ccswks 09-28-1994
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SPECIAL SESSION OF THE CITY COUNCIL
SEPTEMBER 28 I 1994
The Schertz City Council convened in Special Workshop
Session, Wednesday, September 28, 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 Hal Baldwin, presiding; Charles McDonaldi
Barbara Stanhopei Mary Marsh and Ken Greenwald. Absent:
Joe Potempa. Staff present were City Manager Kerry Sweatt
and City Secretary June Krause.
#1 HEARING OF RESIDENTS: A.
regarding the tax abatements,
Development Commission recommends
present to answer any questions.
Lew Borgfeld
saying the
approval and
remarked
Economic
they are
B. Jim Harris referred to item #4, saying that
citizens cannot ask questions during the discussion,
the item be covered in detail.
since
would
Mr. Harris referred to remarks made at a previous meeting,
saying he did not represent anyone or organization, he just
represented himself.
#2 Discuss EMS Service Contract with Randolph Air
Force Base.
Mr. Sweatt reminded that we had entered into a contract
with Randolph Air Force Base for EMS service six months ago.
This was a new venture for both and we did not know how to
treat it so we treated them as any other entity. The
estimated population on the base is 8300 and we then charged
the same per capita fee as for other entities. This has
added a substantial increase to our service area. We used
the six months as a trial period and now, as both feel it is
a good arrangement, we feel we can provide this service to
Randolph. On that basis, we recommend a one year contract
based the same as the first six months at $4.68 per capita.
We will bill Randolph for the first six months and they will
pay in advance.
When asked how collections are, Mrs. Malone (SAFES
Director) advised they are corning in very good.
Mayor Baldwin said if there were no more questions, this
should be on the next action agenda.
#3 Discuss ordinance amending the Code by adding
Chapter 14 1/2 on Records Management.
Mr. Sweatt explained this will amend the ordinance
currently in effect with the shifting of the Records
Management Officer. It is our intention to designate the
office Manager/Data Processing Coordinator for this
position. In the past it was under the City Secretary.
2~O
Since Mrs. Austin has been helping in this area, we feel
she has the expertise for the job.
#4 Discuss public hearings regarding Reinvestment Zone
recommendation for the following:
A. Ramada Limited.
Mr. Sweatt related that the public hearing is required to
establish a reinvestment zone. This can be as small as the
specific area of the business or can be a large tract of
land. In the past, we have done both; however, in this
instance, we recommend doing it by location. In the case of
Ramada Limited, a request was filed in the amount of 90% for
nine years. The evaluation of the request describes the
first $90,000 abatement at 10%, remaining $1,146,000 at 1%
per $20,000. Under our rules, a hotel is a high priority.
The hotel is estimated to produce direct sales tax revenues
of $8500: and in addition, the City of Schertz has adopted
a hotel/motel tax of 7%, which would produce an additional
3% so the total percentage would be 102%, but under our
guidelines, 90% is the highest allowed.
Mrs. Marsh said it is important to look at the bottom line
net revenues over nine years to the City of Schertz of
$594,886.95.
Mr. Sweatt added that we are creating jobs at a very, very
low cost. They estimate their payroll to us as being
$266,767, which we believe is very conservative.
Mr. McDonald reminded that their personal property would go
on the tax rolls also.
Mrs. Marsh mentioned that the variance is the 90% for nine
years, so we are not setting a precedent since his figures
warrants this.
Mr. Sweatt related that the Economic Development Commission
met to review the request and have unanimously recommended
approval of this application. The public hearing is
scheduled for October 4th at 7:00 p.m.
B. American Freiahtwavs
Mr. Sweatt said we have proposed to grant the Reinvestment
Zone for the 18.2 acres tract to American Freightways. They
are going to pave above 14 acres, with a 72 door facility.
They are now in San Antonio with a 25 door facility. Mr.
Jim Trammel of American Freightways is present.
Mr. Trammel explained their operation, saying they do not
warehouse but do the hauling as it comes in and goes right
out. He said they will also handle freight coming out of
Mexico.
.----/
28]
Mr. Sweatt advised the property currently has an
agricultural exemption and brings in $12.50 a year in ad
valorem taxes. He explained the abatement percentages,
saying that American Freightways would be eligible for a 90%
tax abatement for 7 years, and a 60% abatement for year 8.
He added that the City would receive approximately
$23/164.55 annually in revenues, at a cost of $12,696.75
annually.
Mayor Baldwin, with Council agreement, advised the public
hear ing would be set for October 4, 1994.
#5 Discuss ordinances relating
request by:
to tax abatement
A. Ramada Limited
B. American Freightways
Mr. Sweatt advised that he could not talk about the
reinvestments zones without also discussing the tax
abatements, and asked if there were any further questions.
Mrs. Marsh said she thought it was super, even if it has
taken a long time. Economic Development is not a project
but a process and this is the first.
Mayor Baldwin said
Economic Development
these industries.
Council appreciates all the
Commission and staff has
work
done
the
with
#6 Discuss cancellation of workshop meeting of October
26, 1994.
Mayor Baldwin said there should not be much discussion on
this subject as there will not be a quorum for the meeting.
#7 Discuss resolution authorizing an agreement to
contract with the Texas Department of Licensing and
Regulations for local inspections of manufactured housing.
Mr. Sweatt said that a number of years ago there was
concern about the difference in codes and how they were
being enforced across the state regarding modular or
manufactured housing. In some cases, they were regulated by
the Federal Government and in some cases by the State.
Cities were limited to the exterior of this type housing.
The Texas Department of Licensing and Regulation has asked
us to do the local inspection of manufactured houses.
Inspections will be done at the plant; however when the
unit is placed on the ground in our community, in addition
to what we would normally inspect, we are proposing to
contract with the State for the tie downs and other exterior
conditions. We would then be reimbursed in the amount of
$20 per inspection performed. We believe this arrangement
will prove effective for the customer, the City of Schertz
and the State of Texas. In answer to questions by Council,
282
Mr. Sweatt said this would apply to any house brought in on
wheels, although the wheels may be removed. If either the
State or the City want to withdraw, there will no penalty.
#8 CITY MANAGER'S REPORT: A. Reminder of the Canyon
Regional Water Authority open house on September 29th.
B. We ran into a brief difficulty that will set back the
mailing date of the tax statements. The majority will. be
going out on the 29th, but some may be as late as December
1st.
#9 ITEMS BY COUNCIL: Mr. Greenwald: A. Have had a
resignation on Planning and Zoning Commission. We used the
names on hand to fill the Board of Adjustment. If anyone
knows of someone wishing to serve, have them fill in the
forms.
B. Reported that he, Mayor Baldwin, Mrs. Stanhope, Mr.
Sweatt, several members of the Planning & Zoning and several
Schertz citizens attended the Monday night meeting on
regional economic development. He said the report is very
complimentary to the City of Schertz.
Mr. McDonald: A citizen reported that FM 3009 from Garden
Ridge Pottery to Southwest Precast is beginning to look like
a trash pile.
Mrs. Marsh: Reported on the Schertz Business Association
meeting held the previous day, saying it was a short
meeting. They are in good financial state and discussed
ways to spend some of their money on youth, among other
things.
#10 ITEMS BY MAYOR: Mayor Baldwin reported that a
recommendation was made to get the Mayors and City Managers
of the six cities together to discuss economic development
for the area. He said he had always felt there would be a
lot of advantages in the cities working together. The City
Managers work well together so why not the entire cities.
#11 ADJOURNMENT: There being no further business to
discuss, the meeting was declared adjourned at 8:28 p.m. by
Mayor Baldwin.
Mayor. City of Schertz, Texas
ATTEST:
City Secretary, City of Schertz