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ccreg 05-07-1996 REGULAR SESSION OF THE CITY COUNCIL MAY 7, 1996 The Schertz City Council convened in Regular Session on Tuesday, May 7, 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; 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 welcomed everyone and asked them to rise and join him in the Pledge of Allegiance to the flag. #1 APPROVAL OF MINUTES: Regular Session 3-19-96 Special Session 3-27-96 Mr. sawyer moved to approve the minutes for the Regular Session of 3-19-96 and the Special Session of 3-27-96. Mr. Greenwald seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. n 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 A. Patty Raspino of 105 Church Street spoke about the rezoning of the lot at First and Church Streets. Ms. Raspino admitted she is not -totally opposed to the rezoning. She then mentioned things that are good for the City, but not necessarily for the neighborhood. Burch Roofing has made some nice improvements to the building and the business is doing well, but it's right in her back yard. That's okay because it's important for the City to have that kind of growth. Another example is the dump behind their neighborhood. The dust is really bad, but the dump is a necessary fact of life. A few of the houses in her neighborhood are in really bad shape and that's a concern to citizens, but it's not her style to jump down her neighbor's throat. The idea of rezoning a lot for the purpose of putting a duplex or duplexes on it raises concern. Ms. Raspino said she understands that Mr. Burch originally asked for this rezoning and if that's correct, it raises concerns for her. Mr. Burch has a duplex on his lot which is behind her house and it's in pretty bad shape. It's an existing structure and it's her understanding from a couple of realtors that moving an existing building onto a lot in an established neighborhood will decrease property values. -230- Ms. Raspino felt it would be better to put a mobile home on the lot instead of moving an existing structure onto it. If Mr. Dicus plans on putting a new structure on the lot, she thinks that's great. If there's some way the lot can be rezoned for only one duplex, she has no objections. If the lot is split and two duplexes are built, Ms. Raspino indicated she thinks that falls into the category of high density housing which also lowers property values. Ms. Raspino told Council if they could address any of her concerns she would really appreciate it. She knows that growth is something that's looked at everyday. She would just like to be assured that the changes being planned are not going to have a negative effect on her neighborhood. Mayor Baldwin reminded Ms. Raspino there hearing on that particular subject tonight. some discussion about her concerns and she the opportunity to speak again at the p~blic is a public There will be will be given hearing. Lori Swaney, David Bish, George Stephens and Floyd Dicus had all signed up to speak. Mayor Baldwin asked if they all wanted to comment on the subject to be discussed at the public hearing. They all did. Mayor Baldwin then told them they can speak now and at the public hearing, but it would be more advisable to give their comments during the public hearing. They all chose to wait until the public hearing. #3 ELECTION RETURNS: A. Canvassina of Election Returns Council reviewed the tally sheets for the election held on May 4, 1996. A total of 945 people voted in the election. It was discovered there was a mathematical error in summing up the total votes cast for both Mayor Baldwin and Councilmember Charles McDonald. The tally sheets reflected a total of 684 votes for Mayor Baldwin and it should have been 679 and a total of 561 votes for Councilman Charles McDonald and it should have been 557. Neither of these errors affected the results of the election. B. Ordinance: Consider ordinance canvassing the returns of the City Officer Election declaring an emergency. and take action on an and declaring the results held May 4, 1996, and Mayor Baldwin introduced an ordinance and read the caption as follows: ORDINANCE NO. 96-E-10 BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, eJUWASSING THE RETURNS AND DECLARING THE RESULTS OF THE CITY OFFICER ELECTION HELD IN SAID CITY ON THE FOURTH DAY OF MAY, 1996, AND DECLARING AN EMERGENCY. -231- In the election held on May 4, 1996 Hal Baldwin received 679 votes for Mayor and George Mower received 26l votes for Mayor. Charles McDonald received 557 votes for Councilmember Place 1 and Jerry Graham received 344 votes for Councilmember Place 1. Joe Potempa received 758 votes for Councilmember Place 2. Therefore, Hal Baldwin was duly elected Mayor, Charles McDonald was duly elected Councilmember Place 1 and Joe Potempa was duly elected Councilmember Place 2. Mr. Swinney moved to approve the ordinance canvassing the returns and declaring the results of the City Officer Election held May 4, 1996, and declaring an emergency. Mr. sawyer seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #4 PUBLIC HEARING: To receive citizen comments on a request by Floyd Dicus to rezone .354 acres of land from R-2 (Single-Family Dwelling District) to R-3 (Two-Family Dwelling District). Mayor Baldwin reviewed the process by which the public hearing will be conducted. First Mr. Sweatt will provide the information he has, then Mr. Dicus will make his presentation and then it will be opened up to the public. Mr. Sweatt advised this item comes to Council as a result of an application by the property owner to apply for a change of zoning district from R-2 to R-3. It is a .354 acre tract of land located at the corner of First and Church Streets. Fifteen letters were sent to property owners within the required distance. Three letters were returned as undeliverable, three were returned in favor and eight were returned in opposition. The Planning and Zoning Commission held a public hearing on this request on April 23rd. After hearing the applicant and others interested in this matter, the Planning and Zoning Commission's motion was 3 to 2 to approve the rezoning. However under their rules of procedure, it requires an affirmative vote of 4 or more to recommend the change. As a result, this comes to Council with an inverse recommendation. Mr. Dicus opted to wait and make his presentation until after the public had expressed their views. Patty Raspino of 105 Church Street stated her only concern is any involvement on the part of Mr. Burch. Janice Betcher (neighbor of Patty Raspino) remarked the lot is an historical marker and they don't want low income -232- housing on it or anything that Mr. Burch is going to trash. Lori Swaney of III Church Street stated she is totally opposed to the R-3 zoning classification. David Bish of 112 Church Street also expressed opposition to the zoning change. He purchased the old Dowrnan home and is in the process of refurbishing it. The neighborhood is a nice quiet area and he wishes for it to remain that way. There are houses that need to be torn down and there are empty lots that need to be developed, but he's not sure R-3 is the way to go. George Stephens of 305 Church Street reported that at the first Planning and Zoning meeting, Chairman Jarman read from her notes that Mr. Burch wanted the property rezoned for the purpose of moving a duplex from his property on FM 78 to the property at First and Church Streets. Mr. Stephens said he informed Chairman Jarman that Mr. Burch did not own that property and that Mr. Dicus owned it. The request was then tabled. Mr. Burch has not publicly stated that he does not want to move that barracks building (duplex), so it must be assumed that he still wants to move it. Mr. Stephens said he expressed a lot of concerns about that at the second meeting with Planning and Zoning. Also, at that meeting Steve Simonson counted 9 letters in opposition rather than 8 as Mr. Sweatt stated earlier this evening. Mr. Sweatt counted the letters received and verified they received only 8 in opposition. Mr. Stephens went on to say that area is completely surrounded. There is a swamp or jungle, depending on the weather, a garbage dump/landfill, a cement plant and FM 78. They have two outlets. They don't need anything else even approaching commercial or multi-family. The citizens in the area do not want it. As a matter of fact, one citizen refused to come to the public hearing and comment because he feared reprisal from the City such as not being issued a building permit. The cement company has installed a gate right at the end of Church Street so their trucks can go through the traffic light, make a left turn onto Church Street and go directly into the cement company property. That has changed the flavor of the neighborhood. There are more commercial vehicles. Mr. Stephens then referred to Mrs. Woodward who lives across from him. There is a bump in the street in front of her house and when the cement company's trailers hit that bump, lumber flies off their trucks and he has to pick it up and dispose of it. -233- Mayor Baldwin asked if there isn't a duplex across the street from Mrs. Woodward and Mr. Stephens replied not that he knows of. Mr. Stephens then commented he noticed the property has been surveyed and it was surveyed down the middle. Mr. Dicus claimed there were four stakes out there, but there are only two. The lot has been subdivided. Unless City Council can assure the property owners in the neighborhood that Mr. Burch will not build on it, he doesn't see how they can approve the rezoning. If this lot is rezoned, Mr. Dicus can sell it to anyone and that stinks. William Boynton of l06 Church Street stated he has no personal axe to grind, but his concern is the concept of a duplex on the lot. The neighborhood is struggling to survive as it is. In spite of all the things working against the neighborhood, people there are putting a lot of effort into improving their homes. Mr: Boynton felt the lot is not big enough to sustain a duplex and the extra traffic it will create. A duplex leaves the door open to rental rather than ownership and that means more transients. He hopes Council denies the rezoning request. Floyd Dicus made his presentation at this time. He wanted to clarify he had the lot surveyed and he had the building corners located. His background is construction and he has been in it for almost 30 years. The opposition speaks well of the neighborhood, so he's sure it not a bad investment. Pointing to Merwin Willman, he mentioned that Mr. Willman could confirm the fact that to subdivide a lot you have to go before the Planning and Zoning Commission and that's not been done. The lot is a third of an acre, so if you have one duplex on it, that's equal to two of the lots in that neighborhood. Mr. Dicus related that Randy Burch approached him a year ago about buying the lot. There is not an address for the lot because it has been vacant for so long. The only new construction in the neighborhood in the past 20 years has been the Cooper CPA office building on Mill street. He bought the lot for an investment. There must have been a house on it at one time because he found a water meter and gas meter there. If he were going to sell the lot to Mr. Burch, he wouldn't have paid for the survey, wouldn't have had the building corners located, wouldn't have gone to the trouble of having a preliminary set of drawings done and wouldn't have applied for power. The lot now has a power pole on it. Several people have expressed an interest in buying the lot. One of them wanted to move an old house onto it. Mr. Dicus said he had spoken with Steve Simonson today and there are no restriction against moving an old house onto the lot as long as it meets all the zoning restrictions and is brought into compliance with all the building codes. -234- Mr. Dicus proposes to build a 2400 square foot building on the lot which he says will be valued by the Building Inspector at $95,000. Mr. Burch originally put the idea of a duplex in his head. A house is not cost effective. He doesn't feel anyone would buy a new 2400 square foot house in that neighborhood. If you build two duplexes, you get two 1200 square foot dwellings. There are other alternatives, one of them being to sell the lot. According to Mr. Dicus, Randy Burch applied for the rezoning because he wanted it zoned for multi-family so he could move his duplex onto it before he bought the lot. Mr. Dicus found this out the day of the meeting and informed him he was going to build on the lot and it was not for sale. It is not for sale to anyone at the present time. If it's not cost effective for him to build on it, then he has no choice but to sell it. This concluded Mr. Dicus's presentation and he stated he would be glad to answer any questions. Mr. Swinney wanted to know, with all of Mr. Dicus's building experience and probable knowledge of land values allover the place, why he chose this lot versus, for example, a lot in Universal City. Mr. Dicus replied Universal City has changed its zoning laws to where you have to build a minimum 1500 square foot house. Also, he would have to use brick on the house in Universal city, but would not be required to do that in Schertz. Mr. Swinney then asked Mr. Dicus what business relationship he has with Mr. Burch on this lot either now or in the future. Mr. Dicus replied he has none currently, but if he has to sell this lot to get his money out of it and Mr. Burch wants to buy it, then he's welcome to do that. Mr. Swinney wondered if Mr. Dicus would consider building a single duplex more toward the middle of the lot if he doesn't already have plans. Mr. Dicus answered he does have plans - he is set up to build on half the lot. This leaves him more land out front, he can put a garage there if he wants to, and he can subdivide the lot and put another house there. This building may not be cost effective at all. Mayor size 7500 which there Baldwin asked Merwin Willman if there's in R-3. Mr. Willman looked it up and square feet. Saying the lot measures is l5,435 square feet, Mayor Baldwin is room on it for two duplexes. a ml.nl.mum lot stated it's 105' x 147' pointed out George Stephens of accommodations are are required by the 305 Church Street asked how the parking for a duplex. Mr. Dicus replied you City to have two per unit off street. -235- Mayor Baldwin inquired about driveways and Mr. answered two separate driveways - 4 parking spots. Several people in the audience expressed concern about what control a landlord would have over who lives in a duplex. They felt sure someone is intending to put a duplex on the lot. It seems that HUD is taking more and more control away from the landlord. It was also mentioned that the old church is going to be a Christian school with a lot of children. They should not be exposed to the seedy type of people who live in HUD housing. Dicus Mayor Baldwin asked if it doesn't bother anyone that there will be a church school in there with all its traffic and several replied they had no objection to the school. Mr. Swinney aSKed what the lesser of two evils. is to the neighborhood a new duplex or an old dilapidated house moved onto the lot. There was some discussion about the meaning of dilapidated and Mr. McDonald noted he thinks Mr. Swinney means would the neighborhood prefer a newly constructed duplex or a house moved in on wheels which would take a lot of restoration work. Patty Raspino stated if the zoning change is approved and Mr. Dicus wants to build duplexes on the lot, that's certainly his prerogative, but she feels property values will be adversely affected. Ms. Raspino then commented she has supported the five Councilmembers because she likes the way they look out for Schertz and now she would like for them to watch out for the citizens in her neighborhood. Mr. Potempa asked what plans for this and Mr. requires no maintenance Potempa then inquired if trucked in and Mr. Dicus site. type of construction Mr. Dicus Dicus replied metal because it and is cost effective. Mr. it will be built on the site or answered it will be built on the There being no further comments or questions, Mayor Baldwin closed the public hearing at this time. #5 ORDINANCE: Consider and take action on first reading of ordinance rezoning .354 acres from R-2 to R-3. Mayor Baldwin introduced an ordinance and read the caption as follows: -236- AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, AMENDING THE ZONING ORDINANCE NO. 87-S-1 BY REZONING. 354 ACRES OF LAND OUT OF GUADALUPE COUNTY AND REFLECTING SUCH CHANGES ON CERTAIN ZONING MAPS IN ACCORDANCE WITH THE SCHERTZ ZONING ORDINANCE. Mr. McDonald moved to deny the rezone .354 acres of land from District) to R-3 (Two-Family Potempa seconded the motion. request from Floyd Dicus to R-2 (Single Family Dwelling Dwelling District). Mr. Before the vote, Mr. Swinney made a couple of remarks. Regarding the citizen who was afraid to corne and speak, he hopes that's not a pervasive attitude. He doesn't think reprisal is something that would occur in the City. If it ever does, he would sure like to know' about it. Also he appreciated all the comments from everyone and feels they have concerns backed up with facts and not fear. Mr. Dicus did not give him the assurances the citizens needed to protect themselves. Mr. Swinney also expressed the hope that the citizens know City Council listens to them. Mr. McDonald emphasized to the audience that it is their neighborhood. At this time a vote was taken and the motion to deny the rezoning request carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. Mr. McDonald suggested they next consider action two tax abatement items on the agenda before going audit report. Council agreed and the auditor objections. on to had the the no #7 ORDINANCE: Consider and take action on final reading of ordinance approving Tax Abatement and Tax Abatement Agreement for and with DSI Distributing. Mayor Baldwin introduced an ordinance and read the caption as follows: ORDINANCE NO. 96-T-l1 BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, APPROVING A TAX ABATEMENT AND A TAX ABATEMENT AGREEMENT FOR AND WITH DSI DISTRIBUTING, A PROPERTY vlh.",R IN THE CITY OF SCHERTZ. -237- Mr. Sawyer moved Abatement Agreement Greenwald seconded following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. to approve a Tax for and with DSI the motion which Abatement and Distributing. carried with Tax Mr. the NAYS: None. Mayor Baldwin thanked Mr. Sheridan from DSI for his patience and welcomed him to the city. Since no one from ITM was at the meeting, Mayor Baldwin went back to Item #6, the audit report. t6 AUDIT REPORT: Consider and take action approving 1994/95 audit report. Mr. Sweatt reintroduced Fred Timmons who had reviewed the audit at the workshop last week. Mr. Timmons mentioned it is pleasurable to work with the people of the City of Schertz. Mr. Timmons covered some of the high points as follows: (1) On page 1l the tax assessment rate was corrected. (2) His rule of thumb is that the reserve fund should be 1/3 of the annual expenditures and the city of Schertz has reached that level. (3) The Special Revenue Fund is the Development Foundation; Debt Service is the payment of general long-term debts; and Capital Projects Funds represent federal assistance along with 1992 and 1990 GO and CO bond funds. (4) On page 59 is the statement of revenues and expenses of the two Enterprise Funds (Water/Sewer System and SAFES). Both Enterprise Funds generated a net revenue and that is proper because they are designed to stand on their own. Mr. Timmons commented that's the high points of the major funds. They all had excess revenues over expenditures which is a necessity. Good strong reserves have been built up and that's important. He will now answer any questions Council may have. Mr. Swinney, referring to page 79 and the debt ratio, asked what the general guidelines are for this ratio. Mr. Timmons replied he does not know a rule of thumb. You have to issue debt in order to expand and the City has done a good job of meeting its debt requirements and has a really good bond rating. -238- Mayor Baldwin asked Water/Sewer Fund. directed the Mayor requirement. if there's a bond debt reserve Mr. Timmons replied yes there to look on page 82 for the in the is and reserve Mr. Sawyer inquired if there's some policy for collecting unpaid SAFES bills. Mr. Timmons answered they are turned over to a collection agency. Mr. Sweatt explained they establish an account for a credit toward bad debt. Continued efforts are made to try and collect the money. Mr. Timmons indicated he also has a Management Letter which they can review. Basically, the first comment is that the books and records suffered through this last year because of a massive turnover in the Finance Department due to illness and some advancement. His recommendation is to consider hiring an additional person. It was discovered, upon her death, that Office Manager Alice Austin was the only person who was knowledgeable of some of the computer systems. Mr. Timmons highly recommended that two or more personnel be familiar with all systems of the City. The City is in the process of working on that right now. Mr. for can Timmons reiterated it was a privilege to the City. He appreciates it very much and continue to do it in the future. do the audit hopefully he Mayor Baldwin thanked Mr. Timmons for report. He wanted everyone to know they minor goal, regarding the reserves, that themselves about five or six years ago. the outstanding have achieved a they set for Mr. Swinney moved to approve the 1994/95 audit Mr. Sawyer seconded the motion, which carried following votes: report. with the AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #8 ORDINANCE: Consider and take reading of ordinance approving Tax Abatement Agreement for and with ITM. action Abatement on first and Tax Mayor Baldwin introduced an ordinance and read the caption as follows: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, APPROVING A TAX ABATEMENT AND A TAX ABATEMENT . AGREEMENT FOR AND WITH ITM, INC. , A PROPERTY OWNER IN THE CITY OF SCHERTZ. -239- Mr. Sawyer moved to approve the first reading of an ordinance approving a Tax Abatement and a Tax Abatement Agreement for and with ITM, Inc. Mr. Greenwald seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. Mr. Sweatt commented we are happy to have this company in the City of Schertz. #9 ORDINAMCE: Consider and take action on final reading of ordinance rezoning 17.7592 acres of land from NS (Neighborhood Services) to PUD (Planned Unit Development). (Laredo Greenshire) Mayor Baldwin introduced an ordinance and read the caption as follows: ORDINANCE NO. 96-S-l2 BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, AMENDING THE ZONING ORDINANCE NO. 87-5-1 BY REZONING 17.7592 ACRES OF LAND OUT OF GUADALUPE COUNTY AND REFLECTING SUCH CHANGES ON CERTAIN ZONING MAPS IN ACCORDANCE WITH THE SCHERTZ ZONING ORDINANCE. Mr. Greenwald moved to approve the final reading of ordinance rezoning 17.7592 acres of land from NS to Mr. McDonald seconded the motion, which carried with following votes: an PUD. the AYES: Councilmembers McDonald, potempa, Sawyer, Swinney and Greenwald. NAYS: None. #10 ORDINANCE: Consideration and approval of an Ordinance declaring and determining the necessity for the improvements of certain streets and avenues, or portions thereof, within the City of Schertz, Texas and ordering the construction of these improvements in the manner, to the extent, and within the limits and in the area herein set forth and hereinafter defined; invoking the powers and procedures provided by and adopting the provisions of Chapter 313, as amended, Texas Transportation Code; providing the manner in which and by whom the cost of such improvements shall be paid; providing for the assessment of a portion of such cost against the abutting property and the owners thereof and for the fixing of a lien to secure the payment of such assessments; providing for the terms of payment of such assessments; directing the City's Engineer to prepare plans and specifications for the proposed improvements; directing the City Secretary to -240- prepare and file notice of the enactment of this Ordinance; enacting provisions incident and relating to the subject; and declaring an emergency. Mayor Baldwin introduced and ordinance and read the caption as follows: ORDINANCE NO. 96-M-13 DECLARING AND DETERMINING THE NECESSITY FOR THE IMPROVEMENT OF CERTAIN STREETS AND AVENUES, OR PORTIONS THEREOF, WITHIN THE CITY OF SCHERTZ, TEXAS AND ORDERING THE CONSTRUCTION OF THESE IMPROVEMENTS IN THE MANNER, TO THE Elu"'.'~, AND WITHIN THE LIMITS AND IN THE AREA HEREIN SET FORTH AND HEREINAFTER DEFINED; INVOKING THE POWERS AND PROCEDURES PROVIDED BY AND ADOPTING THE PROVISIONS OF CHAPTER 313, AS AMENDED, TEXAS TRANSPORTATION CODE; PROVIDING THE MANNER IN WHICH AND BY WHOM THE COST OF SUCH IMPROVEMENTS SHALL BE PAID; PROVIDING FOR THE ASSESSMENT OF A PORTION OF SUCH COST AGAINST THE ABUTTING PROPERTY AND THE OWNERS THEREOF AND FOR THE FIXING OF A LIEN TO SECURE THE PAYMENT OF SUCH ASSESSMENTS; PROVIDING FOR THE TERMS OF PAYMENT OF saHlI ASSESSMENTS; DIRECTING THE CITY'S ENGINEER TO PREPARE PLANS AND SPECIFICATIONS FOR THE PROPOSED IMPROVEMENTS; DIRECTING THE CITY SECRETARY TO PREPARE AND FILE NOTICE OF THE ENACTMENT OF THIS ORDINANCE; ENACTING PROVISIONS INCIDENT AND RELATING TO THE SUBJECT; AND DECLARING AN EMERGENCY. Mr. Sweatt advised that Ron Wood and Michael Spain are present this evening to answer questions. Included in Council's packet is a list and dimensioning of those streets involved in this proposed project. An outline of the Schedule of Events to take place on this project was distributed. There are 170 lots involved and Mr. Wood owns 89 of those. Mayor Baldwin asked for a motion and Mr. Greenwald moved to approve the ordinance as captioned above. Mr. Sawyer passing it starting the asked tonight process? if this sets up the are we only stating Mr. Sweatt replied structure. By the intent and that's correct. Mr. Swinney stopped at schedule. verified this process can be altered or any time within the legal constraints of this Mr. Spain stated that's correct. Mr. Sweatt explained the latest they can go until they're past the point of no return is August 6th when the bids are opened. Mr. Spain told Council to bear in mind the action tonight -241- doesn't require the City to spend any dollars. Ninety percent of the cost of the project will be assessed against the owners. Mr. Sawyer inquired how this affects the rest of the City. Is is just a single area? It seems an ordinance should cover the whole City. Mr. Spain replied it is just a single area and then pointed out a zoning change ordinance only affects one area. Mr. Spain further stated if this goes all the way through to the end, 90% of the cost of the project will be paid for by assessments against the property owners. They are working on an arrangement with the developer where he would pay 10%. Mr. Sawyer these folks Mr. Spain. mentioned the City has to file liens against that own this property. That was confirmed by Mr. McDonald. asked what the 10% is and Mr. Spain explained the 10% is paid for by a source other than assessments against the property owners and that will be paid by the developer. Mr. McDonald then wondered if 90% is all you can assess against the property owners and Mr. Spain replied yes, that's the law. Mr. McDonald questioned who is paying for the sewer. Mr. Sweatt noted water and sewer will be paid for by the developer and as the lots are connected to the system, those connecting will be required to repay the cost. Mr. McDonald queried if CCMA will have any involvement in this. Mr Sweatt explained the City collects on behalf of CCMA and the City the capital recovery fees at the time there is a connection to the system. In addition to those normal fees, the City will enter into an agreement that provides for pro rata payments by property owners to repay the extra extension costs. The City will enter into an agreement with the developer in which they will collect, for a period of 5 years, from property owners who own land in this area to be improved their pro rata share of the cost of the water and sewer lines to be installed. Mr. McDonald asked what happens at the end of 5 years if they choose not to develop it and pay it. Mr. Sweatt answered at the end of 5 years the City no longer has any commitment to return any received money to the developer. The City at that point would have the choice to continue to collect those fees and enure the benefit of the fees or waive those fees and go back to collecting only the capital recovery fees. Mr. Potempa inquired consulting fee. Mr. who pays the City Sweatt replied in this Engineer's case, the -242- developer's engineer is providing the services. Mr. Swinney total outlay and for the correct. asked if he understands correctly that the for the owner of a lot will be for the paving water and sewer. Mr. Sweatt replied that's Mr. Spain related they will be assessed for the paving and under the current plan, they will have the option of paying all that immediately or spreading it out over three payments. They can pay one-third immediately and then one-third after one year and the final one-third at the end of the second year. If they choose not to pay it off all at once, there will be interest of 8%. They do not have to pay for the water and sewer until they actually connect to the system. Mr. Swinney asked the estimated cost of the water/sewer hookup. Mr. Sweatt said, exclusive of the capital recovery fee, streets and drainage is estimated to be $7300-$7400 per lot and the water/wastewater is estimated to be $4500-$4600 per lot. That brings those costs somewhere near $12,000 per lot. Mr. Wood agreed with those figures. Mr. Spain mentioned that individual appraisals done. One of the things the property owners will know is if those expenditures will raise the value lots. The developer will have an appraiser and so City. will be want to of their will the Mr. Swinney of what the $20,000. asked if there's an estimated appraisal value lots will be worth. Mr. Wood thought around Mr. Swinney owners $500 incorrect. $5,000 for partnership, understood Mr. Wood is offering the property for their lots. Mr. Wood indicated that is Those who carne into the partnership received their lots. If they didn't corne into the they were offered $500 for their liability. Mr. Swinney said the reason he's asking is because he had a call last night from a very concerned citizen. She and her family own several of the lots and have received letters from Mr. Wood. They seemed to be quite intimidated by the letters. He didn't know if it was the language in the letters or just the enormity of the cost. He would appreciate seeing a copy of the letters. Mr. Wood stated the letters he sent out were mailed last June and they invited the property owners to a meeting. The City of Schertz was also invited. Another letter was sent advising the property owners what was discussed at the meeting. As far as he remembers, he hasn't sent any correspondence since August. -243- Mr. Swinney asked if these folks still have the opportunity to join the partnership and Mr. Wood replied yes they do. Mr. Swinney added that seems to be the most cost effective thing to do. Mr. Wood disagreed saying if they have the money to pay the assessment cost, they can probably make more money by not joining. Mr. Sweatt wanted to make it clear that the paving lien is the only amount the property owners need to satisfy prior to conveying title. Water and sewer is an assessment only at the point in time when they apply for a building permit. Mr. McDonald questioned if the lots without paying the water/sewer fees. should. will sell for $20,000 Mr. Wood felt they Mr. potempa asked if he understands this .correctly. They're going to put the water and sewer lines in, but the property owners don't have to hook up'if they don't want to. Mr. Wood is saying this is going to be a development, but we're going to look like we have 13th row allover again. Mr. Sweatt reviewed the process once again. Mr. Wood is going to put in water and sewer plus the paving of the street. The street assessment will be due - one third of it within so many days after the project is completed and then one third due at the end of one year and the remaining one third at the end of two years. The property owner needs to pay that to satisfy the lien against the property. That's all the property owner would have to pay. When and if a person chooses to apply for and secure a building permit and place a building on that lot, then and only then would they be required to pay the water and sewer pro rata plus the capital recovery fee. Mr. Wood is going to build houses on those lots he owns. Other individuals who own lots mayor may not choose to build. They may convey the title to someone else. Mr. Potempa observed it's not going to look like it is now. It's going to look more like Ashley Place. What is the time frame? Mr. Sweatt advised that under this time schedule, anticipate awarding the construction contract for streets in August of 1996. Water and sewer contracts probably be awarded simultaneously. Mr. Wood added whole project should take approximately 5 or 6 months. they the will the Mr. Potempa asked when they will see houses - five years, ten years. Mr. Wood replied those 170 lots should have houses on them a lot sooner than that. The streets should be in by February of 1997. Mr. Potempa questioned if houses will start going up immediately and Mr. Wood replied yes. Mr. Potempa asked if there's a minimum square footage and Mr. Wood replied -244- he thought the original deed restrictions called for a minimum 1250 square foot house. Mr. McDonald asked Mr. the lots or sell them and to other builders. Wood if he is going to build on he replied he will sell the lots After all this discussion, Mr. McDonald seconded the motion which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. Mr. Mr. costs Wood thanked the Council for their time and efforts. Sawyer commented he is always leery of som~thing that the City nothing. #11 ORDINANCE: stating requirements emergency. Consider and take action on ordinance for landscaping turf and declaring an Mayor Baldwin introduced an ordinance and read the caption as follows: ORDINANCE NO. 96-M-9 BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS, PROVIDING THAT THE CODE OF ORDINANCES, CITY OF SCHERTZ, TEXAS BE AMENDED BY ADDING SECTIONS 10-130, 10-l31, lO-l32, 10-133 AND 10-134, LANDSCAPING REQUIREMENTS; PROVIDING AN EFFECTIVE DATE; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT; AND DECLARING AN EMERGENCY. Mr. Sawyer moved to approve an ordinance stating requirements for landscaping turf and declaring an emergency. Mr. Potempa seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. Mr. Sweatt had provided Council with some cost information and an article that appeared in a recent San Antonio newspaper regarding turf and low water demands. Mr. Sweatt stated the ordinance Council has adopted this evening is very far-reaching. No other city in the Edwards Underground Water District has taken such action. He complimented Council on their action and encouraged them to be very supportive of it because they will likely hear a lot of discussion about it. -245- Mr. Sweatt went on to say the City has a water demand ordinance on the books that prescribes by stages various action required on the part of the City. When the J-17 well level of 642 feet is reached, we go into Stage III under our current ordinance. Because of the confusion with San Antonio and with the Edwards, we have elected not to place that into effect. The actions under Stage III are rather severe. San Antonio has moved the 642 feet down to 640 feet and we have chosen to defer Stage III until San Antonio hits the 640 foot level. One of the things Council may want to modify is the $2.00 surcharge per 1,000 gallons in excess of 15,000 gallons of residential usage. That's pretty severe. Mr. Swinney asked if we don't want it severe because it's a severe situation. Mr. Sweatt agreed, but emphasized we need to be prepared. There are such a variety of rules and regulations. There is no knowledge of any other entity having this surcharge in Stage III. Mayor Baldwin suggested discussing these penalties at a workshop. Mr. Potempa agreed this item should be included on a workshop agenda. Mr. Sweatt asked Council's indulgence to continue to defer Stage III and Council concurred with that. fl2 CITY MANAGER'S REPORT: Asked everyone to tentatively set their calendars for a tour on June 1st. Those participating will be City Council, Planning and Zoning Commission and other Boards and Commissions of the City. Bus transportation has been arranged. The tour will probably start somewhere mid-morning, then we'll have lunch, then continue the tour in the afternoon and wind up with a recap session at the Municipal Building and hope to be through by 4:00 p.m. If that doesn't work out for the majority of Council, we'll make different arrangements. f13 ITEMS BY COUNCIL: Mr.McDonald:: A. Asked the status of the fence on Dimrock. Mr. Sweatt said he had asked his people to look into it, but didn't have a report back yet. Mr. McDonald mentioned the gate is left standing open all the time. B. Referred to the Management Letter in the audit where it says we need more help in the accounting office and asked how difficult it would be to get a survey of some like cities of how many people they have in their finance offices versus their total dollar budgets. Mr. Sweatt replied he could either do that now or at budget time. Mr. McDonald thought a survey would be helpful at budget time. Mr. Swinney asked if Mr. Sweatt feels this is an ongoing need or does it peak during the budget time where temporary help could be considered. Mr. Sweatt replied the auditor's comments were, and the City's view of the -246- workload is, that it's an ongoing need. C. Questioned if the City can look at the load limit on Church Street. After hearing the lady speak at the public hearing about all the trucks, he wondered if we could do something about it. Mr. Greenwald related that when Steve Simonson checked the gate a couple of weeks ago, it was completely grown over with weeds and had not been used in a while. D. Announced he will not be here for the May 15th meeting. Mr. Potempa: Mayor he had guesses Mayor longest. Jokingly said that when Mr. Sawyer the record for the shortest meeting, so Baldwin is going for the record for was he the Mr. Sa~er: A. unauthorized garage around the City. Noted there are a proliferation of sale signs and swimming lesson signs B. Congratulated Mr. McDonald, Mr. Potempa and Mayor Baldwin on their election victories. Mr. Swinnev: A. Also congratulated the election winners. B. Reported Schertz Video on FM 78 is no longer there. Planet Video is going in the Pic-N-Pac strip center. Mr. Greenwald: A. Noted BVYA had 77 teams in their tournament this past weekend. B. Mentioned the food at the church festival was very good. #14 ITEMS BY MAYOR: There were none. #15 ADJOURNMENT: On a motion by Mr. Potempa, seconded by Mr. Swinney and unanimously approved, the meeting was adjourned at 9:38 p.m. c ---' Mayor, City'of Schertz, Texas ATTEST: ~~ city Secretary, City of Schertz -247-