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ccswks 01-10-1990 102 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. // -~ 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. 104 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. I I / Ii ;.-., -: '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. 106 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. / ..:n7 ~ ~}' " 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. 108 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. -.I Texas ATTEST: )