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ccswks 10-12-1994 . 28~ '1 SPECIAL MEETING OF THE CITY COUNCIL OCTOBER 12, 1994 The Schertz City Council convened in Special Workshop Session. Wednesday, October 12, 1994 at 7:00 p.m. in the Conference Room of the Municipal Complex, 1400 Schertz Parkway, Schertz, Texas. The fOllowing members were present: Mayor Hal Baldwin, presiding; Charles McDonald; Joe Potempa; Barbara Stanhope; Mary Marsh and Ken Greenwald. Staff present were City Manager Kerry Sweatt and City Secretary June Krause. #1 HEARING OF RESIDENTS: A. Mr. Gutierrez reserved time for item #8. B. Ann Almond presented two more ribbons won by our parade float. We received First Place in Guadalupe County and Third Place for the Kerr County parade. Mayor Baldwin thanked Ms. Almond for the hard work and effort she put in on behalf of the City. Our float gets to all parades and we seem to win 50% of those entered. Ms. Almond said we would do even better if our float was animated. B. George Mower discussed recycling, saying he wanted to go on record as saying he does not want to pay for recycling. He would not object if the City could come up with some way so that the money could come out of recycling rather than his pocket. C. Jim Harris encouraged the Mayor to bar smoking from the workshop meetings - it really gets bad. #2 Discuss final consideration of an establishing the Ramada Reinvestment Zone. ordinance Mr. Sweatt said the establishment of the reinvestment zone is one of tax abatement for industrial development. In this case, the Ramada Inn tract is the exact site for this zone, which has no bearing on zoning. Mayor Baldwin asked if Council would be ready to act on this item at the next meeting and received affirmative reply. #3 Discuss final approving a Tax Abatement and with Ramada Inn Ltd. consideration of an ordinance and a Tax Abatement Agreement for Mr. Sweatt reminded that the ordinance was approved. first reading of this Mayor Baldwin, having determined there was no further discussion on this item, asked that it be on the next action agenda. ---~..----"._"------~_._~._.~.~------"--,.._.. .~ .~ y #4 Discuss final consideration of an ordinance establishing the American Freightways Reinvestment Zone. Mr. Sweatt advised that this is site specific for an 18.2 acre tract of land off 1-35 near the Technos Inc. #5 Discuss approving a Tax and with American final consideration of Abatement and Tax Abatement Freightways Inc. an ordinance Agreement for Mr. Sweatt said that this ordinance was also passed on first reading and includes an eight year abatement program. #6 Discuss final amending the Code by Management. consideration of an adding Chapter 14 1/2 ordinance on Records Mr. Sweatt advised that this is a State mandated program. We are revising the ordinance adopted several years ago. This designates the Office Manager as the Records Management Officer instead of the City Secretary and makes a few housekeeping changes as well. There being no further discussion, this item is to be on the next action agenda. #7 Discuss use of old animal shelter property on FM 1518. Mr. Sweatt reminded that for quite some time we have discussed the use of this property. We purchased this land in 1982 for the animal shelter. When we moved to the new facility there was consideral discussion about disposal of it. Various times we have discussed the Humane Society might have a wish to use this land to hold animals beyond the limit the City has. We have placed this on the agenda for discussion and direction. Mrs. Stanhope said that if this is offered to the Humane Society, they would accept it to use for storage. If we do, we should at least ask for a new fence. Even if we keep it, it needs a new fence. The Humane Society had asked to place a storage building on the back of the new shelter property but were turned down. Mr. not new Sweatt in the site. advised that the building they wanted to move is best shape and we did not want to clutter up the Mayor Baldwin suggested that if Council wants to let them use the property, then we need some type of long term lease agreement such as we have with the Scouting Association or BVYA. Mrs. Marsh said they would need to give the City some definite idea about the utilization of the building. '. ~ -29J 9 Mr. Sweatt said we can do what we want with the building and land. We purchased this land for $3,000 and have a warranty deed on it. Probably offering the long term lease would be the easier way to do it. Council discussed the contract, saying it could be as as 15 years, and should include the responsibilities of the Humane Society and Schertz. long both Mayor Baldwin asked if Mrs. Stanhope would message back to the Humane Society, adding that need their input in writing. take that we would #8 Disucss recycling agreement with Alamo Waste. Mr. Sweatt reminded Council that several ways of making recycling collections had been discussed with Alamo Waste prior to the May election. Alamo Waste in cooperation with the Library and others established a volunteer collection program for their site on FM 3009. We had very good participation on the two Saturdays per month. In April, Council discussed a program of curbside collection and a non-binding referendum election, with the estimated cost being no more than $1.25 per resident per month. The election was held and carried. Since that time, we have been discussing this with Alamo Waste. As late as last week, we discuss with them a program to began January 1, 1995, at a cost of $1.25 per resident, for approximately 3800 residences. Of that, Alamo Waste would receive 97% and would provide contractor owned equipment with pick up being twice a month. The 3% would be paid to the City as a franchise fee. 100% of the revenues would be returned to the City to be used for beautification, etc.. Mr. Gutierrez has asked that the franchise be extended for various amounts of time. We discussed putting a cap on the maximum amount of any increase and cap on any period of extension. We have not reached an agreement. As of this date. Mr. Gutierrez wants the cap for two years of an increase of no more than 6.5% and that we up the renewal for a total of four years from the expiration in 1996 and the cap be estimated at 8.2% each year. We have discussed that type of arrangement and suggested that the cap be limited to 5,6% for current contract period and a three year extension granted with any rate change capped at a maximum of 7.5%. Mr. Sweatt said that at this stage, we are not in agreement and if agreement cannot be reached we suggest consideration be given to solicitation of new proposals. Mr. Henry Gutierrez, representing Alamo Waste, first gave a brief history of their company beginning with their startup in 1990. The bulk of the type 1 waste collected in Schertz through 1991, 1992 and part of 1993 went to the landfill in Seguin. That landfill closed in October of 1993 so they went back to BFI Landfill on Tessman Road in Bexar County. The overall landfill increase in four years there was 72.3% and the increases for the City of Schertz from Alamo Waste -----~-~~------ -- --- --- 2~2 /0 have been 21.3%. He said that based on this information, they looked at the proposal given by the City on curbside recyclying and they would have to invest about $75,000 in equipment, including the purchase of 18 gallon recycling containers with the twice monthly collection, we would need the 18 gallon size. Based on all this information, they looked at the proposal and requested for the remaining two years on the contract a 6.5% cap on increases rather that the 5.6% proposed by staff. The City proposed a three-year extension with 7.5% cap and they asked for a four-year extension with an 8.5% cap. He said based on their history, they feel these figures are reasonabl and would offer them some protection. Along with the recycling program at $1.25, they would look for the same split of 85% to contractor and 15% to City for collection and of course the proceeds from the sale would go to the City. That is like their arrangement with Garden Ridge. They are seriously involved in the economy in this community with their 45 employees and families, their inventory and community involvement. He said he felt their services had been very good with few complaints and he said he wanted to be the City's hauler for many years to come. He said they haul the bulk of the Type IV waste to Beck Readymix landfill in excess of $100,000 per month. Mr. Gutierrez went on to say they live here and pay taxes here. He listed some of the services he provides the City such as park pickups for tournaments and special events. The Fire Department has special needs as does the Animal Shelter, they provide dumping of the street sweeper for Public Works. They also help with the City's Spring Clean up. They also provide, at no charge, services to the School District and Churches. He said they are always involved with the Community. He said he hoped they can work closely with the City and Mr. Sweatt on the recommended charges. He said he hoped the Council would consider their request for four year extension and terms. There followed extensive suggested by staff and Mr. discussion Gutierrez. on the negotiation Mayor Baldwin said that you should look at the service Alamo Waste has been giving the City over the last several years. In fact, they or the Gutierrez Family have been the haulers for Schertz since before incorporation. It has been an unbroken tenure and always the lowest rates and best service in the area - almost without complaints. Mr. Gutierrez has provided thousands of dollars of freebees for the City and customers of the city. He said he did not know how you could have a better relationship than we have with Henry Gutierrez. Mayor Baldwin said he just could not believe that the City could go out for bids in two years and Henry did not get the contract. He said that as far as he was concerned, as long as the City could get out of a contract if they chose to do so, he had no problem giving Alamo Waste a four-year, five-year or even a ten-year extension. He said he had no problem with the caps suggested by Mr. Gutierrez. ;. I 283 II Mrs. Stanhope and Mrs. Marsh dittoed the Mayor's remarks. Mr. Potempa said if Henry can live with suggested, he had no problem with going with extension but did feel his property should be the caps he the four-year annexed. Mr. Greenwald advised that the City is working on that now. Mr. Potempa said that as far as recyclying is concerned, he voted against it and still doesn't like it. He said he personally will not go out and separate his waste; but when we went to the citizens, they voted for this. Mr. Bill Cook, Sales Manager for Alamo Waste, listed the items that will be recycled as being plastic bottles, aluminum, tin, steel, newspapers, glass (but no green glass). He said they would pick up all that was put at the curb, even if some of it was not marketable. Mr. Gutierrez said that they will gallon container but people are not can put other things there also. He starting their "drop off" on November will also be accepting cardboard. provide an eighteen limited to that, they advised that they are 11th at their site and After further Council discussion, Council agreed to direct Mr. Sweatt to allow Alamo Waste the four-year extension with the caps he suggested. Mayor Baldwin added that the Council will need to do an evaluation at the end of the two-year on recycling. Mr. Sweatt asked if it was Council's desire to develop a contract for a four-year extension beyond the two years left on the current contract, with the caps suggested by Mr. Gutierrez and that we include into the agreement the 97/3% split with the beginning date January 1995? Council concurred. #9 Discuss public facility capital needs and methods of financing. Mr. Sweatt recalled that some time ago, Council asked that staff to gather information on costs of public safety improvements. He said we have looked at what we immediately need and what are our long term needs. We have identified approximately $2,000,000 of immediate or current needs with a projection of an additional $2,300,000 or more in approximately three years. He identified some of the needs as being a fire service vehicle, as well as improvements to their quarters; library improvements, SAFES, Municipal Building and police service improvements. These were identified as immediate needs. The long-term needs are fire service sub-station, improvements to Community Center - five to seven years. We have discussed this with our Finacial/Bond Advisor. A $2,000,000 bond sale calibrated at a rate of 6.25% would be an increase in debt service of _._------~._"----_._---,---_. "':)4 "-' I~ about $181,000 a year. We have not gone beyond that point. We discussed how we could pay for that, which would be equivalent to about a 5.6% increase in tax rate. We have looked at some alternatives and under the State provision that the sales tax could be increased the State sales tax is 6.5%, the City now is 1%, with the County being .5%. The purpose can be to reduce Ad Valorem taxes. At 1/4 of 1% would produce $150,000 to $160,000. Under the Sales Tax Legislation, it can be used for other things as well. We have discussed economic development purposes and under the State law 4-A provision the general sales tax can be used for any of the economic development items. 4-B could be used for specific purposes. Economic Development Commission has discussed a sales tax and we think some combination of the economic development and ad valorem would be the approached to take. We believe with the growth in sales taxes, the 1/4 cent would offset the full cost of the $2,000,000 bond issue. Mr. McDonald said he thought this was an excellent approach. Mayor Baldwin asked what percentage of the sales taxes received is not being paid by the citizens of Schertz. Mr. Sweatt advised that staff believes 60% of the sales taxes are being paid by people who are not residents. Mr. Mike Spain gave a little of the legislative background on the sales tax issue as it relates to economic development. He added that there are different ways to do this but as long as you have transient money moving through your city, it is the way to help raise the money as these people will be contributing to the tax base. Mr. Sweatt suggested this item appear as one issue on a January election ballot - "Should we adopt a 1/2 cent sales tax to reduce the ad valorem taxes by 1/4 cent and 1/4 for economic development". Council discussed times for the election and the time involved in educating the citizens about the package. One suggestion was to hold the election at the same time as the officer's election in May, but Mr. Sweatt felt it should be kept separate from politics. Mr. Sweatt agreed that the two issues, bond and sales tax, do not have to be held at the same time. A bond election can be held on any date; whereas the sales tax will have to be held on one of the four uniform election dates - January, May, August and November. Mrs. Marsh said this is an absolute must and is a good plan and we want it to pass; but it will not pass unless the citizens understand. '. ! , / ./ 2~5 /3 Mayor Baldwin advised that if Council felt January would be too soon, we need to get a group together and see how it works out. Mr. Sweatt said he could have an item on the next agenda to form the committee. Mrs. Stanhope suggested calling the people on the list, including Mr. Harris who Mr. McDonald suggested be added, to see if they would be willing to serve. #10 CITY MANAGER'S REPORT: A. At the P&Z meeting the previous night, they discussed the three members whose terms are expiring. They have all expressed that they are willing to serve again. Also they need to have a new Chairman appointed and Pia Jarmon has volunteered, with Mr. Willman agreeing to be Secretary. He would like for this to be on the next agenda for action with Council permission. B. Planning and Zoning also recommends that Council hold a public hearing for rezoning of the Palms Apartment land from Single Family to Apartment/Multi family district. This is set up for November 15th. C. He said he would like to place another item on action agenda. You will recall that mid year we had an agreement for Rittiman Addition. This is outside the and since that time, they have added additional funds extended the agreement date and would like amend agreement. the CDBG city and the # 11 ITEMS BY COUNCIL: t.tL._ Greenwald said that regarding the Palms Apartments, part is for expansion and part is that over the years we have it zoned wrong. The owner did come in and P&Z was concerned about traffic with the Widening of FM 78. They were told to try to get better access to the property. Mrs. StanhoD~ reminded everyone of the Cibolo Fest on the following Saturday. The Lion's Club is sponsoring the sky diving contest. Mr. ~QtemD~ reported that he and Mr. McDonald attended the ground breaking for ReMax on 1-35 and it was outstanding. Mrs. Marsh reminded all of the VFW Breakfast on and announced that at the last meeting she was Vice-Commander for the District. Saturday elected #12 ITEMS BY MAYOR: A. Mayor Baldwin said he would really like for Council to consider Mr. Harris's request about not smOking in the workshops. Mrs. Marsh recommended not smoking in the workshop meetings and Council agreed with her. , -~...............'._._~--"~---_._..--~-,---,-----~_...._- -.2-9-6- /f B. Suggested having a town meeting on November 22 at the Community Center at 7:00 p.m. Council reminded him it was to be called "Mayor's Forum". He said he visualized this meeting as open to listen to the people - he did not see it as a debate. #13 ADJOURNMENT: There being the meeting was declared adjourned Baldwin. further discussion, 9:00 p.m. by Mayor , ~ p;,~ Mayor, City of Schertz, Texas ATTEST: City Secretary, City of Schertz / .--/