Loading...
ccskws 12-30-1992 0J SPECIAL MEETING OF THE CITY COUNCIL DECEMBER 30, 1992 The Schertz City Council convened in Special Workshop Session, Wednesday, December 30, 1992 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, preSiding; Joe Potempa; Barbara Stanhope; Mary Marsh and Ken Greenwald. Absent: Hal Baldwin. Staff present were City Manager Kerry Sweatt and City Secretary June Krause. #1 HEARING OF RESIDENTS: There were none wishing to be heard. #2 Discussion of proposed name change for Jack Hays Boulevard. Mayor Sawyer advised that Council has received two letters in favor of the name change. A public hearing on this subject was held where a couple of people spoke in favor of the change and one spoke against the change. He then asked if Council had any further comments to make and they had none. #3 Discussion amending the Code violations. of final relating to reading certain of an animal ordinance control On being discussion agenda. asked by the Mayor, the Council had no on this item. It will be placed on further the next #4 Discussion of final reading of an amending Section 7 1/2-54 of the Code, Exhibit Rate Schedule. ordinance 2 Garbage Mayor Sawyer reminded Council the first reading and discussion had been held and if there were no further discussion, this item would also be on the next agenda. There were no further comments from Council. #5 Discussion of official newspaper designation. Mayor Sawyer called attention to the revised rates from the Herald Newspaper Group which are substantially higher than the present rates. Mr. Sweatt said we are somewhat limited in our choices. The spirit of the law is to cause ordinance and various acts of the City to be publicized in a manner in which the citizens could read and know about them. The State Legislature also prescribes certain requirements for official newspaper and there have been Attorney General opinions that amplified the law. He called attention to our lJi.J attorney's op~n~on as to what constitutes the law. There is sometimes debate as to what is the spirit of the law and the letter of the law. The local newspaper could comply with the spirit of the law by letting our local citizens know what is going on. The letter of the law appears to be somewhat different and indicates that between the second-class mailing permit being a newspaper of general circulation and having certain other requirements stipulated by the Attorney General, the Herald could not meet those requirements. The last time this issue came before the City Council, in order to comply with the letter and the spirit of the law, the Herald Newspaper Group (which owns both the Herald Newspaper and the Commercial Recorder) proposed an arrangement that would run the legal notices and designate the paper that meets the letter of the law and then run the same notice in the other paper which meets the spirit of the law, at no extra charge. Because of this, the Herald was awarded the proposal back in 1991. The rate at that time was $3.85 per column inch, with the provisions that the notices be run in the Commercial Recorder and at the same time be run in the Herald at no additional cost. We have now been notified that their price increase is in effect and that the same arrangement would now be $14.85 per column inch. The proposed rate for the Herald alone is $3.95 and the Commercial Recorder is $13 plus; and this equates to the $14.85 per column inch. Mr. Sweatt suggested Council give some thought to advertising again and solicit proposals also from the New Braunfels Zeitung, Seguin Gazette and the San Antonio Express. He said his guess was that none of those will be anywhere near the price we have been paying. It is possible to meet the spirit of the law by running those notices in our newsletter and the letter of the law could be satisfied by choosing one of the other newspapers. Mayor Sawyer said he agreed that we should go out for and also get a legal opinion as to whether we can use newsletter. Council agreed also. bids our #6 Discussion of changes to employees Retirement Program. Mr. Sweatt said this is one of the best opportunities we have to do something good and there is no down side. We have an opportunity to improve benefits, improve our recruiting efforts and to show employees that the City is committed to a very stable work place and long term employment. We currently utilize the Principle Financial Group as the provider for retirement benefits - it is on a money purchase plan. The plan is designed around an employee contribution of 2% and an employer contribution of 4%, with a varying scale of vesting benefits in the system. In the past several years, the system has been earning 6%, 7% or even only 4% on contributed dollars. ,~ 1 ; J: ~. We have long seen the need to make our retirement system more compatible with other cities, with which we competei and to offer a higher incentive to stay with the stay through retirement. The Texas Municipal Retirement System, which is a Legislatively approved state-wide municipal retirement system is available to us. Some 590 other cities in Texas belong to that system. We believe that joining the Texas Municipal Retirement System would have a number of additional benefits for our employees. The first would be the change of contributions - the employee would make a 5% contribution and the City would make a 5% contribution. There are other options but this is the minimum gOing in. If we were to go with the TMRS, there are steps that would be required to take. One of those would be to terminate the existing plan. If we terminate the existing plan, all employees are immediately 100% vested. At the same time, by joining the Texas Municipal Retirement System, they would gain benefit month for month service for all their prior service. There is no loss monetarily or time wise for any employee. In fact, the employee will withdraw all of their contributions immediately without any sort of tax liability. The City's contribution and interest on both the employees contributions and the City's have not been taxed. So, if an employee elected to withdraw those monies in cash, he would have a tax liability and penalty for early withdrawal. We would strongly encourage our employees to take those funds and convert them into an IRA fund to avoid any tax or penalty. The net effect to the employee is that they are held totally harmless for their total years of service with the City, they immediately gain the additional vesting privileges in the current system and are able to liquidate that. They will then begin inuring benefits on a one to one match with the City of Schertz. They would be eligible to retire at either (1) sixty years of age and the minimum of ten years of service, or (2) twenty-five years of service at any age. Obviously, the more years you work in the system, the better your retirement is. The TMRS has additional benefits, such as death and disability benefits that are not in the present system. The TMRS system has the advantage of transferability. In the areas of recruiting, we would have the opportunity to be competitive with employees of other cities who are under the TMRS - they would bring their time with them. The TMRS also offers the employee a strong commitment for long tenure employment. Mrs. Marsh mentioned the employees would be paying 3% more. Mr. Sweatt said not in reality as the current contributions are after taxes and under TMRS a calculation for retirement contribution is made out of gross salary and they pay taxes only on the remainder. The employees will be paying more that the present 2% but not a full 3% more. 62 Mr. Sweatt advised that this would cost about $6,000 more than budgeted for retirement benefits. He said next year would be more as salaries change, the City's contribution would increase. He said he had presented this the department heads and they are strongly in favor of this. He planned to go to the employees, if the Council agrees conceptionally with this change. He will be having meetings with all employees to explain the change. When asked how he felt the lower paid employees would accept this, Mr. Sweatt said that naturally no one wants more money withdrawn from their check; but after it is all explained to them and shown that this is a much better system, he felt there would not be much opposition. After lengthy discussion, Mayor Sawyer asked if Council concurred to allow Mr. Sweatt to contact all the employees. Council agreed with that. Before going to the next item, Mayor Sawyer allowed Henry Gutierrez to address Council. Mr. Gutierrez referred to an accident that happened the previous day whereby one of his trucks struck a fireplug breaking it off below street surface. He admitted that their company was responsible and would have to take care of it. He said the water was turned off about thirty minutes that night and another six hours today. Mr. Gutierrez said he planned to write a letter to the Woodland Oaks Homeowners Association and apologize for any inconvenience caused them. Mr. Gutierrez also suggested that the next time a holiday falls on Friday, it might be wise for them to up the solid waste on Saturday instead of waiting for next pickup. major pick the Mr. Sweatt said that was commendable if they were Willing to do that. Mayor Sawyer mentioned that someone had mentioned to him that FM 78 looks terrible since those trash trucks are going in and out of Becks Concrete. #7 Discussion of creation of Tax Increment Financing District. Mr. Sweatt said this is an issue that is somewhat complex. Basically this is our best opinion of a manner to deal with a need for Schertz Parkway that is being hampered by the current situation. As Council will recall, when Schertz Parkway was planned, the Council was asked to pass an ordinance that established a special platting fee. This was during the time when real estate was selling and everything look great. It was primarily to recoup money for the developers and land owners who paid the bulk of the cost of improving Schertz Parkway. That platting fee in today's . -. ---- G') '0 time has become so onerous it is counter productive to development. If it is allowed to remain, it will totally stymie development on Schertz Parkway. He said that, at the same time, we all recognize that Schertz Parkway is one of our major front doors - major thoroughfare - and needs to be improved but there is just not the money to do that. Therefore the Planning and Zoning Commission, Economic Development Task Force, and staff has come up with what we believe is an innovative approach that would solve the problem. This is not like tax abatement but has some of the same ramifications. We do not have one in our city. This would envision a way to raise money to accomplish certain kinds of goals. Mark Marquez showed some slides explaining the process of Tax Increment Financing. He said that as the value of our property rises, we have what is known as captured value. That captured value is the difference between what the value was at the base year of 1993 and the increase the following year. He said if the value of the property in 1993 was $15,000,000 and the value rose by 1% the following year to net out at $150,000, that is the captured value. He said they are suggesting 75% of that be applied to a Tax Increment Fund. The other 25% just continues to inure to the taxing entity. Mr. Marquez said one of the key points he wanted to make is that this is a slow process. When asked what happens if both the city and county agree but the school district does not, he said then it will just take a lot longer but you still could do it. He said it had not been submitted to the School District as yet, first the City has to approve this by minute order then it will be presented to both the county and school district. Mrs. Marsh said that by doing this, the city could do away with the platting fees and hopefully could get some development started. Mr. Marquez reminded that these funds are dedicated to the Schertz Parkway only. Mr. Sweatt advised that, with Council permission, would be on the next agenda as an item to conceptionally with the plan and to set March 16th as of the public hearing. Council agreed. this agree date #8 Discussion of an Recovery Wastewater Fees. ordinance revising Capital Mr. Sweatt mentioned that this ordinance will implement what Council discussed in the past regarding Capitol Recovery Wastewater fees. As discussed, CCMA has received approval to increase their fees to $985. In order to maintain our $150 fee, we recommend adopting this ordinance to increase the Capital Recovery Wastewater Fees to $1135. 64 Mrs. Marsh asked if the other cities would be affected in this manner and Mr. Sweatt said it would effect every city serviced by CCMA. Mr. Potempa wanted to know how this increase would impact growth. Mayor Sawyer reminded him that this fee will be passed on to the person that buys the property. #9 Discussion of animal shelter construction. Mayor Sawyer said the construction is going along great and that Mr. Sweatt and staff applied for and received a grant for $47,000 for this project. Mr. Sweatt said we propose to use the grant money for specific purposes, some of which we can negotiate an addition to the contract. We would request Council's agreement to deal with the contractor to see if we can do the painting of the concrete block walls and the concrete sidewalk through a change order. Then we will discuss the brickwork with the contractor. Depending on what the labor and materials is priced at, it is possible that we could negotiate a change order for that item also. However, the asphalt paving for the entrance roadway and the parking lot, the perimeter fencing and the large animal livestock pens all need to be bid. We think the existing contractor is in a good position to bid those but because of the magnitude of the project, we really need to bid those out. If Council has no objections, we would like to move forward, solicit the bids on those that need to be bid and negotiate the change order on things we can. Mayor Sawyer asked if there were any objections to this. Council had no objections and strongly suggested moving forward. Mr. Sweatt said that not only would we get out a news release on the grant; but would perhaps have a plaque recognizing their contributions and ask them down for the dedication. Mr. Sweatt reminded Council that we have contributions originally designated for accomplishing the brickwork on the building. With this grant, that is not necessary. We have about $400 contributed and have any number of needed items. The Humane Society has money that they have indicated they are willing to spend. Mrs. Stanhope suggested building a large gazebo, where citizens could take an animal and get acquainted with it before adoption. Perhaps plaques could be placed in the gazebo for these donations. Mr. Greenwald said he felt each contributor should be contacted to see if they had any objections. Mr. Sweatt said he would contact those that made the donations to see if they wanted their money returned or if it could be used for something like this. f,) #10 CITY MANAGER'S REPORT: A. At your January 5th meeting, we will have the proclamation naming Ann Almond as the January Star of the Month. B. The railroad crossing improvement work is planned to begin, not on FM 3009, but at First Street. They have planned this for some time and plan to accomplish this on January 6th and will take about a week to complete. #11 ITEMS BY COUNCIL Mr. Potempa advised that the day before there was a surveying crew at Mobile Villa and he asked if they were surveying for sewer or water and they told him for sewer. Mr. Sweatt said our engineering estimates have come in very reasonable as to what was proposed under the recent bond sales, so we have asked them to do an estimate of going on and providing the sewer at the same time. He said he did not believe there would be sufficient funds; but if there was enough to at least do the main lines at the same time as the water it would save us money in the long run. Mr. Potempa asked what the Health Officer found on the property at 5317 Plaza Drive. Mr. Sweatt said he sent certified, registered, return receipt requested letter and they have not picked it up as yet. Mrs. Stanhope wished everyone a very Happy New Year. #12 ITEMS BY MAYOR: Mayor Sawyer had received a letter from Alamo Area Council of Governments asking the City to pay their dues. He suggested doing that as this is a budgeted item. #13 ADJOURNMENT: meeting was adjourned at There being no further items, the 9:36 p.m. by Mayor Sawyer. ~'tj~~, T~xas- ATTEST: of Schertz