Loading...
ccreg 09-19-1995 11/ t5L REGULAR MEETING OF dir. CITY COUNCIL September 19, 1995 The Schertz City Council convened in Regular Session on Tuesday, September 19, 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; Earl Sawyer; Timothy Swinney and Ken Greenwald. 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. Mayor Baldwin then asked John Bierschwale, Public Works Director, to come up front and they presented two plaques. The first was to Mr. Bill Peterson in special recognition of his hard work and continued dedication to community projects, especially the designing of Christmas decorations. The second was to Mrs. Ann Almond in special recognition of her hard work and continued dedication to community projects, especially the Schertz float. *1 APPROVAL OF MINUTES: A. Special Session 8-09-95 B. Regular Session 8-15-95 C. Special Session 8-23-95 Mr. McDonald moved to approve the minutes for the Special Session 8-9-95, the Regular Session 8-15-95 and the Special Session 8-23-95. Mr. Greenwald seconded the motion, which carried with the following votes: A. Soecial Session 8-9-95 AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. Nays: None. B. Reaular Session 8-15-95 AYES: Councilmembers McDonald, Greenwald. Sawyer, Swinney and NAYS: None. ABSTENTIONS: Councilmember Potempa. C. SDecial Session 8-23-95 AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. 7'/3 #2 HEARING OF RESIDENTS: Those citizens wishing to speak on agenda items (other than public hearing items) or items not on the agenda, will be heard at this time. A. Ann Almond of Cibolo reported the float was in a parade at Medina last week and brought home a trophy. The next parade is September 29th at Comal County Fair. B. Chuck Sharpe of 1300 Antler Drive spoke regarding the request from the school district for a Specific Use Permit and encouraged support for the request. Mr. Sharpe said he was fortunate enough to be part of a planning commission the school district set up to involve citizens. The school district did a good job of putting everyone's recommendations together and looking at the long-term needs of the City. They've selected an ideal site because it close to where the children are who will attend the school. *3 BOND SALES: Consider and take action regarding bond sales for the City of Schertz. Mr. Sweatt reminded Council that some time ago Tom Anderlitch of Rauscher Pierce Refsnes discussed bond refinancing and refunding with them. Something momentous has happened recently which prompted the decision to ask Council to consider the refunding of the bonds. Two weeks ago they had an opportunity to speak with Moody's Investor Service who came here and spent approximately four and one-half hours reviewing the City of Schertz's ability to pay and it's overall fiscal condition. About four days later, the City received word from Moody's, pursuant to our request, that they had reviewed and revised the rating of our bond from a BAA to an A rating. That cinched the deal that it was time to consider refinancing part of the existing bonds because of the savings we could realize. Mr. Sweatt further stated he had asked Mark McLiney of Rauscher Pierce Refsnes to make a projection for the City as to what that means in terms of bonds. Mr. McLIney put together a study which indicated that based on $l,OOO,OOO of general obligation bonds we would save, with the change in rating, almost $52,000 over the life of the bonds. Tom Anderlitch addressed the Council saying this is a milestone in the history of the City of Schertz. Anderlitch noted he had been with the City for a long and when they started, it was a non-rated credit. thing that makes him the proudest is that Schertz is only city in the immediate area that has an A rating. is very beneficial to everyone involved. real Mr. time The the It Mark MCLiney distributed detail sheets showing refunding recap. They're refunding the high fnterest bonds, which were at an interest rate of 8.1266%, coming in with new bonds at an interest rate 'of 4.61%. the rate and fL/f Mr. McLiney went on to say when Mr. Anderlitch presented this two months ago, the number they were looking at for savings was approximately $123,000, but as you can see they were able to get it up to $140,000. Something worth pointing out is that this was done on an A rating. That meant they didn't need to get bond insurance and that saved approximately $10,000. Mr. McLiney told council the second page of the detail sheets shows how the bonds will mature and the third page show how the savings will come in each year. Mr. Swinney asked if it's possible for rates to go lower. Mr. McLiney replied they have been working on this for about eighteen months and feel the time is good.to lock in the savings now. Mr. City only this issue that away the only Potempa asked if this is a portion of the bonds the has or is it all of them. Mr. Sweatt replied it is a portion. Mr. Potempa then asked why we can't do on all of them. Mr. McLiney explained that when you bonds, normally you have a ten year call which means bonds that are longer than ten years can be called from the investors. The investors insist that through first ten years you cannot call them away. You can call the bonds that you have the right to call. Mayor Baldwin mentioned that Moody's has changed its procedures. They are now coming to the City rather than City representatives having to go to New York to meet with them. It's great. Mayor Baldwin declared there are a lot of people who deserve some recognition, not the least of which is City Manager, Kerry Sweatt. The professionalism of Mr. Sweatt and his staff in putting this whole thing together is highly commendable. The City speaks for itself. You can go around the City and tell that things are going to happen in Schertz. Mayor Baldwin also thanked Mr. Anderlitch and his staff and the City Councils over the years who have worked hard to make Schertz what it is today. Mayor Baldwin then introduced an ordinance and read the caption as follows: ORDIRANCE NO. 95-B-27 AN ORDIRANCE BY ~:.tl.t. CITY COUNCIL OF :a.:.t~ CITY OF SCHERTZ, .l.6AAS AUTHORIZING .a.&U. ISSUANCE OF "CITY OF SCHERTZ, .l.6AAS GENERAL OBLIGATION REFUNDING BONDS, SERIES 1995", LEVYING AN ANNUAL AD VALOREM TAX, WITHIN ~ LIMITATIONS PRESCRIBED BY LAW, FOR ;L~ PAYMENT OF ...:ad. BONDS; . PRESCRIBIRG TIlE FORM, TERMS, CONDITIONS, AIm RESOLVING \.,,1.a.~A MA... .a.6RS INCID6..1I... AND RE!.A:l.6u TO :a.:.ta. . ISSUANCE, SALE, AND DELIVERY OF .1.&16 BONDS, INCLUDING ...nA APPROVAL AND DISTRIBUTION OF AN OFFICIAL f/~ STATEMENT PERTAINING THERETO; AUTHORIZING THE EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT, A BOND PURCHASE AGREEMENT, AND AN ESCROW AND TRUST AGREEMENT; AND DECLARING AN EMERGENCY. Mr. Swinney moved to approve the ordinance regarding bond sales for the City of Schertz. Mr. Greenwald seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #4 INSURANCE: Consider and take action on-health and life insurance proposals. Mr. Sweatt commented the City had solicited proposals for health and life insurance. Mr. Bob Feike, our broker, helped with the process. Two proposals were received - one from Humana and one from PCA. After review, it is recommended City Council authorize the City to enter into an agreement with Humana. The monthly premium rate represents a slightly less than 2% increase for employee health coverage. The life insurance is proposed to be renewed at no increase in rate. The co-pay has been modified and will go up in order to hold the rate down. Mr. Feike hope that However, a that bad. was present to answer questions. He expressed the experience will be better next year. 1.67% increase in today's market is not really Mr. McDonald moved to authorize the City to enter into an agreement with Humana for health and life insurance coverage. Mr. Sawyer seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #5 PUBLIC HEARING: To receive citizen input on the proposed budget for Fiscal Year 1995/96. Mr. Sweatt stated the total amount of the budget is $6,117,866.00. It has been prepared in accordance with the existing debt structure and approval by Council is recommended. Mark Marquez, Management Services Director, presented a slide show using bars and graphs to-illustrate revenues, expenditures, and comparisons of budget figures. James Harris of FM 1518 and-$chaefer Road informed everyone this was his third year for following the budget process f//6 all the way through. He is here to support the budget and thinks Mr. Sweatt did a worthy job. The past two years' budgets contained some items he was against, but this year it's a good one. Chuck Sharpe of 1300 Antler Drive asked Mr. Sweatt if he had the percentage of sales tax charts for the last couple of years. Mr. Sweatt replied he did not have them with him, but would be glad to get the figures for Mr. Sharpe. The past two years it has been running roughly 20%. Rachel Wall of 721 Davenport inquired if there are any reserves from last year or are they in the red. Mr. Sweatt replied they closed the last fiscal year with $610,000 in reserve. It has been the administrative goal to establish a minimum of three months operating expenses which would be $725,000 and he thinks they will make that goal this time. There being no further questions or comments, Mayor Baldwin closed the public hearing at this time. *6 ORDINANCE: Consider and take action on an ordinance approving the budget for Fiscal Year 1995/96. Mayor Baldwin introduced an ordinance and read the caption as follows: ORDINANCE NO. 95-M-25 PROVIDING FUNDS FOR.&.:au.; FISCAL YEAR BEGINNING OCTOBER 1, 1995 AND ENDING SEPTEMBER 30, 1996, BY APPROVING THE BUDGET FOR SAID PERIOD AND APPROPRIATING .a.:.:l~ NECESSARY FUNDS OUT OF ..LJ.~G GENERAL AND OTHER REVENUES OF .L&u.; CITY OF SCHERTZ, TEXAS, FOR SAID YEAR FOR .LA~ MAINTENANCE AND OPERATION OF THE VARIOUS DEPARTMENTS AND FOR VARIOUS ACTIVITIES AND IMPROVDd...~...S OF .&.J.'Wo CITY; AIm DECLARING AN EMERGENCY. Mr. Potempa moved to aPDrove, by ordinance, the budget for Fiscal Year 1995/96. Mr. Swinney seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. . NAYS: None. #7 ORDINANCE: Consider and ordinance adopting the tax rate. take action on an Mr. Sweatt advised the proposed tax rate is $0.4072 per $100.00 valuation. It is recommended Council approve the rate. fP1 Mr. Marquez again presented a slide show using charts and graphs to illustrate, among other things, the historic tax rate of the City. Mayor Baldwin introduced an ordinance and read the caption as follows: ORDINANCE NO. 95-T-26 LEVYING AND ASSESSING ALL TAXABLE PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY OF SCHERTZ, TEXAS, FOR ..u:l~ YEAR 1995; PROVIDING ....:u.. BASIS OF ASSESSMENT OF ONE HUNDRED PERCENT (100%> APPRAISED VALUE AND PROVIDING FOR THE COLLECTION THEREOF AT THE RATE OF $0.4072 ON THE v'l"6 HUNDRED DOLLAR ($100.00) ASSESSED VALUATION AND DECLARING AN EMERGENCY. Mr. Sawver moved to approve an ordinance adopting the tax rate. Mr. Potempa seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #8 SPECIFIC USE PERMIT: Consider and take action on a request from Schertz-Cibolo-Universal City ISD for a Specific Use Permit allowing construction of an Intermediate School in Savannah Square. Mr. Sweatt reminded Council the public hearing on this request was held September 5th. Representatives from the School District made their presentation at the September 13th meeting. A Specific Use Permit does not require an ordinance or zoning determination, simply action by Council either for against. The proposed location of the school is in the Savannah Square Subdivision off the intersection of Savannah Drive and Davenport and is a 12.185 acre tract of land. It will be an Intermediate School, grades 5 and 6, with a projected attendance of approximately 600 students. Mr. Sawyer moved to approve the request from the Schertz-Cibolo-Universal City ISD for a Specific Use Permit allowing construction of an Intermediate School in Savannah Square. Mr. McDonald seconded the motion. Mr. Swinney agreed with Chuck Sharpe about spending a lot of time on the citizens committee. He also commended Dr. Steele and Herb Rehman for the selection of a g~od site for the school. Mr. Potempa mentioned there were quite a few residents who expressed concern about traffic. Outside of that concern, he has no problem with approving the Specific Use Permit. ~r Mr. Swinney noted that Dr. Steele mentioned the bus routes should actually decrease, so traffic may not be much of a problem. Also, there are no playground facilities in Savannah Square and Dr. Steele stated the school is open to the public, so that's another added bonus for the Savannah Square residents. Mr. Sawyer didn't recall there ever being too many problems at Dobie Middle School. Mayor Baldwin pointed out there's always a problem first thing in the morning and at 3:30 in the afternoon. Along that same line, Mr. Greenwald commented no matter where the school is located, there will be some traffic congestion at certain times of day. Mayor Baldwin remarked there will be additional police observation which benefits the homeowners in the subdivision. Mr. McDonald commented that hopefully all the children will be walking to school. At this time the vote was taken and the motion to approve the Specific Use Permit passed as follows: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #9 Report from GVEC regarding election by GVEC membership. rate deregulation Mayor Baldwin observed they are privileged this evening to have David Dennis of the GVEC Board of Directors and Marcus Pridgeon, General Manager of GVEC, present for this report. Mr. Pridgeon explained what he is here to speak about is narrow in scope and has to do with an upcoming election by the GVEC membership regarding rate deregulation. GVEC, as everyone here knows, is an electric utility. It has 35,000 accounts now and a $100,000,000 plant. The organizational structure is very similar to that of a city. A director is elected from each district by the members of that district. The director is part of a council which sets policy and procedure and passes budgets. Mr. Pridgeon went on to say that from 1939 to 1975, the electric rates of GVEC were set by the GVEC Board of Directors. In 1975 the Public Utility Regulatory Act was passed and GVEC supported that Act because it defined service territories. Also in 1975, GVEC became aware that the legislature was going to exclude municipals from rate regulation and the reason given was because those who use the electricity would elect those to-councils who set the rates. GVEC thought it would be treated like cities because folks who use the electricity elect the board of directors who set the rates. However, it was not meant to be and all the electric cooperatives were dragged under the ~~ Public Utility Commission (PUC) and have been there for the last twenty years. Mr. Pridgeon stated the PUC is a very political creature. It is run by three Commissioners who are appointed by the Governor of the State of Texas. With every new governor comes a new PUC, and each one of them have different political agendas. He can honestly say that for the past twenty years, the electric rates for the State of Texas have been set more by political agendas than by the cost of electric service. It has also become inordinately expensive to deal with the PUC to establish the rates. Finally something good has happened. The Legislature passed House Bill l227 which allows electric cooperatives to vote to deregulate themselves so they can return the rate regulation to their member elected boards. A survey was conducted by GVEC to determine if its members were in favor of turning control of electric rates over to the local boards. The response was very good and 85% of those responding were in favor of local control. GVEC felt that was a good mandate to hold an election. Mr. Pridgeon then informed Council that on October 2nd each GVEC member will be mailed an official ballot in order to vote on this issue. The ballot must be returned by November 1st. It's not really deregulation, it's where you want the regulation to be in the hands of State politicians or in the hands of local directors. There was a brief discussion about rates with Mr. Pridgeon saying they hadn't changed their rates since 1986. Mr. Swinney, noting he has been a GVEC member for several years, said he has watched with interest and is excited about this election. The fact they could cut litigation out of business sold him on the idea right away. Mr. Swinney then asked Mr. Pridgeon if he sees any disadvantages with local control. Mr. Pridgeon replied he does not and then remarked you cannot go to the PUC without lawyers. Local control will allow the customer a better avenue of contact if there ever is a concern. Mr. Swinney asked, since the ballots have to be returned by November 1, if the change would take effect in January. Mr. Pridgeon replied the PUC has to administratively certify the election, so he's not sure how long that will take. After they validate the election, then the deregulation will be official. Mr. Sawyer asked if anyone ever runs against their board members and Mr. Pridgeon replied yes they do. Mr. Greenwald commented he has all the faith in the world in the directors, but he does have a concern about their organizational structure being equated to a city when they set a tax rate. If the rates are cut, the citizens will ~~o think it's a rollback. Is there any kind of oversight policy? Mr. Pridgeon replied there is a provision whereby if local citizens want to change the rate, they can take a petition signed by 10% of the membership to the PUC and draw GVEC back in to justify the rate. Also, the most powerful tool is the vote as far as electing directors. Mayor Baldwin thanked Mr. Pridgeon for the presentation. 110 ORDINANCE: Consider and take action on final reading of an ordinance revising the Code of Ordinances regarding Stop Intersections and Four-Way Stops. Mayor Baldwin introduced an ordinance and read the caption as follows: ORDINANCE NO. 95-D-24 BY THE CITY COUNCIL OF ...d~ CITY OF SCHERTZ, TEXAS, PROVIDING THAT ...dr. CODE OF ORDINANCES BE AMENDED BY REVISING SECTION 18-32, STOP I&~.l.6RSECTIONS, AND REVISING SECTION 18-33, FOUR-WAY STOPS; AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CO.l,~.....ICT. Mr. Sweatt advised this ordinance is the result of a request from the Woodland Oaks Homeowners Association. It will provide for a Three-Way Stop at Dimrock and Kline and a Four-Way Stop at Woodland Oaks and Kline. Mr. McDonald moved to approve the final reading of an ordinance revising the Code of Ordinances regarding stop Intersections and Four-Way Stops. Mr. Sawyer seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None 111 ORDINANCE: Consider and take action on final reading of an ordinance revising Chapter 5 of the Code of Ordinances regarding building, plumbing, electrical, mechanical, unsafe buildings, one and two-family dwellings and amusement device codes. Mayor Baldwin introduced an ordinance and read the caption as follows: f/~I ORDINANCE NO. 95-C-23 BY THE CITY COUNCIL OF UI~ CITY OF SCHERTZ, .L~AAS, PROVIDING THAT THE CODE OF ORDINANCES, CITY OF SCHERTZ, TEXAS, BE A)~J.'.LIED BY DELETING CJIAJ:.L.t.R 5, BUILDINGS AND BUILDING REGULATIONS, AND REPLACING SAME WITH A REVISED CHAPTER 5, BUILDING AND BUILDING REGULATIONS, PROVIDING AN EFFECTIVE DATE; AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN COJ.'~ .a..ICT. Mr. Greenwald moved to approve the final reading of an ordinance revising Chapter 5 of the Code of Ordinances regarding building, plumbing, electrical, mechanical, unsafe buildings, one and two-family dwellings and amusement devices. Mr. Swinney seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. *12 ORDINANCE: Consider and take action reading of an amendment to the Zoning Ordinance Board of Adjustment. on final regarding Mayor Baldwin introduced an ordinance and read the caption as follows: ORDINANCE NO. 95-S-22 AN ORDINANCE, AMENDING ARTICLE XXVI I, SECTION 2 OF ...d~ SCHERTZ ZONING ORDINANCE NO. 87-S-1, CREATING THE CITY OF SCHERTZ BOARD OF ADJUSTMENT, FOR THE APPOINTMENT OF ITS MEMBERS, THE METHOD OF FILLING VACANCIES, AND PROVIDING A REPEALING CLAUSE. Mr. Sawyer moved to approve the final reading of an amendment to the Zoning Ordinance regarding Board of Adjustment. Mr. McDonald seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald, Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #13 APPOINTMENTS: Consider and take action on appointing two alternates to the Board of Adjustment. Mr. Sawyer moved to appoint Joe Potempa and James Harris as alternates to the Board of Adjustment. Mr. Greenwald seconded the motion, which carried with the following votes: ~~ AYES: Councilmembers McDonald, Greenwald. Sawyer, Swinney aoo NAYS: None. ABSTENTIONS: Councilmember Potempa. Congratulations were extended to Mr. Harris. Potempa and Mr. #14 STATEMENTS: Consider and take action regarding approval of Vision, Mission and Value Statements. Mr. Sweatt advised these statements had been furnished to the Council. They were reviewed by the various.Boards and Commissions of the City and approval is recommended. Mr. Potempa moved to approve the Vision, Mission and Value Statements. Mr. Sawyer seconded the motion, which carried with the following votes: AYES: Councilmembers McDonald. Potempa, Sawyer, Swinney and Greenwald. NAYS: None. #15 CITY MANAGER'S REPORT: Reminded everyone of the Business Appreciation dinner at the VFW on September 21st. Social hour begins at 6:00 p.m. and dinner will be served at 7:15 p.m. . *16 ITEMS BY COUNCIL: Mr. McDonald: A. Commented there had been a communication breakdown when he asked, at the rezoning hearing, if the developers of Woodland Oaks Units 5 and 6 were going to save trees. He didn't realize they were going to put them all in a pile behind his house. B. Remarked these same people supposedly permits, but they burn so close to the houses the smoke goes right into the back yard. Mr. Mr. McDonald the Fire Chief will investigate what can be done about it. got burning in the area, Sweatt told and see what Mr. PotemDa: Asked, in relationship to the burning, if they can't cut those trees down and make mulch out of them. Mr. Sweatt answered some of the trees are large and they have to burn the stump or haul it away. They are, however, encouraged to chip the others for mulch. Mr. Sawyer wondered if they have permission to burn from the Fire Department and was told by Mr. Sweatt they do. Mr. Greenwald questioned if they are offering some of the wood to people for their fireplaces. Mr. Sweatt, acknowledging that seems like a good choice to him, said the developers always tell him time is of the essence and they don't want the liability, etc. Mr. McDonald added it',s a shame all the things they've destroyed back there in that drainage area. 1/43 Mr.. Sawyer: Mentioned he doesn't know how many people realize it, but Ann Almond does not live in the City of Schertz, so she is a very good citizen. Also, if anyone hasn't seen Mr. Peterson's work on Christmas decorations, they're in for a big surprise this year. They are really nice. Mr. Greenwald: Reported there was an article in Sunday's Express-News business section about gated communities. The City has gotten inquiries from several sources about starting such developments. The problem of the City having no control over the streets is one of the dilemmas associated with gated communities. He knows Steve Simonson has been looking into it. #17 ITEMS BY MAYOR: Related the City Manager has copies of the performance evaluation form and he would to do another performance evaluation of Mr. Sweatt October so they can get back on track. That's normally month when they do it. It was decided to reschedule workshop of the 25th back to the 24th, because of the conference, and do the evaluation at that time. made like in the the TML *18 ADJOURNMENT: On a motion by Mr. Potempa, seconded by Mr. Swinney and unanimously carried, the meeting was adjourned at 8:30 p.m. Mayor, City of Schertz, Texas ATTEST: \.~ Ili!::t/~ City Secretary, City of Schertz