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ccreg 06-06-1995 . " >>~ 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 .--- ~3? 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"); ~ ~3b 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 .-----r- .;lj7 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. ~ c73f #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 / ~ c:?3 r 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 (.~, --- .Rf0 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 " ;......---- dC/I 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: ~~ City Secretary, City of Schertz