ccswks 06-28-1995
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SPECIAL MEETING OF THE CITY COUNCIL
JUNE 28, 1995
The Schertz City Council convened in Special Workshop
Session on Wednesday, June 28, 1995 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, presidingi Councilmembers
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.
#1 HEARING OF RESIDENTS: James Harris of FM 1518
and Schaefer Road gave a brief update on the Defense
Environmental Reclamation Project going on at Randolph AFB.
The last time the committee met, they discussed three
areas of concern. The first area is the BX service station
where everything seems to be okay. The second area is the
fire training area where they are still testing. The third
area is the sewer line on the east side of the base where
they have been asked to look into the runoff. Mr. Harris
indicated this area is of some concern to him. Mr. Sweatt
commented that a landowner who lives downstream from Woman
Hollering Creek had complained about runoff and Mr. Harris
suggested the landowner and/or the City request a copy of
last year's runoff report.
Mr. Harris next referred to Item #4 on the agenda, the
discussion of bond refinancing matters, and expressed the
hope the City is considering refinancing at a lower
interest rate.
Mr. Harris then commented on Item #8, the
agreement with Southwestern Bell, and said he is
in the discussion about what the compensation is
and whether it goes into the General Fund. He
the franchise fee a tax on the citizens.
franchise
interested
based on
considers
Lastly, Mr. Harris
agreement with the
procedures are to
Baldwin advised Mr.
make arrangements to
mentioned Item #12, an employment
City Manager, and asked what the
get a copy of that agreement. Mayor
Harris to speak with Mr. Sweatt and
meet with him about that matter.
#2 Discuss reconsideration of Lookout Road rezoning
request from Salinas-Lomelin Joint Venture.
Mr. Sweatt reported that the Planning and Zoning
Commission had received a request from Salinas-Lomelin
Joint Venture to rezone 77.256 acres along Lookout Road
from M-l to MH. After reviewing it preliminarily, they
voted to disapprove the request and not recommend a public
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hearing. The applicant is asking Council to reconsider the
request and hold public hearings because they feel maybe
all the information was not available at the time they
appeared before the Planning and Zoning Commission.
Normally this request would not be considered again until a
year had passed after its disapproval. Since no public
hearings were held, however, Mr. Sweatt said he consented
to put in on Council's agenda for discussion. There was no
one present to represent the request, but Council went
ahead and talked about it.
Mr. Potempa asked who owns the property and Mr. Sweatt
replied Salinas-Lomelin Joint Venture owns it. Mr.
Potempa then asked if there are water lines in the area and
Mr. Sweatt answered there are not. To this, Mr. McDonald
added there are no sewer lines either and Mr. Sweatt
admitted that's correct.
Mr. Greenwald had given a handout from the Zoning
Ordinance (Article XXIII, Section 2.2.2) to the Council
highlighting the conditions that must be met for Planning
and Zoning to recommend a public hearing on a request. The
applicant did not meet the criteria. Mr. Greenwald felt
Planning and Zoning made the correct decision. Council had
also received a copy of the Planning and Zoning
Commission's minutes of the meeting when the applicant
appeared before the Commission.
Mr. Sweatt aCknowledged that all these reasons for
disapproval seem logical, but the applicant wants a public
hearing. Several Councilmembers felt then, that the
applicant should have come to the meeting.
Mr. Swinney asked if allowing a public hearing on this
will set a precedent and was told by Mr. Greenwald it
will. Mr. Sweatt disagreed, saying he didn't see it as
setting any kind of terrible precedent.
Mayor Baldwin noted that Planning and Zoning has been
endowed with the authority to make a decision on these
matters and they have done so. Unless the applicant has
some kind of mitigating circumstances which he feels change
the facts, then the Mayor said he didn't see it as an
issue. The consensus of the Council was not to act on this
request.
#3 Discuss public hearing on a Specific Use Permit
request from GVEC for construction of a substation in Live
Oak Hills Subdivision.
Mr. Sweatt advised that GVEC has acquired 11 acres in the
Live Oak Hills Subdivision where they propose to construct
a substation. The substation will furnish a second feed of
electricity into our community and additional power. The
property is currently zoned for residential and they have
applied for a Specific Use Permit because a substation is
not a normal use in a residential area.
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There was discussion about the substation eventually
feeding along Schertz Parkway, about the lines not being
underground and about how the lines were going to connect
with the main power source.
Mr. Swinney asked the reasoning for that location and Mr.
Sweatt related CPS has a main transmission line adjacent
just to the west. Mr. Swinney indicated he would like some
technical information on the substation.
Council, when asked by Mayor Baldwin, agreed they were
ready for this item to be placed on next Thursday night's
agenda.
It was now 7:35 p.m.
Salinas-Lomelin Joint
meeting and asked to
consented.
and Charles Huriega, representing
Venture (Item #2) arrived at the
be allowed to speak. Council
Mr. Huriega related that when they appeared before
Planning and Zoning, there were a lot of questions for
which they didn't have the information available. After
that meeting, they had an informal discussion with Steve
Simonson and Pia Jarman where they went into more detail.
Mrs. Jarman stated she would reconsider their request.
Mr. Huriega then asked Council if they would like to hear
more. Mayor Baldwin told Mr. Huriega to go ahead.
Mr. Huriega commented the Comprehensive Plan and the City
Plan were written at least 10 years ago and things have
changed. They see an economic need for mobile home
development in this area. This location would provide a
direct link to the race track via Lookout Road.
Mr. McDonald asked how many people working at Retama need
to live in a mobile home and Mr. Huriega answered quite a
few. Sometimes their work is seasonal.
Mayor Baldwin asked if they would be selling mobile home
lots and Mr. Huriega replied no, they would be leasing
them. The Mayor then expressed concern about a mobile home
park located in the middle of an industrial area. Mr.
McDonald expressed concern about availability of water and
sewer lines. Mr. Huriega related they had spoken with
adjacent property owners and with CCMA and no one seemed to
have an objection to a mobile home park in that area.
Mr. Huriega pointed out they own 3 to 4 sides of the
property abutting this area they wish to develop. They're
not looking at a spot zoning type situation. According to
the City's major thoroughfare plan, which has been revised,
it was intended Lookout Road would come over to Tri-County
and then continue back to 482. The Council let Mr.
Huriega know that was not the case maybe Selma is
planning that, but not Schertz. Mr. Huriega conceded it
is Selma and then admitted that would obviously be a nice
connection.
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Mr. Huriega went on to say they are willing to look at
installing restrictive zoning buffers. They told Mrs.
Jarman they are willing to look at any restrictive zoning
covenants that Planning and Zoning feels are adequate to
buffer the property. Seeing as to how the developers own
the surrounding properties, they would not develop one to
the detriment of the others. This is proposed strictly as
a response to market indicators and compatibility of
existing land use rights. One of the partners on the
development team was asking if they have the option to
revert this back to agricultural use and yes they do, but
that would not get them anywhere. They're trying to work
with the City in coming up with a development that would be
compatible with the City's vision and Comprehensive Plan,
but also take into consideration what's going on behind
Lookout Road. There's a lot of speculation going on right
now with respect to upper end RV parks and mobile home
parks.
Mr. Potempa asked what happens if the market reverses and
the race track doesn't survive. Mr. Huriega replied it
would revert back to what it is now. When you're
downzoning, as they are requesting, you should have no
problem upzoning if the market dictates.
Mr. Swinney observed that Mr. Huriega's comments about
the race track seem optimistic in comparison to the
financial difficulties Retama has been having. Also, if
this development is gearing toward the seasonal type of
folks who work there, Mr. Swinney stated that doesn't sound
like the upper end scale of people to him.
Mr. Huriega, noting the race track business is new to him,
said he was surprised to find out there is a circuit of
race track patrons that make the rounds allover the
country and they are directly tied into the breeders, the
racers and the trainers and most times they don't purchase
a new house. They like the upper end temporary type
residence.
Mr. Huriega commented one problem with developing this is
that the ordinance on the mobile home parks requires a lot
to acre ratio. Their typical lot layout shows double wide
lots and single wide lots. There was a brief discussion on
today's mobile homes. Mr. Potempa pointed out the problem
with a mobile home is that at the end of 20 years, it's
worth nothing. It depreciates like a car. Mr. McDonald
mentioned that if you put them on a permanent foundation,
they appreciate.
Mr. Swinney implied that it seems like all the economic
changes being brought up are tied to the race track and in
his opinion are speculative. If these are to support the
requirement in the ordinance for Planning and Zoning to
recommend a public hearing (there has been environmental
and/or economical changes which warrant a change since its
original zoning), he's not convinced. Mr. Huriega
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remarked that's one of the reasons he would like the
opportunity to make another presentation and have the
developer make the case for the economics involved.
Mayor Baldwin, affirming they've heard the case presented
tonight, said they need to consider it and decide if they
want to reopen it. What is the next step, considering they
may be interested in hearing more.
Mr. Sweatt explained that, if Council is interested, then
it will be placed on next Thursday's agenda as an action
item to refer it back to Planning and Zoning for a hearing,
and the process begins again.
Mr. Huriega added that after talking with Mrs. Jarman in
their informal meeting, she agreed there were a number of
issues that had not been presented to the Commission and
she would gladly entertain reconsideration by them.
Mr. McDonald referred to Mr. Huriega's letter and asked
when he had spoken to the Councilwoman. Mr. Huriega
replied he had called Ms. Dereda (he was informed it is
Mrs. Burkett) and told her about the case and asked her if
she knew what the process was for getting on City Council's
agenda. Mr. Huriega declared he didn't know anyone else
to contact except Mr. Simonson.
Mr. Potempa asked Mr. Huriega why he didn't contact
City Manager. Mr. Huriega answered that after
original appearance before Planning and Zoning, they
spoken with Mr. Simonson trying to set up a meeting
the City Manager and Mr. Simonson told them they
needed to go before City Council.
the
the
had
with
just
Mayor Baldwin asked Council if they want this item on their
agenda next Thursday. Mr. Swinney was not satisfied
there's any personal justification to put it on the agenda.
Mr. McDonald indicated he was not in favor of being bitten
by a race track that's not too successful (and others are
having trouble), if that's what we're hanging our hat on
for this developer's economic statistics. There was no one
else in favor of putting it on the agenda.
Mr. Huriega then asked the process for having the property
considered for agricultural use. Mr. Sweatt stressed that
doesn't meet any of their present needs. Mr. McDonald
pointed out they have a tax exemption on agriculture now,
so there's no advantage to changing it. It was pointed out
to Mr. Huriega there is no agricultural zoning.
Mr. Huriega insisted there is no industrial use for the
property. What the developer intends if it cannot be
rezoned to MH, and there is no industrial use for the
property, is to have it reverted back to an appropriate
zoning for its current use. He believes it will be easier
to bring the zoning back up to anything other than
industrial. Would that conflict with the 12 month
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ordinance regulation? Mr. Greenwald replied if
coming in with a different zoning request from the
request, then the 12 months does not apply.
they're
original
#4 Discuss bond refinancing matters.
Mr. Sweatt introduced Tom Anderlitch of Rauscher, Pierce,
Refsnes, Inc. and stated he is here to discuss the
possible refunding of outstanding bonds and the reduction
of debt service cost.
Mr. Anderlitch reported they had been working with Mr.
Sweatt on this and talking about it since January as they
have seen declining interest rates. They prepare reports
and constantly monitor all the issues of outstanding debts
for all the political subdivisions by which they are
employed. There used to be an old rule of thumb that they
needed to have a 5% net savings back to the political
subdivision and if they didn't, he was not in favor of
refinancing because the only people making money were the
brokers, bond attorneys, bond printers, etc. In March,
they supplied Mr. Sweatt with some figures that came back
to 4.89 and Mr. Sweatt's question was did they think
interest rates were going to decline a little further.
They told him they thought so, but that's speculative.
Mr. Anderlitch had prepared a booklet for each member of
the Council and reviewed some of the highlights with them.
Tab 2 is all the outstanding debts. Tab 3 tells you the
bonds that are going to be refunded. There are seven
different issues of bonds from 1975 through 1990 that they
are looking at refunding. They way the computers are
programmed, they only refund those maturities that are
advantageous to the City. In other words, it is an
interest savings over and above the cost of reissuance and
it picks out those particular maturities, interest coupons
and interest rates where a savings can be generated. If it
turns out there is not an interest savings and it will be
negative, then the computer kicks it out and it is not
considered in the refunding analysis.
Mr. Anderlitch further explained the interest rates on the
bonds they're talking about refunding average somewhere
between 6 1/2% to 10%. Tab 3 will give you each maturity
and each bond and will coincide back to the summary page in
Tab 1. If you look at the bottom part where it says
miscellaneous refunding information, you will see that the
principal amount of the bonds to be refunded will be
$1,525,000. In order to refund that amount, they need to
issue $1,700,000. The rate yield on the bonds outstanding
now is 8.719%. Total debt service savings to the City, in
this case, is $117,800. Then there's the present value
savings. The debt service savings, as a percent of the
total debt service on the refunded bonds, is 5.3179%. If
you look at the top where it says sources of funds, the
principal amount of the current interest bonds would be
$1,700,000.
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From the interest and sinking fund, they are levying taxes
now on a lot of these issues and this is money that would
accrue as of June 28th that the City has already collected
on those particular bonds that are being refunded. That
amount is $20,000. The interest which will accrue on the
refunding bonds is $7,315 and that's a total source of
funds. That brings it up to the $1,727,000. They take
that money and go out and buy government bonds and pledge
those into an escrow account that pays off the outstanding
bonds as they mature. They need to buy bonds that will
mature at a fixed time so when that comes due it pays off
the outstanding debt and they, in effect, defease all of
the outstanding bonds.
Mr. Anderlitch emphasized the figures will change, but
this is their best guess as of today. These would be the
costs and there's $17,500 for insurance which gives a
triple A rating and makes the bonds more acceptable into
the market and they get a lower yield and interest cost as
far as the City is concerned. Then there is accrued
interest, issuance expenses and the underwriter's discount.
The people they would put together to buy these bonds and
market them would work for about $7.50 per thousand and
that translates to $12,750. The remaining costs would be
$47,000 with a rounding amount in there of $2,000. That
balances back to the figures they started with of
$1,727,000.
Mr. Anderlitch mentioned what he had recommended to Mr.
Sweatt was that they continue to monitor this for the City
and see where interest rates are going. After some further
review, Mr. Anderlitch told Council what they would see
budgetwise, from 1995 through 2005, would be an average of
an annual savings of $11,000 to $12,000 after the
refunding.
Mr. Sweatt reminded Council this is a combination of GO's
and CO's and revenues. This is not a savings that would
inure exclusively to the General Fund. In fact, it's
roughly half and half. The savings would be spread back
out to the appropriate funds.
Mr. Anderlitch once again mentioned these figures are
their best guess as of 2:00 p.m. today. If interest rates
change and go up, then the savings goes away. If interest
rates decline, then the savings can be far greater.
Mayor Baldwin asked what the earliest date would be when
they could sell the bonds if they started the procedure
with an official approval next week. Mr. Anderlitch
replied within 30 days.
Mr. Swinney noted the next major movement from the Federal
Reserve is expected to be in August and Mr. Anderlitch
agreed, indicating you live in fear of what they're going
to say.
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Mr. Anderlitch then told Mayor Baldwin his suggestion
would be, if Council likes the concept, let them monitor
it, get back with Mr. Sweatt and then get back to the
Council when they think the timing is right. It has to be
approved by Council anyway, and that time lets them set up
the marketing mechanism. Mr. Greenwald mentioned the
earliest 30 day point after the next meeting would be
August 6th.
Mr. Anderlitch recommended Council just approve the
concept at the July 6th meeting, continue to let them
monitor for the City, and then let them get back with Mr.
Sweatt even if they need to have a special meeting. That
way they can get everything done up ahead of time and be
ready to go.
The consensus of the Council was to place approval of the
concept as an action item on the agenda of the July 6th
meeting.
#5 Discuss final consideration of an ordinance
rezoning 8.9633 acres from NS to PUD (Laredo/Greenshire).
Council agreed they were ready for this to be on next
Thursday night's agenda.
#6 Discuss
establishing a
Incorporated.
final consideration
Reinvestment Zone for
of an
Intsel
ordinance
Southwest
Mr. Sweatt conveyed a request from the applicant that this
matter be tabled. The company is finishing up surveys of
the soil conditions and the evaluations indicate they may
have some problems with the current site. They've asked
for time to come up with a solution, which may involve
having to change sites. They're still interested in
locating in Schertz, this is just something they had not
originally anticipated.
This item was placed on hold.
#7 Discuss final consideration of an ordinance
approving a Tax Abatement and a Tax Abatement Agreement
with Intsel Southwest Incorporated.
This item was also placed on hold.
#8 Discuss final consideration 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. Sweatt reminded Council they have discussed on several
occasions, and passed on first reading, an ordinance that
establishes a new franchise arrangement with Southwestern
Bell Telephone Company. The franchise arrangement is that
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mechanism by which the telephone company and other utility
companies use the rights-of-way and property of the City.
Payment for those is in the form of a franchise payment,
but it's simply a payment for the right to use public
property.
The City of Schertz joined 56 other cities in a class
action suit against Southwestern Bell in March of 1992 to
resolve the issue dealing with previous payments for
services and the contention by some cities that certain
services should have been included in the overall
calculation for municipal fees. This litigation is
scheduled to proceed until August of 1995. A settlement
has been proposed in which, among other things, a payment
will be made to each of the 57 cities. The City of Schertz
is estimated to receive $155,533 as our portion of the
class fund. There's also discount certificates available
for certain kinds of non-regulated services. Payment of
those class action fees and charges are not subject to a
pass through charge by the telephone company as part of the
settlement agreement.
Mr. Sweatt further stated part of the settlement agreement
calls for the adoption of a new franchise ordinance that
would describe the manner in which, among other things, the
company would use the property of the City and the payment
the company would make for use of the property. In the
City of Schertz case, the calculation for the payment is
predicated on, instead of 3%, a 4% type of arrangement.
However, it's on a flat fee as opposed to a percentage of
gross receipts. The condition of the settlement is that
the City of Schertz, along with the other 56 cities, adopt
this new arrangement prior to the end of July and that all
those documents and releases be made available to the
company so the court will resolve the matter in August of
1995.
The manner in which the payment to the City is calculated
is based on a somewhat intricate formula, but basicallY is
a flat rate based on types of services by the individual
user. Those fees would be passed on to the customer. The
calculation by Southwestern Bell is that the maximum that
would be paid to the City of Schertz the first year under
this five year franchise arrangement is $47,800. Based on
information we have currently, that appears to be an
increase of as much as thirty cents per month to the
individual single-line customer. We've asked them to
furnish us with additional information.
Mr. Sweatt related they have prepared, in the ordinance,
the adoption of the settlement agreement and the conditions
for use of the property. The maximum amount that could be
received the first year is $47,800. If we have further
information by next week's meeting, Council certainly has
the right to reduce that amount. It is recommended Council
consider adopting this ordinance.
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Mr. SWinney, saying he is not willing to jeopardize his
yes vote over a franchise fee, thought Mr. Harris brought
up a good point in noting that the fees are adding up. Can
we break out of our governmental habit pattern and see if
we can really do without a franchise fee or at least the
increase? How would it affect the budget? Mr. Sweatt
replied the $47,800 probably represents 2 1/2 to 3 cents of
the tax rate.
Mayor Baldwin explained it's an operating cost to the
company that they just happen to tag onto the bill so that
everybody sees it. In any other company it would be just
part of the sale price of the product to the customer and
you wouldn't see it. In the case of utilities, they stick
it right out front.
Mr. McDonald asked what kind of revenue would be generated
if we stayed at the old 3% rate. Mayor Baldwin commented
the whole purpose of this suit was so we could collect tax
on new services that have never been taxed before. Mr.
Potempa asked for an example of those and Mr. Sweatt
replied all the direct services from the phone company,
including installation charges and one-time beneficiary
services. Mr. Sweatt noted they just used the percentage
calculation to get to a number. It's not really a
percentage and that's what makes it more difficult to
define. We do have an agreement now, if accepted by
Council, of a manner by which charges will be calculated in
the future.
Mr. McDonald urged going ahead with the ordinance or we
won't get the $155,000 settlement. Mr. Sweatt remarked he
will give any additional information they may receive to
Council next week as to how they calculated that and
whether there are opportunities/and or options to lower
that $47,800 number.
Mr. Greenwald inquired if there's any way, in this
agreement, to go 3 1/2% next year and 4% the year after.
Mr. Sweatt answered our choice is to set any amount at the
$47,800 or lower the first year and then they will collect
a flat rate fee to equal that number. Mr. Sweatt
emphasized that's the best answer he can give. If we set a
number of $40,000, they would set their flat rate charge,
based on number of services, to produce that amount. Then
next year's payment would use that same amount on the new
number of lines and services in the City. It would likely
go up and we might, by the end of 5 years, be back to the
$47,800 or we might be well above it.
Mr. McDonald asked when we have to make a decision on the
discount certificates and Mr. Sweatt replied he thinks
it's 60 days. Mr. Sweatt said, in his opinion, the
non-regulated services the City would be buying for the
next 10 years will not produce us as much as if we took the
cash value of those certificates which is about 10% or
another $16,000.
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Mr. Swinney asked Mr. Sweatt if he could play with some
figures and see if it's possible to adjust that amount.
Mr. Sweatt promised to do that.
After further discussion, Mr. Sweatt advised Council
another option the City has is to continue to litigate with
Southwestern Bell.
Mayor Baldwin, noting they have to come up with a decision
by next Thursday's meeting, asked if Council is ready to go
with this item for next week's agenda. They were ready.
#9 Discuss award of bid for
Equipment for the Library Department.
Data Processing'
Mr. Sweatt informed Council that in the budget this year
they had anticipated expenditures for software and hardware
to begin the conversion of the Library Department to a data
processing system. The City solicited bids for the
hardware and has received bids ranging from $12,604 to
$22,807. We believe each of those proposals meet the basic
intent of the specifications. The low bid of $12,604.52 is
from Ger Mar Co. and after review with all other data
processing personnel, we find they meet all the conditions
and can supply the hardware we requested. The budgeted
funds will be exceeded by $6,105 and Friends of the Library
and the Library Board have agreed to fund that amount from
their sources.
Mr. Potempa asked if the $12,604.52 will take care of the
entire conversion and not create the need to get additional
hardware and/or software for this project. Gail Douglas
replied it will provide what is necessary for this
particular project. Ms. Douglas explained this includes
three public access terminals which means the card
catalogue would be on computer. In the future she may want
to have three more and that would involve only hardware,
not more software. This also includes two terminals at the
circulation desk so checkout would be automatic, saving a
lot of time. It also includes the file server, and a work
station for it, which would take care of the whole system.
Ms. Douglas went on to say right now this is complete, but
automation is advancing faster than she can keep track of
it. As a result there will always be things they may want
to add, update and upgrade, but this is the complete system
for now. Mr. Sweatt indicated they feel this is the way
to go and can possibly foresee patrons, by means of
computer, checking out their own books in the future.
Mr. McDonald asked if this system has the capability of
printing out accounts at the end of the day and Ms.
Douglas replied yes it does. Not only will it save the
staff time, but will better serve the patrons.
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Mr. Greenwald reported the March statistics, which
6,237 patron visits and 8349 books checked out.
Douglas reported they may hit an all-time record this
of 10,000 items being checked out.
were
Ms.
month
After being
were ready
aqenda.
asked by Mayor Baldwin, Council indicated they
for this item to be placed on next Thursday's
#10 Discuss by-laws for Northeast Partnership.
Mr. Sweatt advised that Schertz, in cooperation with the
cities of Converse, Kirby, Live Oak, Selma and Universal
City, entered into a grant program with Bexar County to
conduct an economic development study. The company which
did the study, strongly suggested we consider a regional
approach to economic development issues. We met several
times and even extended an invitation to join to the cities
of Cibolo and Garden Ridge.
As a result of the times they have met, the cities have
developed a series of proposed goals, a mission statement
and other proposed activities along with proposed by-laws.
These proposed by-laws are being taken to each of the
member cities for review. The cities have currently been
represented by the mayors, city managers and various
economic development personnel. We anticipate each of the
cities will consider membership in the Northeast
Partnership through approval of the by-laws and an
agreement to participate to pay dues now estimated to be in
the neighborhood of $1,000 plus an amount based on
population or electrical connections that will fund the
Northeast Partnership membership and a couple of other
economic development organizations and other operating
costs.
Mr. Potempa asked if this charge will be passed on to the
citizens for electricity and does it involve all electric
companies. Mr. Sweatt explained the electric connections
was just a way to determine what a city's membership would
be. Mayor Baldwin added they wanted a way to count the
population of each one of the cities on the same basis.
Mr. Potempa asked where the money will come from. Mayor
Baldwin replied it will have to be budgeted.
The Mayor then went on to say he thinks the Partnership has
been unique in this area in that first of all, it brought
eight of the cities together - the mayors and the staffs.
All of us are truly interested in regional development of
the entire area. All of us subscribe to the concept that
what's good for one city is good for all of us. The best
way to advertise anyone city, is to advertise all of us.
We have a lot of assets in these eight cities to offer.
It's been a very pleasant experience. All discussions have
been positive. We've haven't gotten sidetracked on
anythinq that's petty. Mayor Baldwin commented he has
always leaned toward a regional concept in providing true
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growth and true services to this area. S.A.F.E.S. is the
best example of a regional system that works and works well
and saves us all money. He thinks the partnership is the
right thing to do and he hopes Council agrees and is
willing to participate through funding.
Mr. Sweatt pointed out that collectively, for marketing
purposes, the cities are a larger market with a higher
population than our largest competitors. Individually we
are smaller than our smallest competitors. In the regional
approach to issues, our competitors are places like
Georgetown, Round Rock and PIano.
Mr. Sweatt further stated that after choosing a unique
name for themselves, the aim was to develop a consolidated
approach to economic development, including but not limited
to, identity, image enhancement, marketing through support
and promotion of existing businesses and industry,
broadening of the economic base by diversification of
employment opportunities and support of a desirable quality
of life.
Mayor Baldwin noted the San Antonio Economic Development
Foundation is very interested in what the Partnership is
doing. The Partnership will probablY pay for a position on
that Board. The City of Schertz is the only city in this
area actively participating in the Austin-San Antonio
Corridor Council. We will encourage more participation in
that. It's an opportunity to get our name out in front of
the public. Our goal is to be as well known to industry
throughout the United States and throughout the world as
Georgetown, Round Rock and PIano.
Mr. Swinney remarked he is 100% in favor of this. The
ultimate effect of these cities combining their resources
can be tremendous. It's money well spent. He does have a
couple of questions, however. He has a problem where it
says the Directors can hold their meetings any place in
Texas. Even though it probably wouldn't happen, he can see
possible abuse. Mr. Swinney sees no reason for the
Partnership to meet outside their geographical boundaries.
Mayor Baldwin said he would mention it to the Partnership.
Mr. Swinney then asked if these guidelines
to each individual city's by-laws. Mr.
these could not override our charter.
are subservient
Sweatt replied
Mr. McDonald, noting we are adding $1900 more to economic
development, questioned if this will hinder our own
economic development by reducing its funds, or are we just
adding to our efforts. Mayor Baldwin replied he sees it as
investing money that will pay us some big dividends.
Mr. Swinney asked if there's anything to be accomplished
by the Partnership that would save us money in what we're
presently doing through the City's economic development
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p'f
program.
supplant
economic
Mr. Sweatt answered this was not intended
any particular expenditure and/or effort by
development program of any individual city.
to
the
Mr. Greenwald mentioned that even though, as the result of
a study, a regional approach to economic development was
suggested, that was not meant to circumvent any individual
city.
Mr. Potempa asked who's going to do the legwork once all
the mayors make the decisions. Mayor Baldwin answered it
depends on the size of what the Northeast Partnership
becomes. If we made a video to market the area, it would
be the responsibility of the Partnership to fund its
distribution.
Mr. Swinney observed there will be no full-time staff for
the Partnership and Mayor Baldwin acknowledged not at this
time, but who knows about the future.
Mr. McDonald mentioned there's a lot of grant money
there and Mayor Baldwin agreed.
out
Mr. Swinney asked about administrative support and
Baldwin noted that so far, each city has taken
particular responsibility and/or duty. Once officers
elected, then it will be a more formal organization.
Mayor
on a
are
Mr.
this
some
Potempa asked if the hotel/motel tax can be used
and Mr. Sweatt thought perhaps it could be used
of the marketing efforts.
for
for
Mr. Swinney commended the Mayor and City Manager for all
the efforts they have put into this Partnership.
Mr. Sweatt suggested the by-laws for the Northeast
Partnership be put on the agenda of next Thursday night's
meeting for conditional approval. The Council agreed.
#11 Consider and
easement from City
Utility District.
take action to convey a water line
of Schertz to Green Valley Special
Mr. Sweatt
water line
recommended.
advised this is just a housekeeping item.
needs to be relocated and approval
A
is
Mr. McDonald moved to approve the conveyance of a water
line easement from the City of Schertz to Green Valley
Special Utility District. Mr. Greenwald seconded the
motion, which carried with the following votes:
AYES: Councilmembers McDonald,
Greenwald.
Potempa, Swinney and
NAYS: None.
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#12 Consider and
employment agreement.
take
action
on City
Manager
Mayor Baldwin commented he thinks everyone has had a chance
to review the agreement and thanked Council for their
cooperation in working on it. A copy of the agreement was
contained in the Councilmembers' packets.
Mr. McDonald moved
employment agreement.
which carried with the
to approve the City Manager's
Mr. Swinney seconded the motion,
following votes:
AYES: Councilmembers McDonald,
Greenwald.
Potempa, Swinney and
NAYS: None.
Mr. Sweatt thanked the Council.
#13 Discuss City of
Statements.
Schertz Vision
and
Mission
The consensus of the Council was to discuss this item at a
later date.
#14 EXECUTIVE SESSION: Called under Section 551 of the
Texas Government Code, Sub-Section 551.072, deliberation
regarding real property.
An Executive Session was held from 9:35 p.m. to 10:05 p.m.
#15 Consider and take action, if any, on the above
Executive Session.
No action was necessary.
Mr. Potempa had to leave the meeting at this time.
#16 CITY MANAGER'S REPORT: Noted, regarding the
IH-35 improvements, there will be significant water/sewer
line relocation paid for by TXDoT. The City does need to
enter into agreements with them and that will be handled by
Ford Engineering. No action is needed by City Council. If
there are no questions, they will instruct Ford Engineering
to get started on the process.
#17 ITEMS BY COUNCIL: Mr. Swinney: A. Mentioned he
will be flying to Honolulu this week on a mission.
B.
for
him
need
City.
Indicated he would like to see the City
parks, recreation and playgrounds. Mr.
there is a plan for that. Mr. Swinney
for playgrounds in several different
develop a plan
Greenwald told
emphasized the
areas of the
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Mr. Greenwald: Stated Council should consider replacing a
fire truck with the money from the Southwestern Bell
settlement. Mr. Sweatt announced, if it's Council's
pleasure, they will make that an agenda item. Council
agreed.
#18 ITEMS BY MAYOR: A.
Business Association needs
Jubilee. Anyone interested
Told Council the Schertz
volunteers for the 4th of July
please contact Anita Clark.
B. Announced since next week's meeting has been changed to
Thursday the 6th, he won't be here.
#19 ADJOURNMENT: On a motion by Mr.
seconded by Mr. Swinney and unanimously
meeting adjourned at 10:20 p.m.
McDonald
carried,
and
the
~ /.t./A.....;.
Mayor, City of Schertz,
Texas
ATTEST:
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City Secretary, City of Schertz
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