ccskws 12-30-1992
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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
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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.
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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.
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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
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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.
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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.
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#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.
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ATTEST:
of Schertz