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ccreg 08-05-1997 REGULAR MEETING OF THE CITY COUNCIL AUGUST 5, 1997 The Schertz City Council convened in Regular Session on Tuesday, August 5, 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 Pro-Tem Norman Agee, Sr. presiding; Councilmembers Charles McDonald; Joe potempa; Timothy Swinney and Ken Greenwald. Absent: Mayor Hal Baldwin. Staff present were City Manager Kerry Sweatt and City Secretary Norma Althouse. Mayor Pro-Tern Agee asked everyone to rise and join him in the Pledge of Allegiance to the flag. #1 APPROVAL OF MINUTES: Regular Session 5-20-97 Mr. McDonald moved to approve the minutes for the Regular Session 5-20-97. Mr. Greenwald seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa and Greenwald. NAYS: None. #2 HEARING OF RESIDENTS: speak on agenda items (other items not on the agenda, will Those citizens wishing than public hearing items) be heard at this time. to or No one had signed up to speak. Mayor Pro-Tem Agee announced they are going to hold ITEM #3 on the agenda until Mr. Swinney arrives because he wants to be present for the discussion. #4 WAIVER: Consider FM 3009 Partners Ltd. requirement on the east Subdivision. and take action on request from for a waiver to the sidewalk side entrance to Forest Ridge Mr. Sweatt reminded Council this was discussed at the last workshop. Planning and Zoning has recommended approval of the request. The request is for a waiver of the requirement for a sidewalk on the east side of Forest Ridge Parkway running from FM 3009 to a point inside past the gated community gate. Photographs accompanied the request describing a drainage situation, landscaping and other circumstances (including ownership of the property from the roadway in) which the developer felt justified the need for a waiver. Mr. McDonald saw no problem with giving them a waiver from the gate in. whoever develops from the gate out should be required to put in a sidewalk. It's commercial property. -367- Mr. Sweatt mentioned that the request was for the whole thing. Mr. McDonald commented he realizes that, but as with any development, until the property develops that adjoins that street, there's no sidewalk required. He said he understands the property from the gate to FM 3009 belongs to Barshop and is commercial. whenever that develops, they need to put in sidewalks. He has no problem with waiving the short piece from the gate in. Mr. Greenwald property line, Barshop's. pointed out the driveway is right on the so they are not waiving anything of After a brief discussion, Mr. McDonald moved, regarding the request from FM 3009 Partners Ltd. for a waiver to the sidewalk requirement on the east side entrance to Forest Ridge Subdivision, that they waive only that portion from the gate in. Mr. Greenwald seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa and Greenwald. NAYS: None. #5 ORDINANCE: Consider and take action on final reading of Ordinance rezoning 35.31 acres of land out of Comal County from Predevelopment (PD) to Manufacturing District - Light (M-l). Mayor Pro-Tem Agee introduced an ordinance and read the caption as follows: ORDINANCE NO. 97-5-21 BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, AMENDING THE UNIFIED DEVELOPMENT CODE (UDC) ORDINANCE NO. 96-5-28 BY REZONING APPROXIMATELY 35.31 ACRES OF LABD OUT OF CONAL COUNTY AND REFLECTING SUCH CHANGES ON CERTAIN ZONING MAPS IN ACCORDANCE WITH THE SCHERTZ UDC ORDINANCE. Mr. Sweatt pointed out the location on the map and admitted they have talked about this so often, he's sure Council is very familiar with it. Mr. Potempa asked if M-l is warehouses and things like that and Mr. Sweatt answered yes - M-l is Light Manufacturing. Mr. Potempa moved to approve the final reading of an Ordinance rezoning 35.31 acres of land out of Comal County from Predevelopment (PD) to Manufacturing District - Light (M-l). Mr. Greenwald seconded the motion, which carried with the following votes: -368- AYES: Councilmembers McDonald, Potempa and Greenwald. NAYS: None. #6 RESOLUTION: Consider and Resolution supporting the candidacy of position of President-Elect of TML. take action on Teri Jackson for the Mayor Pro-Tem Agee introduced a Resolution and read it as follows: RESOLUTION NO. 97-R-lO BY THE TEXAS, FOR THE CITY COUNCIL OF THE CITY OF SCHERTZ, SUPPORTING THE CANDIDACY OF TERI JACKSON POSITION OF PRESIDENT-ELECT OF TML. WHEREAS, Teri Jackson, a City Council member from Grand Prairie, Texas has provided exemplary service to Region 13 of the Texas Municipal League (TML) and served as Regional Director for four years; and WHEREAS, Ms. Jackson has served as a council member in Grand Prairie for eleven years and was recently reelected to another two-year term extending her tenure into 1999; and WHEREAS, Ms. Jackson has served two National League of Cities' Community Development Policy Steering Committee and committees over the last ten years; and years on the and Economic on numerous TML WHEREAS, Ms. Jackson has expressed a sincere desire to serve TML in a greater role; and WHEREAS, the City of Schertz is of the opinion that Ms. Teri Jackson would make an excellent President-Elect of TML and supports her candidacy; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: THAT the City of Schertz endorses and shows its support for Teri Jackson as President-Elect of the Texas Municipal League, and that this support be made known to the membership of TML. Mr. Potempa moved to approve the Resolution supporting the candidacy of Teri Jackson for the position of President-Elect of TML. Mr. Greenwald seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa and Greenwald. NAYS: None. -369- #7 BID AWARD: Consider and take action awarding bid for fencing of Woodland Oaks detention pond. Mr. Sweatt advised Council that included in their memorandum is a bid tabulation of bids received for the fencing of the detention pond. They received four bids and the apparent lowest and best bid is that of Quality Fence Co. & Supply in the amount of $5,719.80. It happens to be the same company that installed the original fence in that area. The are recommending a minor change of somewhat less than $50.00 lower on the price to connect the fence with the adjacent neighbor at 801 Dimrock. Because of configuration of the lots and fencing, the owner has spoken with the Public works Department and suggested we tie the fence directly into his wooden fence as opposed to coming along the front building line. It is recommended the bid be awarded to the low bidder. This is not a budgeted item. Mayor Pro-Tem Agee asked, options are for paying would come either out general fund. Mr. Greenwald moved to award the bid for the fencing of the woodland Oaks detention pond to Quality Fence Co. & Supply in the amount of $5,719.80. Mr. Swinney had arrived during this discussion, so he seconded the motion, which carried with the following votes: since it's not budgeted, what for it. Mr. Sweatt replied of the contingency fund or the it the AYES: Councilmembers McDonald, Greenwald. Potempa, Swinney and NAYS: None. Mayor Pro-Tem Agee now moved to ITEM #3 on the agenda. #3 DEFERRED COMPENSATION PROGRAM: Consider action on agreement regarding the USCM Compensation Program. and take Deferred Mr. Sweatt reported they have researched various possibilities to offer to employees an optional or alternative additional voluntary program for increased retirement benefits or increased savings. After reviewing plans and availability in the market place, they found basically two companies providing what's called a deferred compensation under IRS Code Section 457. The International City Managers's Retirement Corporation and the U.S. Conference of Mayors, operating through a company known as PEBSCO, each offer such a program. After -370- review, they found that PEBSCO appears to meet the majority of the City's needs and gives the employee a wide variety of options in a way that they might choose to make voluntary contributions or deductions from their income and shelter that income from the IRS program. After a number of inquiries they found in one circumstance where an employee in a certain tax bracket could contribute $25.00 per pay period and under the tax laws it would only cost $16.45. They could contribute $50.00 per pay period and it would only cost $35.45. And, they could contribute $100.00 per pay period and it would only cost $46.45. There is no City match. Mr. Bate Bond, representative of the Public Employees Benefits Services Corporation, is here tonight to answer questions. Mr. Bond related their program includes twenty mutual funds and also fixed funds. The only administrative fee that is charged to anybody is 0.95% per year on their balance. Mr. Potempa inquired about the maximum percent of money an employee can have taken out of their paycheck. Mr. Bond replied 25% or $7500 whichever is less. Mr. Swinney asked if there's a catch-up provision. Mr. Bond answered anyone who is within three years of retirement may put as much as 50% or $15,000 in if they haven't participated to the maximum during their career. Mr. Potempa verified that the employees get charged an administrative fee. Mr. Bond said it's less than 1% and it's only on the variables. Mr. Swinney Bond replied asked if the employee gets to pick and Mr. they can pick, and they can mix and match. Mr. McDonald asked if the employee can withdraw in an emergency and Mr. Bond explained the IRS guidelines are used to withdraw. Generally speaking that applies to a financial or medical emergency. It doesn't mean that when your transmission goes out you can get some money. It has to be an unforseeable emergency under the IRS guidelines. Mr. Potempa asked if you can take a loan against this money and was told you cannot. Mr. Swinney asked what company underwrites this plan and Mr. Bate answered Nationwide Insurance Company. Mr. Swinney then wondered if they have a rating. Mr. Bond answered it's not the same as Moody's, but their top rating is 3A and PEBSCO is 2A which is superior. Mr. Swinney then inquired how employees get their balances and Mr. Bond replied by calling in anytime they want to. -171- There is a quarterly statement which is mailed to their home, they can get on line with the web site, or they can call him. Mr. swinney asked if this company is listed in the newspaper. Mr. Bate explained that all the mutual funds they provide are listed in the newspaper. Mr. Swinney asked if there's a range of charges on the funds and Mr. Bond replied yes. Mr. swinney then wanted to know if they considered offering mutual funds only. Mr. Bond admitted they probably have, but he doesn't know for sure. Mr. Swinney asked what kind of education is provided to employees about these funds. Mr. Bond related they have a slide program, they have a program on computer, and he is a registered representative and a CPA and he describes the program to them. Mr. Swinney inquired if Mr. Bond is qualified to make recommendations and do risk assessments. Mr. Bond replied they have a questionnaire and based on those answers they analyze their risks, but he cannot recommend a specific fund. Mr. Swinney wondered if someone put in $10,000 escalated to $12,000 in two years, would the adjusted on the higher amount and Mr. Bond absolutely certain. He said he would check on it. and fee was it be not Mr. Potempa asked what the interest rate dividend was past quarter. Mr. Bond answered 6.25%. Mr. Potempa asked if it fluctuates and was told it does, but guaranteed rate for this year is 5.9%. this then the Mr. Swinney asked if they have a lot of people who select the life insurance option and Mr. Bate answered approximately 15% select it. He, personally, does not like being a insurance salesman, so he doesn't push it. Mr. Swinney inquired if there's open enrollment or individual underwriters. Mr. Bond responded that he understands it's based on the City's policy. Mr. Sweatt noted that the City routinely has briefings on benefits like this once a year. Mr. Swinney asked if there's any coincide with the City's fiscal year. at one time there was, but not now. reason this should Mr. Sweatt answered Mr. Sweatt went on to say this came about at the of the employees and he recommends Council proceeding with the agreement. request authorize -372- Mr. Swinney moved to authorize the city Manager and the City staff to enter into the necessary legal documents and agreements regarding the USCM (PEBSCO) Deferred Compensation Program. Mr. Potempa seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Greenwald. Potempa, Swinney and NAYS: None. #8 WAIVER: Consider and take action on request for waiver of connection requirement and waiver of standard pro rata contract agreement regarding extension of sewer line - Schertz Parkway. Mr. Sweatt told Council that in the memo he sent them, there was an error in the description of the project. The third paragraph describes the various costs arrangements and the Schertz Bank & Trust percentage was estimated to be $17,200 as opposed to the $11,500 in the memo. Mr. Jesse Hellums spoke at this time. He stated he owns acreage across which two-thirds of the line is going. It would be wonderful for everyone to be able to build sidewalks and roads and whatever they want. They have been in the area 12 years and the City of Schertz has always been amenable and they appreciate that. They have 41 families living there and are trying to make it last as long as possible. They need sewer, but not now. There's a difference between someone building $100,000 houses versus mobile homes that rent out for $165 per month. An increase of $10-$12 per month is significant to them. They are attempting to hold the property open as a mobile home park as long as the City will allow them to. They can, however, see where it behooves them and the other property owners there who adjoin them to go ahead and construct the sewer line. Mr. Hellums commented they are able to pay their share of the cost. The problem they would have is if they were required, when the sewer line is complete, to pay 41 times $1300. It's not impossible, but it would certainly handicap them. That's about two years of cash flow coming in from that property. He wants to work with the bank and wants the sewer line if he can somehow get away from the requirement to connect right away. Mr. Potempa asked if five years will be enough. Mr. Hellums answered it's a funny thing about time. Ten years ago, they thought five years would be enough, but it wasn't. He doesn't think this kind of growth can continue forever, but he thinks five years will be enough. He hopes he's not here five years from now asking Council to do it again, but he's not too proud to do it if he has to. -373- Mr. McDonald thought it would be foolish to require 41 initial hook-ups because Mr. Hellums may sell it and 41 hook-ups wouldn't develop out there. Mayor Pro-Tem Agee commented that based on Mr. Sweatt's letter and recommendation, he has no problem with a 5-7 year waiver. Mr. Greenwald pointed out it may be a problem if the septic goes bad and they have to comply with the new TNRCC requirements. Mr. Hellums said he understands that situation because their septic system is old. Mr. McDonald admitted he has no problem with a 5-7 year waiver. Mr. Greenwald felt the same way. Mayor Pro-Tem Agee asked exactly what they're looking at and Mr. Sweatt explained there are two separate issues. The standard pro rata agreement allows people to participate in the cost of extending a line and entering into an agreement with the City to recover a portion of that cost. The property owner will receive a pro rata portion of their money back if someone ties on in the five-year period. In this case, it has been suggested that perhaps that five years should be changed to seven years. At the end of whatever period of time is agreed upon, then any fees collected after that enure straight back to the City. There's some talk of changing the five years to a seven-year period of time. Also, if at the end of the five or seven years, no one has connected up, then the fees would come straight to the City. The other which they line. portion dealt with the length of time would not be required to connect to the during sewer Mr. Hellums admitted he had focused on the length of time they would not be required to connect to the sewer line. He hadn't really thought about the time limit of getting a rebate on the cost. If that's the policy, then that's the policy. Mr. Sweatt explained the standard is five years, but he understood there was some discussion about changing it to seven years. Mr. Hellums didn't understand that logic. If you don't get your money back within a certain length of time, then you don't get it back. Mr. Sweatt acknowledged that's the way the ordinance is written. Mr. McDonald asked if he sold a piece of the property and they hooked up, would he still get his pro rata share of the fee. Mr. Sweatt answered the contract would be between Mr. Hellums and the City. If he didn't waive his fee when he sold the property, then he would get his pro rata share. Mr. McDonald Schertz Bank answered this asked if Mr. Hellums, the John's own all the property involved. Mr. line is proposed to go deep enough it and the Sweatt would -374- serve across below those just how much the road and it would properties. There was it would serve. serve a distance down a brief discussion on Mayor Pro-Tern Agee asked Mr. Hellums if these waivers would help him. Mr. Hellums answered it would help the bank right away and it would help him in the long run. Mr. Potempa said, speaking of that, last night the TIF met and passed a Resolution to authorize the expenditure of up to $25,000 toward this project provided the Schertz Bank, the John family and Jesse Hellums also financially participate in the project. It was pointed out no one is at the meeting from the bank or the John family. Mr. McDonald mentioned that if they approve this without the participation of the bank and the John family, then the five year moratorium doesn't apply. Mayor Pro-Tem Agee asked Council if they wanted to table this until they get more information. Mr. Sweatt suggested that if Council agrees with the concept, then perhaps a motion with some stipulations would be acceptable. Mr. McDonald moved to approve the waiver of connection requirement and waiver of the standard pro rata contract agreement in theory and grant Mr. Hellums the five year moratorium on hook up and extend the recoupment clause to seven years. Upon determination of the bank and the John family's participation, the City should proceed. If the bank is going to participate, but not the John family, then he recommends the City authorize $8600 out of their funds to complete this project and require the John family to hook up immediately. Mr. Potempa seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Greenwald. Potempa, Swinney and NAYS: None. #9 RETAINING WALL: Consider and take action regarding retaining wall for Woodland Oaks Village sidewalk. Mr. Sweatt reminded Council they have in their packets a letter from Lancaster Development Company listing a bid from Ecko Construction for the flatwork portion at $1716.00 and the retaining wall and dirt haul off at $1900.00. The portion Mr. Lancaster has proposed be paid for by the City, as pointed out by Mr. McDonald, includes dirt to be hauled off and that is included in the flatwork portion. In other words the $600.00 will not be applicable to the retaining wall. Mayor Pro-Tem Agee mentioned he had stated originally he -375- was against sidewalks out there at that particular phase, but once the decision was made that he should put in a sidewalk, it should have been carried out. These back and forth letters with sundry and different offers are tiresome. Mr. Sweatt admitted maybe that's his fault. During one of his discussions with the developer, he told him because of the confusion, the City would participate in the extra cost of putting in the sidewalk. The developer made several other offers and ultimately came back with this proposal. Mr. McDonald observed one way or another Mr. Lancaster is going to try to get out of putting that sidewalk in. He recommended they check with Ecko Construction and ask them what kind of retaining wall they're talking about. There's going to have to be a slight curve to keep that water from washing down, but he can't see $1500.00 for that small curve. Take a look at the dentist office in front of Savannah Square. He has an almost identical slope and he put in a sidewalk. Mr. pay the McDonald for the cut out. also added that if Mr. Lancaster is going to flatwork, then he's going to have to pay for Mayor Pro-Tem Agee suggested they put this to rest and get on with it. Mr. Potempa asked about the ramhoe charges if they encounter rock. Mr. Sweatt answered if they encounter rock, it will be an additional $63.00 per hour. Mr. McDonald moved to proceed, but not authorize the payment of $600.00 for flatwork. Also included in the motion was the fact the City's cost will not exceed $1300.00. In addition, the City should ask Echo Construction what kind of retaining wall they are going to build. Mr. Swinney think it's a charges. Mr. McDonald revised his motion to say the City should proceed, and the maximum amount authorized to be paid by the City should be $1300.00. Mr. Greenwald seconded the motion, which carried with the following votes: asked what the bottom line is. good idea to be exposed to $63.00 He doesn't per hour AYES: Councilmemhers MCDonald, Greenwald. Potempa, Swinney and NAYS: None. '10 AGREEMENT: Consider and take action regarding renewal of service agreement with Guadco MUD II. -376- Mr. Sweatt advised the City entered into a six-month contract with Guadco MUD II to provide billing and collection services with the anticipation it would give them enough time to detect any unusual problems. Everyone has been very pleased with the arrangement and he is asking Council to approve extending it for another six months. Mr. McDonald moved to renew the service Guadco MUD II for another six months. seconded the motion, which carried with votes: agreement with Mr. Swinney the following AYES: Councilmembers McDonald, Greenwald. Potempa, Swinney and NAYS: None. #11 CITY MANAGER'S REPORT: Noted he has laid before before each of them a Water Study Report Phase I and would like to place it on the agenda next week. Council gave their approval for it to be on the agenda. #12 ITEMS BY COUNCIL: Mr. McDonald: Related the drainage study committee met last week. They are supposed to meet again this Friday with solutions not only for Berry Creek, but also for Ashley Place. Mr. Potemoa: A. Reported last night they had their monthly TIF meeting and he brought up the fact the Council has allowed the Neighborhood Services to go from 500' to 250'. It seemed like it went over pretty well, but there may be some opposition from the school board. B. Asked why there's still a sewer smell around Metro Ambulance and the bridge by H P Printing. You can notice it at 7:30 a.m. and at 10:30 p.m. At 2:30 a.m. you can smell it under the bridge. Mr. Sweatt said he hadn't had any other calls about it, but will have it checked out. Mr. Swinnev: A. Stated he will have to vote against the pool enclosure on the bond issue because of a lack of cooperation from the school district. B. Related Jerry Patterson has expanded the gun law to allow them in hospitals, churches and government offices. C. Thanked the City for the newly striped streets. D. Thanked Mr. It's great. Sweatt for the project status report. E. Congratulated Mr. Sweatt on his new grandson. F. Mentioned the convention in Waco was outstanding. G. Asked everyone if they were going to help at the phone -377- bank this Friday and Saturday to get the people out to vote. Some of the Councilmembers volunteered. It's at the Schertz Bank. Mr. Greenwald: Remarked TXDoT has been patching the potholes on FM 78. *13 ITEMS BY MAYOR: There were none. #14 RECESS TO BUDGET WORKSHOP Council took a five minute break before beginning the budget workshop. After the break, changes to the workshop tonight there. Mr. Sweatt handed out six budget. He commented they will to cover the generalities and pages use go of the from They discussed the recommended effective tax rate of 35.54 cents which is slightly below the rate that requires a public hearing. Among the other items discussed were equipment replacement, self-insurance, air conditioning replacement and undesignated reserve. Mr. Sweatt indicated they feel they have enough in the reserve to operate for four months. Vehicle replacement was discussed and also additional personnel for various departments. Mr. Potempa had to leave at 8:55 p.m. and this prompted the others to set a time limit no later than 9:30 or 10:00 p.m. for the budget workshops. *15 ADJOURNMENT: On a motion by Mr. McDonald, seconded by Mr. Swinney and carried unanimously, the meeting was adjourned at 9:10 p.m. l..yJ t.! ~4-, .4. Mayor Pr6-Tem, City of Schertz, Texas ATTEST: ~~ City Secretary, City of Schertz -378-