04-23-03
j"~) STRATEGIC PLANNING SESSION
APRIL 23, 2003
The Schertz City Council convened in a Strategic Planning Session on Wednesday, April
23, 2003 at 7:30 p.m. in the Municipal Complex Conference Room, 1400 Schertz
Parkway, Schertz, Texas. Those present were Mayor Pro- Tem Tony Wilenchik,
presiding; Councilmembers Carl Douglas, Steve Simonson, Reginna Agee and Ken
Greenwald. Absent: Mayor Hal Baldwin. Staff present were City Manager Mark
Marquez,Asst. City Manager John Bierschwale, City Secretary Norma Althouse, Interim
Finance Director Juan Santoya, Community Development Director Amy Madison, and
Public Information Officer Tony Wilson. Mark McLiney of Southwest Securities was
also present. One citizen, Robert Brockman of 4505 Grand Forrest, :was present for the
seSSlOn.
#1 Call to Order
Mayor Pro- Tem WHenchik called the meeting to order at 7:30 p.m.
#2 Discussion and Possible Action on Resolution Calling for a Public Hearing on the
Expenditure of Certain City of Schertz Economic Development Corporation Funds
) Relating to a Project.
Mr. Marquez pointed out that both the 4-B Board and City Council would hold a public
hearing on this matter. Mr. Douglas asked if he is saying they would have a joint public
hearing and Mr. Marquez replied no, both bodies would hold a separate public hearing,
but most likely on the same date.
Mayor Pro- Tem Wilenchik said it is his understanding Council can't have a public
hearing until a decision is made by the 4-B Board. Mr. Marquez pointed out Council
would consider and take action on the recommendation from the 4-B Board. Mr.
Simonson mentioned it is perfectly legal to hold both public hearings on the same date as
long as the notice for each has been advertised and posted. In years past, the Planning
and Zoning Commission and City Council would both hold a public hearing on the same
date and the Commission would make their decision and then take it to Council. Mr.
Marquez stated that as Executive Director of the 4-B Board, he could present the
outcome of the 4-B public hearing to Council.
Mr. Marquez then went on to say the 4-B Board has the authority to act on 4-B money.
City Attorney, Michael Spain, felt it would be prudent to hold a public hearing so the
public is aware the money will be spent for a parking lot for the public safety buildings.
Mr. Spain carefully reviewed the ballot of the election where it stated what the 4-B
money could be spent on, but felt since a parking lot was not specifically mentioned on
the ballot, a public hearing would be the wisest way to go. It would eliminate the
perception that something was being done behind the public's back.
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There was a brief discussion on this with several Councilmembers still thinking a public
hearing is not really necessary. Mayor Pro-Tem Wilenchik felt if five people show up for
the public hearing and only one is in favor of the parking lot, but it is approved anyway, it
would look like the decision had been pre-determined. Mrs. Agee noted that if only five
people show up, that doesn't represent the majority of the citizens. (Maybe they don't
care, or maybe they.re in favor of the parking lot.) Mrs. Agee then asked why we're
paying an attorney if we don't do what he says.
Mr. Greenwald pointed out that in the Resolution, Mr. Spain refers to Section 4B(a-l)
and Section 4B(n) of the Development Corporation Act, so maybe legislation was
amended since the election was held. Council agreed that if the City Attorney
recommends it, they should call for a public hearing.
Mayor Pro- Tem Wilenchik introduced a Resolution and read the caption as follows:
RESOLUTION NO. 03-R-07
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS SETTING A PUBLIC HEARING ON THE EXPENDITURE OF
CERTAIN CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION
FUNDS RELATING TO A PROJECT; PROVIDING NOTICE OF THE
SPECIFIC PROJECT TO BE CONSTRUCTED; APPROVING AND
AUTHORIZING THE PUBLICATION OF A NOTICE RELATING TO THESE
MATTERS; AND OTHER MATTERS IN CONNECTION THEREWITH.
Mr. Greenwald moved to approve the Resolution setting a public hearing for May 20,
2003 on the expenditure of certain City of Schertz Economic Development Corporation
Funds relating to a project. Mr. Simonson seconded the motion, which carried with the
following votes:
AYES: Council members Douglas, Simonson, Agee and Greenwald.
NAYS: None.
#3 Presentation on Investments by Mark McLiney.
Mr. McLiney observed that since interest rates have come doWI;l, it has benefited
payments on one hand, but been a detriment to investments on the other hand. There is a
trust company based in San Antonio that invests and he recommends them. They would
come in and work with the City as a staff member.
After reviewing the bonds and the funds, he thinks the City can get a better return on cash
that just sits there. This would be an easy no-risk way to earn more money.
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r-',\ Mr. Marquez drew a diagram representing known cash requirements and also showing
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money just sitting in a poo~ which needs to be invested. Mayor Pro- Tem Wilenchik
asked if they're considering investing in treasuries and Mr. Marquez replied they are
looking only at high quality investment. Mr. McLiney stated they should look at the
quality of the investment, at the liquidity and at the yield. If there's risk involved, they
would not recommend investment. Mr. Marquez noted that if they make a profit, they're
ahead of the curve.
Mayor Pro- Tem Wilenchik asked if this company would be fee based or on commission.
Mr. McLiney replied it would be fee based. Mr. Marquez added it would be fee based
on the amount of capital being invested.
Mr. McLiney stressed he knows the gentleman from this company to be an honest person.
The money would not be co-mingled. Mr. Marquez emphasized the investments would
be in the name of the City of Schertz. There is both long-term and short-term investment.
Mr. Marquez then mentioned they are only interested tonight in Council's feelings. The
Investment Policy will be on a future workshop. Also, they will invite the gentleman
from the trust company to come and speak to Council and answer any questions they may
have. After hearing this, Council gave the approval for further consideration of using a
trust company for investment.
) Mayor Pro- Tem Wilenchik thanked Mr. McLiney for his time.
lt was decided to move Item #5, Executive Session, up on the agenda, so a short break
was taken at this time.
#5 Executive Session: Called Under Chapter 551 of the Texas Government Code,
Sub-Section 551.072, Deliberation regarding real property.
An Executive Session was held from 8:04 p.m. until 8:50 p.m.
#6 Action, if any, on above Executive Session.
No action was required.
#4 Discussion of Strategic Planning Priorities.
Mr. Marquez reminded everyone the minutes from the last Strategic Planning Session are
in their packets. Each priority was reviewed in those minutes.
The priorities were then reviewed, one by one, by Mr. Marquez and Council.
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/) #1 Storm Water
Mr. Marquez felt the storm water is well in hand, but they could retain it as #1. He
thinks, however, they also need to include the street improvement program under # I.
Mr. Simonson emphasized storm water and streets should be a priority because of our
sister city's development, not just because of maintenance. What are we going to be
responsible for? Technically, Wiederstein Road is ours. Also, 200 acres is being
developed in our City limits that we don't want to see forced into seal coated roads.
Mr. Marquez commented that another section which needs road improvement is in the
southern part of Schertz toward ill-l0. There is nothing wrong with our Master Plan, we
just need to get them built. Mr. Simonson mentioned that some of those roads qualify for
MPO funds, but they have to be a collector or above to qualify. San Antonio is getting
85% of the MPO money and some of theirs get dropped out because they can't get all the
right-of-way.
Mrs. Agee suggested using the wording Storm Water/Streets. It was decided to leave
Storm Water as priority #1 and add Streets to it.
#2 Recreation Facilities and Programs
) Mrs. Agee thought maybe because of the Quality of Life bond issue, this should be
moved to #1. Mayor Pro-Tem Wilenchik mentioned there's been very little movement
toward recreation facilities and programs' in the last several years. Mrs. Agee pointed out
the Playscape and the Northcliffe Pool have come about in the past several years.
Recreation facilities and programs have to be a high priority because of the money the
bond issue will require.
Mr. Simonson reminded everyone the recreation facilities and programs will be an issue
before the voters and will be decided by them. Mrs. Agee noted if it doesn't float this
time, there is nothing we can do. Mr. Marquez said they could probably do ballfields, but
other things will go away. Mr. Simonson pointed out the bond issue on recreation
facilities and programs will be a real test of citizen support.
It was decided, for the time being, to leave Recreation Facilities and Programs as priority
#2.
#3 Technology
Mr. Marquez remarked as far as technology, they're doing well. The IT person still
wants to upgrade the network. We don't need it as #3 anymore, but we don't want to
ignore it. They replaced 8 machines this week. Fiber is connected to all buildings except
Animal Control. They do need to upgrade some hubs and switches,
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'" Mr. Simonson felt technology doesn't need to be on the strategic planning priority list
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anymore. Mrs. Agee added we need to be more in line with necessities now. It looks
like several of the 9 priorities could go away.
Mr. Simonson suggested annexation be moved up to #3 on the priority list. Mr. Marquez
remarked several areas' they need to annex would be a battle royal, particularly some of
those areas between the Mlssouri-Kansas-Texas Railroad and ffi-35. They are totally
surrounded by annexed areas, so they are getting City advantages. Mr. Simonson said he
would like to see the City annex the Rittiman Addition. It changes how we deal with
prisoners because they are not annexed. John Bierschwale advised that Bexar County has
to do some buyouts on Aztec Lane and once they do, then we can go ahead and annex.
Mr. Simonson then asked why not annex the other side too. Mr. Bierschwale answered
you have to be careful about finger annexation. Mrs., Agee observed as long as the
property is contiguous, it's okay.
Mr. Simonson said he would like to see discussion of annexation on a workshop agenda
for discussion sometime soon. Mayor Pro-Tem Wilenchik mentioned it was supposed to
have been on an agenda for discussion, but never was. Mayor Pro- Tem Wilenchik then
wondered if acquisition of City property should be a priority item. Mrs. Agee
commented they would have certain goals of property they wish to acquire, but would not
be doing it all the time.
\ It was agreed that Annexation should be priority #3.
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#4 . Economic Development
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Mr. Simonson agreed we need to keep Economic Development on the list. Mrs. Agee
recommended they keep it as #4. Mr. Marquez referred to a gentleman who previously
conducted the strategic planning session and said everything to him was economic
development and that's not true. We should not be chasing retail.
Mr. Marquez stated he is looking at community development and he tells Mrs. Madison
to picture what it may look like 20 years from now. Community and Economic
Development is the new name of her department.
Mr. Marquez went on to say we should look at other essential programs besides tax
abatement. The tax abatement program has been in place for ten years now and has been
very successful. Personal property is also important to the manufacturer. There are lots
of questions out there. What are we going to do for Toyota? If all our neighbors have
special programs for Toyota, we will need one too.
Mr. Marquez then mentioned that big box retailers meet twice a year in Las Vegas and
travel to these events would be reflected in Mrs. Madison's budget.
It was agreed to keep Economic Development as priority #4.
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#5 City Staff (positions and Employees)
Mr. Simonson commented the City Manager will tell them what he needs and when it's
time to revise those needs. Mayor Pro- Tem Wilenchik mentioned they know they need
to increase staff and can't do it all at once, so they should leave this item on the priority
list.
Mr. Marquez advised Council they will be getting a copy of the pay study and he
suggests they maintain this item on the list to keep his feet to the fire.
Mr. Bierschwale remarked that when the population dictates a sub-station down south,
then they might come to Council for additional employees. Also, if the City lands a big
business in the industrial park, there may be a need for a sub-station in that area, which
would require more employees. Since 9-11, some rules have changed. Mr. Simonson
agreed with Mayor Pro- Tem Wilenchik that this item should be kept on the priority list.
It was decided to keep City Staff (positions and Employees) as priority #5.
#6 Regional Issues
) Mr. Marquez asked for everyone's thoughts on regional issues and Mr. Simonson thought
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they should stay on the list because we have to deal with all our neighbors. Mr. Marquez
then suggested folding legislative initiatives into regional issues. Mayor Pro-Tern
Wilenchik wasn't sure how you plan for legislative initiatives. Mrs. Agee mentioned you
could always lobby. Mr. Marquez stressed we need to put our oar in that water -
legislation comes up that has an effect on us as a City.
It was decided to keep Regional Issues as priority #6 and fold in legislative initiatives.
#7 Annexation
j)iscussion of this had already taken place and Annexation has been moved up to priority
#3.
#8 Grants
Mrs. Agee asked if grants are a big issue. Mr. Marquez replied they go after them when
they are available. The FEMA grant is an excellent example of one they used.
It was decided to eliminate Grants as priority #8.
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#9 Public/Private Partnerships
Mr. Marquez felt public/private partnerships should fall under the Economic
Development category. Everyone agreed.
It was decided to eliminate Public/Private Partnerships as priority #9 and fold it into
Economic Development.
The priorities as they now stand are as follows:
# 1 Storm Water/Streets
#2 Recreational Facilities and Programs
#3 Annexation
#4 Economic Development
#5 City Staff (Positions and Employees)
#6 Regional Issues
Mr. Marquez commented the priorities have to be doable. Mrs. Agee stressed they need
to look at them on a regular basis. Mr. Simonson suggested they look at them quarterly.
Mr. Douglas remarked the Council should be accountable to the citizens for the strategic
items. Mrs. Agee then noted they need to look at the priorities again after the bond
election.
Before adjournment, Mr. Marquez reminded Council they have a letter from NBU in
their packets.
#7 Adjournment
There being no further business to discuss, Mayor Pro-Tem Wilenchik adjourned the
meeting at 9:45 p.m.
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ATTEST:
\/~ ~~4-/ZJ
City Secretary. City of Schertz, Texas
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