ccswks 10-12-1994
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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.
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#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.
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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
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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.
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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
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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.
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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.
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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
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