ccspecwksp 06-09-1999
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SPECIAL WORKSHOP SESSION OF THE SCHERTZ CITY COUNCIL
JUNE 9, 1999
The Schertz City Council convened in Special Workshop Session on
Wednesday, June 9, 1999 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 Joe Potempa; Reginna Agee;
Glyn D. Williams and Ken Greenwald. Absent: Councilmember Pia Jarman.
Staff present were City Manager Kerry Sweatt and City Secretary Norma
Althouse.
#1 HEARING OF RESIDENTS
No one had signed up to speak.
#2 Discuss sewer construction project agreement for Coronado/Nagley
area.
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Mr. Sweatt advised the City has been working for some time to develop a lift
station or other means in order to provide wastewater services to an area off FM
3009 near Coronado/Nagley and adjacent areas that are prime for development.
It appears they may be close to accomplishing that goal due to the scheduled
development of Cal-Tex Corporation. Cal-Tex and some others in the area have
expressed a willingness to participate financially. There is the possibility of a
partnership arrangement for a lift station.
John Bierschwale, Public Works Director, related they had asked an engineer to
look at the Tri-County area and see if this is a viable project for industry in that
area. If all participants came up front right now as far as funds, it would reduce
everyone's cost. The proposed arrangement would assure that not only are 225
acres served, but also additional acreage of 225 acres could be served without
enlarging the wet well. Mayor Baldwin asked if a lift station is big enough to
handle that acreage and was informed it is. Mr. Bierschwale also noted they
would require participants to issue easements to the City.
Terrell Miller of Don McCrary & Associates was introduced to Council and made
a brief presentation. Mr. Miller pointed out the location of the project, explained
what a lift station is, and showed construction lines and phases of development.
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Mr. Sweatt remarked it is anticipated the City's share will be approximately
$60,000. There are still a lot of unknowns. The actual cost is predicated on bids
and we don't know yet who will participate. As mentioned in his memo to
Council, it is recommended the City's participation be the setting up and
administering of reimbursement agreements, paying the engineering cost and
bidding and administering the lift station, force mains and collection mains
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contracts, provided all users post their share of the cost. He would like for .
Council to act on this at the next meeting if there are no objections. They feel it
is a good investment for the City.
Mr. Sweatt then introduced Richard Chalk of Cal-Tex and commented Cal-Tex
has been the impetus for this project. Mr. Chalk noted $40,000 to $50,000 would
be their share. They view it as a long-term investment. They are developing 6
acres of the total 24 acres now. The balance will be for warehousing and
storage. They don't have the final numbers yet.
Mr. Williams asked if everyone is on septic tank now and if this is an alternative if
everyone doesn't stay on septic. Mr. Sweatt replied everyone is not on the
ground yet. Coronado/Nagley is on septic. Mr. Williams then inquired what the
City's commitment is to those who stay on septic and Mr. Sweatt replied none.
Council agreed they were ready for this to be placed on next Tuesday night's
agenda.
#3 Discuss water rights lease agreement.
Mr. Sweatt reminded Council that pursuant to their September 23, 1998
authorization, the City has proceeded with acquiring 555.2 acre feet of Edwards
water rights for 1999 and access to an additional 150 acre feet in 2000. They
have recently received an offer of additional lease rights for as much as 1,300
acre feet under certain circumstances.
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They do not expect to need all 1 ,300 acre feet for 1999, but the owner is pushing
to lease a substantial amount this year and enter a right of first refusal on the full
amount for next year. In order to put the City in a good bargaining position and
accomplish the right of first refusal, they would like to have the authority to lease
up to an additional 600 acre feet for 1999.
Mr. Sweatt went on to say it appears they will fall short for 1999/2000 until the
Carrizo-Wilcox project is completed. Therefore, they are asking for authorization
to lease an additional 600 acre feet as a supplement.
Mr. Greenwald asked if we have the right to sub-lease and Mr. Sweatt answered
yes we do. Mr. Greenwald then questioned the price of the offer and Mr. Sweatt
replied $82.50 per acre foot. Mr. Greenwald emphasized we need to go with this
additional lease.
Mayor Baldwin inquired if this will put us up to what we need for 1999 without
penalty and Mr. Sweatt answered they feel if will get them close enough. Mr.
Bierschwale added he thinks it's to the City's best advantage.
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Council indicated their readiness for this item to be included on next Tuesday
night's agenda.
#4 Discuss revision of traffic regulations for intersection of Maple and
Beacon.
Mr. Sweatt explained the current ordinance prescribes that Maple is a through
street with Beacon signed as a yield. After review by Public Works and the
Police Department, it is agreed a stop sign should be placed at Beacon. This
would leave Maple as a through street in order to assure vehicles are proceeding
safely in the area.
Mayor Baldwin mentioned he would like to see the City eliminate all the yield
signs in Aviation Heights. Mr. Sweatt agreed to look into the situation. Mr.
Greenwald observed the streets were narrow when they were built years ago and
don't really conform to new standards.
Council agreed they were prepared for this item to be included on next Tuesday
night's agenda.
#5 Discuss tax abatement request and recommendations regarding Cal-
Tex Corporation.
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Mr. Sweatt referred to the letter from Richard Chalk and the staff evaluation in
the Council packets. At this time Mr. Chalk made a presentation to Council.
Mr. Chalk stated Cal- T ex is a manufacturer of car care products. They have
about 35 different ones. Their products are not sold retail, but mostly to new car
dealers. They purchased the property in Schertz about four and one-half years
ago. The Schertz facility will house Cal-Tex's manufacturing plant and customer
support offices and will be approximately 65,000 square feet in size. They will
employ 40-45 people and promise to be a-9ood corporate citizen.
Mr. Sweatt related the Economic Development Commission asked about
chemicals and any environmental issues and Mr. Chalk assured them there are
no environmental issues. It is a good clean operation and there is no pre-
treatment requirement for discharges.
Mr. Sweatt reported the total net revenues cover the cost of abatement by a ratio
of 1.83 to 1 and the annual ad valorem revenues cover the cost of abatement by
a ratio of 1.27 to 1. The City thinks it is quite a bargain.
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Mayor Baldwin told Mr. Chalk they are .pleased he is coming to Schertz. He also
mentioned driving by the location and seeing what looks like two sites. Mr.
Chalk explained what the Mayor is seeing is the site and a parking lot. There is a
terrace in front and a two-story office building of which they are very proud. Their
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colors will be similar to those of Barnes & Noble and you won't see their trucks
from FM 3009. When it is finished, it will have a very professional look. Mr.
Sweatt added they contemplated this several years ago and then bought out the
competition.
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Mr. Potempa stated he assumes their labels will say "Made in Schertz" and Mr.
Chalk admitted that issue has never been addressed.
Mayor Baldwin asked if Council was ready to consider the first reading of the Tax
Abatement Ordinance for Cal-Tex at next week's meeting and they replied in the
affirmative.
#6 CITY MANAGER'S REPORT
· Reported that on next week's agenda, there will be a resolution from the
Police Department asking Council to authorize a STEP program to enforce
the use of seat belts and speed regulations over the 4th of July holiday and
the Labor Day holiday. TXDoT will pay the overtime costs and are the ones
asking for a resolution from the City.
#7 ITEMS BY COUNCIL
Mr. Williams:
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· Reported he has signed up to attend the AMCC in Lubbock in July.
Mr. Greenwald:
· Noted a representative of Southeast Freightways was at the Planning and
Zoning meeting last night. They are planning to locate west of Cal-Tex. Mr.
Potempa asked if they will be similar to American Freightways or will it be the
corporate headquarters. Mr. Greenwald answered it will be similar to
American Freightways.
· Mentioned he enjoyed the event and the food was great at the Volunteer Fire
Department supper last Saturday. Also kidded the Mayor about acquiring a
lot of paint at the auction.
· Commented the BVY A meetings have been changed back to Thursdays.
#8 ITEMS BY MAYOR
· Announced the annual CPS meeting will be held June 30th at the Doubletree
Hotel in San Antonio. He needs to know who is planning to attend.
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. Reported receiving a letter from the Department of the Army asking the City
to support a Declaration called "America Goes Back to School" for September
of 1999.
. Advised the Alamo Community College District is starting a Frank M. Tejeda
Scholarship Fund. Mr. Potempa asked if they ever made a decision about
where to locate a campus on the northeast side of town and the Mayor replied
they did not.
. Mentioned the Northeast Partnership meeting is tomorrow.
At this time Mr. Johnny Sutton, with permission of the Council, spoke about lack
of access to the City swimming pool by season pass holders because of day care
facilities bringing their clients in from other cities. Mr. Sutton's children have a
season pass and were denied admission to the pool because it was full. He
would like to see Council do something to correct this situation. Mayor Baldwin
suggested they let the City Manager check into it and get back with Council and
with Mr. Sutton. Mr. Williams observed you're talking about a business concern
versus a private citizen. Mr. Greenwald asked Mr. Sweatt to provide them some
figures. Mr. Sweatt agreed to do that and then have the item scheduled for a
workshop session.
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#9 EXECUTIVE SESSION: Called under Chapter 551 Texas Government
Code, Sub-Section 551.071-, Consultation with Attorney r~gardin-9 pendin9
or contemplated litigation.
An Executive Session was held from 8:18p.m. to 8:58p.m.
#10 Action, if any required, on above Executive Session.
No action was required.
#11 ADJOURNMENT
There being no further business to discuss, Mayor Baldwin adjourned the
meeting at 8:59 p.m.
ATTEST:
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City Secretary, City of Schertz
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