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ccreg 04-02-1996 REGULAR SESSION OF THE CITY COUNCIL APRIL 2, 1996 The Schertz City Council convened in Regular Session on Tuesday, April 2, 1996 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 Baldwin welcomed members of VFW Post 8315, Commander Marsh and the ladies from the VFW Auxiliary and asked everyone to rise and join him in the Pledge of Allegiance to the flag. Commander Marsh commented this is an unusual situation as the Mayor and all the Councilmembers are members of the VFW. They are trying to get some national publicity out of it. Pictures were then taken of the Mayor and Council and remaining VFW members in their VFW hats. Commander Marsh presented a plaque to retired Police Chief Agee in appreciation of his years of service to the City of Schertz. Before departing, Commander Marsh announced that April 28th is Loyalty Day at the VFW and Jerry Bethke is in charge of the program. #1 APPROVAL OF MINUTES: Special Session 1-31-96 Special Session 2-14-96 Regular Session 2-20-96 Mr. Sawyer moved to approve the minutes for the Special Session of 1-31-96, the Special Session of 2-14-96 and the Regular Session of 2-20-96. Mr. Greenwald seconded the motion, which carried with the following votes: Soecial Session 1-31-96: AYES: Councilmembers McDonald, Greenwald. Sawyer, Swinney and NAYS: None. ABSTENTIONS: Councilmember Potempa. Soecial Session 2-14-96: AYES: Councilmembers McDonald, Greenwald. Sawyer, Swinney and NAYS: None. -186- ABSTENTIONS: Councilmember Potempa. Renular Session 2-20-96: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. ABSTENTIONS: None. #2 HEARING speak on agenda items not on the OF RESIDENTS: Those citizens wishing items (other than public hearing items) agenda, will be heard at this time. to or No one had signed up to speak. #3 reading and R-2 ORDINANCE: Consider and of ordinance rezoning to R-6 (Gated Community) take action on 105.38g acres from (Aspen Homes). final GB, R-l Mayor Baldwin introduced an ordinance and read the caption as follows: ORDINANCE NO. 96-S-6 BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, AMENDING THE ZONING ORDINANCE NO. 87-S-1 BY REZONING 105.389 ACRES OF LAND OUT OF GUADALUPE COUNTY AND REFLECTING SUCH CHANGES ON CERTAIN ZONING MAPS IN ACCORDANCE WITH THE SCHERTZ ZONING ORDINANCE. Mr. Sawyer moved to approve the final reading of an ordinance rezoning 105.389 acres from GB, R-l and R-2 to R-6 and approving a side yard setback variance of 5 feet while maintaining 15 feet between homes. Mr. Greenwald seconded the motion. Mr. Sweatt representatives questions. advised that at of Aspen Homes Council's are here to request, answer Mr. McDonald asked if a school bus has one or two on it and wondered how they gain access to the community if there's only one driver on the bus. Baldwin replied there's only one driver unless Special Education bus. adults gated Mayor it's a Dave Matlock, President of Aspen Homes, replied the bus driver will have an access code and acknowledged he may have to disembark the vehicle. What they have done in other gated communities is to open the gates at certain periods of time, for example in the mornings for several hours and in the afternoons for several hours to accommodate a school bus. -187- Mr. McDonald pointed out he doesn't know if it's legal for the driver to leave the bus. Mr. Matlock assured him allowances could be made for a school bus. Mr. Potempa asked if Council turns down a gated community, will Aspen Homes still build. Mr. Matlock replied probably. Since the article appeared in the newspaper, they've had lots of calls and quite a bit of interest expressed about a gated community. If Council turned down the gated community, they would most likely go ahead and build. Mr. Swinney stated he is impressed with the good reputation of Aspen Homes. His concern is focused more on the concept of a gated community. He asked Mr. Matlock if he has any background information on how long the concept of gated communities has been around. Mr. Matlock answered it is a fairly new concept and he would estimate it's been around for 5-7 years. Aspen Homes has been doing gated communities for the last 4 years and it has been very successful for them. It is market driven and they have found their buyers are willing to pay a little bit more for the security. They did a survey and found many people prefer security versus other types of amenities. Mr. Matlock went on to say the Council's concerns are valid and he applauds them for that. A very strong homeowners association is needed to make sure the resources are available to maintain the streets and he feels they will have that. Aspen Homes intends to be in the community for a long time and he has found their best referrals are current homeowners. Mayor Baldwin questioned if they are developing the 25 acre tract first and was told yes they are. The Mayor then wanted it reaffirmed there will be more than one entrance off the 79 acre tract and was assured there will be two entrances off that tract. Mr. McDonald asked what the monthly dues are for the homeowners association and Mr. Matlock replied it depends a lot on the size of the community. There is a separate agency that will take care of all those details. Mr. Swinney mentioned the prices of these proposed homes seem to be lower than the typical gated community. Mr. Matlock indicated that's not true. The prices will be in the low 90,000's and up and that's pretty much their bread and butter. Mr. SWinney, then speaking to Mr. Pruski of Aspen Homes, mentioned the last time he was here they spoke about demand and he will agree there's probably a demand for gated communities, but his observation is that even the homes being built in non-gated communities are selling as fast as -188- they can get them constructed. Mr. Swinney, referring to the stringent requirements laid out for gated communities by Planning and Zoning in the UDC, expressed concern about the developer following everything to the letter through completion and then ten years down the road it's a whole different situation. His big stumbling block is they don't have a track record on gated communities. According to the UDC, Council has the right to audit the books of the homeowners association. What happens if the books are in shambles? Mr. Matlock suggested the Council take a look at the track record of the homeowners associations of Aspen Homes and realize they are very strong. Their homeowners are very prideful. There will always be turnover, but their homeowners associations have procedures in place to make sure their communities keep in line. Mr. McDonald still thought there may be a problem when people realize they are paying for streets twice. Mr. Swinney stressed they know that going in and Mr. Matlock emphasized they make their buyers very aware of that. Mayor Baldwin asked if having a gated community is in of amenities and Mr. Matlock replied not necessarily does not preclude having amenities. Mayor Baldwin asked if a club house or community center is planned the 25 acre tract and was told not at this time. lieu - it then for There was a brief discussion on having privacy having amenities. Mr. Sawyer commented Deer Haven private community. The only thing it doesn't have wall around it or gates. versus is a is a Mr. Swinney thought Council should give some consideration as to how a gated community will affect the City on down the line. Mr. Sawyer remarked they can put in the proper safeguards. Mayor Baldwin indicated the UDC can always be amended. Mr. Greenwald stated the basic concept here is to make sure there's coverage so the roads are inspected and the utilities and gates are maintained. Mr. Swinney still felt this ultimately takes the City to a litigation situation. Mr. Sawyer pointed out there is another gated community going in which was already properly zoned for that and the Council has no say. It will go in whether they like it or not. Mr. Swinney felt that's exactly the point for making a case to change the policy. Mr. Greenwald reminded Council the question before them is not "gated", it is zoning. "Gated" has nothing to do with it. Is R-6 the highest and best use of the land or should it remain GB, R-1 and R-2? -189- Mr. Matlock added that "gated" is very important to them from a marketing standpoint. If the Council rejects that, they will probably build out the 25 acre tract with no gates, but not develop the 79 acre tract. Discussion followed about whether or not Council has any control over this being a gated community and Mr. Greenwald acknowledged that's part of the platting process. The UDC lays out very stringent requirements for a gated community. Mayor Baldwin then asked where in the UDC it says Council has the right to decide whether or not a developer can build a gated community. Mr. Sweatt interjected to say the only way Council would have a say would be if they decided R-6 zoning is an improper zoning for a gated community. Mayor Baldwin observed that everything "they've approved in the last five years has been R-6. Mr. Greenwald commented there are still a bunch of R-l lots in the City, but they are not selling. Mr. McDonald suggested conveying their concerns to Planning and Zoning. Mr. Greenwald admitted Planning and Zoning is well aware of Council's concern. As a matter of fact, they are still waiting on the lawyer's decision regarding the UDC. Mr. Swinney commented it Planning and zoning was not gated community in Schertz. Planning and Zoning's concern but rather the lot size. appears from the vote that all that anxious to have a Mr. Matlock pointed out was not the gated community, Mayor Baldwin noted the decision right now is whether or not to rezone. Mr. Greenwald emphasized if the rezoning is denied, they cannot request rezoning on that same property again for one year. Mr. McDonald asked if they've met imposed on other developers and Mr. have. all the requirements Greenwald replied they Mr. Swinney, saying he thinks the system stinks, vowed not to penalize Aspen Homes because of the system. Mr. sawyer recommended Mr. Sweatt write a letter to Planning and Zoning expressing the Council's concerns. At this time the vote was taken, and the motion carried with the following votes. AYES: Councilmemhers McDonald, Greenwald. Potempa, Sawyer and NAYS: None. -190- ABSTENTIONS: Councilmember Swinney. Mr. Sweatt requirements not preclude advised Council there is a pending set of for gated communities under the UDC. It does the creation of additional zoning categories. Mayor Baldwin questioned why we can't require that gated communities fall under the PUD zoning. Mr. Greenwald answered the concept of PUD zoning is mixtures for example, apartments, single-family residences and some neighborhood services. After a discussion in which Councilmembers voiced the opinion they don't have any control over approving gated communities and feel they had no choice tonight but to approve the R-6 rezoning request, Mr. Willman reminded them they can tell Planning and zoning what to ,do. They are the boss. Mr. Sweatt mentioned that some other cities have designated the responsibility of the final platting process to the Council and away from Planning and Zoning. If it is the wish of Council to do this, it can be done. At this point, Council communities placed on discussion. decided they would the next workshop like gated agenda for #4 ORDINANCE: Consider and take action on reading of ordinance approving Tax Abatement and Abatement Agreement for and with Ecko Construction Co. final Tax Mayor Baldwin introduced an ordinance and read the caption as follows: ORDINANCE NO. 96-T-7 BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, APPROVING A TAX ABATEMENT AND A TAX ABATEMENT AGREEMENT FOR AND WITH ECKO CONSTRUCTION, A PROPERTY OWNER IN THE CITY OF SCHERTZ. Mr. Sawyer moved to ordinance authorizing a Agreement for and with seconded the motion. approve the final Tax Abatement and a Ecko Construction. reading of an Tax Abatement Mr. McDonald Joy Kutz of Schertz and pleasure. Ecko Construction complimented the its staff saying this process has City of been a Mr. Sawyer remarked you can say what you will about tax abatement, but it works. The City has looked at this land for at least 30 years with hardly any tax being paid on it and now because of tax abatement it is beginning to develop. -191- At this time the vote was taken and the motion carried as follows: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #5 ORDINANCE: Consider and take action on ordinance revising Traffic Code regarding speed limits on IH-35 main lanes and declaring an emergency. Mayor Baldwin introduced an ordinance and read the caption as follows: ORDINANCE NO. 96-D-8 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 18-76 OF SAID CODE; PROVIDING FOR SPEED LIMITS ON INTERSTATE 35 MAIN LANES AND DECLARING AN EMERGENCY. Mr. Potempa moved to approve an ordinance revising the Traffic Code regarding speed limits on IH-35 main lanes and declaring an emergency. Mr. Swinney seconded the motion. Mr. Sweatt reminded Council that from FM 3009 to the north City limits is a dangerous area because of construction. The vote was taken and the motion carried as follows: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #6 FINANCIAL ADVISOR: Consider and take action on financial advisory contract. Mr. Sweatt briefly reviewed the contract with Southwest Securities, the firm with which Tom Anderlitch and Mark McLiney are now associated. The fee schedule relates to the same fees the City has paid in the past to Rauscher-Pierce-Refsnes based on the size of particular bond issues. The contract is proposed for a term of 60 months from the day of its acceptance, however it may be terminated by either party with a 30 day notice. Other than that it is a pretty standard contract. Mr. sawyer moved to approve Southwest Securities as the City's financial advisor. Mr. Potempa seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. -192- NAYS: None. #7 RESOLUTION: Consider and take action on resolution rescinding request for bypass construction. Mayor Baldwin read the following caption: RESOLUTION NO. 96-R-2 BY THE TEXAS , SCHERTZ (TXDOT ) SCHERTZ. CITY COUNCIL OF THE CITY OF SCHERTZ, RESCINDING THE REQUEST FROM THE CITY OF TO THE TEXAS DEPARTMENT OF TRANSPORTATION FOR THE DEVELOPMENT OF BYPASS 538 AROUND Mr. Greenwald moved to approve the Resolution the request for Bypass 538 around Schertz. Mr. seconded the motion, which carried with the votes: rescinding McDonald following AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #8 BID AWARD: Consider and take action regarding bids for IH-35 water line project. Mr. Sweatt advised this is a proposed project in connection with TXDoT. It proposes to extend a 12" water line from near FM 1103 along the west right-of-way line of IH-35 up to the TXDoT rest area and will include boring the interstate from the west side to the east side and serving residents in the Cover's Cove area. This is a joint project of approximately 7,000 linear feet of 12" water line and the appropriate length of boring. Bids were solicited and the City received a number of good ones. They were opened on March 28th at 10:30 After review, it is recommended the bid be awarded to lowest and best which is SACC, Inc. in the amount $211,044. TXDoT will pay for approximately 65% of project. very a.m. the of the Mr. Greenwald moved to award the bid for the IH-35 water line project to SACC, Inc. in the amount of $211,044. Mr. Swinney seconded the motion. Mr. Sawyer asked if we have enough money for the project and Mr. Sweatt replied yes we do - it will come from the capital improvements portion, from the impact fees. It is part of the Master Plan construction. The vote was taken and the motion carried as follows: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. -193- NAYS: None. #9 CITY MANAGER'S REPORT: A. Announced that on April 12th, Dover Homes will be having a fiesta and grand opening of their new section from 5:00 p.m. until 8:00 p.m. Those wishing to attend need to RSVP by April 6th. B. Noted the Arby's ribbon cutting has 4th of April at 11:00 a.m. Everyone attend. been changed to the is encouraged to C. Asked Council to mark their calendars for the 27th of April. Intsel is having a grand opening starting at 1:00 p.m. D. Mentioned that on May 2nd, GVEC appreciation event for the Volunteer Fire Guadalupe County. He will include a copy of the next information packet. . is having Department the details an of in E. Related the sewer averaging has now been completed. The average now for the new customer will be 6865 gallons compared to the 1994 average of 5865. However the 1993 average was only 6387 gallons. The City will be looking at questions raised about watering times and other concerns and try to come up with some solutions. #10 ITEMS BY COUNCIL: Mr. McDonald: A. Asked if there's any chance of getting TXDoT to change their mind about traffic lights on FM 3009. Mr. Sweatt replied TXDoT indicated they would consider reopening the issue on Live Oak and Woodland Oaks Drive. The rest they have pretty well dismissed. We can always send them another letter. Mr. McDonald mentioned some of the homeowners along FM 3009 are upset and are going to have a meeting about it this month. We might encourage them to write letters. Mr. Sweatt agreed sometimes that's more powerful than a request from the City. B. Questioned the status of the ITM tax abatement request. Mr Sweatt answered the request for a variance went before the Economic Development Commission last week and was denied so he suspects they will be coming back with the original request. Mr. Potemoa: Referring to an article in the San Antonio Express News about the City of San Antonio, jokingly asked Mr. Sweatt if he could purchase ID badges for the City Councilmembers for Christmas. Mr. Sawyer: Informed Council that this Wednesday morning he will be bringing a visitor from Kumimoto, Japan to meet Mr. Sweatt and to observe how a small city operates. Mr. Swinnev: A. Encouraged all the Councilmembers to send in their police surveys. -194- B. Commented the First Baptist Church did an excellent job with their survey. What he thought was interesting was that the biggest concerns were taking care of the young and the elderly. He's in favor of the City, the churches and the schools working in partnership for a better community. C. Asked if they're for their packets. be available as soon going to be able to get Mr. Sweatt indicated as possible. some notebooks notebooks will Mr. Greenwald: A. Reported BVYA had a good opening day. B. Related that apparently a bunch of home mortgage notes previously held by the Broadway National Bank were sold approximately six months ago to a bank in Dallas and sold again in January to a bank in Maryland. As of yesterday his County taxes are delinquent. The bank in Maryland did not get a total list of all the taxing entities they had to pay. In fact, they sent him a check for $600 saying they had too much escrow. In talking with some other people, Mr. Greenwald discovered they have the same bank. The lady at the bank in Maryland tried to convince him that during this past year several cities and counties in Texas consolidated and that.s why there was only one tax. He informed her there was no provision in the Texas Constitution for consolidation. According to a federal law, when they change banks, the new bank has to accept the conditions of the contract with the previous bank and Mr. Greenwald's contract stated the mortgage company would pay all his taxes and insurance. They are also responsible for all penalties and fines. He has already spoken with a reporter so this can be in the paper to warn people to beware. #11 ITEMS BY MAYOR: A. Mentioned he and Mr. Sweatt had the pleasure of having breakfast the other morning with the Wing Commander at Randolph AFB. Randolph is going through some mission changes and they are in the process of bringing in civilian personnel from Washington D.C. This change will bring in 200 high-ranking civilians who will be able to afford to buy a house in Schertz. Also, the maintenance program is going to be converted military maintenance to contract services and that may shipping out 550 enlisted personnel and bringing in contract maintenance mechanics. Again, these people be able to buy houses in Schertz. from mean 300 will Mr. Sweatt added that according to an unofficial, informal survey done by the Base commander, six out of ten of his officer personnel who do not live on base live in Schertz. Mr. said, civil of the Greenwald, not wanting to dispel what the commander stated those maintenance contract slots are contract service slots. What they've done is downgraded 80% positions. -195 - Mr. Sweatt also noted Randolph continues to be aware of how strongly Schertz supports the AICUZ restrictions. B. Referred to the letter in the packet from the Senate Intergovernmental Relations Committee signed by Senator Rodney Ellis. It's a testament to the outstanding letter written by Mr. Sweatt regarding city/county consolidation. #12 ADJOURNMENT: On a motion by Mr. Potempa, seconded by Mr. Sawyer and unanimously approved, the meeting was adjourned at 8:30 p.m. ( Mayor, City of Schertz, Texas ATTEST: ~~-! I t?/~ city Secretary, City of Schertz -196-