ccswks 09-30-1992SPECIAL SESSION OF THE CITY COUNCIL
SEPTEMBER 30, 1992
The Schertz City Council convened in Special Workshop
Session, Wednesday, September 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: _ Mr _.Bi_11__Ne_l_1 ex - A . the
Disabled American Veterans have taken on the project of
placing small Christmas trees in each of the 54 rooms at
Audie Murphy Hospital. He showed some decorations he had
made for this purpose.
B. Mr. Neller also showed some 6 foot candy canes he is
making to decorate F.M. 78. He will do the work and the
City will pay for the materials.
Mrs. Tereletski asked why the sales tax in Bexar County
portion of Schertz is less than that in either Comal or
Guadalupe Counties. Mr. Sweatt advised that both Comal and
Guadalupe Counties have the 1/2 cent sales tax added.
#2 Status Report of
District by Chief Appraiser.
Mr. Bill Little, member of
first extended an invitation
District. He said they are
and feel they have made some
entity who lowered taxes this
Guadalupe County Appraisal
the Appraisal District Board,
to all to visit the Appraisal
very proud of their operation
people very happy, as the only
year.
Ms. Pat Fox reiterated everything Mr. Little said, adding
a thank you for asking them to be at this meeting. She
informed that the Board of Directors had adopted their
budget on September 14, and it is about 1% less than the
current budget. She added that there are no major
expenditures and no cross the board salary increases, just a
little for merit increases.
Ms. Fox went on to explain that over the past 2 -1/2 years
they have swept as many subdivisions as possible and now
feel they have picked up the improvements. She said they
have reworked the residential building schedule and have
completed the commercial property and have appointed one
person to just residential property. She then gave a recap
of the taxable value and rates for the last three years.
She said that in looking at trends, it appears they have
leveled out and should see a very gradual increase from this
point forward. Mrs. Fox said that in 1993, they would be
completely redoing the commercial accounts as they feel the
land values have stabilized.
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Mayor Sawyer thanked Mrs. Fox for giving the report.
#3 Discussion of possible charter amendments
pertaining to city logo.
Mr. Sweatt reminded that Council has talked at some length
on a number of occasions of not only securing the security
of our logo, but discussion was had regarding making it a
part of our charter or constitutional provisions that would
provide for that to be adopted by a vote of the people as a
charter amendment. As Council is aware, there are only four
times a year that a charter amendment can be held.
City Attorney Spain advised that the next month when there
could be an election would be January since no municipal
elections can be held in November during a presidential
election year.
Mr. Greenwald said he asked that this be put on the agenda
so that we could get out the information to the citizens and
have it on the ballot for the May election. It was not his
intent to cause any extra expense by having a special
election in January.
Mrs. Marsh said the logo has been around long enough and
has become popular and quite well known in this part of the
state and this would provide an element of protection for
this unique logo and she felt it should be part of the
charter.
Mayor Sawyer asked that everyone start getting the publicity
out and see if we could get the people to vote for it.
Mr. Sweatt reminded that the City Council does have the
authority to call an election for a charter amendment and it
is his understanding this is what is being asked.
#4 Discussion of Schertz Development Foundation
proposed budget.
Mr. Sweatt said that under the By -laws of the Foundation it
is necessary that the Council consider their budget. As you
know, this is separately funded through resources available
to the Foundation. He then went over the line item
revenues, which included $11,224.16 Carry Over of reserves
for a total revenue of $31,349.16. The expenditures for the
year totaled $23,425, leaving a reserve of $7,924.16.
Mr. Greenwald ask about the $6,000 expenditure for Foreign
Trade Zone. Mr. Sweatt answered that when the Tri County
Business Park set up the Foreign Trade Zone, it was set up
under the City of San Antonio auspices. So it has been
granted by the Department of Commerce and various agencies
that approve Foreign Trade Zones through the City of San
Antonio as a sub -zone to others in the City of San Antonio.
Mr. Potempa asked who the Brokers were for the Foundation
and was informed it was a combination of Lee Boswell and
Harry Richburg, who have jointly agreed to service that
project.
#5 Discussion reappointment of members of Schertz
Development Foundation Board of Directors.
Mayor Sawyer said he was really happy with the members of
this Board, adding that they have done a fine job for the
City and he did not object to reappointing the members.
Mr. Sweatt advised the members currently are Charles
MacDonald, Lewis Borgfeld, Tom Weaver and Kerry Sweatt.
There is an existing vacancy occasioned by the demise of Mr.
Shriver. The Economic Development Task Force will be
considering recommendations to fill this vacancy at their
next meeting to bring back to the City Council.
Mr. Potempa said he would like to reiterate what he had
said the precious year. This year since there is a vacancy,
he would like to see a female appointed to this board. We
have several females in this town who are business oriented.
Mayor Sawyer asked him to make his recommendation in writing
to the Task Force to be considered.
#6 Discussion of sale of revenue bonds and 1987
General Obligation Bonds.
Mr. Sweatt advised that included in Council packets was
potential debt service schedules and provided some
information.
Mr. Tom Anderlitch said that back in 1987, we voted
$1,080,000 tax bonds - $980,000 were for Street Improvement
and Drainage and $100,000 for parks. In that same year we
issued $360,000 Street and all the park bonds for a total of
$460,000 General Obligation Bonds, which leave $620,000
voted and unissued. The present policy of the Attorney
General is that he will approve these up to ten years from
their date of authorization, so we are okay on going
forward. At the same time that we issued the $620,000
General Obligation Bonds, we issued $1,020,000 Water and
Sewer Revenue Bonds, which were sold.
Mr. Anderlitch handed out schedules showing two different
options as to how we could mature the debt. He referred to
the first schedule on the $620,000 G.O. bonds, which shows
a serially mature from 1994 to 2005 and the second matures
from 1995 to 2008. If you will look at the total new
interest cost, the first schedule shows the total to be
$299,327, while the second one shows a total new interest
cost of $432,579. The first schedule would increase the
annual payment by a little but it would certainly save in
the long run to do that. He pointed out that he used a
6.50% interest for calculation purposes only. However, he
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felt this to be realistic. Mr. Anderlitch said that, if we
want to consider selling bonds, now is as good a time as we
have seen in the last twenty years.
Mr. Spain advised that if there are projects the Council
wants to get started on before the bonds are issued, it is
now possible under State law for us to adopt a reimbursement
regulation. If you have soft costs relating to a project
you need to start on, you can adopt a resolution saying you
intend to issue bonds and you want to be able to reimburse
yourself from proceeds of those bonds.
Mr. Anderlitch then addressed the water issue, saying that
Mr. Sweatt said the City might need approximately $200,000
for water /sewer purposes. He said we have a coverage factor
in our outstanding revenue bonds that says the City, in
order to issue an equal parity debt, must have one and a
half times coverage of your outstanding revenue bonds and
the new bonds you are proposing to issue. He went on to say
that based on his calculations, we are at a 1.81 based on
our 1991 audit and if those figures are going to drop very
much, we might want to look at issuing Certificates of
Obligation instead of revenue bonds. It will not make much
difference because we would still have to publish a Notice
of Intent whether it would be revenue or CO bonds. We did
do this in 1981 -83 when we issued the Combination Jr. Lien
and Certificates of Obligation. These can be paid from
either revenues or taxes.
The schedules he presented for the $200,000 bonds again
showed that the shorter term bonds would be a saving to the
City. Mr. Anderlitch said Council and staff had done such
a good job of management for so long that he did not see any
problem, however it is marketed, in selling the bonds. He
added that what he tried to do with the schedules is throw
everything into the 1993 -94 year rather than the budget just
adopted.
Mr. Sweatt added that using either of the schedules
presented by Mr. Anderlitch, to issue the $620,000 we would
have to raise taxes between three and four cents. The water
bonds would require additional revenue. With the current
expenditure levels we need to give a serious look at our
coverage requirements. In order to get those requirements
up, we will need a rate increase. We have suggested a rate
increase in the neighborhood of twelve cents.
Mr. Anderlitch advised that first Council should decide how
much they want to issue and the maturity schedule, then he
and Mr. Spain would proceed with the intent to sell and
offer these bonds into the public market, which normally
take thirty to sixty days.
Mr. Sweatt said staff went back through the 1987 issue to
1 determine what specific projects was recommended and as best
we can determine, those projects that were left undone. He
named some of those as being Mobile Villa Subdivision street
improvements, proposed work in Westland Park Subdivision,
proposed work in Aviation heights, proposed work in Buffalo
Valley South and specific streets were named for seal
coating work as well as other activity. After reviewing
those and the work that was done with the original issue of
bonds, it appears to us that those projects left undone;
namely Mobile Villa Subdivision and work in Buffalo Valley
South, named streets in Val Verde Subdivision, named street
within the Village. We further identified additional
projects that we feel important and urgently needed to be
done within the next year to three years in the way of
street and drainage improvements. A portion of the projects
listed have been identified as force accounts. As discussed
back in 1987, a portion of the funds was to be used for the
purchase of equipment for the street department to do force
account work. We have identified projects well above the
funds available in this issue. Therefore, we suggest to you
the establishment of a force account paving program.
Purchase equipment and then set up each year funding from
the general operation to assist in funding these projects.
Mayor Sawyer asked Council if they wanted sell the bonds to
do these projects and Council agreed to proceed.
#7 EXECUTIVE SESSION: Mayor Sawyer called an
executive session under Article 6252 -17 Vernon's Texas Civil
Statutes, Section 2 (g) concerning personnel at 8:09 p.m.
The Special Session was reconvened at 8:15 p.m. by Mayor
Sawyer.
#8 Consider and take action, if any, on the above
Executive session.
Mayor Sawyer advised there was no action to be taken at this
time.
#9 Discuss draft of placement and maintenance
agreement for Goofy Golf sign.
Mr. Sweatt explained the agreement was for five years at
the request of the owners, and at the end of this period, a
new arrangement may be negotiated; includes a $500
maintenance agreement bond to assure satisfactory
maintenance; the owner of the sign agrees to assume full
liability for any or all damage or claims; and in the event
or failure of Goofy Golf to meet any of the above
conditions, the City may remove the sign, or assume
ownership of the sign. If Council has no changes, staff
recommends approval.
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Bob Andrews, Chairman of the Planning & Zoning Commission,
questioned the word "owner ", saying the sign was originally
put up by the developer on trailer park property and when
Urban Renewal conveyed that property to the City, the sign
became the property of the City.
Mr. Sweatt reminded Council that we were told that the sign
was on public property but that George Barnard owned the
sign and it was conveyed with the Goofy Golf property to the
DePlantis. We thought that is what came through from the
Planning & Zoning Commission.
Mr. Andrews said again that the sign was originally put up
by the developer of Parkland Village and George Barnard was
given permission to use the sign when he had the Batters Up.
The sign is on City property and the City owns that sign due
to the length of time it has been there and lack of
ownership.
After Council discussion, it was agreed to call Mr. & Mrs.
DePlantis in and explain to them that the sign is definitely
City owned property and we intend to tear it down.
#10 Discussion of P &Z recommendation regarding Table
of Contents and Terminology for Comprehensive Plan.
Mr. Sweatt referred to a memo from Planning & Zoning where
they were seeking approval in renaming the Comprehensive
Plan to the Development and Growth Plan.
Mrs. Marsh said she was confused because when she was on
the P &Z, it was changed from the City Plan to the
Comprehensive Plan as TML said you have to have a
Comprehensive Plan. She ,asked what TML says about this
change. She was also confused as to what was transpiring as
she said the plan was almost complete three years ago.
Mr. Potempa agreed with Mrs. Marsh, saying it was 80%
complete in May of 1991 and he did not know why the name
should be changed.
Mr. Andrews, Chairman of P &Z, said the terminology
"Comprehensive Plan" is very confusing to a lot of people.
When you are talking about what it is - it is a visions plan
- where we are and where we are going. It is really a
development and growth plan or strategic plan. He said a
lot of the cities have already changed their terminology to
development, getting it down to basic so that when they look
at it, they know by the title what they are looking at.
Mr. Willman said a comprehensive plan, or whatever you want
to call it, is not mandatory in Texas.
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Mrs. Marsh said in all conferences she had attended, it was
always called a Comprehensive Plan. She also felt it should
be called what is recommended by Texas. She said she really
did not care what it is called, she wanted it completed.
Mr. Andrews said it is very near completion and that they
have only gotten back reports from two or three of the
Visions Committees.
Mrs. Marsh said P &Z should have sufficient input from the
Citizens Group and from staff to complete the plan, whatever
it is called; however, she did not feel it necessary to
include all the extraneous stuff, such as soil & climate.
She said that could be on file.
Mr. Andrews advised that their request was in two parts;
first, take a look at the Table of Contents and second, does
Council want to rename the plan, and if so, what name should
be used. This way they could finalize the plan after having
some public meetings with citizens.
Council then discussed in detail what should be in the plan
and what should be appendixes and where the appendixes
should be kept.
Mayor Sawyer suggested P &Z just submit their draft copy of
the plan and if Council wants to change it or leave it, they
will. Council agreed with this concept.
Mr. Sweatt said the whole object is "Where Are We Going ? ".
It should be a tool to start the thought process. It can be
one page or many but should say this is where we are and
this is where we want to be next year and on down the road.
It is merely a plan. He said what he felt P &Z want and need
is to literally put on paper what we think of this community
and what we want to be doing five years from now and on down
the road. He said he felt the P &Z is on the right course.
The Planning & Zoning Commission and the City Council's role
is to put together concepts and visions.
Mayor Sawyer asked staff to put that in writing and forward
to P &Z so they can finish the plan.
#11 CITY MANAGER'S REPORT: A. Reminded Council of
TML in Houston, October 7 -10th, adding they already have
their registration and housing reservations.
B. He said he would like to add an item to the next action
agenda. EMS Administrator's vehicle, Council budgeted in
the 92 -93 budget $10,000 for a piece of used equipment to
replace this. We located a vehicle and solicited proposals
but only received one bid. With trade -in, the price is
$11,700 which would necessitate $1700 from the contingency
fund in the SAFES Department. We believe this vehicle meets
their needs.
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C. We solicited bids, which were opened the previous day,
on the Animal Shelter construction. He said he was pleased
to report that, with the City serving as the general
contractor, we have a total contract price of $124,274.
However, this includes $20,000 for paving for parking lot
that we believe is high. We would like to remove that from
the bid and award all the other items to one company for
$103,387. We will then go back out for the paving of the
parking lot and drive.
At Mr. Greenwald's suggestion, Council discussed possibly
doing the paving in -house with the equipment going to be
purchased under the bond projects.
D. Council has been invited to attend Universal City's
Veteran's Day parade on November 7 and to sit on the
reviewing stand.
E. Wanted to call one item to your attention. Our
financial situation through August 1992 is worth bragging
about. With 91.6% of year complete, the General Fund
expenditures are 86% of budget, Water /Sewer was 79 %, SAFES
was 85.9 %. Our departments are to be commended.
Comparatively speaking, our income to the General Fund was
95 %, Water /Sewer was 85.4% and SAFES income was 90 %. We
expect to end the year in a positive situation.
F. We have enclosed a sample of a letter we will be sending
to a number of residents regarding lead testing. We are
required to do this sampling and pay the State to do the
test. When you have inquiries about this, please point out
this is State mandated.
G. FM 3009 improvements are now on track, with bid letting
in February of 1993. EPA will probably drag that out for
another sixty days after that.
#12 ITEMS BY COUNCIL: Mrs._ Marsh: A. She reported
that the previous weekend she counted fifteen signs for
Dover Homes.
Mr. Sweatt said we did have our inspectors out; but we
have allowed real estate sale signs as special
consideration. We will check this out.
B. VFW is having their Annual big fund raiser - the 5th
Annual South Texas Country Music Showcase on October 11,
3:00 to 7:00 p.m.. She then listed some of the
entertainers, ending by saying she has raffle tickets and
advance tickets available.
Mr___ Potem a asked if a construction company puts up a
portable building, are they required to have a permit and
should it be displayed prominently. He was advised that a
permit is required and must be visible.
Mrs._, Stanhope: A. Commented that it really tears her up
when people who have not been a part of certain things have
such negative feelings. She said a lot of time was put in
by a lot of people to get the Visions Committees started. A
lot of effort has been put in over two years on these. If
one of the committees was having so many problems, why did
they not go to someone and get it corrected. She suggested
putting an article in the newsletter about this about some
of the plusses that have come out of these committees. She
agreed to draft an article on this.
Mr. Greenwald: A. P &Z discussed the possibility of
getting in touch with the contractor that is putting in the
Garden Homes, to extend the sidewalk to Pecan Drive. He
said that if we approach him nicely, and maybe pay a little
something, they will connect the two sidewalks.
B. He had the final report from BVYA, showing they finished
the year in good shape. They are in the process of doing an
audit. Copies will be made for Council.
#13 ITEMS BY MAYOR: A. On behalf of the City Council
he presented a proclamation to Mr. & Mrs. Johns on their
50th Anniversary and it was really appreciated.
Mrs. Marsh said the Business Association met and only had
ten people present. She encouraged everyone to go out next
month on the 4th Tuesday of each month.
#14 ADJOURNMENT: There being no further business to
be discussed, Mayor Sawyer declared the meeting adjourned at
9:48 p.m. ,/
ATTEST:
C Secretary City of Schertz
yor, City of "Schepp! , Texas
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