Mayor Dee Grimm Councilmen Dwayne Padalecki Francisco Arevalo Susann Baker David Rakowitz Doug Thomas City Secretary Barbara Pawelek Minutes of the Regular Council Meeting August 6, 2015 1. CALL MEETING TO ORDER Mayor Dee Grimm called the meeting to order at 7:30 pm. 2. ROLL CALL AND ESTABLISH A QUORUM Roll call was taken. Members present were Councilman Dwayne Padalecki, Councilman David Rakowitz, Councilwoman Susann Baker. Councilman Frank Arevalo and Councilman Doug Thomas were absent. A quorum was established. Barbara Pawelek presided as City Secretary. 3. READING AND APPROVAL OF MINUTES The minutes to approve were from the July 2, 2015 city council meeting. Councilwoman Susann Baker moved to accept the minutes as written. Councilman David Rakowitz seconded the motion. All were in favor; the minutes were approved. 4. READING AND APPROVAL OF THE FINANCIAL SUMMARIES The first financial summary to be approved was for June 2015. Councilwoman Susann Baker moved to approve the June financial summary. Councilman Dwayne Padalecki seconded the motion. All were in favor; the financial summary was approved. The next financial summary to be approved was for July 2015. Councilwoman Susann Baker moved to approve the July financial summary. Councilman David Rakowitz seconded the motion. All were in favor; the financial summary was approved. 5. REPORT FROM ST. HEDWIG FIRE DEPARTMENT There was no report for the Fire Department. 1 6. REPORT FROM PLANNING AND ZONING Kathy Palmer was out of town and the report was tabled. 7. REPORT FROM CODE COMPLIANCE Kathy Palmer was out of town but left a report for council. Mayor Grimm asked if there were any questions regarding the report but there were none. 8. CITIZENS TO BE HEARD Mary Todd, 1207 Churchview, approached council to read a tribute to her son, SFC David James Todd, Jr. who was a fallen soldier from our community. He died during Operation Enduring Freedom on August 20, 2008. She asked council to consider naming our city park after him. Wanda Polasek, who resides in Churchview, brought back to council’s attention about the street lights in Churchview, which 4 residents are currently paying for, and asked council to consider the City pay for those street lights, since it is time for the budget. Karen Andreolli, 1520 N. Graytown, wanted to know if there were any guidelines or ordinances for keeping property clean. She said her neighbor has such high grass and junk everywhere, its bringing snakes and mice. Mrs. Andreolli wanted to know if the City could do anything about this. 9. OLD BUSINESS A. ROADS Councilman David Rakowitz gave the road report. Chris Respondek has been dealing with stolen road signs in the Graytown/Miller Road area. He is ordering special tamper-proof bolts and was trying to get an article written in the newspaper to try to discourage future sign thefts. Councilman Rakowitz also recommended large “No Dumping” signs to be placed on Abbott Road south of FM 1346 due to an ongoing problem, which appears to include the setting off of fireworks. Texas Road Repair did work on Pittman, Old Pittman, and part of Abbott Road west of Loop 1604. Due to significant cracks and therefore, significant repairs along Old Pittman (as well as the recent work done on La Vernia Road), we reached the limit of the contract during this work. Councilman Rakowitz spoke with Mayor Grimm, and we were allowed up to a 25% overage, as per the contract, to finish this part of the project. 2 Mayor Grimm explained the contract was for $75,000, and we did reach that limit, but with all the rain we had in the spring, a lot more work was needed so we did go over the contract but the Texas Local Government Code does allow for a 25% overage that the city can go without rebidding the contract, even with going over the contract, the Mayor said we are substantially under the amount that we allocated this year for road work. Councilman Rakowitz has identified additional areas that need work, but such work will depend on budgetary issues and the possibility of the interlocal agreement. Councilman Rakowitz did further research on the issue of the Sullivan property near CR 352 and the cabinet shop and discussed his findings with Mayor Grimm regarding the drainage situation. The problem that the owner had was with the culvert. He stated when it rained a lot that his property tends to flood. His question was if it was the City’s responsibility to fix that road or change it to where it would prevent flooding onto his property. Council said the culvert has been there for many, many years, even prior to Councilman Padalecki on the council. It has always flooded there when it rains. Councilwoman Baker said it is not in the flood plain, which surprised her because it floods there every time it rains. However, she said, it was the homeowner’s choice to position that home where they did, with the knowledge that it floods when it rains a lot. Councilman Padalecki said it is the same situation we had on E. Lupon, we spent lots of money on attorneys and over two years of our time on that situation, and we were not held accountable for that. Mayor Grimm spoke to our legal counsel regarding the culvert, and based upon the property owner knew of the low area that flooding occurred for a substantial amount of time, probably even previous to the culvert being there, and have seen several episodes that flooding occurs there when it rains a lot, and the property owner still chose to build there, it alleviates the City’s responsibility to rectify the situation that was based upon the owner’s decision. We also bear, as every City does, some immunity to these types of lawsuits. Mayor Grimm said our position at this point and time, is that the City does not have to rectify the situation, and we will be getting back with the property owner to let them know what our position is. Councilwoman Baker made a comment on the stolen signs. She contacted the Wilson County News and they did an article on the stolen signs. She asked if we reported the stolen signs to the Sheriff’s office. Deputy Plate, who was in attendance at the meeting said, we need to mark the back of the signs, “Property of City of St. Hedwig” and anyone caught with one of these signs is in possession of stolen property, unless they have a letter of consent. This is a felony. 3 Mayor Grimm said she will notify Chris Respondek, our maintenance man, to report the stolen signs and start marking and stenciling our signs. Councilman Rakowitz will look in to how we can stencil them. 1. Interlocal Agreement for Roads with Bexar County Update Mayor Grimm said that Councilman Arevalo was not able to be here, but he is working on an interlocal agreement with the County for road work and road repair. He did send the Mayor an opinion letter with Bexar County Purchasing Department’s MOU. We have not only been working with the Purchasing Dept but also with the Council of Mayor’s of Bexar County to get a Buy Board, which allows us to work with all the other cities in Bexar County to collectively put some of our contractors on the same board and perhaps take advantage of some of the discounts that we get by virtue of bulk and distribution of commodities and services. This is an opinion letter concerning the MOU between Bexar County Purchasing and the City of St. Hedwig. It basically just says that they are proposing to have an MOU to allow St. Hedwig to advertise through their Purchasing Dept to maximize competition for better pricing and possible cooperative agreements with Bexar County. It gives us a broader scope of services that we can go look at, and as you know, on this last road project, we had only one bidder. This will give us more opportunities to have more bidders and companies so we can get the best service for the City. This would perhaps give us better pricing because we would be going out to more competitors and also on a buy board that folks are more willing to be more competitive with than if we have limited bids. This is an MOU for one year. This is just another tool for the City, and we are not obligated to use it. Mayor Grimm said she appreciated Councilman Arevalo getting this to us. Councilman Padalecki said the MOU is good, but unfortunately our goal this fiscal year was to do 2 groups of roads, and because we were waiting for the interlocal agreement with Bexar County, it looks like we are going to miss this, with our budget ending in a couple of months. Mayor Grimm said we still do have funds in our budget to do some work for smaller projects. Councilman Rakowitz said we still have some roads that need crack fill. Councilman Padalecki said we need to start looking at what roads we want to do for next fiscal year. He said we need to do at least 2 groups of roads before we lose our roads. B. CITY PARK Councilman Padalecki reported that he and Councilman Thomas were busy working in the park straightening trees. Mr. Lowak finished the fence on the East Side. Councilman Padalecki said he leveled out the ground so the fence would be nice and level. Schematics for the next phase of the walkway for the city park were handed out to council from Councilman Padalecki. He explained to council that we would need to do 2 phases; one in this fiscal year, and we could possibly complete the walkways in the next fiscal year. The park would then have almost a mile of walking path for our citizens. 4 C. MONTHLY CRIME STAT REPORT Councilwoman Baker read the crime stat report. It was for the period June 26th through July 30th. There were a total of 2 crimes in the City. One on the 14700 block of FM 1346, criminal mischief and the other a theft in the 16000 block of E Lupon Rd. D. CITY LOGO Mayor Grimm explained that since the City does not have an official seal, she had put some designs of sample seals on the website for citizens to vote on. While working with an artist on the design that was chosen by most, which was a crest of St. Hedwig, our local historian, Alan Kosub, said there is not one Saint Hedwig, but two. They are both from Poland. One is the Saint from Silesia, and then there is the Saint Hedwig of Poland, who is the Queen of Poland. There is evidence that the crest we had chose was that of the Queen of Poland, and not the one that our city was named after. So having discovered this, Mayor Grimm put 3 new designs of a seal for council to look at, and then when they choose the two they like the best, we will put them back on the website for the citizens to vote on. After looking at the seals, council had suggestions, which Mayor Grimm will bring to the artist, and then back to council. The seals consisted of the star of Texas, another with the Polish eagle, and a third with the combination of both, including our Texas tree (mesquite) branches along the side. Mayor Grimm said it is a work in progress and thanked council for the suggestions. 9. NEW BUSINESS A. BUDGET AMENDMENTS Mayor Grimm explained that we had gone over some of the items that were budgeted and we needed to do some budget amendments. Council looked over the budget amendments. Councilwoman Susann Baker moved to approve the budget amendments. Councilman David Rakowitz seconded the motion. All were in favor; the motion was approved. B. TAX RATE FOR 2015-2016 Our budget accountant, the previous mayor, Mary Jo Dylla, did a comparison for city council for the tax rate. She explained to council what the taxable values were for the last five years. Also listed were the tax rates and what we collected. She explained that for 2015 the taxable value spiked and because St. Hedwig is a Type A City, and limited to the amount of taxation that it could produce per year, the Rollback rate is the correct rate to go this year. Mary Jo showed what the City would bring in by collecting the Rollback rate. She said we are 5 not going backwards; we will still bring in approximately $14,000 more in revenue, while reducing the tax rate. Per Carlos Gutierrez, Chief Appraiser, BCAD, if we used the higher rate, we would have to have 2 public hearings before September because we cannot put the budget in place until we have a tax rate, and if for any reason the citizens did not want the higher rate; the citizens could sign a petition and if they got enough votes, then we would have to have an election in November, and then it would be December before we could set a tax rate, and then we could do a working budget. Councilwoman Baker asked why we are first hearing about this now. Mary Jo explained that we do not get the Effective Tax Rate Worksheets from Bexar Appraisal until the last week of July, and then at the August meeting, we usually set the rate, and vote on the budget at the September meeting. Mary Jo said that has not changed. What has changed is that this is the first time that it has gotten to the point that we need to use the Rollback Rate because the values have went up so drastically, we are no longer considered a Small Taxing Unit. There was more discussion. Councilman Padalecki had a problem with going down on our tax rate when we prided ourselves staying with the same rate for 8 years. We are lowering taxes by 4 cents. He stated the City is losing $56,000 by not using the same tax rate as previous years compared to 2014. There has also been a decline in taxpayers for single family residences from 495 in 2014 to 455 in 2015. He said he does not want to continue going backwards. He said he was fine with it this year, but he agrees with Councilwoman Baker, will it drop again next year? Mary Jo said no, we should be fine and back on track. Councilman Padalecki said, that was speaking as a council member, now speaking as a citizen, this is where he has a problem with it. He said the citizens got hit hard with appraisals this year. Everyone who protested them, lost. He continued, “we are having to pay all this extra money, ESD not going down 10 cents, ECISD is not going down, they are not having a rollback, Bexar County is not going down, so all this extra money we have to pay is now leaving St. Hedwig, that is my problem.” Mary Jo Dylla said she understands. She explained that even if the taxable values stay the same, or go up slightly, we may be able to use the effective rate, which may be little higher, depending on what the City’s spending is this year. In her opinion, going with the Rollback Rate this year saves the City the possibility to have a rollback election. Mayor Grimm said the concern that the council has, is not to tax the citizens to death, it just that our city does not get income from any other source of substance, other than our tax base with our property, we get no funding from other sources. The State of Texas ranks 49th of the 50 States, in being that the amount of money that the state receives for the cities, meaning we get no funding from the State or County, so our tax revenue becomes a very important source of revenue to operate the City. 6 C. BUDGET WORKSHEET FOR 2015-2016 A budget worksheet for 2015-2016 was passed out to council for them to look over for next year’s budget. D. HISTORICAL MARKER Mayor Grimm said she received an email from our local historians, the Kosub’s, who were working on getting some historical markers for the City of St. Hedwig. There is an application that would need to be filled out along with a reasonable fee and must meet certain criteria. There are about 6 buildings that would qualify for this; one is the old school, the Catholic Church, the Baptist Church, Kosub’s store; where the café is, Dutch’s, and the location where the city was named before it was named St. Hedwig, which is Cottage Hills, which was the stage coach run. Mayor Grimm said she will get the list and forward it to council. They do look at the historical significance and the story behind it. Mayor Grimm said she is just putting it out there and if council is interested to let her know, she would be happy to work with the Kosub’s on this. 10. ANNOUNCEMENTS None. 11. AGENDA FOR BUDGET HEARING September 3, 2015 at 7:00 PM 1. Call to order 2. Roll call & establish a quorum 3. Questions from floor concerning 2015 – 2016 Budget 4. Adjournment AGENDA FOR NEXT REGULAR COUNCIL MEETING following immediately after budget hearing 1. Call Meeting to Order 2. Roll call & establish a quorum 3. Reading and Approval of Minutes 4. Approval of Financial Summary 5. Report from VFD 6. Report from Planning & Zoning Commission 7. Report from Code Compliance 7 September 3, 2015 8. 9. 10. 11. 12. 13. Citizens to be Heard Old Business a. Adopt Tax Rate for 2015-2016 b. Adopt Budget for 2015-2016 c. Roads d. City Park New Business a. TML Board of Trustee Election Announcements Determine Agenda for next meeting Adjournment 12. ADJOURNMENT The meeting was adjourned at 9:17 pm. Mayor Dee Grimm thanked everyone for coming. 8