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ccswks 01-15-1997SPECIAL WORKSHOP SESSION OF THE CITY COUNCIL January 15, 1997 The Schertz City Council convened in Special Workshop Session on Wednesday, January 15, 1997 at 7:00 p.m. in the Council Chambers of the Municipal Complex, 1400 Schertz Parkway, Schertz, Texas. The following members were present: Mayor Hal Baldwin, presiding; Charles McDonald; Joe Potempa; Earl Sawyer, Timothy Swinney and Ken Greenwald. Staff present were City Manager Kerry Sweatt and City Secretary Norma Althouse. Mayor Pro Tem Potempa opened the meeting due to the lateness of Mayor Baldwin. #1 HEARING OF RESIDENTS: No one had signed up to speak. #2 Discuss sewer averaging and proposed meter reading/ billing cycle changes. Mr. Sweatt reminded Council they have, in their packets, information on two different propositions. They believe they are so integrated and involved with each other, they have been placed on the agenda together. Currently, the sewer charges for a residential family unit are $3.75 per month plus a user fee based on 100% of the user's water consumption during the winter averaging season (three consecutive months, depending on which water billing cycle the customer is in, from November through March). Mayor Baldwin arrived at this time and Mayor Pro Tem Potempa turned the meeting over to him. Mr. Sweatt went on to say the current process has worked well, but recently they have been asked by a lot of users /customers to look at some other method because of the climate being warmer here and people watering and starting gardening during some of the winter averaging months. After reviewing it with the Public Works Director, it is recommended that Council approve an ordinance that would, instead of using the winter averaging months, use the three lowest months of the year regardless of when they fall for the customer. The customer's previous year's three lowest months would set his sewer average for the next year. In every case they surveyed, this would go anywhere from no effect to a 64% lowering of the sewer bill. For the average customer, the sewer bill will probably be anywhere from 12% to 15% lower. Mr. Bierschwale pointed out this shifts the responsibility from the City to the customer. The customer will dictate which three months they wish to use for their averaging. Mr. Sawyer wondered if the weather will have any effect and asked how they're going to make up the shortfall in -118- revenue. Mr. Bierschwale thought the effect of weather will be okay because the customer will be the manager of his own twelve months. As far as a shortfall in revenue, Mr. Bierschwale felt the growth from new accounts will balance it out. There was discussion on the breakdown of the sewer bill as far as what the City pays CCMA. Mr. Swinney felt it is CCMA that will feel the crunch and Mr. Sawyer commented if they do, they will simply raise their rates. Mayor Baldwin, saying he has no problem with the concept, expressed concern that after a year the City will be forced to raise their rates to get back the lost revenue. Mr. Greenwald asked how often it will be readjusted and Mr. Sweatt replied annually. They would like to go from April to April. Mr. McDonald asked if the customer can pick their own three months and was told yes they can. Mr. Sweatt stated he thinks this truly reflects those months when the least amount of water was used for purposes other than what went back to the sanitary sewer system. Mr. Sawyer commented it's a good idea if they can be assured the City will not lose revenue in the long run. Mr. Sweatt indicated they believe they will be revenue neutral in less than a year. He can't predict what CCMA will do. Mr. Greenwald felt the City owes CCMA the courtesy of informing them of this proposed change. Mr. Swinney was in favor of the change and noted he sees it as pretty much revenue neutral even if the rate has to be raised eventually. It gives people more control over their water. Everyone has different needs. Mr. Sweatt then introduced the second part of the discussion - changes in certain billing cycles. This will mean a different due date for some customers. He reviewed the various changes and Council followed along with a map which had been included in their packets. Mr. Sweatt admitted this is a drastic change and will require an intensive information campaign on the part of the City. The primary reason for the change is growth in certain areas. Mr. Swinney asked if separate letters will be sent to each account that will have a billing cycle change. Mr. Sweatt replied that's correct and explained they would like to implement this change in April, so the earlier they get approval from Council, the better it will be. _ Mr. McDonald inquired if anyone's bill will be for more than a 30 day cycle and Mr. Bierschwale replied they can do a short cycle versus a long cycle. -119- After being asked by Mayor Baldwin, Council agreed they were ready for the sewer averaging change and the change in the billing cycle to be placed on next Tuesday night's agenda. Mr. Sweatt assured them he would speak with CCMA. #3 Discuss wastewater treatment interjurisdictional agreement between City of Schertz and New Braunfels Utilities. Mr. Sweatt advised Council they have in their packets a proposed interjurisdictional agreement between the City of Schertz and New Braunfels Utilities (NBU). The City is currently under contract to NBU for a portion of the sewer system line. This agreement basically passes all of NBU's rules on to our customers. It does set us up to issue industrial user permits just as we would under our own system. Mr. Sweatt referred to Item 3 on pages 1 and 2 where it says the parties will periodically review their respective wastewater collection treatment ordinances and jointly draft and adopt ordinances, which are equivalent in scope and stringency to their respective wastewater collection treatment ordinances, with respect to the drainage area, when deemed necessary for the effective administration of operation and pretreatment programs. This review is to be conducted no less than once every three years. Mr. Sweatt then stated we can have different rules in different watersheds if we choose to, but he doesn't think it will be our feeling that we should. It is recommended Council authorize the City to execute this agreement. Mr. Sawyer, referring to Item 21 where it says either party may terminate this agreement by providing written notice to the other party, asked what we do if NBU terminates and decides not to service the area any more. Mr. Sweatt replied this is not a treatment agreement, just an agreement for treatment standards. Mr. Greenwald observed the main thing is that NBU is trying to control the industrial waste. Council indicated their readiness for this item to be included on next Tuesday night's agenda. #4 Discuss BVYA agreements: A. Use of fields B. Building at 401 Oak Street A. Use of fields Mr. Sweatt mentioned Council has a copy of the two agreements in their packets. The primary intent is to have both agreements begin and end at the same time. The use of the fields agreement has been in place for a number of years. The use of the 402 Oak Street building is a -120- relatively new agreement. Because they began at different times and were negotiated at different times, there was some different wording. These proposed agreements intend to eliminate those conflicts. It is proposed these agreements start on December 1, 1997. They are losing length of time on the building by consolidating agreements, but it is believed consolidation is advantageous. Mr. Sawyer had noticed a change in the number of electric hours they will allow BVYA. He hates to drive by at night and see the lights on with only two guys out on the field. Johnie McDow, BVYA President, was present and addressed this problem. He implied there are only three (3) sets of keys to the lights and they are regulated by board members. Individual coaches no longer have the leniency to turn the lights on. Mr. Sweatt reported Anderson Field is new and they have put the increased usage into it. Mr. Swinney inquired if we have gotten to the saturation point on available fields and Mr. McDow answered they will balance the use of the fields better this year, but they are stretched. Mr. Sawyer asked if there's any other place for fields and Mr. Sweatt replied they will bringing a bond issue recommendation to Council in the foreseeable future. Mr. Swinney asked if any figures were available on the projected increase in BVYA participants. Mr. McDow acknowledged the record keeping has, at best, been vague. Last year they didn't have as much as they thought, but this year on the first day of registration, they had 100 children register. That was a record. Mr. Sawyer asked what the total participation was last year and Mr. McDow replied 600. There was a brief discussion about the various activities offered by BVYA. B. Building at 401 Oak Street Mr. Potempa asked the condition of the building. Mr. McDow replied the air conditioner got stolen, but he was able to convince someone, through his work, to donate one. The gas heat is in real bad shape, so he is trying to find one of his manufacturers that will donate an electric heater. The leaks in the roof have been fixed. Mr. Greenwald observed the building is functional for the purpose of meeting twice a month and for storage. He also mentioned that opening day is March 22nd. Council consented they were ready for this item to be included on next Tuesday night's agenda. -121- At this time Mayor Baldwin moved to Item #8 on the agenda. #8 Discuss proposed letter of agreement for manage- ment services to GUADCO MUD #2. Mr. Sweatt introduced Mr. and Mrs. Douglas Hurt, Mr. Dick Reavis and Mr. George Griffiths who were at the meeting to represent GUADCO MUD #2. Mr. Hurt, Mr. Reavis and Mr. Griffiths are on the Board of Directors and have been working with the Public Works Department in developing a management services agreement for operating utility district #2. The City sells water to GUADCO MUD #1 and #2. Previously there have been other arrangements for management services, billing, collecting, meter reading and repair and maintenance activities. Due to a number of reasons, the Board of Directors of MUD #2 have asked us to look at a service agreement whereby our utility department would provide those services. Mr. Sweatt reviewed the highlights of that agreement. It provides that the City of Schertz will be paid 15% for billing and collecting activities based on the gross billing amount. There will be a one -time payment of up to $6,000 for the initial start up cost. In addition to the 15 %, MUD #2 will pay for the postage and paper products used in the billing. A separate maintenance and repair bill will be prepared monthly for all services provided. There will be a 10% administrative fee. If special services are requested over and above the billing and collecting maintenance activities, they will be billed at the appropriate staff member's hourly rate. During the six -month period of the proposed agreement, no bonds or further debt against MUD #2 will be incurred. It is proposed this agreement take effect so they can begin the actual billing in the month of February. Mr. Bierschwale stated the terms are pretty well outlined in the agreement and it will be a learning process for the next six months. Mr. Sawyer asked if MUD #2 is growing and Mr. Bierschwale answered it is stable and there is room for growth. Mr. Sawyer then asked where MUD #2 is and was told it is Scenic Hills in Northcliffe. Upon being asked by Mr. Sweatt if he had any comments, Mr. Hurt stated he likes the contract and is looking forward to being annexed by the City of Schertz. Mr. Sawyer saw nothing wrong with entering into an agreement as long as the City has a reasonable way to get out of it and as long as they don't have to hire two or three more people to do the work. Mr. McDonald inquired if MUD #1 and MUD #2 overlap and was told they do not. Mr. Sawyer asked if they have separate -122- meters and Mr. Hurt replied they do not, but that is one of their goals. Mr. Potempa questioned the condition of the lines and Mr. Bierschwale replied everything in Scenic Hills had to be built to City of Schertz specifications. The Scenic Hills subdivision is approximately the size of the Dove Meadows subdivision. Mr. Potempa then asked how much debt they have and was told they have $850,000 in bond debt and U.S. Homes has a claim against them which is very much in dispute. Mr. McDonald wondered what the timetable would be for annexation and Mr. Sweatt indicated the bond indebtedness is one thing, but the U.S. Homes claim would have to be settled first. The consensus of Council was that the proposed agreement is a good idea and they were ready for this item to be included on next Tuesday night's agenda. #5 Discuss recommended tax abatement changes. Mr. Sweatt advised there are actually two parts to this item. In Council's packets is a report they requested on the current abatement program. There is also a recommendation from the Economic Development Commission regarding some changes to the abatement program. One of the primary items recommended for change is that the standard term of abatement be changed from six (6) years to five (5) years. Another is that the amount of capital investment for each additional 1% of abatement be changed from $50,000 to $45,000. Some changes have been recommended in the application process and they put in requirements about attending certain meetings and making annual reports. Mr. Sweatt stated the best comparison he could give is that if the changes had been in effect when Security Capital applied for an abatement, the City would have realized $23,210 more from that building location. It is hoped these changes will continue to keep the City competitive and make them a viable contender in economic development activities. Mr. Marquez pointed out they essentially wanted to raise the threshold before they get to the maximum - the deals are getting bigger. The proposed change for each additional 1% of abatement from $50,000 to $45,000 is to keep the smaller players in the game. There was a lengthy discussion about whether the City should base tax abatements on appraised values. Mr. Swinney remarked that would make it hard for a developer to commit. Mr. Sweatt emphasized part of our strength is we have standard rules and treat everybody the same. Mr. Greenwald commented when they started the tax abatement -123- program, they said they would give it a couple of years and then refine it. His suggestion was to review it again in another couple of years. The was a brief discussion about some problems the Ramada Limited Hotel has experienced. It was suggested consideration be given to using some of the hotel /motel tax to advertise. Mr. McDonald asked how much abatement we're going to give HEB and was told by Mr. Sweatt they didn't ask for one. Mr. Potempa asked if we have any more businesses locating on IH -35. Mr. Swinney commented he heard a rumor about a new restaurant, but Mr. Marquez related there's a cloud over the restaurant deal. Mr. Sweatt reported there are several interesting small businesses moving into the Commercial Place property. That has been a real success story for the Schertz Development Foundation. Mayor Baldwin mentioned an article in the San Antonio Business Journal a couple of weeks ago which said Eckerd Drug is looking for eight (8) locations in the San Antonio area. There being no further discussion, Council indicated their willingness to have this item included on next Tuesday night's agenda. #6 Discuss Northeast Partnership membership. Mr. Sweatt noted a brief report on the Partnership's activities had been prepared for Council. They believe the Partnership's marketing of the general local area of some 60,000 population has given them a leg up in talking with prospective businesses. The Partnership has voted dues at the rate of 3.67 cents per capita this year. The 1997 dues for the City of Schertz would be $464.06. It is recommended City Council authorize continued membership. Mr. Sawyer commented they're getting better service out of this than they did the Council of Mayors. Mayor Baldwin brings back good reports to the Council. Mr. Swinney remarked it has had a very inexpensive multiplying effect. Mayor Baldwin admitted growth has been slower than expected, however the group enjoys meeting and there are a lot of good people attending. He still looks forward to great things in the future. Mr. Sweatt mentioned one of their strengths is that they realize what is good for one is good for all. -124- Mayor Baldwin advised the Partnership is still in the process of trying to contact Wal -Mart about using their old building in Universal City as a campus for St. Phillip's College. Also, Chuck Balcar is working on developing a home page for everyone. There are a phenomenal number of inquires that come across these things. Mr. McDonald said he understands there's another on -line organization that's totally free. He will find out what it is. Council was ready for this item to be included on next Tuesday night's agenda. #7 Discuss garbage rate increase request and recycling plans. Mr. Sweatt related they had talked with Alamo Waste on a number of occasions about a rate increase. There was none in 1995 or in 1996. After discussion with Henry Gutierrez, they are in a position to recommend an increase of 7.78 to the rate. This would result in a rate to the customer of $8.45 per month plus a continuation of the recycling rate at $1.25 which totals $9.70. Sales tax is due on the garbage portion only which is another .66 and that would bring the total rate to $10.36 which represents an overall increase of 6.718 over the current rate. The current rate is $9.71. It is also recommended that out of the 7.78 increase, we recognize 3.58 of it as an increase in the Consumer price Index. The major increase is in the tipping fees which represents the other 4.28. It is recommended that if the City enters into this agreement, the garbage rate be good for two (2) years and the recycling rate also be good for two years. Regarding the recycling program, it is recommended we apply the $52,000 in recycling proceeds to effectively buy down the garbage rate and use the reoccuring sales of approximately $1,000 per month to buy the recycling rate down to .99 so the total rate to the customer would be discounted by .72 making the new net bill to the customer $9.64 for the next two years. Mayor Baldwin asked what the rate is today and Mr. Sweatt answered $9.71. The Mayor then mentioned he has no problem with buying down the garbage rate, but he's not so sure about buying down the recycling rate. Then we won't be making any more money on recycling. Mr. Sweatt pointed out money will be coming in, but then going back out to keep the recycling rate down. The garbage rate, however, would have to be raised at the end of the two year period because we would be out of money. Mayor Baldwin felt that would put the City in in a real hurting position if the citizens all of a sudden got tired of recycling. Mr. Sawyer felt this may encourage more recycling participation. -125- Mr. Sweatt related they will be changing the recycling collection to every two weeks versus twice a month. Mr. Gutierrez felt that would encourage more recycling. Mr. Potempa asked if the new recycling schedule will be mailed to all the residents and Mr. Sweatt replied if Council agrees with the idea of every two weeks, the City is prepared, in the morning, to print 10,000 notices, 3500 of which will be inserted in the Newsletter and 3900 will be hand delivered . Mr. Sawyer asked if it would be possible to type the new rate structure and where the money came from on the back of the recycling schedule. Mr. Sweatt replied that can be done and the printing can be delayed until Council acts on it. Mr. Sawyer thought that was a good idea because we really need to publicize what we're doing with the recycling money. Just something brief and simple. Mr. Potempa mentioned the problem he had about a month ago with not having enough room in his recycling bin. He thinks the every two week pick -up versus twice a month will help alleviate that problem. Mr. Sweatt told Mr. Potempa the City is making one other offer. For those customers who wish to buy an additional recycling bin, they can do so at the rate of $5.00 each and the bins can be picked up at Alamo Waste. Mr. Swinney thinks the recycling bins are too small and there's also a problem with them picking up wet newspapers. He asked if there are any bins on the market with lids. Mr. Gutierrez replied there probably are. The price is probably double. Mayor Baldwin referred to Mr. Gutierrez's letter where he asked the City to take a $5.00 deposit on bins from all new customers. Are we going to do that? Mr. Sweatt replied keeping track of that would be horrendous. If the bin is stolen, it is replaced automatically. If however, the customer moves away and takes it with them, that's a different situation. It is his proposal we reimburse Mr. Gutierrez, out of the recycling proceeds, up to $125 per year to replace bins. Mr. Swinney thought the City should pick up the cost of the second bin for those truly serious about recycling. It would encourage more participation. Speaking personally with a family of five, he is always overflowing his bin. Mr. Swinney also asked if there's any way of putting dividers in the bins so the goods can be separated. There was not a consensus from Council on Mr. Swinney's idea to have the City pick up the cost of the second bin. Mr. Sawyer suggested a note be put on the recycling schedule about buying the extra bins. Mr. Sweatt reminded Council this is not a renewal, it is -126- simply an agreement for a two year commitment of rate. Mayor Baldwin expressed the opinion he thinks they ought to spend the $52,000 to buy down the garbage rate, but leave the $1.25 recycling rate alone so they can build up another $52,000. Mr. Potempa's opinion was to spend the $52,000 to buy down the garbage rate and buy down the recycling rate to 99 cents. The consensus of Council was to buy down the regular garbage rate and leave the recycling rate at $1.25. Mr. Potempa, saying that now they've agreed to this, asked when Alamo waste will be annexed into the City. Mr. Gutierrez said the time is right. They just purchased the property. Mr. Potempa again brought up the fact the City is missing out on a lot of recycling by not utilizing apartments. Is there some way to include apartments in this? Mr. Greenwald mentioned New Braunfels is testing it now. Let's keep an eye on them to see what happens. Mr. Gutierrez reported they have some commercial recycling bins around the City now. The bins used for the apartment recycling they're doing in San Antonio have a lesser charge attached to them, but they're mostly for newspaper and cardboard. Mr. Greenwald asked the possibility of in the park area for aluminum cans with locked doors. Mr. Gutierrez replied with locked doors and just a small slot putting a small one a small opening and they have some now opening. Mr. Sawyer thought BVYA was collecting the aluminum cans at the park. Mr. McDow reported last year the concession was changed to all canned drinks. The program for collecting them just didn't work. He would venture to say during tournament time they would easily fill the dumpster half way up. Right now they're throwing them away. Mr. Gutierrez volunteered to transport for BVYA, if they bag the cans, and give the proceeds to BVYA. He would do that one Saturday per month. Council indicated they were ready for this item to be included on next Tuesday night's agenda. Mr. Sweatt indicated he will hold the distribution of recycling calendars until after the Tuesday meeting. #9 BID AWARD: Consider and take action regarding bid award for xeriscape park construction project. Mr. Sweatt advised this is a project they have long awaited to bring to fruition. It is the xeriscape project on Borgfeld Road angling across from the Animal Control -127- facility. It has been a boot strap project they've been working on for a couple of years. The City has a park dedication requirement in its subdivision regulations. This particular part of the project involves a parking lot, a drop -off area, sidewalk and lighting. Bids were solicited and H.L. Zumwalt Construction Company is the best and lowest bidder. The bid of $50,560 included installation of a portion of the lights. The bid of $42,000 took out all the lights. We have since located, from another source, all ten of the proposed lighting fixtures and can buy them for a total of $3220. It is recommended the bid be awarded to the H.L. Zumwalt Construction Company in the amount of $42,000. This would complete the striping, the parking lot and the lighting. We'll come back later with a proposal for the location of the gazebo. Mr. Potempa asked what Zumwalt has done for the City in the past. Mr. Sweatt replied he doesn't think they've done anything for the City, but have done work in the area. The engineers checked them out and found them to be satisfactory. Mr. Swinney questioned which option we're looking at. Mr. Sweatt answered the $42,000 includes installation of the lights we buy separately. We're looking at option 2. Mr. Sweatt also mentioned they received an $11,000 grant from LCRA several months ago and that will be used toward the cost of the project. Mr. Sawyer moved to award the bid for the xeriscape park construction project to H.L. Zumwalt Construction Company in the amount of $42,000. Mr. Swinney seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #10 CITY MANAGER'S REPORT: A. Announced the Bradzoil at the corner of Borgfeld and FM 3009 is planning a ribbon cutting on January 17th at 11:30 a.m. For anyone who can attend, it would be appreciated. B. Declared the grand opening of the new Windy Meadow addition is scheduled for January 19th from 1 -4 p.m. Everyone is invited. C. Mentioned a TML legislative luncheon scheduled for February 3rd in Austin. He needs RSVP's by January 20th. #11 ITEMS BY COUNCIL: Mr. Swinney: Commented if we're looking at a bond issue for May, we need to form a citizens group. When will this item be on the agenda? Mr Sweatt replied at the next workshop. -128- Mr. Potemoa: Noted that if anyone monitors the police radio like he does, they probably noticed this past Sunday there were lots of accidents and he wants to commend the Police Department for all their efforts. Both lieutenants came out. The Chief came out. Mr. Sweatt got on the radio and opened up the Community Center as an emergency shelter. Mr. Sweatt said fortunately no one had to use it. There were no power outages and no fires and some who wanted to stay overnight stayed at the hotel. Mr. Potempa remarked the night shift came in early and once again he said "Hat's Off" to the Police Department. Mr. Sweatt, expressing appreciation for Mr. Potempa's remarks, said they also had street personnel, and double duty on EMS personnel and firefighting personnel. All in all they handled over twenty calls regarding major /minor accidents. Mr. Sawver: A. Congratulated the Streets and Parks Department for the gravel they put on the corners during that bad weather. B. Asked if Stop signs had been put up at Savannah. Mr. Sweatt replied not yet. Council will get a report next week. C. Stated he hasn't seen any loose dogs lately. Mr. McDonald: Reported SAFES ran out of backboards and had to pick some up from Tony Morales where they had taken them to be engraved. Mr. Greenwald: A. Echoed Mr. Potempa's remarks about the Police Department and commended Streets and Parks, EMS and the Fire Department. B. Thanked Mr. Sweatt for getting street lights up on Schertz Parkway so quickly. Is there some way they can put one at Wiederstein? There's a power line there. Mr. Sweatt thought that line was back too far. Mr. Swinney wondered if reflector poles would help in the interim. Mr. Sweatt promised to check on it. Mr. Greenwald said let's see what happens when the bank goes in. #12 ITEMS BY MAYOR: A. Related the FM 78 public hearing was cancelled because of weather. B. Reported the Housing Authority also cancelled their meeting because of weather. C. Extended kudos to all the emergency services and said he appreciated Mr. Sweatt keeping him informed. Mr. Sawyer interjected that Jerry Bortel's mother passed away and the funeral is this Friday in Inez. -129- Mr. Greenwald mentioned it was in last week's paper that Walter Yohey passed away. #13 ADJOURNMENT: On a motion by Mr. Swinney and seconded by Mr. Potempa and unanimously carried, the meeting was adjourned at 9:36 p.m. Mayor, ity of Schertz, Texas ATTEST: City Secretary, City of Schertz -130-