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.
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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:
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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.
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#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
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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.
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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
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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.
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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
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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
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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.
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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
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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
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