ccswks 03-10-1993
106
SPECIAL MEETING OF THE CITY COUNCIL
MARCH 10, 1993
The Schertz City Council convened in Special Workshop Session
on Wednesday, March 10, 1993 at 7:00pm in the Conference Room
of the Municipal Complex, 1400 Schertz Parkway, Schertz, Texas.
The following members were present: Mayor Earl W. Sawyer,
presidingj Joe Potempaj Barbara Stanhopej Mary Marsh and Ken
Greenwald. Staff present were City Manager Kerry Sweatt;
Deputy City Secretary Norma Althousej Administrative Assistant
Mark Marquez; Police Chief Norman Agee and Water/Wastewater
Superintendent John Bierschwale.
#1 HEARING OF RESIDENTS: Mr. Bill Neller advised there
was an error in the Newsletter. The flags will not be flown on
March 27th but rather on March 29th - the day the last American
troops left Vietnam.
#2 Discussion of public hearing on proposal to create a
Tax Increment Reinvestment Zone along Schertz Parkway.
Mr. Sweatt commented he thought they would give the Council a
partial delivery of what will be unveiled at the public hearing
on March 16th.
Mr. Marquez gave a brief presentation to the Council on the
TIF Plan, exhibiting a chart on the overhead for them to see.
Mr. Marquez stated no new additional taxes are required to
support this program. It is driven by increases in property
values over time. This time line runs out in 36 years, these
are 3 year increments. You are looking at the presumption of
what happens if property values increase 1% per year over the
next 36 years.
Mr. Marquez stressed there are three key points in the plan.
The first key point is the captured value which is the
difference between the base value and where the actual value of
the property happens to be. Funds from the TIF only come from
this area and nowhere else. Base year value stays constant.
The second key point is that this plan is not driven by tax
rate, but strictly by property values. When values are below
the line, the TIF fund gets no money.
The third key point is that this is a long-term program.
will take a period of time for funds to accrue into
account where it will be worthwhile.
It
that
Mr. Potempa asked if
Increment Reinvestment
that is correct.
this plan applies only to
Zone and was informed by Mr.
the Tax
Marquez
Mr. Sweatt remarked that if there was ever a case of
something for nothing, this plan is it. You will
getting
lose no
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revenue, and it is fueled by growth unless taxes are lowered
and property values drop at the same time.
Mr. Sweatt further stated presentations had been made to the
Schertz-Cibolo-Universal City Independent District and to the
County Commissioners Court and both approved participation in
the plan.
Continuing on, Mr. Sweatt said 209 notices have been sent to
property owners within 1,000 feet of the zone, notifying them
of the public hearing on March 16th. The City has heard back
from only one representative and that was a person involved in
the extension of Schertz Parkway. Since there has been no
ground swell of opposition, everything looks favorable. A
draft of the agreement has been prepared.
Mr. Sweatt suggested that Council hold the public hearing and
take testimony and take no action at that time, but rather
evaluate things and then corne back at a future meeting with a
proposed ordinance and an agreement. If it's not approved,
then obviously it will be withdrawn.
Mr. Sweatt advised the legislature authorizes creation of this
Reinvestment Zone and suggests that the Board that will run the
program be a minimum of five persons. Because there are three
jurisdictions involved, the City is recommending a Board of
seven persons comprised of three representatives from the City
(including a Chairman), two from the school district and two
from the County Commissioners Court.
Mrs. Marsh asked if the Tax Increment Reinvestment Zone will
have a designated fund for revenues collected and Mr. Sweatt
answered yes it will be a special and segregated fund that may
only be expended for purposes the Board establishes. Any extra
funds, after the project is finished, will be reimbursed to the
participating entities. The City has contacted the Guadalupe
County Appraisal District to see exactly how this should be set
up.
Mr. Marquez indicated the Board of Directors, once
established, will begin to work on the final plan and then will
come to City Council for approval of the final plan by
ordinance. They should be finished prior to the effective date
of the Reinvestment Zone.
#3 Discussion of draft of contract
regarding Tax Increment Financing.
and agreement
Mr. Sweatt said basically they have told the Council
know. If anyone has questions about the makeup of the
Directors or how it will be established, he and Mr.
will try to answer their questions.
all they
Board of
Marquez
108
Mayor Sawyer related that after the plan is passed,
still be amended.
it can
Mr. Sweatt stressed that the ordinance itself creating the
plan could certainly be either enlarged or diminished. If it
were to be eliminated, it would take a 3/4 vote of the Board of
Directors or no activity having taken place for a period of
five years.
Mr.
on it.
Marquez informed Mr. Sweatt they didn't put a time limit
The law reads three years.
Mrs. Marsh asked if it has to be three years and Mr.
answered they are looking to get around that
establishing a specific time limit.
Marquez
by not
Mrs. Marsh felt two representatives from each entity is too
many and recommended, if they're going to make the Board
larger, then it should be three from the City and one each from
the school district and County Commissioners Court.
Mr. Sweatt pointed out the school district is the largest tax
entity and he feels they will want two people on the Board.
Mrs. Marsh expressed a desire to see knowledgeable citizens on
the Board rather than people associated with any of the
entities. There was a brief discussion on this with Mr.
Sweatt saying the Board will consist of whoever the entities
appoint, it doesn't necessarily have to be elected officials.
Mrs. Marsh commented she would like a designated time once a
year for a formal report from the Board to City Council and Mr.
Marquez said it is a requirement. It can be included in the
ordinance to solidify it if necessary.
#4 Discussion of action regarding finance arrangement for
portion of police fleet purchase.
Mr. Sweatt reminded the Council that at budget time last year
they discussed financing a portion of the replacement vehicles
for the Police Department. Five vehicles are being replaced
and the City is proposing to finance $35,963 for a 12 month
period through a City depository agreement with Schertz Bank
and Trust. We are asking Council to consider authorizing it at
the next regular meeting. All the vehicles are in and the
equipment is being installed.
Chief Norman Agee stated he thought one of the vehicles
be on the street today, but it didn't work out.
would
Mr. Potempa inquired if they ever figured anything out
the cages, since the new vehicles are smaller, and Chief
reported there is an adapter kit available for cages if
decide to do that.
about
Agee
they
#5 Discussion regarding progress of cable television
re-franchising with Paragon Cable Company.
Mr. Sweatt commented that T.J. Connolly and Susan Williams
from Paragon Cable are here tonight and then commended the
Paragon company for its long and arduous effort in this
re-franchising process. The City Managers and Attorneys for
the cities of Converse, Live Oak, Kirby, Selma and Schertz met
with T.J. Connolly and Susan Williams for about two months at
least once a week and discussed every element of the existing
and proposed new franchise and for the first time since Paragon
has been the provider, they have accomplished give and take
communications that have been productive for all.
The current franchise is set to expire in September, 1993. It
was a 15-year franchise issued in September, 1978 and two
owners ago. When all the discussion and confusion arose from
the new Cable Act, not many of us knew exactly where the future
of cable regulation was going. Mr. Sweatt pointed out the
City is not in the rate regulation business, but rather in the
service regulation business.
Mr. Sweatt related, that as he understands the Cable Act
regulations today, because of a lack of effective competition,
some areas are subject to higher rates than others. Schertz is
considered involved in effective competition. Our area of
competition will be in areas other than rates.
Mr. Sweatt listed some highlights
agreement:
of the new proposed
(1) it is a 15-year franchise beginning November 9, 1992 (this
will tie our franchise with those of Converse, Live Oak, Kirby,
Selma, Universal City, Cibolo and several other cities so we
will take advantage of a larger bargaining unit since they all
are up at the same time);
(2) it provides added provisions calling for equal treatment
if one city finds a better agreement;
(3) it provides for a 5% franchise payment for all dollars
attributable to the cable system;
(4) it provides for a 5th, 9th and 13th year performance
evaluation;
(5) it provides for a quarterly report and discussion of new
technology and new additions to the systemi
(6) it provides for updated customer standards;
(7) it provides a broad manner in which each of the cities
will benefit from all new technology as the industry changes;
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11
(8) it provides the City will receive at no cost certain
service connections as they become available;
(9) it provides that an emergency notification override will
be placed in effect no later than December 31, 1995;
(10) it provides that fiber optics will be installed in all
jurisdictions no later than December 31, 1997; and,
( 11) there
treatment
entities.
is a commitment in the franchise that the
provision will be in effect for all of the
equal
various
Mr. T.J. Connolly commented they had spent the last two
months meeting with the various cities' City Managers and
Attorneys and he thought quite a bit was accomplished. Paragon
came to the table with a lot to prove.
Mr. Connolly reported two key changes:
(1) The 5% franchise payment is all revenue derived from or
attributed to the cable system.
Mr. Connolly said they realize basic rates have to
increasing or be scaled back to get into homes and then
create ancillary services and offer them.
stop
they
The first phase of Cable Act 1992 is supposed to go into effect
April 1st. The new FCC Chairman is going to request and be
granted a 90-day stay and when the 90 days is up, will either
request another stay or enact some of the rUlings and let
others drop for a while.
The FCC is currently in a state of turmoil and political
struggle due to the election of a new President.
Mr. Connolly further stated the important thing is there is a
Section 17 in your document which says for the life of this
contract, if the Federal government ever enacts the 1992 Cable
Act or creates a 1997 Act, those Federal regulations will
automatically, without negotiation, be rolled into your
document. You probably will see stronger regulations from the
Congress.
Mr. Connolly noted that Congress and everyone in this room,
except him, views cable as a utility and thinks it should be
regulated and prices controlled.
(2) Section 21, the equal treatment agreement, ensures that no
matter what happens, the cities our there in 1995 or 1997, or
in 2003 will enjoy all the franchise benefits, cable service
changes, etc. An example of this is that Schertz, even though
compared to San Antonio they may represent less than 1% of the
cable business in the area, will enjoy the same franchise
1 -, "1
~L J J
benefits as San Antonio.
Mr. Potempa
was informed
it now only
advertising.
asked the rate of the current franchise fee and
by Mr. Sweatt it is 5%, but somewhat limited as
applies to the cable TV portion and certain
Mr. Potempa then wanted to know how much of the tax money
comes back to the City and was informed that portion of the
sales tax attributable to Schertz comes back to Schertz.
Mr. Potempa then asked T.J. Connolly if they offer senior
citizen discounts and was told yes. at age 65 and over you can
get a 10% discount.
Another question asked by Mr. Potempa is why the cable bill is
paid 30 days ahead. T.J. Connolly replied the cable company
pays for their service in advance and so they require it of the
customer. There is no way to measure the service. However,
when you request a disconnect, anything unused is refunded. It
is easier to get the money up ahead and then refund.
Mrs. Marsh wondered why T.J. Connolly doesn't consider cable
a utility. Mr. Connolly replied because cable is needed for a
clear TV picture.
Mr. Greenwald inquired if there's any thought of getting
service to Schirmerville.
Mr. Sweatt informed Mr. Greenwald that currently they need 30
accounts per mile, they are looking at changing that to 25
accounts per mile and as far as Schirmerville, the company is
going to take a look. A pro-rata arrangement has been
discussed.
Mr. Greenwald remarked the City is totally committen to
enforcing the AICUZ regulations and by doing so have deprived
the people in Schirmerville from getting cable service.
T.J. Connolly mentioned the citizens do have an alternative
now - a wireless cable operator is up and running and has taken
a few of Paragon's customers. Paragon, itself, is considering
the possibility of providing service to smaller clusters of
homes.
Mayor Sawyer thanked T.J. Connolly and Susan Williams for
their time.
Mr. Sweatt suggested they schedule discussion of the franchise
agreement for the March 31st workshop, schedule a public
hearing for April 6th for consideration of the ordinance on the
first reading, and then possibly on May 18th further action on
the second reading.
112
#6 Discussion of agreement for participation in the Alamo
Area Narcotics Task Force
Mayor Sawyer related several cities had dropped
participation and asked which ones they were. Mr.
answered Hollywood Park had dropped out and Chief Agee
Leon Valley had also dropped out.
out of
Sweatt
added
Mrs. Marsh asked what the policy of the Alamo Area Narcotics
Task Force is.
Mr. Sweatt brought out several points about the task force:
(1) it was created 7 years ago;
(2) DEA is the big
have the money to do
force was established;
player - most cities and counties don't
interqjction effectively, so the task
(3) most
the cost
portion
assetsj
cities were not on a basis of funding all or part of
from State or Federal grants, but rather from a
of local funds made up of forfeitured funds/seized
it is a self-perpetuating operation;
(4) the City added a position to its manning documenti the
position is funded by the task force and is done on a rotating
basis so it's not the same person all the time;
(5) the officers receive good training; and,
(6) Schertz has been asked to participate again; we think the
funding will continue, but have been ask to obligate $14,884.75
in City funds, if necessary, to pay the cost of this operation;
Mrs. Marsh asked what prompted the requirement for obligation
of funds. Have they been stuck in the past? Mr. Sweatt
answered he doesn't think so, but they want to be assured they
can come up with local money if things don't work out.
Mrs. Marsh then inquired where the headquarters are and was
told by Chief Agee they are at Crownpoint in San Antonio.
Mr. Sweatt expressed the opinion the City doesn't see it as a
great liability as long as there are seized assets.
Mrs. Marsh questioned who's in charge of accountability and
Chief Agee answered the Comal County Auditor's Office which has
worked out well.
Mrs. Marsh wondered if the City gets any money and was told
the task force pays our officer's salary.
-I-'~
Mrs. Stanhope asked what the benefits are and Chief Agee
listed three:
(1) the Police Department gains a lot of criminal intelligence
information:
(2) it provides another source of manpower: and,
(3) the assets will be divided if the task force dissolves.
Mrs. Stanhope commented it sounds like, even if we have to pay
for it, we're getting our money's worth.
Mr. Potempa wanted to know if there's any liability and Mr.
Sweatt replied the same liability as with any other police
officer.
Chief Agee pointed out there is a lawyer on the staff of the
task force and they haven't had any litigation against them.
Mr. Potempa then asked if Mr. Sweatt or Chief Agee had any
reservations. Mr. Sweatt replied the only reservation he has
is that perhaps in the future we might need an officer working
closer to Schertz, especially if we see misapplied supervision.
However, it may be that the DEA gives us better benefits.
Mr. Potempa queried if Schertz can pullout of the task force
short of a full year and Mr. Sweatt replied yes, but in that
case they would have to bear the expense of the officer's
salary.
Mr. Greenwald observed that he thinks they're doing a great
job.
#7 Discussion of participation in Edwards Underground
Water District Water Conservation Rebate Program
Charles Aherns of the Edwards Underground Water District was at
the meeting.
Mr. Sweatt explained this participation involves an
intergovermental contract between the City of Schertz and .the
Edwards Underground Water District for incentive to citizens to
replace current fixtures with low-flush units, from 3.5 gallons
per flush down to 1.6 gallons per flush, and to pay them a $50
rebate to do it.
Mr. Aherns informed the Council the agreement he brought for
them to review is a draft agreement. The Edwards District will
also provide an informational brochure and will fund the price
of the printing and mailing of the brochures. What the Edwards
District will be doing is adjusting the payback based on the
City's water rates. The District would be funding $4500 to
cover 90 rebates between now and September 30th of this year.
1 ~ 1
-L 1"+
Mr. Aherns further stated there are currently three other such
programs in place - Leon Valley, Windcrest and Universal City.
This is a good step for the City and something which shows the
Federal government what they are doing to help conserve water.
Mr. Potempa asked if a permit is required and Mr. Sweatt
answered yes. If a plumber installs the new fixture, then the
plumber will be responsible for getting a permit and will be
charged a fee, but if the citizen installs the new fixture
himself, then he will be responsible for getting a permit, but
there will be no Charge.
Mr. Aherns thanked the Water Department for their cooperation
in the leak detection program.
Mr. Potempa asked if they had found many leaks and John
Bierschwale reported they found several fire hydrant leaks and
they had been averaging finding 5-6 customer leaks per week.
Mr. Aherns told the Council the Edwards District is in the
process of developing a little door hanger to let customers
know about leaks. It doesn't say you have a leak, it says
there's a sound emitting from your house that might be a leak.
Mr. Sweatt advised that if everything is in place, the Council
could approve this rebate program at their next meeting
effective April 1st.
Mr. Aherns felt the Edward's District could meet the April 1st
date.
Mr. Sweatt reminded the Council that several months ago they
enacted an amendment to their Code providing for these type of
fixture replacements (low-flush toilets and showerheads).
#8 CITY MANAGER'S REPORT: A. Commented Annie Almond from
the Schertz Business Association is here tonight because the
Business Association and the City are considering parade
participation in other communities as well as those in which we
have traditionally participated. This year they discussed the
possibility of partiCipation in one or more of the San Antonio
parades.
Mr. Sweatt continued on saYing the Battle of Flowers parade is
beyond our means, but we may be able to partiCipate in the
Flambeau night time parade if we can meet several of their
requirements. First of all, the Flambeau requires full
illumination, which can be accomplished with the use of an
on-board generator, and secondly, the towing vehicle has to be
concealed.
-
~
They have investigated several different ways to conceal the
towing vehicle. You can buy a housing for approximately $600.
The Street Department and the Business Association have looked
at yellow and blue rope and a cover and several other devices
that would camouflage it. That seems to be the most economical
at approximately $375-$400.
Mr. Sweatt commented that under Flambeau rules, the entry fee
for the City is $12 and the entry fee for the Schertz Business
Association is $250, so the Business Association will probably
opt not to participate. It's likely we will have to spend
upwards of $400 for the City to be represented, but we will get
lots of exposure. We didn't budget for it, but in the past the
Business Association has made some contributions toward the
float.
Mayor Sawyer asked if we don't have that money in City Council
funds and Mr. Sweatt replied we have some in unallocated funds
in the special events area and contingency funds.
Mayor Sawyer asked the Council what they think of the idea and
then noted that Art Youngworth is in charge of the Flambeau
night time parade and he is being helped by Ty Brisgill.
Ms. Almond described the few changes that will have to be made
to the float and the Council gave their approval for
participation in the Flambeau parade. Ms. Almond added that
we can use the City logo on the float and reported the entry
form is in right now and Schertz is listed as a participant.
B. The City
Department.
Rowcliffe.
has filled the two vacancies in the Police
The two officers hired are Jeffrey Leal and Kevin
C. Noted the basketball equipment at the large pavilion of the
City park has been repaired and installed. He has asked Jerry
Graham to distribute copies of the Newsletter with the article
in it regarding the park.
D. Informed Council TML Region 7 is meeting on March 26th in
Eagle Pass and the Texas Water Commission is making a
presentation on solid waste regulations.
#9
Jubilee
out and
the Club
indicated
ITEMS BY COUNCIL: Mrs. Marsh reported the 4th of July
committee had a meeting and you will start seeing cans
around the area for donations. They will still have
100 for those who donate $100 or more. Mayor Sawyer
he will take odo Riedel's place in donating $100.
Mr. Potempa stated the Bluebonnet Palace
advertising Lilly Marie's Restaurant and Selma
take it down. Mr. John wants to get a permit
Schertz to put the sign up on his property
showing the restaurant to be across the road.
put up a sign
has told them to
from the City of
with an arrow
Also, Mr. John
: 1 G
is considering establishing a catering service where the
welding shop is right now.
Mr. Sweatt advised that Mr. John needs to get a copy of the
City's Sign Ordinance.
Mrs. Marsh mentioned that Mr. John needs to put in a request
with the Planning and Zoning Commission.
Mr. Potempa said Mr. John also indicated to him that he is
considering locating a hotel in the City of Schertz.
Mayor Sawyer suggested Mr. Sweatt talk to the City Inspector,
Leonard Truitt, and have him contact Mr. John. Mr. John will
have to comply with the City's regulations.
Mr. Potempa notified the Council he is asking permission to be
absent for the next four weeks because he has been transferred
to the night shift at the Commissary to supervise the new
construction project.
#10 ITEMS BY MAYOR: There were none.
#11 ADJOURNMENT: Mayor Sawyer adjourned the meeting at
8:35 P.M.
~Cl/'-"? /)/1/ 1~" ~
~~r, City of schertty Texas
ATTEST:
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Deputy City ecretary, City of Schertz