ccswks 01-10-1990
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SPECIAL SESSION OF THE CITY COUNCIL
JANUARY 10, 1990
The Schertz City Council convened in Special Workshop Session,
Wednesday, January 10, 1990, 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; Barbara Stanhope, Mary Marsh and Ken Greenwald.
Absent were Hal Baldwin and Earl Hartzog. Staff present were
City Manager Kerry Sweatt and City Secretary June Krause.
#1 HEARING OF RESIDENTS: A. Mr. Ed Mazian asked if the
City Manager had found out anything more on the Cable TV. Mr.
Sweatt said he had written them but had not had a reply.
B. Mr. Mazian also asked about a police vehicle he observed that
looked as though it had hit a tree and the front is all caved in.
Mr. Sweatt said he would check into that.
C. Mr. Jim Shriver advised that on his current Paragon Cable TV
bill, there is a note on the bottom saying that the Schertz City
Council has raised the Franchise Fee from 3 to 5%.
'2 Discussion of final consideration of an ordinance
regulating failure to return library materials.
Mayor Sawyer asked that this be on the next action agenda as no
one had any new thoughts on this ordinance.
'3 Discussion of plans for financial improvements through
Certificates of Obligation.
Mayor Sawyer reminded Council they had discussed Certificates of
Obligation in support of the FM 3009 Right-of-way and related
costs; relocation/new construction of an Animal Shel ter ;
Building/land for Service Center, fueling system. He added that
Mr. Sweatt was to come back with prices on these.
Mr. Sweatt said he fel tit would be inappropriate to discuss
specific prices. He has begun the process of securing appraisals
on the FM 3009 right-of-way. He had also begun the process of
securing appraisals and construction costs for building or
purchasing a building for a Service Center to house the Utility
Office. We would estimate that we could acquire, through
construction or purchase, new facilities for the Utility Office
and Service Center for in the neighborhood of $375,000, which
would include a new fueling system. We estimate a total cost of
approximately $300,000 for acquisition of right-of-way and re-
location of a new Animal Shel ter. Including the contingencies
and professional services, this would bring the grand total to an
estimate of $750,000.00.
MR. BALDWIN ARRIVED AT 7:07 P.M.
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Mr. Sweatt reminded Council that the previous week it was
discussed about checking into financing lease-purchase
arrangements for new police vehicles and radio console equipment.
That is another $50,000, which could be placed on top of the
$750,000, for a total of $800,000. We could shorten up the
payments on that first $50,000 so that it would have the same
amortization schedule as the proposed three-year lease/purchase
and save approximately $2800 in interest costs. We feel this
would cost no more than the $750,000. A general projection of
costs is that a water rate increase of as much as fifty cents in
the base rate and ten cents in the rate structure would be
required to amortize that portion of the $750,000 issue that
would be basically attr ibutable to utility operations. This is
the maximum that would be required. For instance, our average
customer uses 12,140 gallons of water. Currently, they are
paying $15.23 and under the proposed rates the same usage would
cost $16.65 or an increase of 9.32%. Using the same averaging,
our commercial customer's billing would increase from $21.58 to
$23.63; and the out-of-city customer's bill would increase from
$31.43 to $34.36.
Mr. Sweatt reminded Council that they had asked that he develop
some information for that portion that would be justifiably
general obligation, which is the right-of-way and Animal Shelter
activity, which would likely require between one and two cents
additional debt service. He had asked the Tax office to
calculate what the increase would be on an average home valued at
$59,533.71. Increasing the tax rate from .3183 to .3383 would
generate an increase of $11.90 from the 1989 tax, using a full
two cents. He said he really did not think it would require a
full two cents but more likely one and one half cents.
Mr. Sweatt advised that the earliest we could expect to conduct
any sort of sale would be mid to late February 1990; and the
earliest your debt service would begin would be February 1991.
We are, therefore, not looking at any rate increase for this
fiscal year. Mr. Sweatt said he had discussed with the Fiscal
Agent several different debt service schedules, between a 12 to
15 year amortization. The projections are based on a coupon
rate of 7-1/2%.
Mrs. Marsh expressed her concern for our citizens who were hit
hard last year with tax increases and with a minimum of
complaints. We had the Telecommunications sales tax increase,
cable TV franchise increase and now are talking about increasing
water, sewer, and garbage. Mrs. Marsh said she was concerned
about the educational process to our citizens regarding these
increases; adding that we really need to explain to our citizens.
Mrs. Stanhope expressed her feeling that the $50,000 allotted to
the Animal Shelter was very low and she would not like to build a
shelter piecemeal.
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After further discussion, it was Council concensus to increase
the amount of the bonds by $50,000 to insure the Animal Shelter
would be built properly.
14 Discussion of appointments to Housing Authority Board of
Commissioners.
Mayor Sawyer advised that Bud Cyr and Billy Keen would like to be
reappointed and the Board is recommending appointing Mrs. Esther
Purcel, who is a resident, to replace Mrs. Ware. Mayor Sawyer
said that Mrs. Ware has left the Board and really did a great job
while serving on the Board.
# 5 Discussion of Memorandum of Understandino between the
City of Schertz and New Braunfels Utilities regarding waste water
treatment collection facilities.
Mr. Sweatt said he was pleased to announce that both the New
Braunfels Utilities and New Braunfels City Council have
unanimously approved our agreement. In both cases they had nice
words to say about the spirit of cooperation.
Just to refresh Council' s memories, this is a proposed
participation with New Braunfels Utility and upsizing an outfall
line and a lift station that will accomplish service _ waste
water collection 1 ines - to our extraterr i tor ial jurisdiction.
We will participate with 25% of the cost of the project. That
buys us capacity in the 1 ine for that portion of the drainage
basin that would serve both New Braunfels and our portion. Our
engineers are preparing new specifications to pick up a line at
that point and carry it to a point in our city limits, the
location where we had originally projected the waste water
treatment plant. This way we will have one mile of the proposed
line within our city limits to serve industrial properties along
the 1-35 corridor back to the railroad. He added that
construction time is estimated at about fourteen months.
Mayor Sawyer reminded Council that our 25% cost is amortized out
over a ten-year period with the New Braunfels Utilities, at their
bond interest rate.
Mr. Sweatt added that the cost is a part of our current budget
projection out of sewer operating funds. We have projected to
construct our portion of the line out of 1983 Construction Funds.
He said we are basically treated like a customer and are subject
to a O&M cost pI us an administrative charge. We would be
responsible to collect what is called, in their case, "Central
Facility Charge", which in our case is called an"Impact Fee".
This would only be due at the time the customer connects. If we
choose to increase New Braunfels' fee, which we proposed to
recommend that we do, it will also pay the impact fee for our
portion of the line as well. We do not anticipate any rate
increase to meet the approximately $40,000 a year operating cost
for this.
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'6 Discussion of a request by Moore Industrial Disposal
Inc. for rate adjustment.
Mr. Sweatt said for information, the City of Schertz authorized a
rate increase in 1988 of 6%. This was to offset disposal charges
and mileage to the landfill. The current rate in Schertz is
$6.89 per resident. The rate increase request deals with tipping
and proposed increase in operational costs.
Mr. Gutierrez said their agreement with the City allows them to
come in and talk to the Council when they have a landfill
increase, and at this time they have a sizable increase.
Effective January 1, 1990, the rate for compacted trash went up
from $2.00 to $2.57 per cubic yard. Loose trash went up about
fifty cents per cubic yard. Of the 57 cent increase on compacted
trash, 40 cents goes to BFI and 17 cents goes to the State Health
Department. Mr. Gutierrez said that in the residential
collection area, they have a landfill increase of 4.2% going to
the landfill; and in commercial, there is a 7.6% increase to the
landfill. Moore Industrial is asking for a 3.7% increase related
to the Consumer Price Index, which is 70% of the CPl.
MR. HARTZOG ARRIVED AT 7:50 P.M.
Mr. Mike Moore said that the disposal fees are the largest single
part of their expense, so that when they are increased to this
degree, they just have to go to the cities to ask for an
increase. He mentioned that other disposal facilities in the
area have increased their fees also as much as 25%. The
difference between commercial and residential percentages is that
in the commercial collection a bigger percent expense goes to
landfill fees because the collection of volume can be done more
economically - the large dumpsters, etc.. Whereas in residential
collections you have a higher labor costs because in some
instances, it requires two men per truck and there is not the
volume during the day.
After discussion of the requested increase, Mr. Moore was asked
the status of the proposed landfill. Mr. Moore said they are
administratively complete, which means that the Health Department
is satisfied. From there they schedule public hearings and he
said that he hoped that by this time next year they would be
completed. If completed in one year, construction time would be
from three to six months, depending on weather.
#7
16th at
Guadalupe
Parkway.
CITY MANAGER'S REPORT: A. A reminder that on January
10:00 a.m., there will be a grand opening of the
County Tax and Juvenile Probation offices on Schertz
B. Due to delivery problems on carpet, we have had to revise our
plan of the closing of the library for repairs. We now plan to
close the Library from January 29th through February 3rd.
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C. We did not include on the agenda the
consideration of an ordinance regarding annexation
of land out of Comal and Guadalupe Counties, which
next action agenda.
discussion of
of five tracts
will be on the
D. Dates are still somewhat unknown at this time but would like
to ask that the Council participate with staff in the welcoming
back to town John,Terry and Alyssa Smith. Will advise of the
exact time and date. The City, School District and a number of
ci tizens are planning to meet at the airport to welcome them
home.
E. We have distributed copies of our latest newsletter and are
still looking for suggestions for distribution of this
newsletter.
#8 ITEMS BY COUNCIL: Mrs. Marsh: A. There was a Corridor
Council meeting the first of December. She said that for the
first time she was quite impressed with a subcommittee meeting.
She is on the Tourism and Economic Development Committee. They
are now getting down to doing things they are suppose to be
doing, such as specific goals. She said it was brought out that
San Antonio and Austin have got to start thinking regional. They
are going to develop brochures. They are compiling a list of
available bUildings. They discussed many ways to market and
talked about "Allies Day". They are going to target industries
for the Corridor. They also decided they need a logo.
B. She said she received a call advising that the Chamber of
Commerce is getting together a resolution to go to the Governor
on the racetrack.
C. She asked the status of the float. Mr. Sweatt said we have
internal staff working on it and hope to develop sources for
storage. We need some place to put it out of the weather to work
on it. We have had several suggestions for themes; but he said
he did not think the Business Club had adopted a theme for this
year.
D. She called attention to the letter from the City Manager to
the District Traffic Engineer of the Texas Department of Highways
and Public Transportation concerning proposed traffic signals on
FM 3009. She said she would like to stress that we do not let
this lie, that we insist that they consider the safety feature.
Mr. Hartzoa: A. Said he would like to put on the next agenda
the reappointment of Library Board members and the appointment of
their officers.
B. He said he would also like to present a plaque to Mr. Tony
Paulson for his eight years on the Board.
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C. We will also have a proclamation at the next meeting setting
out "Cookie Month". We will have some girl scouts here that are
looking forward to meeting the Mayor.
Mrs. Stanhope: A. On the 10th of February, Morning Star is
going to have a benefit for Alyssa Smith. It will be an all day
Fun Match and will be held at their place on FM 1518.
B. On February 18th is the benefit dance and auction from 3:00
to 8: 00 at the VFW. This is sponsored by the Schertz Humane
Society and Public Library.
C. Also the Humane Society will be having a garage sale this
Spring and will be looking for items for this.
D. What is the status of the bicycles that are picked up? Mr.
Sweatt said we are required to dispose of them by auction by the
City and there is strict legal notices required. If the Council
wishes, the proceeds of an auction could go to the Humane
Society. Mayor asked the City Manager to look into auctioning
them at the Humane Society/Library function.
Mrs. Tereletsky advised that the Humane Society is going to sell
T-shirts at the Dog Show and hal f of the proceeds will go to
Alyssa Smith.
Mr. Baldwin: A. Announced the Guadalupe County Appraisal
District Board elected Mr. Welch as Chairman, Mr. Little as Vice-
Chairman and Mrs. Powers as Secretary-Treasurer.
B. Advised that he was scheduling the building for the Senior
Citizen Appreciation Day activities for May 12th. He asked the
Council's help in soliciting prizes.
Mr. Greenwald: A. Advised that Code Enforcement had to back up
on the parking restrictions, because of cable work in the right
of way, on the place on 1-35.
B. BVYA building contract, as well as their ballfield contract,
needs to be renewed. He requested this to be on the next
workshop, saying BVYA Board has no problems with it as written.
C. CVADAC met on Monday night and presented their annual report
to the Mayor. This report shows almost 5900 attended AA meetings
and had 44 Al Anon meetings for 308 people. All this shows this
service is really needed and was accomplished on $4300. The
United Way gave them $3500 of that. They are soliciting
donations.
#9 ITEMS BY MAYOR: Advised that he had the pleasure of
attending the Opening Day for BVYA Basketball Season on Saturday
and there were quite a few people from the City present.
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B. He advised that he had been invited to a formal Open House
and Reception by the Bureau of the Census.
# 10 ADJOURMMENT: There being no further business, the
meeting was declared adjourned at 8:51 p.m. by Mayor Sawyer.
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