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ccreg 01-21-1997 REGULAR MEETING OF THE CITY COUNCIL JANUARY 21, 1997 The Schertz City Council convened in Regular Session on Tuesday, January 21, 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; Councilmembers Charles McDonald; Joe Potempa; Earl Sawyer; Timothy Swinney and Ken Greenwald. Staff present were City Manager Kerry Sweatt and City Secretary Norma Althouse. Mayor Baldwin asked everyone to rise and join him in the Pledge of Allegiance to the flag. At this for many Authority time Mayor Baldwin presented a plaque to Bud Cyr years of dedicated service to the Schertz Housing Board. #1 APPROVAL OF MINUTES: Regular Session Workshop Session Regular Session Regular Session Regular Session 10-15-96 10-30-96 11-05-96 11-19-96 01-07-97 Mr. Sawyer moved to approve the minutes, as written, for the Regular Session of 10-15-96, the Workshop Session of 10-30-96, the Regular Session of 11-05-96, the Regular Session of 11-19-96 and the Regular Session of 01-07-97. Mr. McDonald seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. ABSTENTIONS: Councilmember Potempa for the Regular Session of 10-15-96. Before moving to Scout Kyle Halset Scout. The Mayor asked him to invite Item #2, Mayor Baldwin introduced Boy who is very close to becoming an Eagle told him to keep up the good work and him to his induction ceremonies. #2 HEARING OF RESIDENTS: Marcus pridgeon, General Manager of GVEC, spoke to the Council updating them on the transmission line between the Schertz substation and the Parkway substation. The line is finished. It is energized, it is phased, and it is operational today if we were in an emergency. It is not closed in yet because they are waiting for CPS to install some telemetry to monitor it. That should be accomplished in the next few days. Mr. Pridgeon reported that their system held up during the recent cold spell. He was a little worried about the City -131- of Schertz because the last bad cold spell was in 1989 and a lot of houses have been built since then. They pushed more power through the system this past Monday than they had ever pushed in 57 years. As a matter of fact, it was 193 megawatts of power at it's peak. As a comparison, the City of Seguin is only 32 megawatts. With the exception of a few individual outages, they had no problems and they were very pleased. Mr. Pridgeon thanked Mr. Sweatt and Mark their help through the Schertz Development GVEC is going to construct a shell building in Development Park and should see groundbreaking 5th. Marquez for Foundation. the Schertz on February Mr. Pridgeon then asked if anyone had questions. Mr. Greenwald asked if the power lines in the Ashley Subdivision are charged all the time and was told they are. Mr. Pridgeon said he had personally visited with some of the folks up there and understands their concerns. Mr. Potempa questioned when GVEC is going to take down the temporary wooden poles along Schertz Parkway. Mr. Pridgeon replied when they know how the Parkway is going to be developed. Mayor Baldwin related he had called Mr. Pridgeon about a flickering in the system and he asked Mr. Pridgeon to fill the Council in on that situation. Mr. Pridgeon related that in October of 1995 there was a substation fire at Structural Metals, Inc., a big steel mill in Seguin. The fire destroyed some of GVEC's equipment and some of Structural Metal's equipment. They have a big pot they drop cars and all kinds of things down into. Their process creates a tremendous burden on the system and it flickers your lights. The piece of equipment that corrects that was destroyed. Structural Metals is required to replace the equipment and it is on order. It will cost them $5,000,000 and is being made in Germany or Austria. It will not be delivered and installed until late this summer. Structural Metals is now using a reduced power kind of heat and the people in New Braunfels tell him the flickering has gotten a lot better in the last ten days. When the transmission line is closed with City Public Service, it should also improve the situation. Mr. Swinney wondered if Mr. Pridgeon could give a good synopsis on deregulation and the buying power of two different utilities. Mr. Pridgeon stated both sides will spend a lot of money, but he doesn't think you will see it because no heavyweight politician wants to back it. You might see a pilot program. At this Chairman time Mr. Pridgeon of the Board of introduced Lewis Borgfeld, Directors of GVEC and Johnny -132- Ingram of his staff in Gonzales. He then presented a franchise fee check to the City in the amount of $128,000. Mayor Baldwin thanked Mr. Pridgeon for his time. t3 Consider and take action on the following: A. Proposed meter reading/billing cycle changes. B. First reading of ordinance regarding revision to assessment of sewer use charge. A. ProDosed meter readina/billina cycle chanaes. Mr. Sweatt advised it is their intention to make certain billing cycle changes and these were discussed at the workshop. The net effect to the customer is a change in the billing and collecting date. A letter will be sent to all accounts which are going to change and the plans are to make this change effective for the April 1997 billing. For some customers, they will do a short billing cycle so no one receives a bill for usage for a period of more than 30 days. Mr. - Greenwald moved to approve the proposed meter billing/cycle changes. Mr. Potempa seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. B. First readina of ordinance reaardina revision to assessment of sewer user charae. Mayor Baldwin introduced an ordinance and read the caption as follows: AN ORDINANCE BY THE CITY COUlIICIL OF THE CITY OF S........."TZ , TEXAS, PROVIDING THAT THE CODE OF ORDINANCES, CITY OF SCHERTZ, TEXAS, BE AL.".,'u"'; BY REVISING CHAr ........ 19, WATER, WASTEWATER AND WASTE DISPOSAL, EXHIBIT 5, SEWER RATES ESTABLISHED; PROVIDING AN EFFECTIVE DATE; AND, PROVIDING A REPEALING CLAUSE. Mr. Sweatt stated they believe this is a far better arrangement for determining the volume of wastewater for which a residential customer is charged. Currently we use the winter average. This, instead, would be based on the lowest three month average during the previous twelve month period. While it does have a lowering effect, it is felt any loss of revenue will be quickly made back through new accounts. We will communicate this information to CCMA. These changes are being planned for April and we feel they -133- will be well received by the customers. Mr. McDonald moved to approve the first reading of an ordinance revising assessment of the sewer use charge. Mr. Sawyer seconded the motion. Before the vote, Mr. feedback from CCMA been informed yet. final reading of the Swinney asked and Mr. Sweatt He will do that ordinance. if there had been answered CCMA had before the second any not and At this time the vote was taken and the motion carried as follows: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #4 INTERJURISDICTIONAL AGREEMENT: Consider action authorizing interjurisdictional agreement the City of Schertz and New Braunfe1s utilities. and take between Mr. Sweatt reminded Council there is a copy in their packets of an agreement that deals with treatment issues and control of the wastewater treatment facilities as relate to the New Braunfels portion of our system. A portion of the City's wastewater shed or drainage area would go to the north and east to connect to a major transmission line owned by the City of New Braunfe1s to which the City of Schertz has connected and made further extensions in the area between 1H-35 and the railroads. Our contractual agreements with New Braunfels Utilities (NBU) provide that we are payng a portion of the debt service of that line for capacity in that line. This proposed agreement would describe treatment standards and treatment conditions by which we would agree that no connections be made to the system that would exceed certain pretreatment requirements and industrial strength contributions. The agreement also provides for a review every three (3) years. Approval is recommended. Mr. Potempa moved to approve the interjurisdictional agreement between the City of Schertz and New Braunfels Utilities. Mr. Sawyer seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #5 BVYA AGREEMENTS: Consider and take authorizing the following agreements with BVYA: A. Use of fields. B. Building at 401 Oak Street. action -134- Mr. Sweatt related these are extensions and revisions to existing agreements. The exiting agreements, for the two separate uses, begin and expire at different times and have slightly different language. BVYA has suggested those be streamlined and made to meet the same dates and terms. That has been done with certain minor changes. The current agreement will take the use of the fields through December of 1996 and this proposed agreement will then take over. The current agreement on the office building was set to expire in five years, but would be reduced to two years to comply with BVYA's request that the agreements meet the same dates and terms. Copies of the agreements have been furnished to BVYA and Mr. Greenwald has been coordinating with them. One provision in the use of the fields is addition of kilowatt hours for credit. Also, the total aggregate of fields has been increased by adding Anderson Field. It contains the same language about coordination of use with the SCUC ISD for certain fields at certain times. There have been no negative comments from BVYA and approval is recommended. A. Use of fields. Mr. Greenwald moved to authorize the agreement with BVYA for use of the fields. Mr. Swinney seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. B. Bui1dino at 401 Oak Street. Mr. for the Greenwald moved to the building at 401 motion. authorize the agreement with BVYA Oak Street. Mr. Potempa seconded Before the vote, Mayor Baldwin asked if the City can do anything to help them maintain the building. Mr. Greenwald replied as far as the agreement is concerned, the City is responsible for major repairs and BVYA is responsible for normal user maintenance. Mr. Potempa then asked how long they think the building will last. Mr. Greenwald replied until the ground shifts - you never know. It serves the purpose right now. Mr. Sawyer mentioned they had talked about bonds at one time to turn the fields around so all the home plates are in the center with a field house in the middle. The next time we talk about bonds, Council may want to bring that subject up again. The vote was then taken and the motion carried as follows: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. -135- NAYS: None. #6 reading changes. ORDINANCE: Consider and take action of ordinance regarding recommended tax on first abatement Mayor Baldwin introduced and ordinance and read the caption as follows: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, ADOPTING GUIDELINES AND CRITERIA FOR TAX ABATEMENT AND HE-INVESTMENT ZONES. Mr. Sweatt reported the Economic Development Commission reviewed the current guidelines and recommended several changes. 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. Approval is recommended. Mr. Sawyer moved to approve the first reading of an ordinance regarding recommended tax abatement changes. Mr. Swinney seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. *7 MEMBERSHIP: Consider and take action authorizing membership in the Northeast Partnership. Mr. Sweatt reported the Northeast Partnership meets monthly. Based on their 1997 budget, they have voted dues at the rate of 3.67 cents per capita. The 1997 dues for the City of Schertz would be $464.06. The Partnership is a worthwhile organization. It has produced the mechanism to market this area as a viable community. Approval is recommended. Mr. Greenwald moved to Northeast Partnership. Mr. authorize membership in the Sawyer seconded the motion. Before the vote, Mr. Swinney asked if there's any possibility of the partnership providing health insurance as a regional group. Mayor Baldwin answered they had talked about it, but there are a lot of problems involved. It is possible however. Whether or not they get a lot of interest on the part of the cities remains to be seen. -136- Mayor Baldwin commented they would like to get hold of the old Wal-Mart building is Universal City as a campus site and they have someone working on that. Mr. McDonald asked if they're authorizing membership forever or one year at a time. He was told it is for one year at a time. Mr. Sweatt stated normally memberships are discussed at budget time. In this specific case, the Council asked that it come back before them at the expiration of the first year. What is Council's pleasure? Mr. Swinney recommended it be considered from now on at budget time. The other Counci1members agreed. At this time the vote was taken and the motion carried as follows: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #8 on the RECYCLING/GARBAGE RATES: Consider and take action following: A. First reading of ordinance regarding garbage rate increase. B. Use of recycling proceeds. C. First reading of ordinance continuing recycling program. A. First readinG of ordinance reoardino oarbaoe rate increase. Mayor Baldwin introduced an ordinance and read the caption as follows: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, PROVIDING THAT THE CODE OF ORDINANCES, CITY OF SCHERTZ, TEXAS, BE AMENDED BY REVISING SECTION 7 1/2-54, EXHIBIT 2, GARBAGE RATE SCHEDULE; PROVIDING AN EFFECTIVE DATE; AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT. Mr. Sweatt informed Council, as was discussed at the workshop, they are recommending an increase in garbage collection fees. Alamo Waste, under our contract, has performed well for the past two years. There was not a rate increase for 1995 or 1996. After review of the changes and the request by Alamo Waste, it is recommended Council approve a 7.7% rate increase for garbage collection fees for both residential and commercial customers. The 7.7% increase takes into account a 3.51% increase in the Consumer Price Index and a 4.2% increase in tipping fees. -137 - Referring to sales tax, Mr. Potempa asked what percent the sales tax is and who it goes to. Mr. Sweatt replied it is 7.75% of which the City gets 1%, the state gets 6% and the County get 3/4%. Mr. Sweatt explained garbage collection fees were not subject to sales tax until about five years ago. Recycling fees are not subject to sales tax. Mr. Sawyer moved to approve the first reading of an ordinance regarding a garbage rate increase. Mr. Potempa seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. B. Use of recvclina nroceeds. Mr. Sweatt noted it is recommended that the $52,000 of recycling proceeds that have been accumulated be used to buy down the garbage rate. Based on the increase just approved by Council, the rate for a residential customer would have been $8.45. Buying it down takes it to $8.03. That further reduces the sales tax requirement from .66 down to .62 which makes the total garbage collection rate for a residential customer $8.65 per month. They believe this represents the most visible way that the City can say recycling does pay. It is recommended the proceeds from the continued sale of recycling materials be used to buy the rate down in the future. This garbage collection rate is guaranteed for two years. Mayor Baldwin said hopefully this will promote participation in recycling. Mr. Greenwald commented of the main things to be considered is that it kept million pounds of trash out of the landfills. more one 1.8 Mr. Greenwald moved to approve the use of recycling proceeds to buy down the municipal solid waste collection rate. Mr. Swinney seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, sawyer, swinney and Greenwald. NAYS: None. C. First rea1ing of nroaram. ordj.naDce continuinc recvclina Mayor Baldwin introduced an ordinance and read the caption as follows: -138- AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, PROVIDING THAT THE CODE OF ORDINANCES, CITY OF SCHERTZ, TEXAS, BE AMENDED BY REVISING CHAPTER 7 1/2, HEALTH DEPARTMENT, HEALTH REGULATIONS, EXHIBIT 3, FRANCHISE AGREEMENT AND ATTACHMENT 1, RECYCLING AGREEMENT AND EXTENSION OF FRANCHISE; PROVIDING AN EFFECTIVE DATE; AND, PROVIDING A REPEALING CLAUSE. Mr. Sawyer moved to approve the first reading ordinance continuing the recycling program. Mr. seconded the motion. of an Potempa Before the vote, Mr. Sweatt explained that with the buy down of the increased garbage rate, the sales tax, and the continuation of the recycling program at $1.25 per month, the total garbage and recycling bill for the customer will be $9.90 per month. The current bill is $9.71. The effective date for the new rate will be the first day of the billing cycle in February. At this time the vote was taken and the motion carried as follows: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. Mr. Sweatt then added that they are prepared to distribute the new recycling schedule this week. The collection for recycling products will now be every two weeks versus only twice a month. The new schedule will be distributed door to door and in the Newsletter. There is a brief description on the back of the schedule about what has occurred. Mayor Baldwin commented he thinks being able to buy down the garbage rate and continuing the recycling program is great. #9 LETTER OF AGREEMENT: regarding proposed letter services to GUADCO MUD #2. Consider and take action of agreement for management Mr. Potempa asked if they didn't, in fact, vote on this at the last workshop. Mr. Sweatt replied they certainly had the same agreement and the same explanation of it, but they only discussed it. They did take action at the last workshop on awarding a bid. Mr. Sweatt went on to say they think this represents an historic moment in our community in which GUADCO MUD #2 has reached a tentative agreement with the City for the operation and maintenance of their system by our utility department. None of our existing customers will pay the -139- cost or be penalized for taking on these approximately 150 additional customers. The MUD district will be paying the full cost including a 15% billing and collecting fee for those services. They will also pay for all other services received. We feel it's a good system that will allow them to have better control of their costs and allow us to operate that system, which is one of our customers, to both of our mutual advantages. An interim agreement has been prepared which will terminate the earlier of August 1st or at the execution of a completely detailed inter local agreement. Mr. sawyer moved to approve the letter of agreement for management services to GUADCO MUD #2. Mr. Greenwald seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. *10 CITY MANAGER'S REPORT: Reported they are communicating with TXDoT and have tentatively set February 24th at 6:00 p.m as the new date for the FM 78 right-of-way public hearing. It is scheduled to be held at the high school cafeteria as originally planned. He will let them know if there is a change. *11 ITEMS BY COUNCIL: ~r. McDonald: Asked the status of the audit. Mr. Sweatt indicated it should be completed in late February or early March. Mr. Potemna: Expressed the hope they can talk reappointments to TIF by the next workshop. about Mr. Swinnev: A. Mentioned that Barbara Martinez, who works for him, is new resident of Ashley Place (she has been there about 5 months) and is still working on getting her recycling bin. He had asked the City Manager to look into it and is passing on her thanks for him calling her. Also, just a little background - Ms. Martinez lived in San Antonio and she just can't say enough about how she likes living in Schertz. B. Referred to the intersection of Schertz Parkway and FM 78 at the Smoke Pit and said he has noticed how those lights change from green to red in a split second with no delay and there are a lot of people running the lights. Whose jurisdiction is that? Mr. Sweatt replied TXDoT. Mr. Swinney's suggestion was to park a patrol car there. Mr. Sweatt indicated he would mention it to Chief Smith. Mr. Greenwald: same intersection should keep after A. Stated he had been griping about that for about two years. Mr. Sawyer said we TXDoT about that situation. -140- B. Extended congratulations to Tom Weaver for being elected to the SARA Board. C. Reported he had attended a CRWA meeting last Thursday and they have grandiose plans for running a water line down I-10 and another down IH-35. They also have tentative plans to double the plant size. He has some numbers on the water and will give them to the City Manager to make copies for everyone. They were very emphatic about the fact if cities want to buy the water themselves, they will be happy to do it but they will have to sign a contract. The numbers are not carved in stone, and if you want to pay for water and contract with CRWA to treat it, that's fine. They have no problem with that. The only problem is the difference between the cost of the water out of the district and out of the basin. FM 1103 is the break line for the Guadalupe County watershed and this side is for the SARA watershed. If we were to contract for water it would go from $53 to $58 per thousand. Mr. Sweatt commented it's a shame EAA doesn't have to publish the cost effect of some of these things. D. Wondered if everyone read the paper regarding EAA and everyone's permits. It said 800,000 acre feet is going to be permitted and they can only permit 450,000 acre feet. It was an interesting article. #12 ITEMS BY MAYOR: A. Inquired if we've heard anything from HDR Engineering about the groundwater study. Mr. Sweatt replied he will be bringing a report to Council quite soon about a change in the agreement. B. Mentioned they had talked several months ago about putting some turn arrows on Elbe1 and FM 3009, but it hasn't been done yet. Mr. Bierschwale remarked they have to complete a traffic plan for the State first and then the State will let us know what can be done. It will not be an expense to the City. TXDoT will do it. #12 ADJOURNMENT: On a motion by Mr. seconded by Mr. Potempa and unanimousl meeting was adjourned at 8:17 p.m. Swinney cadd, ~ ~f/.: and the Mayor, City of Schertz, Texas ATTEST: ~~~~ City Secretary, City of Schertz -141- ------- ~ --- -------