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REGULAR MEETING OF THE CITY COUNCIL
FEBRUARY 20, 1990
The Schertz City Council convened in Regular Session, Tuesday,
February 20, 1990 at 7:00 p.m. in the Council Chambers of the
Municipal Complex, 1400 Schertz Parkway, Schertz, Texas. The
following members were present: Mayor Earl W. Sawyer, presiding;
Earl P. Hartzog; Barbara Stanhope; Mary Marsh and Ken Greenwald.
Absent: Hal Baldwin. Staff present were City Manager Kerry
Sweatt and City Secretary June G. Krause.
Mayor Sawyer recognized Mr. Charles B. Sharpe, who wished to make
a presentation.
Mr. Sharpe said that for about three years the Rotary Club has
selected outstanding volunteers from the various cities in the
area. He added that Schertz has always been a "City of
Vol unteers"; and at this time, the Rotary Club would like to
recognize the outstanding volunteer from Schertz. He then asked
Mr. Bill Neller to step forward to receive that recognition,
say ing most of the citizens were probably aware of what Mr.
Neller has done for the City of Schertz. He has volunteered with
SAFES, the American Red Cross, the American Legion, the VFW, with
the Animal Shel ters and many more. It is al so through his
efforts that we now have the flags flying on all of our National
holidays.
Mayor Sawyer added that the Council offered their congratulations
to Mr. Neller, saying they are very proud of him and well aware
of all the contributions he has made to the city.
#1 APPROVAL OF MINUTES: Mr. Greenwald made a motion to
approve the minutes of the Special Session of January 10th and
the Regular Session of January 16, 1990. Mrs. Marsh seconded the
motion, which carried with the following vote:
AYES: Councilmembers Hartzog, Stanhope, Marsh and
Greenwald.
NAYS: None
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#2 HEARING OF RESIDENTS: None
#3 VARIANCE REQUEST: Consider and take action on request
by Payless Gas for a variance to the Special Overlay District
section of the Zoning Ordinance.
Mayor Sawyer advised that a public hearing has been held on this
item, adding that the Council had advised representatives of
Payless Gas that they could come forth with another presentation
if they wished.
Their representative said they did not come forth with another
recommendation because, in taking a look at what they proposed
and what other like establishments have, they felt they would go
with what was originally proposed.
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Mr. Sweatt said the request for the sign was made prior to the
new right-of-way request. Another clarification is that the new
sign is on the left and is a different request than the one made
before Planning & Zoning.
The Payless Gas representative said the reason they changed the
location was because they did not feel there would be enough
clearance with the original one.
Mrs. Marsh said she is an advocate of sticking to the ordinance,
particularly in the area of the overlay district. She said that
she did not have any particular objection to this sign, but it is
not in conformance to the ordinance as it now stands. So, of
course, if Council does approve this request, they are once again
going against the ordinance. She said she felt further review of
the ordinance was in order.
Mrs. Stanhope said she spent a lot of time on this, driving FM
3009 and looking at it every way. She said that they need to
support the businesses. People coming into our city from 1-35
have two ways - Schertz Parkway and Jack Hays. She said the
overlay district is an excellent concept and Council needs to
adhere to it to maintain the environment and to protect the
property owners. She agreed that the ordinance needs to be
reviewed. She described an area in the Houston that was done in
the manner of our ordinance.
Mr. Hartzog moved to approve the request of Payless Gas for a
variance to the Special Overlay District section of the Zoning
Ordinance for a height of 13'7" to be located on the northwest
corner of the property; with only the price of gas, name of gas
and Payless be permitted on the sign. Mrs. Stanhope seconded the
motion, which carried with the following vote:
AYES:
NAYS:
Councilmembers Hartzog, Stanhope, Marsh and Greenwald
None
#4 BID AWARD: Open bids and consider action on the sale of
Combination Tax and Limited Pledge Revenue Certificates of
Obligation.
Mayor Sawyer turned over the bids to Mr. Tom Ander Ii tch, the
City's Financial Advisor.
Mr. Anderlitch advised that a lot of good bids were received. He
said that this was all presented to Moody's of New York and
Schertz has a rating of Baa 1 and we maintained the rating that
we had with the addition of these $850,000 in bonds. They are
now reviewing the revenue aspect of our audit and will give us a
rating on revenues. As you mayor may not know, we now have an
"A" rating on all of our outstanding revenue bonds. He said he
felt Moody's spent more time on this issue than they ever had.
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Mr. Anderlitch then opened the bids and read them as follows:
Name
Effective Interest
Rate
1. Knibbe Financial Group, Inc. and
Southwest Securities Inc.- S.A.
7.47511
2. M.E. Allison & Co., Inc. and
Fenser Investment Inc.- San Antonio
7.56447
3. Dean Witter Reynolds Inc. - Dallas
7.61975
4. Bank One Texas - Dallas
7.65608
5. Lovett Underwood Neuhaus & Webb-Houston
7.57693
6. NCNB Texas - Dallas
7.66576
7. Rauscher Pierce Refsness, Inc. and
First Southwest Company - Dallas
7.49426
8. Shearson Lehman Hutton - Dallas
7.6507
Mr. Anderlitch said the apparent low bidder is Knibbe Financial
Group, Inc. and Southwest Securities Inc.. The Net Interest Cost
for this bid would be $622,302.50. Mr. Anderlitch asked for a
little time to calculate the bids to make sure this is the low
bid.
Mayor Sawyer passed on to item No.6.
#6 RESOLUTION: Mayor Sawyer introduced a resolution and
read the caption as follows:
RESOLUTION NO. 90-R-4
A RESOLUTION BY THE CITY COUNCIL OF THE CITY
OF SCHERTZ, TEXAS AUTHORIZING THE MAYOR TO
EXECUTE A CONTRACT WITH THE RANDOLPH METROCOM
CHAMBER OF COMMERCE FOR SERVICES.
Mrs. Stanhope moved to pass the resolution authorizing the Mayor
to execute a contract with the Randolph Metrocom Chamber of
Commerce. Mrs. Marsh seconded the motion, which carried with the
following vote:
AYES: Councilmembers Hartzog, Stanhope, Marsh and Greenwald
NAYS: None
Mr. Hartzog asked if all the cities are paying at least the rate
the businesses are charged. Mr. Sweatt said he understood that
one city was paying substantiall y less but in the future all
cities would pay at least $125.00.
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#5 ORDINANCE: Mr. Anderlitch said that the calculations on
the bids were correct so the basis of the award is on the lowest
net interest cost to the city, that being Knibbe Financial Group,
Inc. and Southwest Securities Inc., the interest rate being
7.47511. He said it was his recommendation to award the bonds to
this firm.
Mrs. Stanhope moved to accept the low bid of Knibbe Financial
Group, Inc. and Southwest Securities, Inc. of San Antonio. Mr.
Hartzog seconded the motion.
Mrs. Marsh asked on what premise the lowest bid was accepted.
Mr. Anderlitch explained it was on the basis of the lowest
effective interest rate. He then explained that there is about
$1,000 to $1,500 difference in the lowest and second lowest bids.
He said they were looking at the lowest net interest cost to the
city over the life of the bonds.
Attorney Mike Spain said that unlike other types of bids where
you would also look at the reputation of the bidder, here they
are all equal because they are going to buy something from us.
Mr. Tom Anderlitch added that the Knibbe Group have a good
reputation and Southwest Securities of Dallas are both reputable
companies. They have included their check in the amount of
$17,000, which is the 2% good faith check they are required to do
and that is made payable to the City of Schertz. In the event
they do not pay for these bonds, then they forfeit this check
over to the City of Schertz. When bonds are taken on bids, they
are for immediate acceptance or rejection. None of these bidders
would leave the bids open beyond this date.
Mayor Sawyer then called for a vote on the motion before Council
and the motion carried as follows:
AYES: Councilmembers Hartzog, Stanhope, Marsh and Greenwald
NAYS: None
#5 ORDINANCE: Mayor Sawyer introduced an ordinance and
read the caption as follows:
ORDINANCE NO. 90-B-6
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
"CITY OF SCHERTZ, TEXAS COMBINATION TAX AND
LIMITED PLEDGE REVENUE CERTIFICATE OF
OBLIGATION, SERIES 1990" ; PROVIDING FOR THE
PAYMENT OF SAID CERTIFICATES BY THE LEVY OF
AN AD VALOREM TAX UPON ALL TAXABLE PROPERTY
WITHIN THE CITY AND FURTHER SECURING SAID
CERTIFICATES BY A LIEN ON AND PLEDGE OF THE
PLEDGED REVENUES OF THE SYSTEM; PROVIDING THE
TERMS AND CONDITIONS OF SAID CERTIFICATES AND
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RESOLVING OTHER MATTERS INCIDENT AND RELATING
TO THE ISSUANCE, PAYMENT, SECURITY, SALE, AND
DELIVERY OF SAID CERTIFICATES, INCLUDING THE
APPROVAL AND DISTRIBUTION OF AN OFFICIAL
STATEMENT; AUTHORIZING THE EXECUTION OF A
PAYING AGENT /REGISTRAR AGREEMENT; AND
DECLARING AN EMERGENCY.
Mrs. Marsh moved to approve the ordinance authorizing the
issuance of "City of Schertz, Texas Combination Tax and Limited
Pledge Revenue Certificates of Obligation, Series 1990" and
declaring an emergency. Mr. Greenwald seconded the motion.
A lady from the audience asked what the bonds are going to be
used for and how are they going to be paid. Mayor Sawyer advised
the bonds would be paid by a 1-1/2 cent increase in taxes and a
slight increase in the water rates. They would be used to build
an animal shelter, building and lot for water service department
and to buy right-of-way on Jack Hays Boulevard for the widening.
Mr. Sweatt added that the tax would not go into effect until the
next fiscal year.
Mr. Hartzog said he had talked to a lot of people about this and
had not had any negative comments about it. He said the City has
been talking about widening FM 3009 for years. One of the other
things these bonds will be used for is a new fueling system for
the city.
Mayor Sawyer called for a vote on the motion before Council and
the motion carried with the following vote:
AYES: Councilmembers Hartzog, Stanhope, Marsh and Greenwald
NAYS: None
#7 ORDIN.AlfCE: Mayor Sawyer introduced an ordinance and
read the caption as follows:
AN ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS, AMENDING THE ZONING ORDINANCE NO. 87-
S-1 BY REZONING FIVE TRACTS OF LAND OUT OF
COMAL AND GUADALUPE COUNTIES AND REFLECTING
SUCH CHANGES ON CERTAIN ZONING MAPS IN
ACCORDANCE WITH THE SCHERTZ ZONING ORDINANCE.
Mr. Greenwald moved to approve the first reading of an ordinance
amending the zoning ordinance by rezoning five tracts of land out
of Comal and Guadalupe Counties. Mr. Hartzog seconded the
motion, which carried as follows:
AYES: Councilmembers Hartzog, Stanhope, Marsh and Greenwald
NAYS: None
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#8 ORDINANCE: Mayor Sawyer introduced an ordinance and
read the caption as follo~s:
AN ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS, CALLING AN ELECTION TO BE HELD ON MAY
5, 1990, FOR THE PURPOSE OF ELECTING A MAYOR
AND TWO (2) COUNCILMEMBERS FOR SAID CITY.
Mr. Hartzog moveq to approve the first reading of an ordinance
calling an election for May 5, 1990. Mrs. Marsh seconded the
motion, which carried with the following vote:
AYES: Councilmembers Hartzog, Stanhope, Marsh and Greenwald
NAYS: None
# 9 ORDINANCE: Mayor Sawyer introduced an ordinance and
read the caption as follows:
AN ORDINANCE
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS, AUTHORIZING THE ABANDONMENT OF CERTAIN
LAND AND REAL PROPERTY INTERESTS CURRENTLY
OWNED BY THE CITY; AND OTHER MATTERS IN
CONNECTION THEREWITH.
Mr. Sweatt explained that this area has been in question for
some time. It is a portion of street right-of-way or open area
from Curtiss Avenue toward Wright Avenue, along the side of
Schertz Elementary School. It is an area 50 feet in width by 346
feet long. The School in it's recent bond issue proposed funds
for improvement of this area for parking. The Planning & Zoning
members and staff reviewed the matter and all recommend that the
street be abandoned as to any right and title interest the City
has in it. What the City is doing is giving up any claim to it.
Mr. Hartzog moved to approve the first reading of an ordinance
abandoning right-of-way and author izing the Mayor to execute a
Quitclaim deed conveying 0.40 acres of land to the Schertz-
Cibolo-Universal City Independent School District. Mrs. Stanhope
seconded the motion, which carried with the following vote:
AYES:
NAYS:
Councilmembers Hartzog, Stanhope, Marsh and Greenwald
None
Mr. Carl Clark, of 320 Lori Lynn, had questioned this item and
Mayor Sawyer asked him to come to the next workshop, where it
would be again discussed.
#10 CITY MANAGER'S REPORT: A. Announced the Baptist
Memorial Hospital System is sponsoring a bicycle challenge tour,
partially in our city, on April 21, 1990.
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B. On March 27th we have received a request for reservation of
the City Council Chambers for 9:00 a.m. by the Texas Department
of Public Health to hold a public hearing on the request to
permit a landfill by Suntex Investment Inc..
# 11 ITEMS BY COUNCIL: Mrs. Stanhope: A. Thanked
everybody for their support of the benefit put on by Morning Star
for Alyssa Smith.
B. Also thanks to everybody for the support of the Library and
Humane Society for their benefit.
Mr. Greenwald: He asked that it be discussed at the next
workshop the possibility of passage of a resolution to the FCC on
Cable Television rate increase.
#12 ITEMS BY MAYOR: A. The auction by the LibrarY/Humane
Society went well. Also the benefit put on by Morning Star was
well attended. If anyone is interested in training animals, that
would be a good place to take your animals and look around.
B. Attended the Bl ue and Gold Banquet for Pack 18 last week.
Boy Scouting is alive and well in the City of Schertz.
#13 ADJOURNMENT: Mrs. March moved the meeting be adjourned
at 7:57 p.m.. The motion was seconded by Mr. Greenwald and
unanimously carried.
ATTEST: