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ccswks 06-10-1992 _ "rr. ~7 bl SPECIAL MEETING OF THE CITY COUNCIL JUNE 10. 1992 The Schertz City Council convened in Special Workshop Session. Wednesday, June 10, 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 Pro Tern Barbara Stanhope, presiding; Joe Potempa, Hal Baldwin, and Ken Greenwald. Staff present were City Manager Kerry Sweatt and City Secretary June Krause. that less they # 1 HEARING OF RESIDENTS:_ Bil.L_1i~L~l~r - A. Reported the party at the VFW for the Audie Murphy veterans was than expected. He felt they did not get the publicity should have from the local newspapers. B. The flag retirement ceremonies will be Sunday, June 14th at 7:00 p.m. at the Fire Station. Sgt. Tuttle from Randolph has about sixty flags and there have been turned in about fifty-five here. He added that the flags will be flown on that day on Main Street. Mr. Willman reserved time for item #4. #2 Discussion of contract with Schertz Business Association for 4th of July Jubilee activities. Mr. Sweatt had furnished a copy of the past year's contract, saying there may be a couple of areas that need to be changed. He said he and Mr. Edwards had discussed Section XI. In last year's agreement the City agreed to pay up to $300 in promotion and advertising activities. And since this year, as there is only one local newspaper, he felt this could be lowered. In order to clear up any misunderstanding as to who does what, in Section XIV of the current contract it says that the Schertz Business Club agrees to furnish tables and chairs and clean up the pavilion area upon conclusion of activity. It has been contractually a City obligation to clean the area or to furnish janitorial service to the area throughout the activities. He said he was not sure how this got into the agreement and suggested that it be deleted. He said the other provisions are fairly standard and acceptable to both parties. Mrs. Anita Clark said that $250 of the $300 was to be used for news and $50 for the gift certificates for the Sweetheart. That would be $125 for each of the newspapers. Mr. Greenwald suggested leaving the $300 as it was because it says up to that amount. Mr. Sweatt said he would have this in final form for the next meeting for action. Mrs. Clark advised that they already have the insurance to cover the Jubilee. L98 #3 Discussion with regarding cable franchise. EXCEL Communications Group Mr. Sweatt said he would like to provide Council some information and then would ask Mr. Dawson of EXCEL Communications to speak with Council. He reminded Council we have negotiated and developed a franchise agreement with Excel Communication Group for the development of a second cable franchise in the city limits. Representatives of Excel Cable have met with the Council and staff on several occasions and in March of this year a franchise agreement was signed with the company. Part of the requirements in the agreement were that among other things, in Section 8 sixty days from the date of acceptance of franchise, the company must have submitted certain documents and have proof of application to FCC for license and other necessary permits. Representatives of the company are present to talk with Council regarding these items, construction schedule and financial matters. He added that we all recognized that it would be unlikely that a franchise in Schertz alone would be capable of supporting itself. Mr. Kevin Dawson said it was great to be present to talk with Council. He added that they have run into some roadblocks on a few issues. He said that when they met with all the City Managers, they thought everything was falling into line. When they went to other cities to begin their negotiations, one of the big issues that happened to them was that one of the banks in Mexico changed ownership, since they received the Schertz franchised. He said that instead of going back and renegotiating that financial commitment with the new owners, they were already in the process of working with another financial commitment, which they had been working on for about eight months. They felt it would benefit them to bring that to fruition, which they have now done. That held up their other franchises. They were unable to activate any of their loan money until they had secured the other franchises. They found themselves in a catch 22 and knew they wanted to stay with the deadlines in the City of Schertz. Mr. Jeff Gangwer said the complexity of their financial situation with one city in and seven out was very tough to put into terms. The time line was very hard. The company is an American company and they will be corning forth with the commitment publicly within a few weeks. He said that today they informed Mr. Sweatt with a letter from this group committing to the project. He said they have secured the twelve million dollars to build the whole Metrocom. In order to get back on schedule, they have escalated their build rate to 45 miles a month, which would produce the end results within a year and one half. He said they really have not lost any time. He said they have parts of Schertz designed and are ready to go and they will follow through with their commitments to Schertz. They are looking for I I ~ ~~ locations within the Metrocom, they have FCC applications out for tower sites but they have a problem with the airport, which limits them where they can go. He said they are excited and that Schertz has helped them all the way. Mr. Potempa asked if they would start construction in July. Mr. Dawson said it would probably be three months after the July date. Mr. Sweatt said one of the provisions in our franchise says that within sixty days after accepting the franchise, the company will provide, among other things, documents required to obtain any necessary federal, state and local license, permits and authorizations. The company has not done that. So in their discussions early in the day, he suggested that one of the things the company may be asking the Council for is to look at those sixty days running from July as opposed to back in March, based on financial commitments. The schedule that was approved as part of the franchise review called for construction beginning in 1993. He said he has asked the company to make certain that they can fit with those construction schedules. If they cannot meet them, then they need to ask the Council to extend those dates. Mr. Dawson said the company is definitely within the twenty-four months of having the system with subscribers on board within the City of Schertz. Answering Mr. Potempa's question, they are looking at September 1st for the beginning of the construction process. Mr. Baldwin asked if this would be a primarily underground system. Mr. Gangwer said if it is underground now, then they will go underground and will utilize the GVEC poles where possible. They will be looking at 50/50 underground rather than the normal 70/30. Mr. Sweatt said that, with Council's permission, he would expect to place this on the July 7 action agenda to consider any request from the company as to the change from the sixty day provision. Essentially their request is that the sixty-day provision for furnishing certain information be adjusted to July 7 and they be allowed the clock start running from that date for sixty days to furnish the information. #4 Discussion of final consideration of an ordinance amending the Zoning Ordinance Article XX Overlay District, Section 4 special Overlay District Schertz Parkway. 200 Mr. Sweatt reminded Council that this came from P&Z as a recommendation that we provide a special zoning category that would provide protection on Schertz Parkway. We have in place an overlay district but it was felt that a new zoning category would take the best of that and eliminate some that were not compatible. The public hearing was held and ordinance was approved on first reading. Mr. Willman said that during the preparation of this ordinance, there were a lot of different mental pictures of the results. He presented some draWings as to what it could look like. He said this would allow us to be able to tell developers what we want and where. But there is still flexibility in this. He said this is a combination of all our other zoning and is new to Schertz. Mr. Greenwald said this is similar to the concept that was on cable some time ago. You can walk from home to the doctor office or mini mall, etc. Mrs. Stanhope said if there were no further questions, this would be place on the June 16th agenda for action. #5 Discussion of final consideration of an ordinance amending the Zoning Ordinance by rezoning property along Jack Hays Boulevard and Schertz Parkway from East Live Oak Road to the Southern Pacific Railroad and rezoning the Beck Concrete property. Mr. Sweatt said this too was the result of a recommendation from the Planning and Zoning Commission to revise and reduce the amount of general business zoning that exists along Jack Hays Boulevard and a portion of Schertz Parkway; and to consider plaCing permanent zoning on the Beck property that was recently annexed. Public Hearings were held on this and the ordinance was passed at the first reading after the public hearing. There being no further questions, Mayor Pro Tern Stanhope requested this be placed on the next action agenda for finalization. #6 Discussion of final consideration of an ordinance amending the Code Chapter 5, Article II BUilding Code, Section 106.2 Contractor's License requirements. Mr. Sweatt advised this ordinance was approved at first reading at last meeting and placed on this agenda for discussion, with the second and final reading to be on June 16th. This particular ordinance proposes to amend the Building Code to provide for the requirement of a contractor's license. This would stipulate an initial fee of $50 and an annual rate of $25 and would require that a written application be made prOViding references of customers and suppliers. This primarily was drawn as a I I ~ A -};r~ j .-.....: t/ !J.. result of some concerns from some of our citizens. We feel this would not preclude any contractor but would provide us the grounds to regulate. Mr. Potempa said he strongly felt this was a step in the right direction and would eliminate unscrupulous individuals from ripping off our citizens. Mr. Greenwald said he personally knew of two people who have liens against their property as a result of these unscrupulous contractors. #7 hearing Special storage Discussion of P&Z recommendation to set a BOA date on a request by the Housing Authority for a Exception to the Zoning Ordinance to construct areas at the back of the Roy Richard Courts. Mr. Sweatt advised that, with council permission, we have proposed the hearing be held on July 7th. Notices would go to the abutting property owners. The request is for a special exception at three locations - Pfeil and Maini Pfeil and Exchange and Pfeil and Curtiss, to construct storage sheds at the back of the property, which would cause an encroachment into the required setback lines. #8 sources. Discussion regarding alternate water supply Mr. Sweatt said one of the Visions Study Committees has been charged with researching alternate water supplies, not necessarily in response with the speCific Texas Water Commission edit about the Edwards, but because of our particular geographic situation, we need to look at all alternatives. Some time ago we heard a presentation by a representative of Canyon Regional Water Authority to consider membership in that organization. After review by Council and Vision Study group, we were authorized to participate as an associate membership. Our first priority was to consider other ground water sources. The Council authorized staff to continue to research the Maske Road water well. We were able to secure well logs and other tests on this well and we asked our consulting engineer Mr. Paul Denham to participate with us to determine quality, quantity and dependability of that particular water strata. Mr. Denham said the key thing with any water supply is you have to look at its raw condition - what it takes to treat that water. This well was drilled in 1963 by Haskin and we got the logs from him. The Edwards good water line follows I-35 and then dips down across the Cibolo Creek this includes wells belonging to Cibolo, Marion as well as Schertz. Below that in the area of Maske Road. it is consider Edwards water but is the bad water area. The tests made in this area generally have that sulphur smell. The two parts of the well they looked at were quality and quantity. Quantity, the well was test pumped to 300 gallons 2.0'} "".U~ per minute. That is a fair quantity but at the bottom of what you would want to look at for a Municipal well. This well possibly could be pumped at a higher rate. As to quality, we found the sulphur smell very evident. It can be aerated and get a pretty good quality of water but the treatment would really run the costs up. We pump water from the Edwards and treat it with chlorine and it is about as inexpensive as you can get at about sixteen cents per thousand gallons. That is right at the well head and includes electricity and such to get that water. Once you begin with a treatment process, the costs go up. It would run about $2 to $3 per thousand gallons. The reliability of the quality is probably not there. Mr. Sweatt said that what we are saying is that it is a good idea and we should keep it alive, but it is very costly and does not look to be the best alternative. We are back to talk to Council tonight about another viable alternative and that is a regional approach to the problem. We believe that a long term answer to water supply in this area is likely going to be surface water. Surface water now is available through Canyon Reservoir and Guadalupe Blanco River Authority and that source. Today, we believe the best approach for our immediate future, besides that of continuing to utilize the Edwards River where we can, is to look to a regional planning and regional approach. We have spoken to New Braunfels Utilities and Canyon Regional Water Authority and we believe today that membership in CRWA represents our next alternative. If the rules that the Water Commission has proposed are adopted, our growth is restricted. The Water Commission has indicated to us that our cap will be placed somewhere near our historical high at the very most. That allows for no growth. CRWA membership is $10,000 plus a share in the operating costs of the authority. They have proceeded with a grant application to Farmer's Home Administration for funds to construct, not only the first phase of a water treatment plant, but water lines and distribution facilities to serve those members of CRWA. John Bierschwale said that currently Canyon Regional Water Authority has approximately 800,000 gallons to one million gallons of water available for purchase that will not be available until 1994. They are about 50 to 75% complete with their plant. Their planning construction of the water treatment plant is December of 1992 and approximately 18 months from start date, the plant would be completed. If we do contract for whatever amount of water, it would not be due until 1992 and that would be based on a cost of for two million gallons per day about $1.05 per thousand. At one and a half million per day, the cost would run about $1.30 per thousand. There are several issues that still have to be worked out. They have their loan to build the plant but the big problem is getting that water from the plant to the City of Schertz. They are in the process of getting an $8,000,000 grant to construct a line in this direction. If that does not occur, the system would have to be what is called water wheeling - it would have to go through a series of water systems to get to the City of Schertz. In this case, it would go from Canyon Regional to Green Valley to the City of Schertz. He said with all the restrictions being put on us by the Texas Water Commission we are going to have to find a secondary water system and staff is recommending Canyon Regional Water System. Mr. Davenport said the proposal to wheel through Green Valley really is the ability for Schertz to start moving to surface water with the intent of ultimately having that major transmission line. He said they do have an agreement through the master agreement that if need be each member entity agrees to wheel water through its system. A new thought we are talking about is firm yield and ability to grow with water that we can depend upon over a seven year drought period. Mr. Sweatt summarized by saying we believe at this stage we have looked at a lot of possibilities and they are all still alive. Our best alternative today is to conceptionally agree with Canyon Regional Water Authority to express to them our plan to participate and petition them to join for membership; commit $10,000 membership chargei start developing some constructual agreements with Canyon Region that will speak to questions like our resale, the wheeling issue, how many acre feet of commitment - all of those kinds of issues will have to be resolved. If it is the Council's direction, we would suggest that Council agree conceptionally and at a formal meeting notify Canyon Regional of our intention to submit an application for membership. After acceptance, we would be asked to place two members on the Board of Directors and begin participating in the budget process as well. Our suggestion is that we consider at the meeting of the 16th a motion by Council to agree and join the Canyon Regional Authority. After full discussion by Council, Mayor Pro Tern Stanhope asked this item be placed on the agenda of the 16th of June. The meeting was recessed at 8:36 p.m. by Mayor Pro Tern Stanhope. The Special Meeting was reconvened at 8:44 p.m. #9 Discussion of mid-year budget amendments. Mr. Sweatt reminded Council that staff had prepared a bound document which represents recommendations we have prepared for mid-year course adjustments. Generally this is not viewed as a major budget operation but rather a course correction and adjustment in those areas where there are over and under runs occurring. He then called attention to a few corrections to be made to the document. 204 Mr. Sweatt gave some general comments, saying the changes are contained within the budget and all the adjustments have either been made within the department or from one department to another to make up over or under runs. We have gathered out of each department the budgeted commercial insurance expenses. We tried to allocate out to each department all expenses for that department; however the commercial insurance got unmanageable this year. Therefore we have put all that money in Non-departmental and hope that by next budget year, we will have the accounting numbers in line. There are some changes also in the Workers Compo It appears through six months of the fiscal year, we are on target pretty well on both expenditures and revenues. Probably the most significant single decrease in revenues is in Municipal Court fines. The court fines are influenced by several factors - the judge, level of police activity, the administrative efficiency and the state law. We have been a victim of some changes that occurred right at the end of the last fiscal year that have effected how Municipal Court Revenues are received. Defensive driving course is a good example. At one time, a person could only take this once every three years - now you can take this every year. In the Municipal Court revenues we are projecting a decrease of about $42,500. In the areas of commercial insurance, we have made some changes in our basic insurance and believe there are considerable savings that can be accomplished in our overall insurance premium. We have not projected those savings in this budget, however. In the Fire Service, we actually under estimated some expenditures related to personnel costs. Due to a misunderstanding between us and a supplier, there is about $2200 more in computer maintenance than anticipated. He went on to say that in the Parks and Streets Departments, you will see a substantial amount of money moving between the two departments. As you know, those two departments are really one large department. In the Water/Wastewater we are well under in water sales so have had to reduce project revenues and expenditures accordingly. After discussion by the Council, Mr. Baldwin said that our projecting revenues will be down a little and the expenditures will be down a little. He said he did not want to go through the budget amendment by line item, that he was willing to accept it as there were no big items of change in either revenues or expenditures. Mr. Potempa mentioned that Council had said they were not going to let the police department equipment go as we had in the past. He noticed from the report that some of our vehicles have in excess of 80,000 miles on them. With that in mind, how many vehicles are we going to have to replace? Mr. Sweatt said next year probably four vehicles. vehicles are in good shape with the service they get our Fleet Service and of course they will be rotated. Our from . ~YS There being no further discussion, Mrs. Stanhope asked that this item be on the next action agenda. #10 CITY MANAGER'S REPORT: A. He submitted a draft of a letter to Dale Stein, of the Texas Department of Transportation concerning the "Road Closed" signs. B. The door hangers went out today for the curb painting project. They have gone to a lot of trouble and expense and have asked to bring up to fifty at a time to our pool to swim free. This seems like a good thing to do. # 11 ITEMS BY COUNCIL :_Mr '__.. Poj:em~: A. There is a Christmas tree at Schertz Parkway and I-35 and since it has been there so long, he asked that it please be picked up. B. He asked what is wrong with the SAFES radio channel. Mr. Sweatt said he would check it out. C. He had been asked if they would be opening the dam Boerne so it would flood out some trailers here. Sweatt explained that they do not open a dam, the high only comes as a result of a lot of rain in that area. at Mr. water D. He received a letter from Mr. Morgan immediately upon his receiving a letter from our Inspector regarding cleaning his lot. Mr. Potempa said he looked at the lot and although there was some lumber, his yard looked okay to him. Mr. Sweatt said he received the same phone call and also went and looked at the lot and felt it was rather junky. He did ask the Inspector to go and talk to the gentleman. Mr. Baldwin reminded everyone of the Senior Citizen Appreciation Day and asked for bingo prize donations. Mr. Greenwald advised that BVYA will have their closing ceremonies the following Saturday at about 9:30 a.m, adding that they had to cancel about 40% of the games due to rain. They still have three tournaments scheduled for July. #12 ITEMS BY MAYOR: None #13 ADJOURNMENT: There being no further items for discussion, Mayor Pro Tern Stanhope declared the meeting to be adjourned at 9:49 pm. ATTEST: