ccss 08-28-1991
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SPECIAL MEETING OF THE CITY COUNCIL
AUGUST 28, 1991
The Schertz City Council convened in Special Session, Wednesday,
August 28, 1991 at 6:00 p.m. Members present were Mayor Earl W.
Sawyer, presiding: Mary Marsh and Ken Greenwald. Absent Barbara
Stanhope, Hal Baldwin and Joe Potempa. Staff present were City
Manager Kerry R. Sweatt and Deputy City Secretary Alice Austin.
#1 TOUR: Mayor Sawyer advised that the meeting would be
recessed at 6:05 p.m. while the Council present toured the
Street, Park, Animal Control and Water/Wastewater Departments.
He further invited interested citizens to accompany Council.
Mrs. Stanhope and Mr. Baldwin arrived at 6:50 p.m.
Mayor Sawyer reconvened the meeting at 7:00 p.m.
#2. HEARING OF RESIDENTS: Mr. Willman advised that in
May P&Z had sent a letter to Council requesting that they review
the platting fees along Schertz Parkway. Mr. Sweatt advised
that we have made an attempt to contact some of the owners of the
property. He further advised that part of this had to do with an
agreement that the city had made with the abutting property owner
on Schertz Parkway when the deal had been put together on
collecting money and the owners paying for that portion of
Schertz Parkway. He said we have tried to contact those property
owners left to find out what their status is before we recommend
a change in any platting fees. The agreement had to do with the
City collecting money and rebating to the owners involved.
Mr. Davis advised that when he came in before the tour
Council was discussing Mr. Brown's letter and that since
were several members of the Citizens for Tax Reform in
audience he asked if the Mayor would mind addressing some of
items in Mr. Brown's letter.
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Mayor Sawyer advised Mr. Davis that they would be glad to
discuss any item. Mr. Davis advised that he would like to
discuss the contingency fund. Mayor Sawyer advised that the
contingency fund is used for emergencies that do occur. Mayor
Sawyer advised that the fund was used in one instance to move a
water line. The State came in and told us we had to move our
water lines and the money for this came out of the contingency
fund.
Mayor Sawyer advised that he had not had time to study Mr.
Brown's entire letter but that he had made some good points.
Mrs. Marsh asked how much Council would have to reduce budget to
equal to one cent. Mr. Sweatt advised that one cent on the tax
rate equates to approximately $26,155.
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Mrs. Tereletsky asked if Mayor the would be taking questions
from the floor while discussing the Budget. Mayor Sawyer advised
that they would.
#3 Review and discuss bids and information relating to City
of Schertz, New Braunfels Utility Forbe~ Management sewer line
project.
Mayor Sawyer advised that this is an agreement with New Braunfels
Utility to provide sewer on IH 35.
Mr. Sweatt advised that a number of years ago the City of
Schertz was requested to consider developing wastewater
collection and treatment capabilities and capacity for a portion
of this watershed. After review of several options, the City
ultimately agreed that a more advantageous route, both from
initial cost and continuous operating cost, would be to contract
with New Braunfels Utilities. For approximately 18 months a
wastewater treatment plant has been in the design process to open
up that area of New Braunfels and Schertz for wastewater
services. Bids were taken on August 21 for a series of projects
that would bring that line and project to fruition. Proposals 1
and 2 were the lines and lift stations to be built by New
Braunfels Utilities for which the City of Schertz has committed
to participate in the cost up to 25% to purchase 25% of the
treatment and line capacity. For the two parts of the proposal
for that project, the apparent low and best bidder is represented
by H.C. Etheridge of New Braunfels. Proposal 1 is in the amount
of $574,667.50, proposal 2 is $545,822.50 totaling $1,120,490.
New Braunfels Utilities will be recommending to its board to
award that contract this coming Thursday night and we will be
recommending to City Council at the next regular meeting that
they consider concurring with that award in as much as our share
of that project will be $280,122. When a connection is made to
this line, we will begin to fulfill our obligation to New
Braunfels Utility at approximately $40,000 per year for a 10 year
period for our share of that line. We will collect capital
recovery fees for New Braunfels Utility and the City of Schertz
as connections are made to offset our part of that cost.
Proposal 3 is the City of Schertz portion of the line which
begins at the common boundary line between Schertz and New
Braunfels ETJ and runs some 6,500 feet to the Schertz City limit
line. The lowest and best bid is the R.L. Jones Company. The
lower bids have been reviewed by Mr. Denham of Ford Engineering
and the bids did not meet specifications. We will be
recommending that you approve a bid by R.L. Jones in the amount
of $119,823.
Proposal 4 is that of a private property owner, Forbes Management
Incorporated and that job is proposed to pick up where the city's
work ends and follow along the railroad to a second piece of
property owned by Forbes. This is approximately 8,100 feet of 8"
and 12"line. Forbes Management Company, as the manager of that
piece of property, has the responsibility for placement of that
line at some point in time. They felt that it was appropriate at
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this time to extend their lines onto two of their pieces of
property. They asked that their contract be included in this
proposal to gain economies of scale and to coordinate the work
with the City and New Braunfels. After review of bids, the bid
of SACC Incorporated in the amount of $167,864.50 is determined
to be the lowest and best bid. After review of alternate type of
pipe and determining that it would be appropriate the bid was
lowered to $160,247.5~. Forbes Management has proposed that the
City of Schertz execute an escrow agreement with Forbes
Management in which they would post the full 100% of the project
cost and that the City would oversee the construction of that
portion of the job so that all of the work could be accomplished
at the same time. We will be recommending that you accept that
offer of an escrow agreement and that the City of Schertz award
that contract as well.
Mr. Baldwin asked who the company was that had been turned down
on proposal 3. Mr. Sweatt advised that this was Keystone and
Bluestone.
Mr. Brown of Forbes Management advised that their company was
prepared to deposit the funds as soon as they get an agreement
with the City. He advised that the real plus was that this would
put service in place and that many use who would help our tax
base want this service now. He advised that his company had
begun a major mailing to the corporate top 500 on these
locations. He said he thought this would be mutually beneficial
to his company and the City.
#4 Discuss Utility Extension Agreement with
Management Inc. regarding sewer line project.
Forbes
Mr. Sweatt advised that our standard policy provides for a
circumstance in which a developer builds a line such as this and
that under certain conditions that line is dedicated to the City
and we will enter into a utility extension fee arrangement in
which the developer would be offered an opportunity to recover a
portion of their cost for a specific period of time. In this
instance we propose that the City of Schertz enter into an
agreement with Forbes Management that would provide for the City
of Schertz to collect a utility extension fee that is either
based on a front footage basis to the line or a living unit
equivalent, depending upon whichever one is greater, that relates
to the capacity used of the system. This agreement would provide
that for a period of time the City would collect those fees and
rebate the utility extension fees to Forbes Management. It would
stipulate that the maximum amount that could be collected is the
amount that they paid for the line. In reality that would be
substantially less because a substantial amount of the line is
within their own property. We propose that the utility extension
agreement be for a period of ten years. The difference in this
agreement is that it provides for a ten year period instead of a
five year period and that we have added in the living unit
equivalent.
Mr. Baldwin asked if they would have to pay our capital recovery
fees as well as New Braunfels. Mr. Sweatt advised that they
would pay ours, New Braunfels and the utility extension fee.
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Mr. Greenwald asked if this would cause any problems with Senate
Bill 336. Mr. Sweatt advised that we had spent a lot of time
researching that because it will be a different capital recovery
fee than is charged in the central part of the City but that is
allowed because it is a different watershed. It would be a
problem if this were the same watershed.
Mr. Baldwin asked if there was any prOVlSlon in the agreement
with Forbes on escrowing the money, for Forbes to put in the
money if there were any overrun costs should the job not be
finished on time. Mr. Sweatt advised that the contract would be
let in the amount that had been discussed. A change order would
have to be done for any changes and we would expect that Forbes
would have to agree to a change order and put that additional
money up if such were dictated.
MR. POTEMPA ARRIVED AT 7:37 p.m.
#5 Discuss Articles of Incorporation and Bylaws for Schertz
Development Foundation.
Mr. Sweatt advised that the Economic Development Task Force on
August 15 reviewed and accepted the Articles of Incorporation and
Bylaws proposed for the development for the Schertz Development
Foundation. The primary purpose for creating a development
foundation is for setting it up as a 501 3C corporation to
receive gifts and donations and pledges from foundations, firms
and other individuals who might be looking for specific tax
advantages from the IRS. Although the City is in a position very
similar to a 501 3C corporation which is a tax exempt company,
each time a donation is made it requires a separate determination
letter from the IRS. The creation of a non-profit corporation
and a 501 3C corporation endorsed or approved by the IRS would
allow any donation made to be considered to be tax exempt once
the initial letter of determination is issued. The proposed
foundation is to have officers, be set up as a non-profit
organization separate and apart from the City of Schertz but
having direct coordination, communication and cooperation
responsibilities to the City of Schertz.
Mr. Marquez explained the Articles of Incorporation and the
By-Laws He advised that the number of officers established is
five and sets the term for each officer at one year and are
prohibited from becoming involved in any political activity. He
advised that the Council would appoint the Board of Directors
each year and could appoint one of themselves or the City Manager
to be one of the Directors.
Mrs. Tereletsky asked how you could be nonpolitical if yOU had a
Council member appointed to the Board. Mr. Marquez advised that
the activities of the Foundation would be nonpolitical; the fact
that they are appointed by a political body does not make them a
political body.
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Several citizens at the meeting objected to a Council member
being appointed to the Board as they felt this would make it
political. A consensus of Council was to remove that section
authorizing the Council to appoint one of themselves to the
Board.
Mr. Potempa asked for a ballpark figure for the annual budget
for the Foundation. Mr. Marquez advised that current funding
would come out of the Economic Development Department but after
that it would depend on how successful the Foundation was on
solicitations. Mr. Sweatt advised that at this time the only
monies available for spending is $24,355 in the 1990/91 budget
and that the proposed 1991/92 budget recommends $38,032. Mr.
Potempa asked what if next year they come up with a $100,000
budget. Mr. Marquez advised that they would only be limited by
how successful they were in getting funding.
Mr. Sharpe advised that the funds in the budget for Economic
Development came from funds the Housing Finance Corporation
generated and that they were not tax dollars but were fees paid
to the Industrial Development Finance Corporation for
development. He advised that this money would run out but the
Foundation would hopefully start something to perpetuate a source
of income so that we could continue to support economic
development.
#6 Discuss appointment to Board of Directors Schertz
Development Foundation.
Mayor Sawyer advised that the citizens recommended for the Board
of Directors were Charles McDonald, Tom Weaver, Kerry R. Sweatt,
Lew Borgfeld, Jim Shriver and Harry Richburg as Alternate. He
advised that Task Force also recommended that Mr. McDonald be
appointed as president and the other officers be elected by the
Board.
#7 Discuss Bexar Metro 9-1-1 Network Budget fy 1992.
Mr. Sweatt advised that the letter from Bexar Metro 9-1-1
District asked that the City of Schertz approve the 1991-92
budget for that organization. Under the laws that created the
9-1-1 district it requires that the Commissioners Court of each
County and the governing body of the most populous city and a
majority of the other participating cities consider and act on
the budget.
Mr. Potempa asked how many of our firemen would be going to the
A & M Firefighting school. Mr. Sweatt advised that we had two
that 9-1-1 was funding.
Mr. Potempa advised that Cibolo was asking for two radios
why was Chief Melton not asking for the one he had in
proposed budget. Mr. Sweatt advised that he would look
requesting the radio from 9-1-1.
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#8 Discuss recommendation from Planning and Zoning
concerning annexation of area from FM 78 to Cibolo Creek known as
Beck Cement Company property.
Mr. Sweatt advised that this area was specifically excluded from
annexation plans in years past and that Planning and Zoning is
recommending starting annexation process on this property. This
is basically to consolidate the City limits and place that area
within the City for control for the type 4 landfill expected in
that area and open up that portion of the city for any future
CDBG Grants.
Mr. Greenwald advised that Planning and Zoning was concerned
with filling in the gaps.
Consensus of Council was to schedule public hearing.
#9 Discuss Planning and Zoning request to schedule
hearing for proposed amendment to Zoning Ordinance
concerning mobile/modular homes.
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Mr. Sweatt advised that Planning and Zonings concern is for the
difference between the definition of a manufactured and mobile
homes. Planning and Zoning is recommending that they schedule
public hearings and change the definition for manufactured and
mobile homes.
Mr. Willman advised that the definitions were from the State
law.
Mayor Sawyer recessed the meeting at 8:32 p.m. and reconvened at
8:37 p.m.
#10 BUDGET WORKSHOP: Mayor Sawyer advised that this was a
continuation of the Budget Workshop and that we had left off last
time at the Economic Development Task Force.
Mr. Sweatt advised that he would like to answer a question which
had been raised at a previous meeting. One was regarding the
price for a device that would be affixed to the self contained
breathing apparatus that would detect motion and/or heat and
would warn of an individual down in a structure fire. The cost
ranges from approximately $110 to $150 each. We currently outfit
17 breathing apparatus so the cost would range from $1870 to
$2500.
Mr. Potempa said he thought we should look into buying this item
as it could save lives.
Mr. Sweatt advised that he had also researched the 1987 bond
issue and that there were $620,000 were unsold. The items in
that issue that have not been done included reconstruction of
streets in Mobile Villa Subdivision and purchase of a chip
sealing equipment, remodeling and additional buildings at the
Street Department and purchase of an emulsion tanker. He advised
that if sold today theses bonds would require approximately
$61,000 annually of additional debt service.
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Mr. Potempa asked when we intend to sell these bonds and
continue the projects.
Mayor Sawyer advised that they would be sold whenever City
Council decided to sell.
Mr. Sweatt advised that one of the considerations as it relates
to the street improvements, is that water and sewer lines need to
be installed before the street improvements are made. He advised
that improvement of the water lines would cost approximately
$101,820 and development of sewer service would be approximately
$265,755.
Mayor Sawyer suggested they go on with budget discussion and
discuss bonds at a later meeting.
Mr. Sweatt advised that we had left off with the Library and
would begin with the Economic Development Department.
Mr. Baldwin asked if we were raising the salary of the Economic
Development Coordinator by $14,000. Mr. Sweatt advised that we
were changing this position from a part-time to full-time.
Mr. Potempa asked if we need a full-time Economic Development
Coordinator. Mr. Sweatt advised that he did use this position
for other functions. This position developed the Drug Abuse
Program that we were mandated to bring to our employees. This
position also has done a lot of research enabling us to provided
needed information to Council on different requests.
Mr. Sweatt further advised that we were at the point where we
needed someone to make the contacts needed for economic
development growth.
Mrs. Stanhope asked why we needed this position and the
Foundation. Would it not be the Foundation's job to take care of
economic development? Mr. Sweatt advised that eventually they
would take over this task, but that currently they were not
funded. He advised that optimistically we hoped the Foundation
would make good and be able to take over all economic development
tasks within the next couple of years.
Mr. Baldwin asked if research had been done on other cities that
have a Foundation. Mr. Sweatt advised that each was different.
He advised that Abilene had become self sufficient almost
immediately but some of the others have not.
Mrs. Marsh advised that we would indeed be fortunate if the
Foundation could stand alone in two years and that we need to
press on. She also said that making this position a full- time
position was her number 1 priority.
Mrs. Stewart said that she saw a department that started out
small, then went to $24,000 and now is going up to $38,000. She
asked how much we are willing to pay for this position. She
asked where the lid would be at the time they would stand on
their own. Mr. Sweatt advised that the lid would have to be
reasonable and would be wherever the Council determined it to be.
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Mr. Sharpe advised that the goal of economic development was to
shift the tax burden to provide more services with less taxes and
that if it did not work out we would have paid out a few dollars
but if it did work out we would have more services with less
taxes.
Mrs. Tereletsky advised that she would like for the city to
start out slow and work up. Mayor Sawyer advised that Council
did feel like they started out slow. They started with a grant,
went to part-time and were now considering going to full time.
Council would depend on this slot becoming self supporting and
eventually bring a profit into the city. He advised that we have
tried for years to turn the tax burden around and put it on
business and take it off ad valorem taxes.
Mr. Potempa advised that he still felt this position should be
part-time and that we need another policeman on the streets
instead of another full time staff position.
Mayor Sawyer said he was going to asked Council for a consensus
as to whether we leave this salary item in or take it out of the
budget. Consensus was as follows: Mr. Potempa, out; Mr.
Baldwin, in; Mrs. Stanhope, in; Mrs. Marsh, in and Mr.
Greenwald, in.
Council continued reViewing proposed budget for Non-Departmental.
Council agreed that due to the lateness of the hour, they
stop reviewing budget after Non-Departmental and start
Water/Wastewater at the next meeting.
would
with
#12 CITY MANAGER'S REPORT: A. Expect
authorization to release the name of the business
relocating to the city and will be requesting a tax
under the Tax Abatement Ordinance by the next workshop.
to have
that is
abatement
B. Chamber of Commerce mixer will be on September 29.
C. TML Region 7 meeting will be on September 21 at Randolph AFB
Officers Club.
D. Task Force would like Mayor and Council to adopt a
proclamation at the next regular meeting in conjunction with the
Business Appreciation Dinner which will be held at the VFW on the
19th.
#13 ITEMS BY COUNCIL: Mary Marsh. Advised that she has
given the Mayor a proclamation regarding the VFW Voice of
Democracy Competition which he will give Tuesday night.
Ken Greenwald: In the early morning hours trucks coming out of
Beck's Concrete are driving too fast.
#13 ITEMS BY MAYOR: A. Received letter from Lloyd Bentson
thanking us for paSSing the Resolution concerning the MIA'S and
POW's.
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