ccspecwksp 06-14-2000
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SPECIAL WORKSHOP SESSION OF THE SCHERTZ CITY COUNCIL
JUNE 14, 2000
The Schertz City Council convened in Special Workshop Session on Wednesday, June
14, 2000 at 7:00 p.m. in the Municipal Complex Conference Room, 1400 Schertz
Parkway, Schertz, Texas. Those present were as follows: Mayor Hal Baldwin,
presiding; Councilmembers Norma Head; Joe Potempa; Glyn D. Williams and Ken
Greenwald. Absent: Councilmember Reginna Agee. Staff present were City Manager
Kerry Sweatt and City Secretary Norma Althouse.
Before calling the meeting to order, Mayor Baldwin presented a Proclamation to Army
Captain James Miller declaring the month of June as '''Army - Be All You Can Be
Month" in the City of Schertz.
#1 HEARING OF RESIDENTS
No one had signed up to speak.
Mayor Baldwin then announced he would have to remove himself from the next two
items due to conflict of interest because his daughter is involved. Mayor Pro-Tern Agee
was not present, so Mr. Greenwald volunteered to serve as Mayor Pro-Tern.
. #2 Discuss Reinvestment Zone in Commercial Place Industrial Park.
Mr. Sweatt explained this is preparatory to a tax abatement agreement for Metro
Ambulance. In order to approve a tax abatement for them, a Reinvestment Zone has to
be established. The public hearing on the Reinvestment Zone is scheduled for June 20,
2000.
Mayor Pro-Tern. Greenwald pointed out there was previously a Reinvestment Zone in the
Commercial Place Industrial Park, but because of inactivity it was allowed to expire. Mr.
Sweatt added this Reinvestment Zone would cover the rest of the properties ill the
Industrial Park. Mrs. Head inquired how many businesses there are in the Industrial Park
and Mr. Sweatt answered three plus Metro Ambulance. Mayor Pro-Tern Greenwald
mentioned there are a total of 5 lots.
Council agreed they were ready for this item to be placed on next Tuesday's agenda.
#3 Discuss Tax Abatement and Tax Abatement Agreement for Metro Ambulance.
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Mr. Sweatt advised Metro Ambulance is an existing business in the City moving to a new
location. They have qualified for a 59.26% tax abatement over a five-year period. The
City thinks it's an excellent project. Mark Marquez, Economic Development
Coordinator, is here to answer questions.
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Mr. Marquez observed this is the epitome of a local business making good and
expanding.
Council indicated they were prepared for this item to be included on next Tuesday night's
agenda.
#4 Discuss presentation by Grande Communications.
John Saenz, John Moore and Paul Lewis were all present to represent Grande
Communications. They had provided brochures, which were distributed, to Council
before the meeting.
Mr. Saenz commented he had visited with both Mr. Sweatt and Michael Spain, City
Attorney. Grande sent a letter of intent indicating they want the cable franchise.
Mayor Baldwin asked how soon they could get started and Mr. Saenz answered by
December of2000. They plan to build the entire system out in five years.
Mr. Williams asked how the prices would compare and Mr. Saenz answered they would
be a viable alternative. They are not coming in to start a price war.
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Mr. Saenz went on to say they would require a pole attachment agreement with GVEC
and CPS. When the means is there to go underground, they would bury their cable.
Mr. Sweatt asked if they visualize a bundle discount and Mr. Saenz replied yes - as
much as 25%. Mr. Potempa asked if Mr. Saenz could give him a bundle price and the
answer was no.
Mr. Saenz commented there are still a lot of taxes they can do nothing about because of
the regulatory commission. Mr. Williams inquired if their telephone includes local,
long distance and international and Mr. Saenz replied yes, all of them.
Mr. Saenz gave a brief presentation about what the Council could expect from them and
Mayor Baldwin asked when they would start advertising. Mr. Saenz replied they are
starting now and will saturate the market. He also mentioned there is another similar
company coming to town and that is Western Integrated.
Mr. Sweatt informed Council Mr. Spain is working with them and expects a draft
ordinance to be completed by the end of next week, possibly by the next workshop or the
one after that.
Mayor Baldwin thanked the representatives from Grande Communications for their time.
At this time Council took a quick break.
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#5 Discuss Waste Management request for rate increase.
Mr. Sweatt reminded Council they have a letter from Waste Management in their
packets. They are requesting a CPI increase of 3% and an additional 6% increase on roll-
off rates to cover the monitoring fee for roll-offs.
Chris Iden from Waste Management stated they had not had an increase in two and one-
half years. This 3% represents about twenty-five cents per residence. The recycling cost
would remain the same.
Mayor Baldwin remarked what they're telling us is it costs more for them to monitor and
that is something that would have to be passed on to the customer. Mr., Williams stated
that when he voted for a monitoring fee, it was because Waste Management wasn't doing
their job. What is Waste Management doing to make sure there are not other trash
collection companies in Schertz? How do we know the billing is correct?
Ms. Iden noted they bill the roll-offs and the City bills the other services. Mr. Williams
emphasized that's not good enough - both are losing money. A gentleman named Kirk
from Waste Management said they don't like it either, it can only improve from this point
forward. They took customers at face value that they were or were not in the City and
they know that was a mistake.
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Mr. Williams commented he still feels uneasy about passing this fee on to the customers.
Mayor Baldwin said what bothers him is they need 6% to make sure they're doing their
job. Ms. Iden stated they feel penalized. Mr. Williams pointed out to her they too~ the
contract and they should have known the boundaries.
Mayor Baldwin acknowledged he understands the confusion about the boundaries, but
it's the follow-up checks that bother him. It is the responsibility of Waste Management
to make sure the billings and locations are correct for the roll-offs. Ms. Iden agreed, but
once again wondered why they are being penalized.
Mayor Baldwin commented he does not see the need for a 6% increase, even from the
City's point of view. Mr. Sweatt mentioned there had been some reporting of maverick
containers. Mayor Baldwin then stressed that if we can't trust the franchiser to report
accurately, then we need to change the franchiser. Mr. Sweatt observed that when the 6%
was approved, they did not anticipate it would be passed on to the customer. Mayor
Baldwin indicated he has no problem with the 3% increase, but is disturbed by the
request for a 6% increase.
Mr. Williams inquired if they are looking for a motion on this tonight and Mr. Sweatt
replied no. Mayor Baldwin commented it would be on next Tuesday night's agenda for
action.
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Mrs. Head mentioned it seems a lot of these problems came up when the merger took
place. Mr. Sweatt agreed that's probably correct. It used to be Alamo Waste, then USA
Waste and now Waste Management.
Mr. Williams pointed out that in order to make a decision, they need to know if Waste
Management stands firm on the 6% increase. Waste Management needs to let the City
know, so a decision can be made by next Tuesday. Ms. Iden indicated she would be in
contact with the City regarding that issue.
Council agreed, pending Waste Management's decision, that they were ready for this
item to be included on next Tuesday night's agenda.
#6 Discuss City depository bid.
Mr. Sweatt stated the City had solicited proposals for the City Depository bid and three
banks responded - Schertz Bank & Trust, Seguin State Bank & Trust and Surety Bank.
Council, at the last workshop, asked that this be scheduled for another workshop pending
further information and the attendance of all members. The tabulations have been
submitted to Council. The most difficult decision is between the software and the hard
charges. The committee is recommending the bid be awarded to Seguin State Bank &
Trust.
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There were no representatives present from the Surety Bank. John Torres was present
from Seguin State Bank and Trust. Representing support for the Schertz Bank & Trust
were Roy Richard, Melvin Golla, Commissioner Jim Wolverton, and Wendy Kuhlmann.
Mayor Baldwin started off the discussion by saying Seguin State Bank & Trust is not a
locally owned bank. He then noted all the information had not been furnished. He
doesn't see an earnings rate and that's critical. There is a difference between ledger and
collected balance. Council should have seen the entire depository bid comparisons. The
analysis doesn't match up with what was provided. All this leaves serious doubt about
what else is missing.
Mr. Sweatt commented if they made an error, they will admit it. Technology was the real
bugaboo.
There was a brief discussion about drafts, about direct deposit, and about bank charges.
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Mr. Sweatt asked if Council wants this item on the next workshop. Mayor Baldwin
inquired about what Council wants to do. Mr. Williams, explaining his support for
Schertz Bank & Trust, questioned if there are others on the Council ready to vote,
because he is. Mr. Greenwald indicated he is ready to vote. Mr. Potempa indicated he is
ready to vote. Mrs. Head stated because of family affiliation with one of the banks, she
does not feel it would be ethical for her to vote. The consensus was that this item should
be placed on next Tuesday night's agenda for action.
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#7 Discuss tentative workshop schedule.
Mr. Sweatt advised the budget workshops are tentatively scheduled for August 9th,
August 15th, August 23rd and August 29th. Some of those may change and some of the
public hearing dates may change, Council agreed with the tentative schedule.
#8 Discuss appointment to Schertz Economic Development Corporation Board (4B
Board).
Mr. Sweatt reminded Council the 4B Board currently has a vacancy created by the
absence of former Councilmember Jarman. The unexpired term will last until September
30,2001.
Mayor Baldwin asked Mrs. Head if she would have any problem serving on the 4B Board
and she replied she would not.
Council indicated they were prepared for this item to be included on next Tuesday night's
agenda.
#9 Discuss setting public hearing date for Jonas Wood Subdivision rezoning
request.
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Mr. Sweatt noted this has come before Council at the subdivider's request. The earliest
possible date would be July 12th.
Council agreed they were ready for this item to be included on next Tuesday night's
agenda.
#10 CITY MANAGER'S REPORT
. Reported Gary Gossett is very ill- he is suffering from cancer.
. Announced the County Commissioner's Court would meet on June 29th regarding the
TIF. Mayor Baldwin commented it doesn't look good, but representatives from the
City need to be there.
. Related the public safety buildings are complete and we need to consider a date for an
open house. Among the possibilities are July 15, 16,22 and 23. He asks that Council
let him know by next Tuesday.
#11 ITEMS BY COUNCIL
Mr. Greenwald:
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. Speaking of the new buildings, asked if they had looked at hydromulch yet. Mr.
Sweatt replied that's what they're waiting for.
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. Requested that on next week's agenda and every agenda until we get it fixed, he
would like to see discussion of water billing matters.
Mr. Potempa:
. Remarked he brought Council a copy of the news article about the TIF. What is the
take? Mayor Baldwin answered that depends on Butch Kunde. Commissioner
Wolverton and Judge Sagebiel will support it.
Mr. Williams:
. Mentioned receiving an e-mail from Ashley Homeowners Association soliciting news
for their newsletter.
. Asked if it's possible to get Chief Smith to put a policeman up by the Woodland Oaks
pool just for a presence. Mr. Sweatt promised to check into it.
. Stated we need someone to replace Pia Jarman as liaison to the Humane Society. He
volunteered and Council thought that was a good idea.
#12 ITEMS BY MAYOR
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. Referred to the water billing situation and said other than placing discussion of it on
the agenda each time, Council needs a full accounting. They also need a complete
explanation of what's wrong and who's at fault. Mr. Greenwald said Joyce Briscoe
of the Planning and Zoning Commission had not received a water bill since
December.
#13 ADJOURNMENT
There being no further business to discuss, Mayor Baldwin djourned the meeting at
9:32 p.m.
ATTEST:
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City Secretary, City of Schertz
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