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ccreg 02-10-1990 140 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 " #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. ) /' 1! "Ii ~. -L "'-jL A 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. 142 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. ) 1l4'.:> ~ ,...J #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 144 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 /' "''-- #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. \ \ \ q A r. i <'{: tJ 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: