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ccswks 03-09-1994 95 SPECIAL MEETING OF THE CITY COUNCIL MARCH 9, 1994 The Schertz City Council convened in Special Workshop Session Wednesday, March 9, 1994, at 7:00 p.m. in the Conference Room of the Municipal Complex, 1400 Schertz Parkway, Schertz, Texas. The following members were present: Mayor Earl W. Sawyer, presidingi Barbara Stanhopei Mary Marsh and Ken Greenwald. Absent: Joe Potempa and Hal Baldwin. Staff present were City Manager Kerry Sweatt and City Secretary June Krause. #1 HEARING OF RESIDENTS: A. Bill Neller 1. Advised that as of this date, there were still six Christmas brackets on the poles on Main Street that covered the flag brackets. He added that if the flags were to be displayed the end of the month, these would have to be removed. 2. He was disappointed with the short mentioned of the flags being displayed for the Vietnam Veterans. B. Georoe Mower reminded that at the last meeting asked Council for a copy of the Open Meeting Law, that he had been informed that the City was required this available. he had saying to have Mr. Sweatt advised that there is no law stating the City must maintain a law librarYi however there is a copy of this available if Mr. Mower would like to purchase one. Mrs. Stanhope said she had contacted the Attorney General's office and also found out there is no requirement to have this available. However, in making her phone calls, she did find out that Mr. Mower already has a copy. She then gave him a copy of the current booklet put out by the Attorney General. C. Sue McBride of 1205 Cedarwood asked what would be the speed limit on FM 3009 once the construction is finished. Mayor Sawyer answered that the Department of Transportation sets the speed limiti however the Council can put some pressure on them for a lower limit. Mr. Sweatt added that it is being designed for 55 miles per hour. Mrs. McBride said she and her husband represent residents of the Silvertree Subdivision. She said they have been in contact with the Department of Transportation and they are saying the City sets the speed limits. Mr. Sweatt said what takes place is they run tests and measure traffic for 24 hours. They make their recommendation based on 86% of the traffic during this period. The City cannot set a different speed limit than what the State recommends. ~6 Mrs. would lower and Elbel McBride said they had been informed that the limit be from 45 to 55 MPH and they are recommending it be no more than 35 miles per hour between Silvertree Road. Mrs. Marsh advised that the previous speed limit for that portion of FM 3009 was 45 MPH before construction started. Mrs. McBride said they have also been in meetings with the Department of Transportation about the elevation for parts of FM 3009, especially at Eli Whitney. Last Friday four people from the State met with them and they are suppose to get back in touch soon. She mentioned that there is not even street lights in that area and it is dangerous. Mr. Sweatt advised they had to take the street lights out for construction. He said we can all make requests but they are not going to do anything until the road is completed. Mayor Sawyer told Mr. & Mrs. McBride that the City would keep up the pressure on the State. D. Richard Hammel wanted to know if there are any reports that could tell him what it would costs to have the County collect taxes for the City. He asked if any study had been done on this. Mr. Greenwald said the last time we looked into this it was not cost effective and there were delays in posting times. He said there were other objections but these two are the ones he could remember now. #2 Discuss FY92-93 External Audit Report. Mayor Sawyer advised that the Audit Committee has been over this at length in a meeting with the auditors. Barney Ortiz, of the firm of Leal, Carter and Rocha, referred to the 113 page Annual Financial Report Councilmembers had received. On page 20, as in the past they only thing the City will receive from them is their opinion on these financial statements based on their audit. These financial statements are the responsibility of the City's management; however in smaller cities the auditors assist staff but the responsibility still rests with the City. He added that they have reviewed the contents and audited the contents and that in their opinion, they feel they fairly represent the financial position of the City. As in past years, the City has gotten an unqualified opinion, which means they had no reservations whatsoever. Also this year, as in the past five years, the City again received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. This is a pretty tough certificate to get and the City has gotten this the last six years. ~ 97 Page 30 is a compilation of the revenues that the City has received during the year, the expenditures for the year and the comparison between the actual and the budget for the General Fund and the Debt Service. He briefly went over the figures for the General Fund, since that is the largest fund the City has. He pointed out that 2.6 million dollars was budgeted and got approximately 2.6 or 2.7 million dollars - favorable on budget of about $66,000. In total expenditures, the City budgeted 2.5 million dollars and got actual expenditures 2.4 million dollars. We were under expended on the budget approximately $79,000. We projected to have excess revenues of $154,000 and we had actual of $300,000 so we were over the budget by about $145,000. After the City transferred monies for the debt service to cover interest on our bond issues of $184,000, we had left over in actual $115,000 from the $300,000 before we made the transfer. On the budget, we estimated we would have less expenditures than revenues by about $30,000 so we beat out budget by about $146,000. Last year to begin with we had a fund balance of $104,000, this year we add to that $115,000 so the City has an operating reserve of approximately $145,000. We have approximately 2.7 months of operations. Mr. Ortiz mentioned that in 1989 we had a deficit of $50,000 and in 1993 we now have $545,000. We are talking in excess of 900% that we have come from 1989. Each year since 1989 we have progressed to the point we are right now. He said usually a city of this size operates between three to three and one half months reserves. Mr. Ortiz then directed attention to page 79 for the Enterprise Fund, which is comprised of the Water and Sewer System fund and the SAFES funds and combines them to show one operation. The Enterprise Fund is operated as a business. The reason is that these funds operate to provide a service and you expect to get a return to replace equipment, improvements etc. This does not mean that all the monies in this fund can be transferred out. In the Water and Sewer System we had fees charged to user of approximately 1.6 million dollars. The operating expenses, before any depreciation, was approximately 1.4 million dollars. We had an operating income of $231,000 and to that you apply depreciation on all fixed assets and that came to $390,000. Operating income, including depreciation, we had a loss of $159,000. That loss is before you take non-operating revenues and expenditures, the biggest portion being interest expense. If you apply the non-operating revenues of $218,000 you now arrive at a net income of the whole operation, or in this instance a loss of $378,000 for the operation of the water and sewer fund, including depreciation. We transferred out $227,000 to Capitol Projects Fund but that has to flow through this fund, so now you arrive at a loss of $605,000 in the Water and Sewer Fund. The key figues here is the operating income loss of $159,000 and obviously the additional expenditures, being for interest, of $298,000 or the net income from operations only of $378,000. 98 Last year we had retained earning in the Water and Sewer Fund of $197,000. We now apply the loss of $605,000 to that and now have a deficit in retained earnings, or no operating reserves of any kind, of $408,000. Mr. Ortiz related that the City does have some cash that is reserved especially for certain things. Those are for the Revenue Bond retirement, $341,000 and cash reserved for equipment replacement $123,000. He then referred to page 64, the revenues and expenditures are detailed into certain categories. You will also see expenditures that are classified into categories. Then on page 65 you will see each of the categories, both revenues and expenditures, broken down into detail. Mr. Ortiz said that the previous Monday, he had met with the Audit Committee and went over this report and another report where they presented certain items of recommendation to the City they had and discussed them in detail. He said he thought Mr. Sweatt and the Chairman of the Committee would present these four items to Council later on. Mr. Ortiz said if Council had any questions or comments they wanted to make to please call his office. He then mentioned that included in this report were some five to ten pages of notes that simply amplify the report. They did put in the notes that during the end of the year, the City amend the water and sewer rates. Richard Hammel asked if the water rates were broken down into areas or funds, since those who live outside the City in Bexar County pay more than those within the city limits. He wanted some justification for this. Mr. living Comal Those rates. Sweatt agreed that the rates are higher for those outside the city, whether in Bexar, Guadalupe or County or wherever they live outside the city limits. outside the city pay 100 percent of the inside city George Mower asked if the auditor would give him the four items in their recommendation to the Council. Mr. Ortiz exlained the report, saying this is the first year Council received this report in this fashion. The Account Profession has put out some standards and said they should put out a report labeled "Conduct of Audit Report". This report addresses significant auditing findings and there are none; also would disclose disagreements with administration - there were none. They also would disclose if there were consultations with other accountants - there were none. He explained the entire report at this time. He said they disclosed separate items items that they felt needed to be presented to the audit committee and Council. ------ 9~ The first item was they routinely review minutes and brought to the attention to the audit committee that some of the minutes were not signed. They brought this up because once the signature is affixed to the minutes, they are official according to state law. The second item brought to the audit committee is they encountered some accounts that are duplicate number. For instance you could use number 101 for cash in the General Fund and then if you use number 101 in the Water and Sewer Fund labeled accounts receivable, it would accept it but it is best to have an accounting system where the numbers are unique throughout the system. The third item was that although there was a great improvement over last year, they did discover five bank accounts that were not reconciled. The amount was small and they did not consider it material; but it would be good if all accounts would be reconciled. The fourth item concerns the SAFES accounts receivable. SAFES maintains a detail of the accounts receivable and that detail should agree with the accounting records with the City. They find that the detail ledger did not agree by approximately $8,974. SAFES presented to them a memo and reports to be reviewed and after review, if the auditors felt it needed to be done, they could adjust them. After their review, they felt no adjustment needed to be done. They felt these figures could be reconciled. They have a meeting with SAFES to review these figures. Answering further complete audit of item, that would samplings. questions, Mr. Ortiz said this the City. They do not go through be cost prohibitive - so they do is a every take #3 Discuss Board of Adjustment hearing on a request by Ira and Carolyn Garrett, 3712 Hull Street, for a Special Exception allowing them to cover their existing patio slab with a sun room. Mayor Sawyer called attention to the recommendation from Planning & Zoning that this be approved for public hearing. As Council had no comments, this was asked to be on the next agenda for public hearing. #4 Discuss an ordinance, recommended by Planning and Zoning, that amends the Subdivision Ordinance regarding private streets. Mayor Sawyer read the recommendation from Planning & Zoning as follows: "Our current Subdivision Ordinance states that private streets are expressly forbidden. Over the years, private streets have been authorized for... .Mobile Home Parks.... .Inquires are being received from developers about private streets for developments as large as 300-400 lots. lOO Due to the serious concern for secure living conditions by homeowners, the Commission feels more developers will be looking for ways to provide this security. The Commission feels the proposed amendment Subdivision Ordinance is needed to ensure that the safety and welfare of the citizens is protected and is protected from any liability." to the health, the City Mr. Sweatt said the basic problem is that if a street is closed for security purposes, it immediately constitutes a problem with it being a public street. This ordinance deals with the issue by requiring the street be built to a certain standard and that there is a development of a maintenance agreement in which the homeowner is assured that there is someway those streets are going to be maintained by the Homeowners Association. After discussion with citizens present, Mr. Greenwald said this ordinance makes it mandatory that a property owners association collects a fee to pay for street repairs and that they are obligated to maintain them to City's standards. Mr. Greenwald said he was totally against private streets because the tax payers are going to pay the same amoumt of taxes and will get no street maintenance nor police patrols and that is not fair. Mrs. Stanhope added that if that is the choice the owner makes, that they are paying taxes for something don't get - but they know that up front. home they #5 Discuss subleasing of Scout Hut property to Church of the Harvest. Mayor Sawyer recalled that we did allow them to sublease the Scout Hut last year. Mr. Sweatt said that is right the Council authorized a sub-leasing under the terms of the agreement between the City and the Scouting Association for a one year period of time. The Scouting Association would like to enter into a second sublease with the Church. They feel it is advantageous to them because the fees that have been paid has allowed them to do significant maintenance to the Scout Hut that they were unable to do without this. #6 Discuss donation of 1956 fire truck to Guadalupe Valley Fire Fighters Training Program. Mr. Sweatt advised we do have a 1956 Ford pumper and have not been able to receive credit in our key rate structure for this vehicle for a number of years, because of its age and the fact that parts are not available. The State Fire ._-~/' 101 Insurance Commission rates a community and establishes a key rate on a number of factors and its equipment is considered based on years and ability to perform a function. In this case, the equipment could perform a function but is beyond an age we could receive credit for it and it is considered unreliable because we do not have parts available. Mrs. Stanhope asked if there was any dollar value if we auctioned it off or sold to a collector. Mr. Sweatt said we do not feel there is much value because the market is pretty well bloated since every city has these to dispose of. In this case, the Guadalupe Valley Training Program has the need for a stationary pumper. We would like Council's permission to donate this pumper to them for this purpose. It can meet their needs and they would be very happy to receive it. We would not plan to transfer it immediately as we have one piece of equipment in repair right now. Chief you there are parts available for this piece of equipment. Also from the pump - this equipment has a Champion pump and there are no parts available for that. Ford Company wouldFp not give us a list of parts, which has to get credit for this truck on served its purpose with the to retire it. Woodward said once a truck reaches 25 years service. have to have a letter from the manufacturer saying be sent to the State for us to our key rate. This truck has City since 1956 and it is time Chief Woodward said we do have mutual aid with other entities if needed. Mayor Sawyer interested in since they do area. said we can check to see if anyone would buying it, if not then we could donate train our people as well as others in be it the #7 Discuss contract for organized youth recreation services with Buffalo Valley Youth Association. Mr. Sweatt said there was really only one change or amplification to the contract this year, that is in Section 14. This amplifies a previous practice of how city equipment was used by certain BVYA personnel. It goes into some details on this. Basic is what has been done in the past and setting up a release of liability form. Mr. Greenwald said this was discussed at the BVYA Meeting two weeks ago and was approved by their board. ] 02 #8 Discuss Community Development Block Grant agreement with Bexar County regarding Rittimann Addition Sewer Project. Mr. Sweatt said the Council will be reminded that the City did support a request by residents of the Rittimann Addition for a CDBG Grant for sewer improvement in that area. The project was approved in the 1992-93 fiscal year and is finally moving forward. Bexar County has made a grant of $164,000 for the project. Bexar County has asked if the City would assist in the project, using the City Engineer with the cost paid by the grant, to design the project and our utility department be responsible for inspection of the project. Bexar County Community Resource Department will cash flow the project, award the contract and do all the administration of the contract and simply ask that we assist in the inspection. Based on our ultimate assumption of the operation and maintenance responsibility, we believe that appropriate. He said he did not have the agreement with him because we are still discussing some insurance issues. Mayor Sawyer asked that this be discussed at the next workshop. #9 Discuss Community Development Block Grant agreement with Bexar County regarding Mobile Villa Utility Project. Mr. Sweatt said the agreement has not been forwarded to us for final action but do hope to have it for the next meeting. This is a straight CDBG project in our city limits. It is our project, we will administer it - it is a pretty basic contract. We did qualify based on a minimum of 21 residents meeting the low to moderate income criteria. We have a tentative schedule of going to bids and having them in by late April so we could award the street constructin by late July. Mayor Sawyer mentioned that this is the one we put in for $100,000 to add to our bond money to complete sewer, water and streets in Mobile Villa. #10 CITY MANAGER'S REPORT: A. TML Region 7 meeting on April 8th in Live Oak at their Community Center at 6:30. Need to have reservations in by March 28th. He said he would be reminding Council again. B. Bexar Metro 911 is in the process of changing all rural routes in Bexar to CPS service addresses. We believe that will have some effect on some of the area in our city limits that carries other city's addresses. Mr. Hammel asked if there was some way he could get delivery services that is really where he lives. ~._~. 103 Mr. Sweatt said it is his understanding the three Post Masters would be getting together to talk about this issue. Perhaps they would like to ask them that at the meeting. C. The 28th Texas Legislative Conference Braunfels on the 24th and 25th of March Center. Mr. Kelleher, CEO of Southwest honored with the Texan of the Year award. will be in New at their Civic Airlines will be #11 ITEMS BY COUNCIL: Mrs. Marsh reminded all the VFW members the National Commander will be there on the 14th of March. Mrs. Stanhope: A. Seems there is again some controversy at the Senior Citizens complex as to who owns that street. B. Again, had another call of speeding on Mitchell right after school is out. Mayor Sawyer said he had the police there within five minutes after he was called and they did not see one thing. Mr. Sweatt said he went back and checked and on seven different times for a period of from thirty to forty minutes, the most cars during the after school hours was 28 vehicles and one was possibly speeding. Since the first of January six tickets have been issued in that area for speeding. Mr. Gr~~n~~ld: A. The new Edwards Board has supported a new director. B. The San Antonio water system is now studying the inverted rate structure - he suggested Mr. Sweatt send them a copy of ours. Also San Antonio City Council is looking at a Citizen Police Academy. Maybe they would like a sample of ours. #12 ITEMS BY MAYOR: Said one of our citizens reached the grand old age of 100 years today and he presented her with a proclamation on behalf of the City Council and citizens wishing her Happy Birthday. She lives in Autumn Winds. Mrs. Stanhope said she is presently going through our Police Academy and it is not only a lot of fun but even as involved as she has been, she is learning a lot. Any citizen that has not signed to go, should plan to attend. J04 #13 ADJOURNMENT: meeting was declared Sawyer. ATTEST ~ c~ Secretary~ There being no further business, the adjourned at 8:23 p.m. by Mayor 6J/Y1/)J~ Mayor, City of SCh~Z, Texas , --~