, Schertz Texas. Those present were as follows: Mayor Pro-Tern Reginna
Agee, presiding; Councilmembers Norma Head; Joe Potempa and Ken Greenwald.
Absent: Mayor Hal Baldwin and Councilmember Glyn D. Williams. Staff present were
City Manager Kerry Sweatt and City Secretary Norma Althouse.
#1 HEARING OF RESIDENTS
In the absence of Mayor Baldwin, Mayor Pro-Tern Agee presided over the meeting.
Mayor Pro-Tern Agee noted that three people had signed up to speak, but since the items
they signed up for were already on the agenda, it was decided to let them speak when
those particular items come up.
#2 Discuss public hearing regarding request for Specific Use Permit, allowing a
horse training and breeding facility off FM 1518 in an area zoned R-2.
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Mr. Sweatt advised the public hearing is set for June 6th. He then pointed out the
location on the map (FM 1518 N) and commented one notice had been sent to a property
owner within the required distance. Elgin Friesenhahn and Stewart Armstrong are joint
applicants.
Mrs. Head inquired if there had been any response from the one property owner who was
notified and Mr. Sweatt replied no.
Mr. Potempa asked if the property is in the floodplain and Mr. Sweatt answered part of it
is. Council has the authority to attach as many conditions as they see fit to the Specific
Use Permit if it is approved.
Mr. Greenwald observed there's quite a drop off in elevation behind the property. Mr.
Sweatt acknowledged it's probably a 20' to 30' drop ofT.
Council agreed they were ready for this item to be included on next Tuesday night's
agenda.
#3 Discuss appointment to Library Board and appointment of Council liaison to
Library Board.
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Mr. Sweatt reminded Council they have in their packets a letter of recommendation from
The Schertz Library Advisory Board. It states they voted on May 1, 2000 to replace
Norma Head with Pia Jarman and requests Council formally approve this action. The
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Board also requests that Norma Head be appointed as the ~ouncilliaison to the Library
Board.
Council indicated they were prepared for this item to be included on next Tuesday night's
agenda.
#4 Discuss amendment to previous ordinance regarding PG&E settlement.
Mr. Sweatt once again reminded Council they have in their packets a letter and black-
lined ordinance from City Attorney, Michael Spain. The settling parties have requested
some changes and Mr. Spain has made them. The changes are not considered a real
detriment to the adoption of the ordinance or harmful to the City's position. Adoption of
the ordinance is recommended.
Mr. Spain stated the Houston office of Fulbright & Jaworski represents PG&E. If the
ordinance is not adopted, there will be no settlement payment. He then briefly reviewed
the changes that had been requested. He said there was a big discussion over whether or
not PG&E was trespassing. PG&E has no customers in the City at the present time.
This ordinance repeals the one adopted in February, 2000.
Council acknowledged their readiness for this item to be included on next Tuesday
night's agenda.
. #5 Discuss City depository bids.
Mr. Sweatt referred to a copy in Council's packets ofa memorandum from the committee
and it's recommendation for the City depository bid, The City received three responses
from local banks - Schertz Bank. & Trust, State Bank. & Trust of Seguin and Surety Bank..
They are recommending the bid be awarded to State Bank. & Trust of Seguin.
Comptroller Vijay Jain is here to answer questions.
Mr. Greenwald questioned the rationale behind Schertz Bank. and Trust contracting out
employee direct deposit. Mr. Sweatt explained they contract that service out to Frost
Bank., which represents somewhat of a delay in solving a problem if one should arise.
The City would be contacted by Schertz Bank. to resolve the problem and then they
would communicate the resolution to Frost Bank..
Mr. Potempa asked how direct deposit is done now and Mr. Sweatt replied it is not done
now. If an employee has an account with Randolph Brooks Federal Credit Union, then a
deposit can be done by a representative of the City delivering a check to the Credit Union
with a list of deposits to be made to various employee accounts.
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Mayor Pro-Tern Agee commented she knows Schertz Bank. & Trust can do direct deposit
without a problem because the school district uses them. Melvin Golla, President of
Schertz Bank. & Trust, stressed the actual transmission is the only thing that bypasses
them.
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Mayor Pro-Tern Agee wondered about the difference in cost of services between the
three bank.s and what points were considered. Mr. Potempa wondered if Council has a
copy of all the responses.
Mr. Potempa then asked what the interest rate would be if the City decided to buy an
ambulance or a fire truck today. Mr. Sweatt answered that is unknown at this time.
Mr. Potempa also inquired when the last time was a depository bid was awarded and Mr.
Sweatt replied five years ago.
Mr. Potempa questioned what is positive pay and Mr. Sweatt remarked it's a second
review of the check. Mr. Jain explained it's a guarantee the bank. will not issue a check
for more than the amount. The bank. assumes the loss in case the check has been altered.
Mr. Potempa, feeling this feature could be built into any bank.ing system, asked what the
chances are of it happening. It hasn't happened so far. Wendy Kuhlmann of Schertz
Bank. & Trust explained some of the security measures used to try and prevent it from
happening.
Mr. Greenwald asked Mr. Golla if one of the City employees has a problem with direct
deposit, who would they call. Mr. Golla replied Schertz Bank. & Trust.
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Mr. Potempa, referring to the memorandum from the committee, said the comments
about State Bank. & Trust of Seguin being locally owned and surviving the bank. failures
of the 1930's could also apply to Schertz Bank. & Trust.
Mayor Pro-Tern Agee inquired how much a conversion to State Bank. & Trust of Seguin
would cost. Mr. Sweatt answered his best estimate would be approximately $1,000.
There was then discussion about cost analysis and account analysis and Council agreed
they would like to see the bid comparisons before making any decision.
Mayor Pro-Tern Agee asked what the time period is and Mr. Sweatt replied July 1, 2000.
Council asked that this item be scheduled for another workshop.
#6 Discuss bids for ball fields and parking lot construction.
Mr. Sweatt advised the City received two bids and based on review by them and Ford
Engineering, it is recommended the bid be awarded to Winco Contractors in the amount
of $150,832.29. There will be a small amount of lighting - only for the parking lot and
not for the ball fields.
Mr. Potempa asked if on down the road, there could be picnic tables, etc. Mr. Sweatt
replied it's in the floodplain and they could possibly do that. Mr. Potempa then inquired
if this contractor is the one out of Selma because he knows the Parkway Baptist Church
was very pleased with their work. Mr. Sweatt replied they are the same one.
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Mr. Sweatt reminded Council there was no money in the bond issue for an increase in the
parking lot and Council agreed they were ready for this item to be included on next
Tuesday night's agenda.
#7 Discuss Green Valley Road improvements.
David Richmond, Planning and Zoning Vice-Chairman, stated he had asked that this item
be on the agenda to consider solutions. His feeling is that the areas on both sides will
develop and we will be left with Green Valley Road as it is. One of his suggestions is to
ask the developers to contribute, but so far they have not been willing to participate.
Another concern is drainage because Green valley Road will continue to be a major
thoroughfare.
Larry Aiken, developer for Jonas Wood Ltd., explained several solutions had been
discussed, but they didn't come up with anything they thought would work. His
suggestion is to move the easement to define the right-of-way. Janet Besch has given
right-of-way. You're talking about almost a mile of road and this might be an interim
solution until there is bonding to upgrade the road.
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Don McCrary, an engineer with Don McCrary & Associates, suggested Green Valley
Road could serve purposes as an urban style road.
Mr. Potempa asked if they're looking for action tonight and Mayor Pro-Tern Agee
inquired if they want to have a public hearing. The answer to both questions was they
just want to discuss it. They feel a long-term solution is needed and it will take the
cooperation of the City of Schertz, the City of Cibolo and Guadalupe County. It will, of
course, take a lot of money.
Mayor Pro-Tern Agee remarked it's definitely something to think about and asked if City
staff is pursuing a solution to the problem. Mr. Sweatt replied they are not. Mayor Pro-
Tern Agee then stated, in her opinion, it's something Council should consider, but they
can't do anything without a plan.
Mr. Richmond and Mr. Aiken thanked the Council for their time.
#8 Discuss creation of reinvestment zone in Commercial Place Business Park.
Mr. Sweatt related that Metro Ambulance has requested a tax abatement for a new
building in Commercial Place Business Park. A reinvestment zone was established for a
five-year period and has expired. Before they can be granted a tax abatement, there has
to be a reinvestment zone. The public hearing on the matter is proposed for June 20th.
He does not anticipate any protest to the request.
Council agreed the City should move forward on this matter.
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#9 Discuss Tax Abatement request by Metro Ambulance.
Mr. Sweatt noted that Metro Ambulance is an existing local business and they are
expanding by means of a new location. They have gone before the Economic
Development Commission and qualified for a 59.2% tax abatement over the next five
years.
Mark Marquez, Economic Development Coordinator, reviewed some of the capital
improvement figures with Council and emphasized the City should encourage
growth. Mr. Sweatt added that the date for a public hearing would be set at the next
meeting.
Once again, Council agreed the City should move forward on this matter.
#10 Discuss mid-year budget amendments.
Mr. Sweatt explained the City's overall revenues are slightly higher than originally
anticipated and it is requested Council consider appropriating these additional revenues to
address unanticipated needs that have been identified as follows:
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The City has received notice of several Special Purpose Grants that have been awarded
and it is requested Council formally approve a budget amendment to recognize the
additional revenue and corresponding expenditures.
It is requested Council establish a number of "Reserve" and "Contingency" set-asides in
the General Fund and similar designations be considered in the equity sections of Water
& Sewer and SAFES.
A charge against Fund Balance and Equity for one-time hardware and software upgrade
is proposed.
A number of Departments have made changes to their line-item budgets.
Mr. Sweatt went on to say the information supporting these proposed budget amendments
is provided to Council in the attachments in their packets. If, after discussion, they are
satisfied with the reasons for the amendments, this item will be on the agenda for action
next week.
After review, Council indicated they were prepared for this item to be on next Tuesday's
Agenda.
#11 CITY MANAGER'S REPORT
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. Mentioned that due to the fact the City offices will be closed on Monday and Tuesday
due to the 4th of July holiday, he is recommending the Council meeting be deferred to
July 12th. Council agreed.
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. Related they forgot to provide specifications to Council on the out-front mowers for
Public Works. If Council has no objections, this item will be on the agenda for action
the next time. Council had no objections.
. Reported the Schertz/Seguin Local Government Corporation does not have the power
of eminent domain and the two cities each have to act on any and all condemnation
issues. There is an urgency for that authorization and Mr. Spain has an ordinance
from the City of Seguin. He would like to have it on the next agenda. Council had
no objections.
#12 ITEMS BY COUNCIL
Mrs. Head:
. Mentioned there's a contractor somewhere behind Deer Haven in the Carolina
Crossing area that has some people upset about a swimming pool. Mr. Sweatt
promised to look into it.
#13 ITEMS BY MAYOR
There were none.
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#14 ADJOURNMENT
There being no further business to discuss, Mayor Pro-Tern Agee adjourned the meeting
at 8:52 p.m.
~FcJ4~
Mayor, City of Schertz, Texas
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ATTEST
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City Secretary, City of Schertz
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