ccreg 06-06-1995
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REGULAR MEETING OF THE CITY COUNCIL
JUNE 6, 1995
The Schertz City Council convened in Regular Session on
Tuesday, June 6, 1995 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;
Timothy Swinney and Ken Greenwald. Absent: Councilmember
Dereda Burkett. Staff present were City Manager Kerry
Sweatt and City Secretary Norma Althouse.
Mayor Baldwin asked everyone to rise and join him in the
Pledge of Allegiance to the flag.
#1 HEARING OF RESIDENTS; Those citizens wishing to
speak on agenda items and those having matters they wish to
discuss with Council, which have not previously been
submitted to the City Manager, will be heard at this time.
No one had signed up to speak.
#2 ORDINANCE; Consider and take action on the
reading of an ordinance rezoning 14.57 acres on E.
Oak Road (Cottage Lifestyles) from
(Apartment/Multi-Family Dwelling District) to
(Single-Family Dwelling District).
final
Live
R-4
R-2
Mayor Baldwin introduced an ordinance and read the caption
as follows:
ORDINANCE NO. 95-5-15
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS, AMENDING THE ZONING ORDINANCE NO. 87-S-1
BY REZONING 14.57 ACRES OF LAND OUT OF GUADALUPE
COUNTY AND REFLECTING SUCH CHANGES ON CERTAIN
ZONING MAPS IN ACCORDANCE WITH THE SCHERTZ ZONING
ORDINANCE.
Mr. Sweatt reminded the Council this is the property
involved in the Cottage Lifestyles project. At the time
the rezoning for Apartment/Multi-Family Dwelling District
was approved, staff and the Planning and Zoning Commission
had recommended that if no action was taken after a minimum
of six months, that the Commission have the option of going
back and studying the highest and best use of the land. As
a result, they have recommended the land revert back to its
original zoning of R-2. There was a small portion that was
originally zoned NS, but the Commission is recommending all
the property be rezoned to R-2. Considerably more than six
months has expired and the developer was contacted, but
there was no response. Apparently the Cottage Lifestyles
project is dead. Planning and Zoning and City Council both
held public hearings on this and Council approved the first
reading of the ordinance to rezone back to the original
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classification of R-2.
Mr. Potempa moved to approve the ordinance
acres on E. Live Oak Road from R-4 to R-2.
seconded the motion, which carried with
votes:
to rezone 14.57
Mr. Greenwald
the following
AYES: Councilmembers McDonald,
Greenwald.
Potempa, Swinney and
NAYS: None.
(Councilmember Swinney arrived at the meeting just before
the vote was taken.)
#3 RESOLUTION; Consider and take
Resolution approving amendments to the
Incorporation of the Schertz Housing Finance
action on a
Articles of
Corporation.
Mr. Sweatt advised the current Articles of Incorporation
for the Schertz Housing Finance Corporation (HFC) provide
that the terms of the Board of Directors are limited to two
three-year terms for a total of six years. After review of
this matter and the relative inactivity of the HFC Board,
it has been determined those term limitations have no
particular value. The term of a Board member can be
terminated at anytime by City Council. It is recommended,
by the HFC, that the removal of term restrictions be
approved.
Mr. Sweatt went on to say the second portion has to do
with new provisions of the State law which allow
indemnification of directors while performing their
official functions. This was not permitted by State law
when the HFC was created. This indemnification is also
recommended for approval by the HFC.
Mr. Sweatt advised that the Chairman of the Board of
Directors of the Schertz HFC, Mr. Chuck Sharpe, is here to
answer any questions Council may have.
Mayor Baldwin read the resolution as follows:
RESOLUTION NO. 95-R-6
RESOLUTION APPROVING AMENDMENTS TO THE ARTICLES
OF INCORPORATION OF THE SCHERTZ HOUSING FINANCE
CORPORATION.
WHEREAS, the SCHERTZ HOUSING FINANCE CORPORATION (the
"Corporation") was duly created and established by the City
of Schertz, Texas (the "City") under the laws of the State
of Texas, as a public instrumentality and non-profit
corporation pursuant to the Texas Housing Finance
Corporations Act (the "Act");
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WHEREAS, the Corporation has amended its Articles of
Incorporation 1) to modify Article EIGHT (VIII) to
eliminate term limitations for directors of the
Corporation, and 2) to add Article THIRTEEN (XIII), which
contains certain provisions regarding limits on liability
for monetary damages of directors of the Corporation, a
copy of such proposed amendments being attached hereto as
Exhibit A;
WHEREAS, pursuant to Articles 394.016 and 394.017 of
the Act, the City Council of the City must approve all
amendments to the Articles of Incorporation of the
Corporation; and
WHEREAS, it is deemed necessary and advisable that
this Resolution be adopted;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SCHERTZ, TEXAS THAT;
1) The Article of Amendment to the
Incorporation of the Corporation, in the
hereto as Exhibit A are hereby authorized
Articles of
form attached
and approved.
2) The Mayor and the City Secretary of the City and
the other officers of the City are hereby authorized,
jointly and severally, to execute and deliver such
endorsements, instruments, certificates, documents, or
papers necessary and advisable to carry out the intent and
purposes of this Resolution.
3) The proper officers of the Corporation are hereby
authorized to file the necessary documents with the Office
of the Secretary of State of the State of Texas, and to
take all such further action as may be necessary or proper
to carry out the intent of this Resolution and to
effectuate such amendment.
Mr. Potempa moved to approve the Resolution approving
amendments to the Articles of Incorporation of the Schertz
Housing Finance Corporation. Mr. Swinney seconded the
motion, which carried with the following votes:
AYES: Councilmembers McDonald,
Greenwald.
Potempa, Swinney and
NAYS; None.
#4 APPOINTMENTS; Consider
appointing three members to the
Corporation Board of Directors.
and take action on
Schertz Housing Finance
Mr. Sweatt reported three members of the Schertz HFC have
continued to serve until their successor is named. Taking
into consideration the revisions to the HFC Articles of
Incorporation, the three members whose terms have expired
and who have agreed to continue to serve if selected by
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City Council are Chuck Sharpe, Merwin Willman and Hal
Baldwin.
Mr. McDonald moved to approve the appointments of Chuck
Sharpe, Merwin Willman and Hal Baldwin to the Schertz HFC
Board of Directors. Mr. Greenwald seconded the motion,
which carried with the following votes:
AYES: Councilmembers McDonald,
Greenwald.
Potempa, Swinney and
NAYS: None.
#5 ORDINANCE; Consider and take action on the first
reading of an ordinance amending the Code of Ordinances
regarding Demand Emergency Water Management Plan.
Mayor Baldwin introduced an ordinance and read the caption
as follows:
AN ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS, PROVIDING THAT THE CODE OF ORDINANCES,
CITY OF SCHERTZ, TEXAS, BE AMENDED BY REVISING A
PORTION OF SECION 19.96, DROUGHT AND EMERGENCY
WATER MANAGEMENT AND SURCHARGES; PROVIDING AN
EFFECTIVE DATE; AND REPEALING ALL ORDINANCES OR
PARTS OF ORDINANCES IN CONFLICT.
Mr. Sweatt told Council they will recall the discussion of
this matter has been brought about as a result of
recommendations and directions by the Edwards Underground
Water District Board of Directors that the trigger
mechanism regarding drought management and water
conservation techniques be revised by changing the method
by which those notices are made. In the past we have used
the well level at well J17 to trigger various stages of the
Water Management Plan. Based on more recent data and the
action by the Edwards, it is now proposed to use, in lieu
of that well level, cubic feet per second water flow at
Comal Springs. The ordinance prescribes various levels of
cubic feet per second flow as being the measure which will
trigger reaction into the Drought Management Plan.
Mr. McDonald moved to approve the first reading of an
ordinance amending the Code of Ordinances regarding Demand
Emergency Water Management Plan. Mr. Greenwald seconded
the motion, which carried with the fOllowing votes:
AYES: Councilmembers McDonald,
Greenwald.
Potempa, Swinney and
NAYS: None.
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#6 AGREEMENT: Consider and take action on approving
the agreement with the Texas Department of Transportation
regarding responsibilities for Lower Seguin Road project.
Mr. Sweatt related there is proposed an agreement between
TXDoT and the City of Schertz that will outline
responsibility of local participation in the Lower Seguin
Road improvement project which is currently scheduled by
the Metropolitan Planning Organization for construction in
1997.
This project consists of the widening and resurfacing of
Lower Seguin Road from FM 1518 to Loop 1604. The majority
of that road falls within the City limits of the City of
Schertz. Under the current Texas Administrative Code
provisions on those projects that are off system, a local
participation arrangement is prescribed. That arrangement
can be found in the last chart of "Exhibit A" of the
proposed agreement and the specifics of it were covered at
the last workshop.
Mr. Swinney
Department of
Lower Seguin
motion, which
moved to approve the agreement with the Texas
Transportation regarding responsibilities for
Road project. Mr. Greenwald seconded the
carried with the following votes:
AYES: Councilmembers McDonald,
Greenwald.
Potempa, Swinney and
NAYS: None.
#7 ORDINANCE; Consider and take action on the first
reading of an ordinance adopting a Franchise Agreement with
Southwestern Bell Telephone Company and approving certain
matters relating to settlement of a class action lawsuit
involving Southwestern Bell Telephone Company.
Mayor Baldwin introduced and ordinance and read the caption
as follows;
AN ORDINANCE
WHEREBY THE CITY OF SCHERTZ, TEXAS AND
SOUTHWESTERN BELL TELEPHONE COMPANY AGREE THAT,
FOR THE PURPOSE OF OPERATING ITS
TELECOMMUNICATIONS BUSINESS, THE TELEPHONE
COMPANY SHALL MAINTAIN AND CONSTRUCT ITS POLES,
WIRES, ANCHORS, FIBER, CABLES, MANHOLES, CONDUITS
AND OTHER PHYSICAL PLANT AND APPURt'ENANCES IN,
ALONG, ACROSS, ON, OVER, THROUGH, ABOVE AND UNDER
ALL PUBLIC STREEt'S, AVENUES, HIGHWAYS, ALLEYS,
SIDEWALKS, BRIDGES OR PUBLIC PROPERTY IN SAID
CITY; PRESCRIBING THE ANNUAL COMPENSATION DUE
THE CITY UNDER THIS ORDINANCE; PRESCRIBING THE
CONDITIONS GOVERNING THE USE OF PUBLIC
RIGHTS-OF-WAY AND THE PERFORMANCE OF CERTAIN
CONSTRUCTION WORK ON PUBLIC RIGHTS-OF-WAY FOR THE
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TELEPHONE COMPANY'S TELECOMMUNICATIONS BUSINESS;
PROVIDING AN INDEMNITY CLAUSE; SPECIFYING
GOVERNING LAWS; PROVIDING FOR A RELEASE OF ALL
CLAIMS UNDER PRIOR ORDINANCES; PROVIDING FOR
FUTURE CONTINGENCIES; PROVIDING FOR WRITTEN
ACCEPTANCE OF THIS ORDINANCE BY THE TELEPHONE
COMPANY; AND PROVIDING FOR A TERM AND AN
EFFECTIVE DATE.
Mr. Sweatt reminded Council that the City of Schertz
joined a class action suit, with 57 Texas cities, against
Southwestern Bell Telephone Company regarding the manner in
which previous payments had been calculated to the City
under franchise payments and other calculations of payments
by the company to the cities and the method by which
various revenue streams were calculated. The action under
this class action suit began in 1992 and went to trial in
1995. A settlement of the class action has been proposed
and the highlights of that include the establishment of a
class fund for which there is approximately $12,000,000
available for distribution to the cities in the class. The
portion of the class fund that's allocated to the City of
Schertz is estimated to be $155,533. There are also
certificates in the settlement proposed in the face amount
of $13,000,000 which can be redeemed by those cities in the
settling arrangement for the purchase or lease of
unregulated goods. Face value of the certificates being
issued to the City of Schertz is estimated to be $168,495.
We have the option of taking higher discounts or up to a
10% of the face value of the certificates in cash.
Additionally, there are attorney's fees that are due to the
parties and those are paid from a separate fund and will
not be paid from the class fund.
Mr. Sweatt further stated that stipulations of the
agreement include that there will be no pass through of the
settlement cost to the customers themselves as a result of
this. Part of our agreement for the settlement of this
matter would be that we would agree to adopt a new
franchise ordinance, the caption of which has been read
tonight. This prescribes a new method of calculating
payments due the City of Schertz. It is a fairly
complicated formula based on payments of previous years, on
adjustments for a revision of percentage, and on a growth
factor. The estimated full cost or full payment to the
City of Schertz for the first year under the maximum terms
of that agreement would be $47,800. The agreement would
further terminate all prior ordinances and would release
any claims that we might have regarding any past payments
or amounts due the City. The City Attorney has suggested
this be handled under the terms of the charter which
prescribes the method of franchise consideration. That
involves, among other things, that this ordinance would be
read and considered tonight on a first reading. If
approved on a first reading, there are provisions for
publication of the document in full in the official
newspaper. There are also provisions for publication of
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the document in full, in the official newspaper, if adopted
after the second and final reading. The second and final
reading could relate to a later agenda item Council has
which proposes to reschedule the first regular meeting in
July because of the July 4th holiday. If all of those
requirements are met and the Council adopts this ordinance,
it is expected that in late July and early August the
litigation would be settled and the fees would paid under
the terms of the settlement agreement.
Mr. Swinney moved to approve the first reading of an
ordinance adopting a Franchise Agreement with Southwestern
Bell Telephone Company and approving certain matters
relating to settlement of a class action lawsuit involving
Southwestern Bell Telephone Company. Mr. McDonald
seconded the motion, which carried with the following
votes:
AYES: Councilmembers McDonald,
Greenwald.
Potempa, Swinney and
NAYS: None.
#8 RESCHEDULED MEETING: Consider and take action on
the rescheduling of the first meeting in July from the 4th
to the 6th.
Mr. Potempa moved to approve rescheduling
meeting in July from the 4th to the 6th. Mr.
seconded the motion, which carried with the
votes:
the first
Greenwald
following
AYES: Councilmembers McDonald,
Greenwald.
Potempa, Swinney and
NAYS: None.
#9 CITY MANAGER'S REPORT: There was none.
#10 ITEMS BY COUNCIL: Mr. McDonald reported he had
attended the Library Board meeting last night. Richard
Cervantes, Board Chairman, resigned. He just lost his
mother and has picked up some additional responsibilities.
They came up with three names of people who may be
interested in serving on the Board. A recommendation will
be forthcoming.
They also discussed a pick-up truck for the parade to pull
their float. One lady complained about a book she wanted
removed from the library. It is a Hansel and Gretel type
story which deals with witches eating people. She thought
this was too gruesome, but the book is still on the shelf.
Mr. Greenwald: A. Related he attended a
last night and gave a copy of the minutes
report to the City Secretary for copies to
Council's next packet.
CVADAC meeting
and financial
be included in
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B. Announced the BVYA closing ceremonies are this Saturday
at 1:00 p.m.
#11 ITEMS BY MAYOR: A. Commented he attended a
luncheon today at the Community Center put on by the
folks. He and Mayor Carroll from Universal City
there. The purpose of having the mayors attend was to
celebrate the 50th anniversary of the United Nations.
great
RSVP
were
help
B. Mentioned the Fire Department had their annual Barbeque
Supper last Saturday at the City Park and had a good crowd.
#12 ADJOURNMENT; On a
seconded by Mr. Swinney and
meeting adjourned at 7:27 p.m.
motion by Mr. Potempa and
unanimously carried, the
Mayor, City of Schertz, Texas
ATTEST:
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City Secretary, City of Schertz