Loading...
ORD 432-B 7/24/2001 DRAFT` REGULAR CITY COUNCIL MEETING CIBOLO MUNICIPAL BUILDING 109 S. MAIN r JULY 24, 2001, 7:00 P.M. MINUTES 1. Call to Order — Mayor Ruppert called the meeting to order at 7:07 P.M. 1 2. Roll Call — Councilman Ridge was absent, all other council members were present 3. Invocation — Councilman Glisar gave the invocation. 4. Pledge of Allegiance — Mayor Ruppert led the Pledge of Allegiance 5. Citizens to be Heard AI Rich — Stated he would speak during item 10A and lOF. 6. Consent Agenda— Consent Items (All items listed below are considered to be routine and non -controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member or citizen so requests, in which case the item will be removed from the consent agenda and considered as part of the normal order of business.) A. Consideration and Approval of July 10, 2001 Minutes of the Regular City Council Meeting. B. Swearing in of Vincent Hankins as Cibolo Animal Control Officer. C. Discuss/Action on an Ordinance granting a 30 -foot waterline easement for the CRWA through city -owned land in front of Niemietz Park for the purposes of extending a water service line to the City of Cibolo with the City to receive $2004 for the easement. D. Discuss/Action on granting a 30 -foot waterline easement for the Schertz-Sequin Local Government Corporation across city -owned property and the adjacent drainage easement in the Schneider Industrial Park. Councilman Glisar made the motion to approve consent items with corrections to the minutes. Seconded by Councilwoman Epperson. For: All, Against.' None. 7. Resolutions A. Consideration and Approval of a Resolution by the City Council of Cibolo, Texas, authorizing and approving publication of a notice of intention to issue Certificates of Obligation; complying with the requirements contained in Securities and Exchange Commission Rule 15c2-12; and providing an effective date. Lisa Adelman, Bond Councilor, stated that the Bonds would be published for two weeks prior to the approval of the Bonds. The Certificate of Obligation would not exceed 1.7 million dollars. Councilwoman Epperson made the motion to authorize the publication of a notice of intention to issue Certificates of Obligation. Seconded by Councilwoman Duggar. For: All, Against None. S. Presentation A. Representatives from Aerospace Plating will make a presentation regarding establishment of a manufacturing facility in the industrial park. The company is requesting development incentives as part of their company's expansion into Cibolo. Frank McKnight from Aerospace Plating briefed that they are one of five aircraft belt companies in the states. They currently have a pending site in the industrial park Presented to Council a video of how their company runs and looks in other locations. Would start with a minimum of twelve positions with starting salary around $42,000, and would have 30 — 40 various position in the next three to five years. Requesting assistance on tax abatement, waiving of permit fees, and increased police patrol. 9. Ordinances A. Discussion/Action on an Ordinance Amending Tax Abatement policy of the City of Cibolo, with changes to include but not be limited to: raising the minimum capital and employment requirements for qualification and to remove abatement possibilities for residential property. Chuck Balcar briefed that the changes are from 1995, to the 1992 Policy, and were written to give incentives to get more companies in the Industrial Park. Also briefed that the trigger levels needed to be updated to match today's figures. Stated that we may want to adopt a draft until a revision can be made. Councilman Glisar made the motion to adopt the draft unti('a revision could be completed. Seconded by Councilwoman Duggar. For: All, Against: None. 10. Discussion and Action Items A. Discussion/Action on approving an endorsement of a redistricting plan for Guadalupe County Commissioners' Court Precincts. Commissioner Wolverton briefed the different redistricting plans and options. Plan one would include all of Cibolo, Schertz and Northcliff while plan one (modified) would exclude Nordicliff. Stated that he liked plan one the most, but needed to know which one Cibolo would like to endorse. Currently Cibolo is in two precints, three and four, at the current time. AI Rich stated that he would like to see all of Cibolo in one precint Councilman Glisar made the motion to endorse Plan 1 (Modified). Seconded by Councilwoman Epperson. For:. Councilman Glisar, Councilwoman Epperson, Councilwoman Duggar. Against: Councilman O'Brien. B. Discussion/Approval an variance request for work at the Niemietz Park pavilion to for non-compliance with the Texas Architectural Barriers Act and discussion on progress of other required improvements. Robert Arenas briefed that all improvement have been completed with exception of the key room. Application has been completed for the State requesting a variance to keep the room as a storage room. Making a ramp for the room would make the meeting room to small. Extension for completion of projects was until August 10, 2001. Councilwoman Duggar made the motion to approve the request for a variance. Seconded by Councilwoman Epperson, For: All, Against: None. C. Discussion on status of Public works improvements: 1. Drainage problem on Deer Creek Blvd 2. Water Booster station for Deer Creek 3. Drainage repairs on Meeks Street Robert Arenas briefed that a by cutting drainage passage onto each side of Deer Creek would allow the water to go into the first ditch. At the current time the water is bypassing the first and going into the second ditch, which is smaller and can't Handle all the water flow. All the concrete work for the Booster station has been completed, but Mercer is still having problems getting the masonry. Mercer stated that they should have the Booster Station completed by the end of August. Meek Street drainage repair should begin on Monday, July 30, 2001 and would take about four days to complete. It was pushed back due to problems with the contractor, Construction Services. D. Setting a Public Hearing for Annexation and Zoning for Consider Approval/Disapproval of Acceptance of a Petition for Annexation of 21.434 acres & 20.558 acres from Perry Blanton of Blanton Family Limited Partnership a Texas Limited Partnership and approximately 0.876 and the Estate of Eldtred Stapper. Sr., Marcell S. Stapper. Proposed Zoning will be R-2. Councilwoman Duggar made the motion to set the public hearing for August 14, 2001 at 6:45 P.M. Seconded by CouncilmanO'Brien. For. All, Against• None. E. Discussion/Action on Recommendation of Approval/Disapproval of Final Subdivision Plat for Unit 2 of The Ridge at Deer Creek Subdivision. Chuck Balcar briefed that Keith Gilbreath stated all correction's have been completed that Planning and Zoning had made at their July 17th meeting. Planning and Zoning had recommended approval upon corrections. Councilwoman Duggar had stated her concern that there was only one entry for this subdivision and would like to see this addressed in future subdivisions submittals. Councilman Glisar made the motion to approve the Final Subdivision Plat for Unit 2 of the Ridge at Deer Creek Subdivion. Seconded by Councilman O'Brien. For: All, Against: None. F. Discussion/Action on appointing specific Planning and Zoning Commission members and an ad hoc member, as required, to form an Capital Improvements Program Impact Fee Study Committee for the purpose of recommending changes to Ordinance #461, the "Impact Fee Ordinance'; and appointing an member of the ETJ as an ad hoc member of the Planning and Zoning Commission, and; appointing a member of the real estate, development or building community to represent those interests during the Committee's tenure. Al Rich stated that they had three volunteers from Planning and Zoning to be on the Capital Improvements Committee, Rebekah Campbell, Jaime Casarez, and Himself. Chuck Balcar stated that he had talked to Jake Wells and he would be the Ad Hoc member. Councilman O'Brien stated that He had talked to Ken Stuart, a realtor and lie would interested in being on the committee. Al Rich stated that alternate may need to be found in case Jake Wells couldn't make it. Councilman Glisar made the motion to approve Rebekah Campbell, Jaime Casarez, Al Rich, Jake Wells and Ken Stuart being the Capital Improvements Program Impact Fee Study Committee. Seconded by Councilwoman Duggar. For: All, Against None. • -- . r G. Discussion/Action concerning hiring of a new City Attorney. Chuck Balcar stated had he had talked to about six attorney's who he will send information to. Stated that he had prepared a letter for the Mayor's signature to send to attorney prospects. Councilwoman Epperson made the motion to approve the Mayor signature on attorney letter. Seconded by Councilwoman Duggar. For: All, Against 10. Comments A. City Administrator- -Stated that he had received two proposals from companyies for securing the locks on city buildings. -Stated that Chief Riffe has been monitoring the problem with trucks on Main Street and most of the problems have been with the garbage company. Stated that he would call Henery Gutierrez and make him aware of the problems. B. City Staff -None C. City Council Councilwoman Epperson — Wished Chuck Balcar and Councilwoman Duggar a Happy Birthday. D. Mayor -None 13. Adiournment Councilman Glisar made the motion to adjourn at 9:18 P.M. Seconded by Councilwoman Epperson. For: All, Against: None. Charles Ruppert Mayor ATTEST: Yl l V 1 vonne Griffin ity Secretary BUSINESS DEVELOPMENT ECONOMIC INCENTIVES AND TAX ABATEMENT POLICY FOR THE CITY OF CIBOLO, GUADALUPE COUNTY TEXAS Janaury 10, 1995 SECTION I. Purpose. The City of Cibolo seeks to provide an environment that will promote economic growth and maintain the vitality of current businesses. The community recognizes the principals of free enterprise and understands that competition with other cities requires the development of incentives to assist business retention and expansion and as an aid in the attraction of new businesses. The City Council of Cibolo will make a decision on each application under the provisions of this policy and only the City Council may bind the city to such an agreement. This policy is understood to be elective guidelines for economic development incentives and in no way is the City bound to offer any of the incentives contained in this policy. SECTION II. A. The following criterion must be met at a minimum in order for a project to be eligible for the City of Cibolo's Economic Development Tax Abatement Incentive Program: 1. The purposed project must create at least 10 jobs for a minimum of three years OR Real property improvements must be at least $250,000 2. The project must comply with all laws of the State of Texas and all building codes, zoning and subdivision ordinances of the City of Cibolo 3. At least twenty percent of the work force must be current residents of Guadalupe or Bexar County. 4. The business applying under this policy must owe no outstanding debts to the City of Cibolo, the State of Texas or any Counties of this State. B. The following criterion outline the specific levels of activity required to gain tax abatement of "real property" improvements. Qualification under "Section II, A. must be met prior to consideration of this Section. "Personal property" in not eligible for tax abatement under this provision of the policy: Level 1. 100% for six years: Real Property improvements of at least $20 million and creation of at least 100 full-time positions for six years Level 2. 80% for six years: Real Property improvements of at least $15 million and creation of at least 75 full- time positions for six years Level 3. 60% for six years: Real Property improvements of at least $10 million and creation of at least 50 full- time positions for six years Level 4. 40% for six years: Real Property improvements of at least $5 million and creation of at least 25 full- time positions for six years Level 5. 20% for six years: Real Property improvements of at least $1 million and creation of at least 10 full- time positions for six years Level 6. 10% for six years: Real Property improvements of at least $250,000 and creation of at least 5 full- time positions for six years If both the capital investment (Real Property) improvements and the job creation parameter are met, the project is eligible for that level of abatement. If one of the two parameters are met, the project is eligible for the next lower level of abatement. EXAMPLE: Project X creates 85 jobs with $10 million investment. It does not qualify for 80% because of failure to meet minimum investment amount ($15 million) so therefore is eligible for 6096. C. The following incentives may also by offered by the City of Cibolo in accordance with standards set forth in this policy: 1. Reduction or elimination of capital recovery fees (impact fees) and the costs of certain other infrastructure improvements 2. Discounted utility rates for water, sewer and solid waste removal. 3. Special utility rates as provided by GVEC 4. Reduction or elimination of building permit fees, inspection or contractor's fees. 5. Reduction or elimination of processing fees for subdivisions, zoning and land use. In order to be eligible for these incentives, the project must meet the requirements set forth in Section II, Paragraph A of this document. D. The following criterion will be used to assess viability of projects that meet the minimum parameters specified in the previous paragraphs of this Section. 1. Does the proposed project comply with the intent of the Master Plan of the City of Cibolo? 2. What is the cost of required public improvements? 3. Do expected benefits exceed public costs? 4. What additional services will be required from the City? 5. What is the value of public improvements proposed by the applicant? 6. Will funding be available to finance the public improvements and services required of the City? 7. How will abated tax be recaptured if the applicant fails to fulfill the responsibilities in his abatement agreement? 8. What is the time frame for job creation and completion of capital improvements detailed in the agreement? 9. What is the history of the applicant's relationship with the City of Cibolo? SECTION III. Application Procedure Any person, organization, joint venture, partnership, association or corporation seeking economic development incentives shall be required to follow these procedures in the timetable set forth below. 1. Application form provided by the City of Cibolo must be completed 30 days before the City Council meeting where application for abatement or other incentives is to be considered. 2. Applicant shall provide a plat showing the exact location of the property, all roadways with 300' of the site, and all existing zoning and land uses on the sate or within 300' of the site at least 30 days before Council consideration. 3. A complete legal description of the property at least 30 days before Council consideration. A description of the proposed improvements or expansion that the applicant wants a tax phase-in for, and the type of business proposed. This must be accompanied by a cost estimate of the improvements and the number of jobs along with a schedule detailing estimates for reaching criterion that would allow granting of economic development incentives must accompany the legal description. . 5. The projected beginning date of capital improvements and the completion date of the qualifying improvements must be received at least 14 days before City Council consideration. 6. Proof of fiscal ability to pay the abated taxes if requirements of the agreement can not be fulfilled by the applicant must be provided at least 72 hours before Council consideration. The applicant shall provide any other information as required by the City Council. The applicant shall deliver three copies of all information and one will be reviewed by the Mayor, City Administrator, and the City Engineer. A non-refundable application fee is required to allow the City to recover the cost of the initial review by the City Engineer. SECTION IV. A. The City Administrator will review the application to verify completion and to help insure accuracy of the proposal. This review, with the City Engineer's comments, will be forwarded to the City Council and any other taxing authorities or agencies that may be involved in offering the agreements. B. All requirements of Chapter 312, of the Texas Tax Code, }mown as the Property Redevelopment and Tax Abatement Code, shall be reviewed for compliance. C. If further information is required by the City Council, the applicant has 30 days to provide this information to the satisfaction of the City Council. D. If the Council decides to award incentives to the applicant (for this project), a resolution shall be adopted approving the terms and conditions of a tax abatement and economic development incentive agreement with the applicant. SECPION V. Contents of Agreement A. Any tax abatement agreement must contain at least the following: 1. A description of the type of incentives being offered and their duration A legal description of the property designated as a reinvestment zone in which the agreement will operate 3. Detailed descriptions and costs regarding the type, number, location of planned improvements 4. A method to provide for recapture of property tax and all waived fees and costs which had been abated as a result of this agreement if the applicant fails to perform its obligations under the agreement. 5. A provision limiting the uses of the property to the agreed purpose 6. An estimate of the revenue the City will not receive as a result of the agreement. B. The agreement shall contain the name of a "Compliance Officer" for the project that will be responsible for providing evidence of compliance with this agreement upon request of the City Council, the Mayor, or the City Administrator of Cibolo. SECTION V. RECAPTURE Any participant to an abatement agreement that fails to meet the adopted level of investment or employment, or any participant in such an agreement that reduces employment below the agreed level during the term of the agreement, shall be subject to the following recapture provisions: A. In any year that the targeted number of full-time employees is below the agreed amount, the participant shall be required to refund all abated taxes (the City of Cibolo is allowed to recapture the abated property tax) for the year during which the full-time employment level falls below the agreed level. B. If the participant ceases to operate in the City of Cibolo at ant time during the covered period, the participant is liable for the payment of all abated taxes foregone during the entire life of the abatement agreement. C. If the participant does not meet the agreed level of capital investment, the percentage of taxes to be abated shall fall to the lower level to reflect the actual value of the, capital improvements. Any previously abated taxes that would have been ineligible under terms of this paragraph shall be refunded to the City of Cibolo by the participant. D. Other... Anpendix Definitions Abatement - The forgiving by the City of a tax consequence where the incidence is removed from a property owner due to other considerations received to the City. Compliance Officer - The administrative representative of the City with responsibility for oversight and enforcement of an abatement agreement. Full-time employee - An employee who works at least 1,050 hours per year. Incentive - A consideration offered by a government in return for performance by a new or expanding property owner that promises significant new employment as outlined in the agreement. Participant - Any party to any abatement agreement. Personnel Property - (See State Definition) Real Property - (See State Definition) Recapture - The ability of the City to collect abated taxes when any other party to an agreement violates that agreement or fails to attain employment or investment goals set out in the agreement.