City Council - Regular Meeting

And I want to establish a quorum up here. I will say that Frank Hosia is unable to be with us today, but we still have enough for a quorum. It takes three for a quorum and we've got four voting members here today. And I'm glad to see everyone in the audience today. I do want to remind you before we get started that if you wish to speak about any matter that's on the agenda or is on our public comment section, please feel free to sign up in the back on the list back there. You will be asked to come up and state your name and your address. and talk about what matters you would like to get off your chest today. And it's open to everyone, and I will let you know when the time is right. But we will be picking up that list probably right after our announcements and staff recognition. So feel free to get up and sign that so that you can be on the list and be recognized to speak today. So since we have a quorum here today, we are going to ask Reverend Scott Vermillion, the pastor at Church at Horseshoe Bay, to give our invocation today.

Let's pray. Dear Father, we are grateful for our city. There are so many good things we could recount about it, and we know that that doesn't happen by accident. We know that good leaders have come before us, men and women who have shouldered the burden of caring for the city, for caring for our organizations and the different programs that are going on that make Horseshoe Bay a wonderful place to come and visit and to live. And so, Lord, now as we turn our attention to our leadership, the council that has gathered, the staff that have been dutifully taking care of their their jobs, even while we sleep, we just want to come with great gratitude, with thankfulness in our hearts, knowing that you have provided leaders for us, for people who are servants to turn our attention to our own lives and not have to worry about the ins and outs of all the things that go on in this city. And so we ask for your strength as we carry about our business today. We ask for your wisdom. And we ask for your grace. It's in your name we pray. Amen.

Amen.

I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation, under God, indivisible, with liberty and justice for all. Honor the Texas flag. I pledge allegiance to thee, Texas. Okay, thank you, Dr. Vermillion, for giving us our invocation. And we want to start today with we have one proclamation, and May is, believe it or not, Building Safety Month. You don't think about building safety until you're in a building that's unsafe. And we're proud to say that since May is Building Safety Month, we're going to have John Byram, I believe. John? Oh, there you are. Are you going to present the building safety month presentation for us, and then I'll read the proclamation? Okay, no presentation. I will read the proclamation then. Whereas Horseshoe Bay... is committed to recognizing that our growth and strength depends on the safety and essential role that our homes, our buildings, and our infrastructure play, both in everyday life and when disasters strike. And whereas these modern building codes that we use include safeguards to protect the public from hazards such as hurricanes, snowstorms, tornadoes, wildland fires, floods, and earthquakes, and whereas built to last is the theme for Building Safety Month of 2026 and encourages us all to raise our awareness about planning for safe and sustainable construction, I, Mayor Jeff Jones, do hereby proclaim that May 2026 shall hereafter be known as Building Safety Month in Horseshoe Bay, Texas. And David Milligan is going to accept the proclamation. Thank you, David. I've got to say something about David Milligan. David is with our code compliance group. And you talk about a thankless position. He's either doing too much or he's not doing enough. And it depends on your point of view, but he is such a pleasure to work with in this capacity. He makes sure that our building codes are up to standard and does not waffle whatsoever with regard to that. We thank you. Thank you, guys. This brings us to our announcements and staff recognitions. And the first announcement we have is, you may have heard about this, our utility department was recognized as having the best tasting water in all of Texas at the recent AWWA convention. And I have Ray Garcia is going to present that for us.

Thank you, Mayor. Yes, Ray Garcia, Utilities Director for the Horseshoe Bay Utilities Department. In fact, yes, we are here, I am here, and I'm honored to recognize our staff for the recent Texas Best Tasting Water Award through the Texas American Water Works Association. This award I have to give credit to Corey Everett who are our regulatory compliance Coordinator she's not here, but she was the one that came up and said hey guys. I think we should Enter this contest so in fact we did and lo and behold here. We are and it was surprise but not a surprise for these guys because these utility operators both field and plant they operate at a different level and Again, they are the professionals and they are the standard now for the state. We will be going on to the nationals in Washington, D.C. There will be a few of our folks heading up there in June to enter that contest for best tasting water in the nation. I want to show you the award here. Please make room for this award. It's huge. We are going to get one made a little bit bigger than this. But this accomplishment... There we go.

Come on, you can touch each other. Come on.

This is a huge accomplishment for this utilities department. Let's go, fellas. Let's make it look like we know what's going on. Yeah, I will jump in there, too.

in front of human beings? I would say this is the silent service group. These guys who are out here 24 hours a day, seven days a week, 365 days a year to keep your water flowing. The work that they've done, and y'all just stay up there for a second, that I would say that, you know, me being a past utilities director, the work that they have created by taking a plant that was built in 2006, and Kathy Fretwell, would you come up here too? I'd like to also honor not only the staff and the work that they've done, but I'd also like to honor the engineer that designed the plant back in 2006, Kathy Fretwell, who was an engineer at the time. At that point in time, that was, in utilities, it was a man's world, and Kathy really made an impact. She was a pioneer for women in that group, and I'd like to recognize her work, her dedication, her detail to making sure that that plant was as good as it possibly could, adding capacity and things that we really weren't thinking about at the time. In fact, the plant was one of the very first plants, I think of the first dozen that were created in the state of Texas, that were the membrane technology plant that we have now. And now, just on our lake, I think we have four different membrane plants on our lake, and all that was done on the backbone of what Kathy and I, actually helped her too, but the work that she did. And so I wanted to recognize her for her achievement as well. And so I wanted to give you this certificate of professionalism.

to read the staff report. I'm sorry, sir.

Okay, so, oh, y'all don't leave. Y'all stay front and center. Okay, so obviously, like they said, this is an AWWA award, which is American Water Works Association. Dean said yes, so we're good. This is the Texas section. So obviously, Texas is a huge state, Not every single system enters, and so I think they had about 70 entries. Does that sound about right for best tasting water? Mostly because most cities know they can't win it, so they don't enter it. So this is a huge achievement. This is something the utility department, the last several years, but the entire time they've been with this, but the last several years, they've had chemical disasters, and we've had floods, and we've done everything we can to break the plant that she designed, and we just can't seem to do it. But they've worked really hard. Obviously, residents in attendance and that are at home, too, a huge thanks to you all for electing officials and for paying your utility rates and funding us and giving us training and all the things we need to make that happen. The operators, as they left, always make a joke. They're in Citizens Academy. We have the leadership here. Obviously, the system's still running, so I don't know who we need more, but probably the operators. So this is a huge achievement. They get to go to Washington, D.C. in June to represent the entire state of Texas as well as Horseshoe Bay for Best Tasting Water in America. I'm hopeful. I think we may add a second award. Hopefully it's a little bigger than that one, but that's okay. But it's a huge honor. I'm very thankful for the staff, for the council, for the residents, everybody that supported that. And hopefully you'll like how the water tastes. It's not just the the AWWA tasters, but, uh, kudos to y'all for doing it. Uh, kudos for making the city look good on the, on a state stage and then on the international or the national stage.

And Rick, this is a double blind taste test, right? I mean, nobody knows.

Yes. And they were, uh, first place was unanimous. Uh, I don't know how often that is, but we're unanimously number one. And so it's, uh, I don't know how many judges there are. Do you know, Dean? Six. So six judges, and we finished first on all of it. So a huge accomplishment, sincerely. Oh, yeah, the guy at the San Antonio Spurs games.

Very odd, but yeah.

So thank you all. Some credit to Jeff, too. He did pioneer with the help of the engineering to get the type of plant we have, which helps. But it takes a very dedicated and trained operator to operate it, too. So a good mix of things there.

I'd like to recognize Dean Sharp, too. He is a resident in Horseshoe Bay, but he also is a past president of the Texas AWWA, and he did weigh in and help our operators on some technical stuff when we needed it. So it's great to have residents within this community that reach out and help, and he's just a good example of that as well.

Jeff, I asked Dean Sharp for permission to read just a short paragraph that he wrote in connection with this, and he gave me permission to do this. So these are his words, not mine. He knows a lot more about water than I do. He says, keep in mind that these men and women who you just saw today are not just employed by the city of Horseshoe Bay, they are public health professionals which are highly certified to protect the health and welfare of our community by providing safe, clean drinking water each and every day. They are essential workers and first responders whose work is necessary to maintain critical infrastructure and public safety during emergencies, such as public health crises, natural disasters, or severe weather year-round 24-7. Congratulations to the men and women that treat and deliver water to the citizens of Horseshoe Bay community for receiving the award for the best tasting water in Texas at the Texas Water Conference 2026. Thank you. Okay, our next announcement is going to be from Doug Fowler, I believe, our Chief of Fire, and Chief Fowler, what do you got?

Mayor, Council, I'm very proud to honor one of our long-standing firefighters, Keith Payne. Keith, come on up. And when we do pictures, Erica can come up too. Keith Payne started his career with the Lake LBJ MUD as patrol officer in May of 2001. He was promoted to sergeant during his tenure with the police department early on. He transferred over to the position of firefighter. Very smart move, I should say. with the LBJ Fire Department in December of 2004 and has promoted the rank of engineer with Horseshoe Bay. Keith has been a Texas Commission on Fire Protection commissioned firefighter for over 20 years. He is a certified advanced firefighter, advanced arson investigator, advanced fire inspector, intermediate fire investigator, instructor one, drive operator, pumper, Fire Officer 1, Basic Firefighter, Plans Examiner 1, and he is a Texas State Health Services EMTB, quite a lengthy resume. Keith and his wife Erica can often be found enjoying a 36-hour tuna fishing trip or fly fishing a stream or lake. He works alongside a nonprofit, Eagles Rest Reserve, to take veterans fly fishing on Lake Whitney or various places in Colorado. He is involved with fundraising efforts on behalf of the nonprofit to take veterans on the offshore tuna trips in which he provides all the tackle and provides guidance for the trip. Keith and Erica also enjoy spending time with their kids and grandkids and traveling to Texas State Parks. They have been to 67 of the 89 parks in the state and hope to eventually get to all of them one day. Please help me to congratulate Keith Payne for his 25 years of dedicated service to the citizens and visitors of Horseshoe Bay.

Keith, thank you so much for your service. You've helped numerous, countless people throughout the years, and we're thankful for you. And you. Okay, Chief Paul Nelson. I believe you have a couple of announcements for us as well.

Yes, sir. Mr. Mayor and Council, I'd like to take this time and recognize one of our officers for a job that he did on a call back in January, Sergeant Holden. Come up here, please. This is Brad Holden, a.k.a. Sergeant Holden. This call took place back in January 14th of 2026. It's made the news quite a bit here lately, and this is the reason it made the news, is because of Brad Holden. He took the call on this date, and it was just a stolen gift card from a citizen in Horseshoe Bay. He could have just took the information, went back to the police department, did a report, and turned it in, but he didn't. He was able to go and found out where it was cached at or used at, which was in Cottonwood. He was able to go through the stuff there and found where it was used on the dollar amount. And once he did that, he was able to get the video surveillance tape and was able to watch that. Then he noticed things that took him to the Horseshoe Bay Post Office, where he parked his vehicle and watched the carriers come in, and he was able to get the license plates off of that, match up the driver's license of the owner of the vehicle, and in return, he was able to identify the suspect. He turns all that in. Sergeant Mitchell with Investigation Division was able to identify the suspect and because of what Sergeant Holden did he was able to locate more evidence at her residence and that took it back to more victims and from Horseshoe Bay and the surrounding areas. Based on what Sergeant or Investigator Mitchell says is, in my opinion, Sergeant Holden's perpetualism, self-motivation, and willingness to take initiative at the early stages of this case very instrumental to this outcome. His effort uncovered previously unknown evidence, strengthened the original complaint, identified the larger ongoing scheme and ultimately led to multiple felony charges and the protection of our citizens from continued victimization. And I know we have the best water in the state, and we have, I think, the best fire department in the state, but we also have the best police department in the state, and it's because of officers like Sergeant Holder. Thank you. This letter will be in his file, and I'd like to also recognize it doesn't take this officer here, but it takes his wife and kids, and it's a family at the Horseshoe Bay Police Department that we recognize all the time. So thank you for what you do and what you stand for. Sergeant Holden, thank you so much.

There you go.

If Nelson, you got a new communication officer swearing in.

I'll get all my paperwork here. Thank you again, Mr. Mayor and Council. Today, I'm very pleased and very happy that we get to swear in a new telecommunicator officer with the Horseshoe Bay Police Department. Kathy Nassato, will you come up here? There's a little background with her. She comes from the Highland Lakes Regional Emergency Communication Center, which used to be called the Moor Falls Police Department COM. She worked there for 20 years. Previously, she worked 13 years with the U.S. Border Patrol Law Enforcement Communication Division. And before that, she worked nine years with the United States Navy Air Traffic Controller Watch Supervisor. Kathy currently has held her master telecommunications certificate since 2014. I just want to congratulate and welcome her to the family of Horseshoe Bay Police Department, and I'd like to swear in real quick, and just before we do that, just let you know the respect she has. Her director from Marble Falls Comm is here today, too, to see her get sworn in, so that tells me a lot of what we're hiring at the police department, so...

Welcome and thank you. Thank you.

Hi, Kathy. Hi, Kathy. I solemnly swear and affirm that I will faithfully execute the duties of the Office of the Telecommunication Officer of the State of Texas and will be the best in my ability to preserve, protect, and defend the Constitution of the laws of the United States. of this state so help me god so help me god thank you sir appreciate it we'll do it later yeah thank you chief nelson thank you becky thank you welcome kathy excuse me i don't know why i said becky uh

So now we're to the part of our agenda that is called public comment. Public comment is a time in which you as citizens can speak to any matter that's on your mind or heart about the community, and we do limit it to three minutes. I do want you to be aware that By law, the city council cannot respond to anything that you say. So don't think that we're not interested in what you might have to say. It's just that we don't want to violate the law. And we are going to accept anybody who wants to speak. And if you have signed up for a matter that is actually on our business agenda, or our public hearing items, I'm going to wait and call on you during that portion of the city council meeting that actually deals with what you signed up with. So the only person who signed up for public comment on a matter that's not on our public hearing is Dennis Jensen concerning Bay West. Mr. Jensen, can you approach and can you state your address, please?

My name is Dennis Jensen, and I live at 108 Cliff Run. And I've walked Bay West Boulevard for 13 years. I'm well acquainted with it. And I think it's one of the greatest things you've done is put that stripe out there. People drive so much better than they did before that. There were four vehicles that had been in a ditch. There have been different things that I've noticed. And they pay attention, and they realize that they're in a neighborhood and not out on a superhighway. So I'm very thankful to you for doing that. Thank you.

Thank you, Mr. Jensen. Now we have part of our council meeting called presentations, which is for information only for the council and for the citizens. And no action will be taken on this, but it's for our presentation. Molly Jester, who is our finance director, will actually present both of these matters.

Good afternoon, Mayor and City Council. Actually, for the first one, he's up on the screen. That is Juan Sanchez. He is with the auditing firm JMS CPAs. He will be presenting the impact fee study agreed upon procedures report for the period July 18th, 2023, which is the date of the last impact fee study through September 30th, 2025. And Juan, I know you probably can't see the screen, but we're not advancing.

I think he's in 8A is where we have his deal in the public hearing. Did you intend for it to be here?

Yeah, he's presenting.

Yes.

Yes.

I heard all of y'all going, so this is great. I'm glad y'all didn't hear me. I was wondering. But yeah, hi everyone. My name is Juan Sanchez. I am the auditor that worked on the agreed upon procedure. And what this is, it's a new requirement under the Senate SB 1883. This information is required to be performed and put into a report. by an independent auditor and that's who I am. So one of the requirements before anything changes with impact fees is this needs to be performed. So this is what we did. I'll go over that information with you really quick. This report essentially just goes over the activity that's taken place was changed. So that had taken place, I believe, July of 23. So we were that far back. And the only impact fees that have been recorded since then were 2024. So you'll see in my procedure number one, we have in 2024 the amount of 561. From there, the next procedure goes on to talk about any interest that was earned on any of the problems that were received And as you can see, there was minor interest earned in 23. This is procedure number two I'm talking about. So in 2023, there was some minor interest earned. And then in 24 and 25, once those funds were received for the impact fees, that's when things change. And of course, this is on the fiscal year end, September 30th. So this isn't like 100 years. That's why some of those funds didn't really start earning interest until 2025. The next procedure, number three, this one is basically a disclosure that talks about yet that we plan on being financed with impact fees that are going to be collected. So that's what this data is here. And then you can move on to the next page. Yeah, this is a very short report. The next procedure, I'll follow up with this one at the end just so that we can keep water, and some wastewater. That's how those impact fees are separated. The procedures number six, seven, and eight are not applicable. There were no impact fees, so we did not identify anything to perform the procedure number six. Procedure number seven, there was no request for refunds. And number eight, there was no errors or omissions for credits that were impact fees Now back to procedure number four. Procedure number four, the results of that procedure, it's basically asking what is the unspent amount that remains. And if you want to go to the last page, I have a table, the next page. the interest that was earned on those impact fees and the amount that's remaining as of the end of the year. So as of the end of 2025, total impact fees for wastewater and water is $598,000. That includes the interest amounts and the total amounts collected. And that's essentially it. That's everything on this report that needed to be covered. That's all I have on this report.

All right. Any questions or anything? If not, Juan, we appreciate you.

And we will be ending the Zoom, so don't be alarmed. And we appreciate you. Thank you. Okay.

Takes a second. We'll get to the next presentation, which will be the second quarter financial report.

Molly, can I just ask you one question?

Yes, sir.

We went over this yesterday. That was all good news, right?

Yes, it was all good news. trending up all right so it's I believe it's page 22 in your packet the general fund revenue analysis is for the first six months 10 20 10 1 2025 through 331 2026 which is six months so it's about 50 percent or 50 percent through the year and if you look down at the total For the revenues, the actual compared to the budget, we're at 70.93%, so we're actually doing very well. I'm not gonna go through each line, but the main one is the tax line. For our property taxes, we're 97% collected, and our sales tax about 45, and that will pick up over the summer. Are there any questions on this one page? If not, we'll go on to the next one, the general fund expenditure analysis for the same six months. If you look down at the total, we are at 47.83%, which again, for expenditures, we're under 50%, so that's good. And are there any questions on those individual lines? No. We will go to the general fund capital expenditures. For six months, if you look down at the total, it's 8.44%. If you look at, and it's a little low, it's a little skewed, but if you look at line three, fire engine replacement, We're actually going to get our new engine in July, so we're really excited. The replacement vehicle on the fourth line down, we got two more Tahoes in April, so that will bring up that line. And the last line, there's just some timing. And whatever isn't spent for fiscal year 26, we will carry forward that amount to fiscal year 27. Any questions on this page? Okay, we'll go to the utility fund revenue analysis. For six months, we'd be at 50%. The revenue, if you go down to the bottom, is 51.14, so we're slightly ahead, and we'll take it. And we know the water picks up usually during the summer. Any questions on this page? All right, the next page is our expenditures for the utility fund, same six months. And if you look down at the bottom, compare the actual to budget, we're at 51%. And so we're just slightly over. There's some timing, and there's some budget amendments, which I'm going to talk about later, which will make this look a lot more in line with what it should be according to a budget that's been amended. Are there any questions on this one? Okay, we will go to utility fund capital expenditures. You go down to the bottom, we're at 22%. And really, depending on the project, you can see all the projects up here. Some are almost completed. We've got six months left, so some will continue to spend, and some have not even started. They either will be postponed to another year, or they'll be started, and whatever isn't spent will be carried forward to fiscal year 27. Are there any questions on this slide? All right, we have another fund, the capital fund, the revenue analysis. And 50% is six months, and if you look down at the bottom, it's 25.81%. And line two and three, the bond proceeds and premium, we got funded for our new bond, which was announced last month. That was funded June 13th. So, oh, excuse me, May 13th. And so that will have those lines look better. Are there any questions on this slide? Okay, we'll go to the last slide, which is the capital fund expenditure analysis. We go down to the bottom, it's at 34%. You can see each individual line item and their percent. The obviously the city center and the fire station are done. So those will be trued up next time and We got some bonds for the street and the seal coat. So those will get higher Are there any questions and again if something isn't spent it will be carried forward to the following fiscal year Any questions on this slide? All right. Well, that's it for that presentation.

Okay. We're going to move now to public hearing items. And Molly, don't go away. The first we have is public hearing regarding impact fee study on applying agreed upon procedures and possible acceptance. I'm going to open the public hearing at 3 39 and Molly, can you take this matter?

Yes. Good afternoon, mayor and city council. Again, it's Molly Jester. Um, there's a code 3 95 that requires cities to hold a public hearing. on the impact fee study agreed upon procedures which was just presented. It's been available to the public since the end of April and we have made our notices in the Lando News and the Horseshoe Bay Beacon and the audit has been available at least 30 days before updating the impact fees which will occur on the June 16th council. The Capital Improvement Advisory Committee, the CIAC, also reviewed it when they last met and accepted the audit. Council members Mayor Jeff Jones, Mayor Pro Tem Larry Morgan, and Ruman Fetchner have all reviewed it yesterday, and it's available in my office and again on the website. Don't know if any citizens wanted to have any questions or comments about what was just presented, but now is the time.

We don't have any who've signed up, so we're going to... Are you finished with your... Do we have any questions for Molly before we move on? Okay, I'm going to close the public hearing then at 3.41. And do we want to discuss this? Anybody want to discuss this amongst the four of us? Five of us? Okay. I will entertain a motion then if someone would like to do that.

I move to accept the impact fee study agreed upon procedures for the period July 18th, 2023 through September 30th, 2025.

Motion made by Council Member Morgan. Do I have a second?

Second.

Second by Council Member Weatherby. Any more discussion? All in favor, aye. Aye. All opposed? There are no opposed. The ayes have it, and that will pass. Thank you, Molly. Thank you. Our next matter of public hearing will be 8B, and it's Ordinance Number 2026-12, which is a public hearing discussion consideration for recommendation to the city council for zoning case 2026-03, application to amend the Summit Rock Plan Development Agreement Ordinance. And I am going to open the public hearing at 3.42 and ask John Byram. No, Sandra. I'm filling in for John.

Okay. Sandra, how are you? I'm well. Sandra Nash. Well, good afternoon, mayor and council members. I'm Sandra Nash. And this project that we have before you here is this it's actually, let me see if I can get this thing to work. Well, no, we're going to go through all our slides. Okay. This isn't summit rock and it's the Attenhill subdivision. Previously, the Attenhill subdivision had been before you for both its preliminary plat and its final plat. as well as a little bit of cut-and-fill variance that was also required. And this is the layout. It's kind of an interesting photo. And here's where the Attenhill site sits. It really does sit surrounded on all sides by golf course, except for that little orange piece, which is going to be my dot, except for this little orange piece right here, and that's the new clubhouse that they've just built. No, we're trying... I'm still working on this. So like I said, Attenhill has 55 single family lots and they have four lots that are on this little cross street right here called, uh, Duncan way. And this is the only cross street within the subdivision. Anything else that might. I'm sorry. Sorry. I'm screwing up your PowerPoint tray. All right, hang on. Anything else that looks like it might be a cross street is either drainage or pedestrian connectors. So this really is the only cross street. And what we have are four lots. Our zoning ordinance and the zoning ordinance specifically for Summit Rock requires a 25-foot setback on both the front side of the street as well as on the side street side. So basically all corner lots have two 25-foot setbacks. And these are the lots that we're looking at. These are the four lots, and here is Duncan Way. The request is that to go ahead and leave the 25-foot required setback on the Cliffview Trail and on Atten Pass at the bottom. But to go ahead and permit, I got to come in and take a class just to run this thing, and then permit on Duncan Way these lots to have only a 15-foot street yard setback. And this is Duncan Way. They're labeled on the aerial photograph. You can see another pedestrian and drainage channels, and you can see the topography. There's actually quite a bit of difference between in the elevation of Atten Pass and Cliffview Trail. And Duncan Way does have a little bit of a slope to it. So these are sloping lots. And it shows you there's a 35 foot drop. This is from the other way looking in on it. So you can see it's also is very wooded, which is actually going to come into play in a moment. What the, and Trey is here, our applicant is here with Attenhill, and they can explain this a little bit better. What they would like to do is go down on the side street of Duncan Way only, which would not be the front yard of the house, it would be the side yard of the house, to go down to a 15-foot setback, which is still larger than a normal side yard setback, and in turn, what they want to offer is, they want to offer along the top a larger setback that would be combined with the lot above it. And that would give you, instead of a 25-foot corridor along a street where we have no sidewalks, that would give you a larger area that they could put in a golf cart path to get people down to the club without using their cars, or even a walking or a bicycle path. So that is the trade-off. We feel that it is It's really a better plan for Summit Rock and for Atten Hill. I think it'll be nicer for the residents that live there. And it really only affects these four lots in all of Summit Rock. And our applicant is here if you have any questions of them or of me.

Great. Trey, you or Jeff want to?

Maybe you can do better with this, Trey.

Good luck with that pointer. I'm a little scared now.

All I know is that's the pointer.

Trey Wallet with Crescent Real Estate, the applicant for this one. And Sandra, thank you. Took a little bit of my thunder here on presenting this, but hit the key points. Where, if we can, I'm terrified of this now. I'm looking for this one. So, yeah. So, yeah. Despite the appearance of the neighborhood, we really did limit our construction as much as possible, reduce our grading that we did in a difficult site. And one of the big things we did with our contractor and our engineers was to limit the impact to what's naturally there. So you can see between the lots and between these limits of construction, it's untouched as much as possible. And what we really want to do is preserve that as much as possible, create that natural buffer between lots where it still exists. And so we're kind of looking at it in the trade of the natural environment versus what's a little bit already corrupted at the roadway where we've done the grading to get the roads in safely and why we're looking to reduce the setback here.

And there's one more slide.

of here, this is actually, this is a plan that was applied for by one of our builders and kind of shows that undisturbed area that we're enforcing through our recorded architectural guidelines within Atton Hill and all this area we're trying to prevent the development in and keep the homes as separate as possible. definitely here for any questions that are here, but maximize natural environment, maximize separation between the homes, have a buffer so we can put, actually behind these lots, and to the extent possible, we're trying to keep it as natural as possible, so we're doing a hiking and biking trail there. If you ever drive by the site, you'll see the cart path trails, and those are really the interconnecting trails that we hope to promote throughout the community by an example, but this one is truly a three or four foot wide hiking, biking, natural trail.

Can you go back to that photo, that aerial photo? Yes, sir. Keep going back. Right. No, one more. Yeah, that one right there. So as I understand it, then there's four lots involved and the

reduction in the setback will only be on duncan way correct that's correct sir and it will uh the only reduction will be for both lots looking at each other on duncan way yeah and yeah and really in this circumstance it is um it's unique for a corner lot where the lots are going to be facing at and pass and cliff view trail and these are really sides of homes on this way because everybody's trying to get the view back to the lake so it's not like someone's going to face their front door towards Duncan way. It's either at and pass or cliff view.

Well, these are the side of the homes really on Duncan way. And then can you point out where the, uh, cart cart path would be?

Yeah. Little hard to see on here. So not cart path. This is the hiking, biking, nature trail through there. But you can see it meandering actually in the top of that photo here. So it's on, it's that little dash line. If I can, well, that's snazzy. Right there and the top. So this is going along all the lots down the spine of the neighborhood. Okay. Yeah. I don't know if that shows up on y'all's screen.

Down the spine.

But right down between these lots is where that's coming and connecting back to this median here.

Anybody have any questions for Trey? Okay. What we want to do then is... This comes to us as a staff recommendation of approval after the PNZ has looked at it.

That's correct.

Planning Commission voted unanimously to recommend it. And there's no opposition from anyone?

Okay. We haven't even received any inquiries about this, to be honest with you.

Okay. I will now close. If there's no other questions, I'm going to close. Oh, I'm so sorry. I don't think anybody signed up for public comments, but does anybody have a public comment? Church mouse. Okay. No public comments. Now I'm going to close the public hearing at 3.52, and I will entertain a motion.

I move to approve ordinance 2026-12 as recommended by the Planning and Zoning Commission.

Councilman Fechner gave our motion. Do I have a second?

Second.

Second by Mayor Pro Tem Morgan. Do we have any discussion amongst the council? If so, if not, I will call for a vote. All in favor vote aye. Aye. All against? The ayes have it. There will be no votes. And it is passed. And thank you very much. Okay. Our next matter is public hearing number 8C, which is discussion, consideration, and possible action on zoning change 2026-02 to amend the Silver Rock Planned Development Ordinance number 2024-14. And I think that's going to be Sandra also. Sandra?

This is the Silver Rock development and I think we're all aware it's located on Highway 71, a little bit west of 2147. And the PD has been approved as well as the preliminary plat. We've also got some final plats approved. The applicant, well actually we've got two applicants and we've got two projects moving forward within Silver Rock currently. And both of those applicants, while they were working toward moving forward and beginning the construction of their projects, independently both realized that they needed amendments to the PD. They contacted our department. We worked with each owner because they really are two different owners, a separate owner for the Stillwater and a separate owner for the Falcon Senior Living Center. We worked with both owners. They worked together with each other, and we've come up with one complete amendment for the PD that addresses these two owners' special needs that they've come up against while they were first beginning to develop their projects. The first one I'm going to talk about, because they're two separate ones, the first one I'm going to talk about is the single family area. Oh my gosh, I don't know what that, okay. That's this area right here, right up next to Bay Country, right here. And this single family area has been named Stillwater at Silver Rock. And so this is our Stillwater and it's in the PD and in the plans, the plats, it's always labeled as lot 19. So you'll see it in the staff report as lot 19. And they would like to make a few changes to the text casitas or pool house in their accessory structures and to also include barns. They've gone from having, and animal enclosures, they've gone from having 31-acre lots to having eight 5-acre lots. And they think with that maybe people will get ag exemption, maybe not, but they certainly want, if you want to have a goat or beehives, they want to allow that. And so they've asked to amend the permitted accessory structures. They've added some not because they added barn and animal closure into the permitted accessory structure. We've asked them and they had agreed to remove breeding, housing of exotic animals, kenneling of animals. We don't want puppy mills, things like that operating in Horseshoe Bay. And they had, of course, they don't want that out here in Silver Rock either. So they agreed to that. They're also asking for some other requirements. They're asking to change the size of a maximum size of building structure, of an accessory structure, which could be a barn if they had a horse or two, from a minimum of 1,000 square feet to a maximum of 5,000 square feet, and from a total aggregate to 10,000 square feet. Now staff feels that this is actually appropriate. On a one acre lot, you don't have room to do all of this. But on a five acre lot, you've got room for a barn and some horses. You've got room for some other accessory structures. So we felt that it was fine to allow them to increase the size of their accessory structures because they were willing to increase the size of their lots. But to that end, that gets us down to point three on the first page of the staff report. We said that if you would like to include larger accessory structures, We're okay with that, but you're not going to then get that approved and then go back to your one acre lots. These large accessory structures were. We're in agreement with at least at staff level, as long as you have five acre lots. So to appease, to make staff feel comfortable with their approach, they had agreed to put in item number three that prohibits the subdivision of any of the single family lots, because we didn't want somebody to come in here with their five acre lot. and come in and carve it up into five one-acre lots. So they were willing to add that language into the PD, and the no subdivision only applies to this section right here. They also, this was a little bit, they also have a requirement. They've asked for, there was a requirement in the PD that says all garages must be connected to the main house. either directly connected to the main house or with a breezeway. What they've asked to do is they're okay connecting the regular garage, the garage for your vehicles that you normally would build for your standard family vehicles. But they've asked to not connect if they bring in some sort of a barn or garage that might have a larger door for an RV. And they've asked to not connect that to the house And something that came out of Planning and Zoning Commission was Planning and Zoning Commission felt, because previously we had just garages was a garage. And Planning and Zoning Commission said, we feel for this project, there's really a difference in the garage depending on what vehicles you're parking. And if you're just gonna use a regular garage door, then that's gonna be connected to your house. If you're gonna come in with a garage for an RV, You don't have to connect it to your house, but if you want to put it somewhere else out on your five acres, you have to screen it from view. And so that's the extent of what Silver Rock is asking. Not Silver Rock. That's the extent of what... Stillwater. Stillwater. I keep getting these all messed up. Stillwater is trying to do... Oh, well, I guess I had some maps in there. And now I'll talk... The other site is... Falcon Senior Living, which sits right here on our C2 parcel. And Falcon's under construction right now. They're building their parking garage and things. And Falcon would like to do two things. And the one thing they would like to do is, and I would like to mention that the folks building the Falcon Senior Living Center, they own this piece right here, and they own this whole area right here labeled R6. The area labeled R6 is for folks that future folks that might move in that maybe don't need the same heightened level of care and one of their requests is to allow covered parking because they would like to provide shade some covered parking along this lot line in between their two properties and that would be in the setback so they'd like to go vertical in the rear yard setback in between the lot line that it joins both properties in order to offer some carports to provide shade for their staff. The next item that they're asking for is right here, right there, right about where my arrow is. Well, I'm trying to get the arrow right. That's right about where the driveway into the Falcon Senior Living Center was. And they've decided that based on the architecture of their building and the quality of the site they're building, they would like to put a an arch for the entryway. And they would like it to look something similar to this. And we only allow entryway structures, because it is an accessory structure, we only allow them to be 15 feet tall. In order to get our emergency vehicles underneath that, we had to go up in height. So we did get, fire department has signed off on the height, So basically they're asking for their entry structure, not every structure on the property, just their entry structure to be allowed to have a 22 foot height. That would allow them to build their, it's basically like a little pergola arch over the top and we could still get our emergency vehicles underneath. And we have an applicant here from Stillwater and also from Falcon Senior Living if you have any questions.

Do we have any questions for Sandra before we proceed to the applicant?

And I would also say the Planning and Zoning Commission also voted unanimously to recommend this provided we include the language that says if you have one of these garages with a large garage door, you have to screen it from view.

Okay. Any questions for Sandra?

Okay. I don't know if it's Sandra or... If you maybe Sandra could go to that previous, uh, picture slide. My question is about the park. Sorry. There that's it. So the, um, residential area, the R six, is there going to be any kind of landscape barrier at that lot line to cover up maybe from their view, those carport areas behind the they've got about five feet. Five feet?

Mm-hmm. And then that's going to be the backyard of some townhomes, is my understanding. They're still working on their plan, so I don't want to commit to what the landowner is looking at. But that would be their backyard. So you'd have about five feet from the Falcon Living Center, and then you'd have the backyards of the townhomes. But it's going to only be about five feet. Okay. It would be more shrubs or small trees versus... huge shade trees, which is why they really would like to, I mean, they've already got parking back there. You're allowed to park in your setback, right? So they've already got parking back there. So you're not, this isn't replacing trees. This is just allowing them to put a car port over the parking. Okay.

And again, they own both this, both of those properties, everything on everything inside that loop road.

Yes.

Other questions. Let's hear from the applicant. Let's go with Falcon first. Can you state your name?

You're with. I'm sorry, I don't have much of a voice, but I'm Cody Miller. I'm with Willis Engineering, and I'm here on behalf of Falcon, who is our applicant. And yeah, Sandra kind of knocked it all out. There's only two things that they're looking for. One is the entrance and trying to get the variance for a taller structure to get under it. And then, like she said, the second one is the parking along the C2 back lot line, just to go vertical with it and get some extra covered parking. Any questions?

Questions? Thank you. Now let's hear from Stillwater.

Good afternoon, Mayor and Council. My name is Tony Koinis. I work for Ricktown at Modern Homestead. Sandra did a great job covering all the bases there for Stillwater. I think I'd like to emphasize that aspect that bringing these lot count down from 32 lots down to eight um and then also just from a how this community will live perspective the the entryway comes off uh between those first c2 oh yeah i'm not even gonna you want to try it uh it it the entryway for still water there we go um does not come in off of 71 any longer it comes in off of that new road that's going in right now goes through a private entryway that is gated. And then each lot will also be privately gated as well. So how this community will live will be in a very private setting because the topography and the creeks on the other side, the view into this area is extremely limited. It's going to offer the residents a great deal of privacy. And again, the purpose of these PD changes for Stillwater is to allow these residents to kind of build out a family multigenerational compound. They're going to have some toys and some barns and some areas that might not exist in other communities on much smaller lots. Did you say that each lot is going to be separately gated? That's correct. And then there's that little roundabout that you can see just over the creek. that is a gate at the entryway to the community as well.

I'd like to make a comment first that I really, and I've told Rick Towns this, but I appreciate the fact that we've reduced the lot size down. I think he's going to have a good return on investment doing that without building a whole bunch of different homes. He's going to get it Get it back that way. Great idea. I have a little issue with the definitions of casita slash pool house slash accessory dwelling units slash accessory structures. And they seem to be almost used interchangeably. And, uh, I don't want to get in a position. I know Rick does a great job and you do too, of, of planning these things, but I don't want to get in position of these things selling. And then somebody perhaps, uh, reading as I have that perhaps you can put up to five different accessory structures. at a thousand square foot a piece in your lot as long as it's covered from view from the street. And I think that would be a slippery slope for us to get down because it doesn't limit the number of accessory structures. It simply limits the maximum aggregate square footage of all structures. And that's a heartburn for me as well as, you know, I understand these won't be granny flats, but I also have a problem with this being able to use the area for any kind of... not livestock, but animal husbandry that's not livestock. Beekeeping was mentioned earlier. I don't know if goats are in that description or not, or chickens. And again, I know Rick wouldn't do that, but somebody else might do that in the future. And so I need my staff really to give me a better description a better description, from my perspective anyway, of what these things are going to look like and how you're going to screen them also from the streets. I know five acres is a lot. I get that. But, you know, if there's more than one accessory structure, you're going to run into some trouble doing that perhaps. So those are my comments. And others maybe have some too. You might want to answer...

If I may, I'd like to reemphasize the fact that these will be private streets and privately gated. So in terms of who might view what, it will be limited to the eight that live within the community itself. I understand that there's a line between PD here and the CCRs that will come at another point. I always understand the concern about not having the reach into CCRs, but those things are going to be CCR items. In terms of intent and purpose, these will all be modern homestead built homes. And as you said, there is the reality of return on investment. So there is a nice sort of, I call it capitalistic buffer on many of the items that you yourself have mentioned in terms of if we were to allow something that isn't pleasant, we're going to have a very hard time selling the last two lots. And As we mentioned earlier, these are no longer 32 homes. Each one, which would still be a fairly large size home. These are now eight homes total. And that's going to mean that the number of rooftops has gone down substantially. The amount of tearing down the native trees that are there currently goes down substantially. But in order to allow for the necessary purchase price, frankly, for a five-acre lot, we do want to allow these residents to be able to have a chicken coop, to be able to have a barn with a stable. These are the size of lots. And then also just the location being a little bit further out. I think it aligns pretty well with the long-term use plan that has been discussed recently for the city. I think it is very much in line with that But if there's something else that was to be proposed specifically, we would be very happy to take a look at it. We have spent quite a bit of time going back and forth to come up with this exact verbiage that was deemed to be in a comfortable, set up in a comfortable way. But if there's something specific we'd be interested in hearing.

Am I reading this right? There's no limit on the number of accessory structures that can be built back there. It is limited by square footage. As long as they're not in aggregate over 5,000 feet.

Correct. So somebody could have a barn, a chicken coop, an actual stable, a casita, and a cabana.

I guess the one thing I'm concerned with is they could have five or six small casitas.

Well, they could have five or six small casitas, but they would not be allowed to have five or six ADUs. Right. That is specified. So I don't know what they would do with five or six small casitas without them actually being ADUs. I don't either, but David corrects you. And that is the reason why we specified under uses not permitted additional dwelling units. because the difference there, basically, you know, a casita is not a long-term livable unit versus an additional dwelling unit is a long-term, you know, hypothetically, somebody could live in an ADU for an extended period of time. It has the kitchen facilities for that.

I hope you understand where I'm coming from. I'm just worried about, you know, I'm concerned about resales down the road also, and I know the original owners will probably be awesome, but down the road, we're concerned about who does what later on. Absolutely.

Rick's personal house will be here, so he will be very concerned about personal resale value.

Would there be an issue of limiting... I have a family member that actually has a house that was developed as a wedding venue, and it has three casitas on the site with a pool, all of them probably less than 1,000 square feet. And so could we delimit a casita, a pool house that might get away from— because you could ultimately put a kitchen in there if you wanted to later, and— Somebody might make it a dwelling unit. So I think that's what we're trying to manage is not having three or four of those pop up in one of these lots.

Maybe a max of one.

One casita, one pool house. The other question I had was on, is there any limit on the animals? Is there a...

The only limit that they've put on the animals other than the breeding and husbandry of them Really is no exotic game. I think five acres is going to realistically pare down what you can get.

Well, you would hope. Okay. I know y'all are coming at this with good intent. I agree with the mayor that he's done a fabulous job moving in the direction that the community wants, and it fits very nicely with the community next door. I mean, it's going to be really, really nice. Y'all have done a great job. We're just trying to make sure that happens and somebody doesn't. take advantage of it and go put 50 cattle back there or something.

Well, cattle are prohibited. We know that. That's livestock.

You could run a lot of chickens back there.

Yeah.

Mother-in-laws aren't... We buy our eggs across from the backbone nursery, and he's only got like a quarter acre, and he's got 70 chickens back there.

Well, you know, we're... I'm con I'm wondering if, uh, we might want to table this until next. Next council meeting in order to get staff to define these issues a little bit more for us.

Um, if we were to insert the terminology, uh, under item five, Casita pool house, um, and were to insert not to exceed one Casita. and one pool house? I think that would help. Or call it, yeah.

One casita and one pool house?

They're often on properties of this size located in completely different areas of the property. Oh, are they? Yeah. I'm not on this size very much. Yeah, these get to be some... May I make a suggestion?

Yeah, please. And we may want to hear from David. I talked to him as a sidebar. Since this is his own single family... and not multifamily. They're only allowed one primary structure, the home, and they would only be allowed one structure that could be considered an ADU. So, and I'd want them to weigh in on this, but it could be that limiting to one type, and maybe we only allow one additional structure with a kitchen facility, cook facility, something to that nature. Without a stove. Without a stove, okay. That may be something that'll, I think, achieve this.

Well, ADUs are specifically prohibited on this, on the application.

We've gone even further than that by specifically eliminating ADUs.

They can't have multiple structures that people can inhabit. Do you want to describe that better? Yeah, I think they're concerned. So ADUs are not allowed by ordinance and they want to know, essentially.

Make sure we can hear you, Rick.

They want to make sure this isn't multiple structures that people can inhabit. Right, so in a single family R1 residential lot, they're only going to be allowed the one principal dwelling unit or principal structure. They have to build that first. Then they would be allowed under a current ordinance that we have a pool house, but it's not a pool house. It's more like a man cave type of pool thing. Usually they're having a roll up garage door and they can kind of do the grill and flat screen TV and all that with the pool thing going on. And then the casitas typically are just going to be a place for overflow residents to come and visit them. And they potentially could short term rent those. Although you guys may have that excluded. You probably don't want to have that.

That would be an exclusion through the CCRs.

So pretty much the ordinance currently takes care of a lot of the concerns that you guys have regarding the auxiliary dwelling units because they can only have the principal structure and then one casita. That would be it.

One casita but unlimited barns, livestock, farm, animal enclosures and stables?

So during our reviews of those, we would look at the description of a barn or an accessory structure. They wouldn't be able to have an auxiliary dwelling unit if we're talking ADU, but barns and outbuildings, you know, maybe they have a tractor and they want to put something, you know, put that tractor in something to mow. Those kinds of things is what we've seen before on some of the higher acreage estate style lots.

If y'all want to limit, though, obviously that's within your discretion, but that's what we could do now under existing ordinance.

The sharper the language, the better, I think. I agree.

And I know what you intend here.

Is the casita the main, the quantity of casitas, just to clarify, is the quantity of the casitas...

you're seeing the one that's most likely abused in terms of exactly quantity of casitas slash pool houses i don't know what the difference is there but let's just lump them together uh you've lumped them together here in roman numeral five a five so they're not really lumped together in our ordinances casitas is a place somebody could sleep overnight and

the pool house is like, guess somebody could crash down the sofa, but a pool house is more right next to the pool. And you go in, there's a shower and there's a refrigerator, maybe a little shade and a TV or something. So they're actually, maybe the best would be to just say one pool house and one casita, something like that. They're really very separate functions.

No more than one of each type of accessory structure. What did you say? No more than one of each type of accessory structure per lot. That would limit you to potentially one casita, one pool house, one barn.

Well, what if he wants two barns?

They would have to come to you all for a variance.

If the focus is casitas, would us adding the terminology not to exceed one casita take care of it?

Well... Probably so from my perspective, because if they're detached from the house, they're not going to be seen from the street.

Right. They're going to be behind. I mean, this is the common, just for clarity, you know, the common setup is the main house and then behind the house again with these larger acreage lots. oftentimes the owner doesn't actually want the pool butted right up against the back deck. They might have a nice back patio, and then, again, on acreage of this size, you could have 60 feet, and then your pool, and you're going to have a little, you know, cabana house, but then your casita is for your guest, so it might be on the other side of the pool so that If they've got, you know, if somebody's hanging out and swimming, your guests aren't necessarily plunged right into that group. And then the reason why I think we would lean against the specifying the total quantity of structures there is that we also get the requests for, we have one right now for like an art studio. So we have got man cave, but then there's other things that people have specific interests in. But if the focus is the casita, I think that adding not to exceed one casita is completely fine by us. Yeah, the primary issue is just ensuring it's not multifamily. Absolutely. And again, with that respect, we have already eliminated the additional dwelling units, which was not previously. I want to note that that was not previously eliminated. That is a new deleted item for this set of changes in order to add extra comfort around that specific issue.

How do these components that are allowed differ from recreational socializing areas for residents and guests, including restrooms and parking? Roman numeral 4 under A.

Those items were intended to be if you wanted to make a little park and bring out a little barbecue-type area in there. I think in... When he had the 30 lots or the 32 single-family lots, he had this little park area, and that would be allowed there. He's actually removed that little park area with these eight lots.

Well, that probably should be removed from here now that there are five acres, shouldn't it?

I don't know if he will want to allow for a piece of one of these lots to allow for a communal... a communal gathering space for these residents or not. And that's the reason for wanting to leave it in is just in case we decide. I know that he has a trail planned, so he may want to link that into the trail. I know it's a small community, but the goal is that there still really is a community behind this gate.

And then the enclosed storage of Personal unit of owners, cars, collectibles, recreational vehicles, boats, single family travelers, personal items. Could that be combined with a, I mean, we're trying to limit casitas. Could that be combined with a casita or is that separate from a casita?

They're typically not combined. Again, the goal being that you have some guests come and stay with you. They sometimes don't want them to actually stay in the house, so they get the casita, and it's sometimes referred to as a toy barn. The cars are in a separate structure, which I think they would not want the guests to have to deal with the attachment to a car barn.

Well, we've seen some plans in the past that have had most of them upstairs, a den area, a man cave type of area with a little convertible bed or whatever it might be.

Yeah, there's a lot of different options. And again, going back to the ADU, because we've eliminated the line of ADU, it prevents any of these other configurations from slipping into well, now it really functions as an ADU.

OK. May I? Yes. OK. So one is a clarification from earlier. So John reminded me, since this is a PD, there is actually no variance process. They would have to come to amend text. If y'all put some requirement in there, they can't go through P&Z, et cetera. They have to actually amend the text. Number two, maybe one suggestion, well, as well as no more than one casita? And is there a certain, is it no more than four accessory structures or three or five? Or if there's a certain upper limit, maybe that could be some way to bound it too.

Well, you know, my only problem with that is that I don't have chickens, but let's say chicken coops. And if they're small, you know, I'm penalizing someone for not having chickens. If I have it two or three, I'm penalizing somebody for a small one, whereas I don't penalize somebody for a large one, which leads me actually to another question, and that is a noise issue. If we're not limiting the type of animals that we allow out there. Or the volume. Or volume of it, yeah, yeah. You know, I don't know if we need extra time for the staff to take a look at this or not. Yes, Elaine, please. Can you pull the microphone to you?

If I'm reading this map correctly, let me say for clarity for everybody to understand, I live right there. And if I'm understanding what you're saying, At the end of my backyard, I'm going to have chicken coops because I live on that backside. When you come down Bay West Boulevard and you turn and the road goes way back down and you have the real deep dip, okay, I'm on Tungsten. And my backyard goes right into that open space if I'm reading this map correctly. And so I can tell you, my neighbors will have a problem with chicken coops smelling, anything that would be in that kind of situation. And I would hope that we could have some real serious conversations with those people that live there. Most of those homes are custom-built homes, and they're not cheap homes. Now, the areas that are behind us somewhat over closer to the Reclamation Center, and if I'm reading this and understanding it, this is the land between Baywest Boulevard and the area back toward the Reclamation Center, and right now it's kind of high. And the frontage is 2147.

Sandra, perhaps you can speak to the area being described. To me, that sounds like that would be the southeast corner that's not one of the lots that we're discussing. Right here? None of the lots that we're discussing front 2147. Or 71.

Council Member Waddell, are you asking about something up in this corner? I'm bringing it back down to the entrance. Or are you asking down here in this corner?

Down in this area. If you come, move back over to my right. And where you're coming actually into... It's Bay Country.

That's Bay Country there.

Bay Country. Okay, so... It's not in this map, yeah.

It's not in this map. This is Bay Country right here.

Yeah, but... So Bay West Boulevard is not even in that.

Right. So this may be then closer over toward the Reclamation Center.

The Reclamation Center is up there on the left. You see it up there at the top? Top left. There you go. Up there. There you go. Correct. That's the storage units and the reclamation.

And here's the high line right here.

High line's running there.

To Baywest Boulevard. Is that down here? That's not on the map. That's way over to your right. So this would be further away from our Baywest Boulevard.

Correct. You would turn off of 2147, head west on 71, go down 71, and then turn up this new Silver Rock Road into the community.

Yeah, I think the Bay Country folks are the ones that are going to experience, Elaine, what you're describing, but they have similar... set up there, so they probably wouldn't.

I just, you know, because the knocks will not stop on my door. I understand. If there's something like this that comes out, so please be very careful in how you clarify where it is and how it's located.

Well, and then another question for you, Tony, is that I'll bet you that you really envision horses. That's what you envision, right?

I believe that Rick envisions people being able to have a horse and a chicken coop.

Really? Okay.

Absolutely. Okay. Um, and that's, that's the requests we're getting is, is someone wants, uh, now these are, you know, chickens that probably eat better than I do, but, uh, technically speaking, it's a chicken coop and, uh, you know, and to have a horse and, uh, you know, this is a small form. Yeah. not functional as going back to prohibited no livestock there's no breeding and the concern about the quantity of animals I've yet to meet somebody who's an actual functional ag business that is not breeding their animals and typically you get large quantities when you're breeding animals, not when you go and purchase them outright.

Well, in terms of adjacent homes, at least two lots are going to be pretty close to your new garden homes up here, up in the top.

Well, there's a creek between them and the garden homes. Those are very deep. Again, five acre, you know, these are

Right there is a creek.

That is a deep lot, the 4.93-acre lot right there. Okay. That is a very deep lot with a low area and then a creek in the back and with trees. And I can tell you that those who would build on these lots are going to be far more concerned about being distanced from the garden homes than the garden homes are going to be concerned about being distanced from these structures.

And each home is going to be gated, right?

That's correct.

Will there be fencing along the perimeter of the entire lot, or is it just...

They're envisioning horse fencing going along the cul-de-sac road. No, we're not doing that. No, not doing that. The latest and greatest update says...

They've not asked to... We don't allow fencing in the front yard setback, and they've not asked to amend that, so we would not, at the city, not allow fencing in the front yard setback. So their fencing would have to come back at least 25 feet. Right.

Yes, I'm sorry. The fencing would occur on the property.

But not within the first 25 feet.

Absolutely. No, no, no. Again, on five acres, 25 feet is nothing. Yeah.

And then there would, I mean, do you envision horse fencing all the way to the edge of the property except for the setbacks?

It would depend on the owner, but we would envision that most would want the horse fencing to go down the line of the property. to allow for that division between the five acre lots.

And then how do you propose to shield these things from the street? And will they be shielded also from the next door neighbor or just from the street level?

I think we put screen from view.

That's what it says. Which is what I was wondering about. It says from view.

Screen from view. It doesn't say screen from street. Right. That would be your neighbor as well.

So it would encompass that.

It would encompass your neighbor.

You see any trouble doing that at all? I don't. Again, I've worked on ranchette projects in the past. I've got one right now separately in Johnson City and they've got five to seven acre lots and um, as just as for reference on that one, we only allow cross fencing of an acre and a half. Uh, and it is that out there you can do anything and everything you want. And yet everyone's fine with only an acre and a half of what's termed as cross fencing. Uh, because even these larger compound, lots of things going on, you've got your stables and your man cave and your nice house and your guest house, even when it's spread out, you very rarely go outside essentially a diameter of about an acre and a half that your compound starts to not function well outside of that. So that's why you see even 20, 40, 60 acre properties. You don't see guest houses scattered across the landscape, It's all on an acre and a half and it allows, the reason why people buy these properties primarily is for the added privacy. It allows you to have your house and your compound and your little bit of additional space. You know that you could build a small art studio or a space for your cars and you're not going to feel crowded and yet you're still going to have plenty of side to side buffer space from your neighbor. I want to point out the shape that he's done on these lots in comparison to the development to the east. These are very square lots and they're done that way because that creates a premium private experience for the residents. And again, when you're standing on five acres, one that's been drawn in this manner, It's a, it's a ton of space. It's a long, long way. And, um, it can be hard to realize just how much could have gone there until you stake it out and something gets built. And then you realize this, this generates a ton of additional space, which is the intention of bringing this down again from 31 homes down to eight. And the, again, just as a, um, kind of recentering, we, we, are asking for these things so that there is proper demand for a five-acre property, because a five-acre property with all the restrictions of a one-acre property doesn't sell.

Is he planning on doing all the homes himself? Yes. Sandra, are these two items, the Stillwater and the Falcon, are they together? Do we vote separately?

They're together in one amendment to the PD.

So you all are comfortable stipulating one casita, pool house?

Adding the sentence not to exceed one casita and one pool house.

And I want to make sure that that language is not visible from... We could change the word view and say not, instead of say not visible, or she'll be screened from view, we should say she'll be screened from view not to be, we could elaborate on it, I could work with Susie, not to be visible from the street or adjacent property, something like that.

Okay, well, don't we have to do that today?

Yes, okay.

The motion would have to include the language.

Screened and visible are two.

We have any other questions?

Yeah, I agree. Screened and visible, it might, and then, you know, as you light it.

I haven't seen a project where something is screened and not visible. So I want to, I think I would need to, Rick probably wouldn't be very happy if he had to make things invisible.

We could add language screen from view from the roadway and adjacent property.

Yes. From roadway and adjacent property.

From the roadway and adjacent property.

Seems to be a lot more added into this motion. I mean that We were, do we need, when we make a motion, are we going to need to include the one casita, one pool house?

Absolutely.

Round, not visible from the street or roadway or adjacent property? Yes. What else do I need to put in there?

Well, we're still talking. I'm still concerned about the... types of animals. I'm sure I haven't thought of all the different types of animals, but... Yeah, I don't know how you define exotic.

Is that open? I don't know.

It's an ag definition. Okay, so you're using the ag... County appraisal districts, ag use separates them into exotic and non-exotic.

Okay. Should we consider what we will allow animal-wise instead of just saying anything that's not livestock?

No, livestock's allowed.

No, it's not allowed.

Where is that stated? You can't breed it.

My suggestion, if y'all are concerned, there could be animals if, and I'm going to say for argument's sake, if you're okay with horses and okay with... Highland cows or chickens. Maybe it'd be better to positively include it.

Well, get your pen out. And again, you know, we could table this thing until we make sure we get the right language. Mayor?

I would feel, I don't want to delay you, but at the same time, I'd feel a lot better to get it defined exactly how you want it instead of half rear-ended it and then having a bunch of questions later on.

Mayor, I just spoke with Cody and Tony. They are representing the applicant for Falcon Living, and they said that they would be open to coming back again next month if you wanted to postpone this.

I'll entertain a motion to table it.

You need to take public comment if anybody... Oh, and I'm so sorry.

I'm so sorry. That's what we pay her for. We do have two people who would like to talk to this. Trey, you've already talked to it. David Kunkel. Kunkel.

Hi, my name is David Kunkel. I live at 103 Rockin' Robin in the Trails off of 2831, passed by the planned community. multiple times a day. So we have a different insight than some folks might have. And by the way, ostriches, I would certainly consider debating the use of ostriches.

There's another.

My question really has to do with the access and the scheduling of the construction on 71 relating to the entrance and exit. And I'm not going to relitigate the TxDOT, you know, rulings. We can't, nothing we can do about it except, you know, grumble. But it's important that the council know those that weren't here during the last four or five years that this thing has been sort of rolling along. The TIA, which the council has access to, was based on an audit, performed traffic audit based on 2021. The actual TIA was published in 2023. The TxDOT anticipated a 1% growth annually from 2021 forward. So looking at this, and I've looked at this quite extensively, I'm not sure the TIA, and again, I'm not here to relitigate, I'm just trying to set a table for council's consideration. TxDOT approved five entrances and exits to this development. They also approved, that I think at the developer's expense, improvements on 71 exit lanes, what some people call left turn lanes coming from the Lano direction into the development. And anybody that goes down 71 with any regularity can see over the last three or four weeks the significant increase in the amount of traffic. And I'm talking heavy, truck, dirt hauling. You can see the construction that's already taken place in that area. And I've asked some of the planning and zoning folks, hey, what's the schedule for the road improvement? You can't continue doing what you're doing without considering the safety issue on traveling 71. I happened to witness just a couple of days ago a truck coming from the Llano area in the lane. There's just a double yellow line right there. A huge, one of these huge dirt haulers making a left-hand turn into the development. The speed limit, which TxDOT is not gonna touch, is still 70 miles an hour. coming down that road and if you travel at all, that's not good. I saw two cars pass this left-turning truck going at least 60, 65, 70 miles an hour on the shoulder. This is a problem waiting to happen, folks. And I was just hoping, and I don't know if I should direct this to the council or to the developers or who's responsible for the widening and the safety issues relating to 71s. Who is it? Now we have two developers instead of one, so I really don't know who to address or who owns this. TxDOT, they issue the rules, but as I understand it, and I'm open for an answer, the developers, I believe, are responsible for this road improvement. Am I correct? Is that a fair question to ask? Or we'll just table it. Somebody needs to own this, and we need to address it really soon. May I address this?

Yeah, you can. And your three minutes are up, but I do want to tell you that I want Rick or Jeff, one of the two, to get in touch with you because TxDOT has been very proactive on this as well. Not just on this, but on our whole area out here. And if you could give him some names and so forth and what's been going on and who pays for what and who designs what. That would be great, because those are great questions. They really are, and I know exactly what you're talking about.

Sandra, thank you. The applicant pays for all the improvements. The applicant pays for the design of all the improvements, but it's a state highway. So TxDOT's going to build the improvements with the applicant paying for them and designing them.

And TxDOT has to approve it, right?

The design has to be approved by the engineers at TxDOT. Did that answer your questions?

Well, I think one of his questions is when.

I don't know when it's going to happen. I just know who's paying for it.

That should be outlined in there. It's called AFA for the city, but I'll reach out to Joe Mucks, our area engineer. I'll reach out to him and get that information.

Yeah, sure.

the next council meeting, I think that would be an important aspect of this development as it continues to morph and change.

Because that needs to be done now. I'll give them a call. Rick and I will tag team and we'll have to look into that.

Thank you for your comments. Very timely and very good. Okay, any questions of the applicant, Mr. Kunkel or our staff? I am then going to close the public hearing.

Did we have a second public comment person that wanted to comment?

No, we do not. Trey Willett was with our applicant. Do we want to continue with the public hearing? Oh, yeah. We need to continue. Yeah, that's right. OK. We're going to continue. Do we need a vote for that? OK. We've already had a motion and a second. For what?

Nothing.

We haven't had a motion. Okay. Anybody like to make a motion to continue this until the June meeting? Yes.

I'm going to make that motion that we continue this at the June meeting. Council Member Weatherby. To get more specific information and to also get an update of In answers to Mr. Kunkel's concerns. Perfect. Thank you, sir.

And what?

And continue the public hearing.

And continue the public hearing. Motion to continue the public hearing made by Mr. Weatherby. Second by anyone? Second. Second by Mr. Fetchner. All in favor? Aye. All against? The ayes have it. We will continue this until the June meeting and keep it open. Okay, we're gonna move to business now. And Mr. Koska, you have approval of engagement of firms.

Yes, sir. Thank you, council and mayor. Last, I guess it was in April, we had a director level position open for us in The staff uses a formal process of action for conducting an organizational assessment at the time a director-level departs. This was done the last time that we had a position open, which was the fire chief position, and we had a group come in and look at the departments a conditional assessment, basically look at the department and determine if there needed to be changed and also to address the new person coming in, making sure they understood what the position was. And so we're planning on doing that for this position. And this, we've talked to you all about, hiring a firm to do this. And so we established a precedence with the fire department and the leaders transitioned by commissioning a structured organizational assessment prior to filling the department directory vacancy. This process produced a meaningful finding regarding the department's culture, policy gaps, staffing alignment, performance expectations that inform both the recruitment prospects and the on-board framework for the incoming director. So the rationale for this approach is grounded in the following principles. The incoming director deserves to to enter their role with a clear, honest picture of the organization they are inheriting, the strengths, its challenges, and its culture. The city invests in a director level hire substantially, both financially and organizationally. A structured transition plan directly supports retention, performance, and morale. Organizational assessment at leadership transition prevents institutional knowledge loss and ensures policies, procedures, and service delivery standards are documented and current. Establishing measurable criteria for successful at the outset creates a shared accountability between the incoming director and the city leadership, reducing ambiguity and building alignment. Proactively addressing culture, in operational issues identified during the assessment reduces the likelihood of inherent problems compounded under new leadership. And so the staff has interviewed two confirmed Texas-based consulting firms that do this and look at, and these two have senior city management that have been seasoned by years of practice, and also veterans of law enforcement executives which bring a logical, strategic government experience to the communities like Horseshoe Bay. Their approach grounded in operational realism, financial awareness, and organizational structure is specifically designed for cities like ours. So what we're looking at is hiring a firm, and we looked at two different firms. One was the Texas Police Chief Association, which is a very large association. In fact, it's the largest association of Texas police chiefs in the nation. And it also has a diverse group of experts in all expertise of policing. They also provide a wide range of professional services to Texas government agencies like ours. The value of technical assistance in valuing resumes and pinpointing credible candidates is really important so we can help define our best candidate for the group. So what the staff is recommending is that the city authorize the city Council, I'm sorry, the City Council authorized the City Manager to engage with the Texas Police Chiefs Association as the best fit proposed and value to conduct an organizational assessment, provide leadership transition support services, and perform a candidate search for the police chief vacancy. This approach is consistent with the process established in the fire chief position in 2023 and reflects the city's commitment to organizational excellence, intentional leadership transition, and the long-term effectiveness and morale of its department and professional leaders who lead them. The total budget for this will be $22,000, and that includes both the search and assessment and the travel here and there to do that.

Jeff, what is your ballpark figure of how long this will probably take?

It'll take any between 30 and 60 days. Most likely 30 days, 35 days is what is in the contract. But we want to give time to make sure that they have a time to come down and talk and interview with not only the manage, but also the people in the department.

And this group specializes then in police departments in Texas. Yes.

Yes, this is a police association. They have assisted several cities just in the last six months. I think Humble's one, Burnett is another. So they have a good record of knowing what to look for, how to ask the right questions, and to also know if there's some out there that we don't want to hire. Specifically, they've been floating around out there to make sure that we get the ones that fit well within Horseshoe Bay.

And so they take the unique characteristics of Horseshoe Bay into consideration because not all size fits all, I'm sure.

That is right. Yeah, they will be in view, you and I, and the leader staff to make sure that they fit within not only the organizational structure, but the culture structure and the community culture that we have in Horseshoe Bay.

This will give not only an opportunity for our police staff to excel, but also an opportunity for the new chief, whoever he or she might be, to understand the requisites of their job. And it'll be eye-opening for everyone, I think, and a morale builder. So anyway, any questions for Jeff?

No, I think it's a great approach.

It worked well with the fire department, Chief Fowler.

Well, it is a good fire chief.

A chance just to see it very clearly, as you stated, and help everybody get to wherever we need to going forward.

Yes, sir. Okay.

It looks like, too, I was just reading through this, that TPCA would also help with the interview. Yes. It would provide experts in the interview.

Yeah, they help us with questions, and even they will sit in the interviews if we need to, just to give us insight. So that's a really good role that they play.

I will entertain a motion then.

I move to authorize the city... I move to authorize the city manager to engage the Texas Police Chiefs Association to conduct an organizational assessment, provide leadership transition support services, and conduct a candidate search and evaluation process for the position of police chief with a selection recommendation to be brought forward to the city council for approval.

Motion made by Councilwoman Waddell. Do I have a second? Second. Second by, oh, yes. Well, let's get a second first. Okay, second by Mayor Pro Tem.

Should you put the amount in there?

I think we, you put the amount of $22,000 in there, didn't you?

Not to exceed. It's not in the motion. It's on the one I handed you.

It's right there, underneath there.

Oh, this one, okay. Okay, shall I do it again?

Yeah, can you restate your motion for For us?

Yes, I'd like to. Thank you. I move to authorize the city manager to negotiate and execute an agreement not to exceed $22,000 with the Texas Police Chiefs Association to conduct an organizational assessment, provide leadership transition support services, and conduct a candidate search for evaluation process for the position of police chief with the selection recommendation to be brought forward to the city council for approval.

Amended motion made by Councilwoman Waddell. Do I have a second? Second. Second by Mayor Pro Tem Morgan. Any discussion? All in favor? Aye. All against? The ayes have it, no no's. And the motion passes. Thank you very much. Molly, are you still with us? We're going to 9B now, approval for vendor to provide independent financial audit service.

So good afternoon, Mayor and Council. I'm going to introduce Robert Isaac. He's our purchasing coordinator, and he's going to speak about the RFP for the audit firm.

Hello, Mayor, Council. We set out in March to... to find new audit services for the city of Hershey Bay. So we sent the RFP out in March, and it ran in the Leno news and it ran on the website. So the first time we ran it, we got no responses, which was a little bit disappointing. But then Molly, our finance director, contacted some other people and we ran the audit again. We got three bids on it at that time. You had, I don't think you pronounced this, I think it's just letters. So we had one from ABIP, JRBT, and then Haney and Company. So those bids came in. We got those bids. I don't know what I did with this. I don't know what I did with this. Oh, here you go. So those bids came in. Haney came in at like $80,000. And then JRBT was like $46,000. And then ABIP was $41,000. So after the evaluation committee went over all of these, we went through on the committee, looked at all of the different things that was in the RFP for the criteria of it. And we scored it. And we found that ABIP was the best choice for what we was looking for in the audit services. And then so now we have a We have the agreement. That's the word I'm looking for. We have an agreement for them, so I guess that just needs to be signed, and that's it pretty much. That's all I got. Great. Any questions for Mr. Isaac?

So the amount is $41,000? It'll be $41,000, a little bit over, $41,490.

$490? Which is about half of the highest bid. Yes, about half of the highest bid. It's the lowest bid, which we don't just go for that, so we went with different criterias, and they just had the best match of what we think that we need for the audit services. Any other questions?

I'll entertain a motion.

I move to approve the vendor ABIP to provide professional audit services not to exceed $41,490 pending review and approval of the PSA and exhibits by the city attorney.

Motion made by Mr. Fetchner. Do I have a second? Second. Second by Mr. Weatherby. Any discussion? All in favor, aye. Aye. All against, no. And the ayes have it. There are no noes. Thank you very much, Robert. And Molly, you're still up with Ordinance 2026-14. All right.

Sorry. So we're going to go over that Ordinance 26-14, the We're doing budget amendments for multiple funds listed on the staff report. If you look at exhibit A, there's two pages. I'm gonna go over it rather quickly and just point out some of the highlights for the fire department on exhibit A, page one. If you look at line nine, the total fire department after various budget amendments will increase by 58,905. That's mainly to add the Cottonwood Shores to their firefighting services. The development service is next, that department for lines 12 through 25. You can see the various amendments. It's to increase various fees, permit fees, and then some expenses. The good news about all those amendments, if you look on line 26, is it totals $268,625 to the positive. The police department is next. There are four amendments that net to zero. Lot mowing is next, and there's three amendments. We're going to budget at 2,717 lots, and that nets to $39,492 to the good. Public Works. is going to budget and move something from one of their lines to repave the Picketball Court. So that's a savings in public works of $10,500. Total for the general fund is to the positive of $377,522. For the capital fund, we had some interest income we want to decrease the cost on the center center city center is decreasing and that repaving of the pickleball court is coming down to the capital fund. The total positive to that is $588,327. The, let's see, we'll go down to the utility fund, which is your next page. And we are amending for a chemical accident that's still going on. And there are some various other ones. We had a couple that have already been mentioned at councils, budget amendments for some projects. We had the west water plant engineering on line 74 for $51,000. The high zone transmission main, the next line for $190,000. If you go all the way down to the bottom for on line 84, I believe. The utility fund is going down by $103,000, but if you look to the right, there are going to be some future billable water impact fees of $704,000 that will offset that. The remaining budget amendments are reclasses for we're setting up the GIS department and moving it out of the IT department. That nets to zero. So those are all the budget amendments summarized.

So the total $897,704 to the good, total budget corrections?

That is just on the red highlighted ones, which is corrections from a budget roll forward.

Okay. Did we ever determine how many lots we have excluded from our lot mowing because of non-payment?

So the lot mowing revenue is on the cash basis. And basically on line 34, if you took the 565, it's rounded. But if you did divide it by 190, I think it came up to like 2,900, 734 lots, 74 lots. And then on the next line down, so remember that's cash basis. The next line down is the expenses, and we do mow all the lots, whether we collect on them or not. So that was 4,286 slots, which is basically 600,000 divided by $140. You could see that on line 36, column E, that we netted to a negative 380,000 for that one department. But when we decided we're only going to budget and mow for 2,700 lots, and that's to 38,000 to the positive, or 39.

So we're going to stop beating our head up against the tree mowing for lots that refuse to pay us?

It's the lots that are not in the program. And what we're doing now is if you're not in the program and you don't mow, then code enforcement's going out there.

Okay. Any other questions for Molly? Anybody have a motion?

I move to approve ordinance 2026-14, approving and adopting an amendment to the budgeted funds for the fiscal year beginning October 1, 2025 and ending September 30, 2026 as detailed in Exhibit A.

Motion by Mr. Fetchner. Do I have a second? Second by Councilwoman Waddell. Any discussion? And all in favor, vote aye. Aye. All against, no. And the ayes have it. Motion passes. Molly, you're still up.

Yes, sir. So it's for the approval for a vendor slash agreement for our sales tax and economic development advisor. Chief Fowler introduced us to HDL companies. Their city had previously utilized their services as a sales tax advisor. And so that... The city, as mentioned, is currently experiencing some flat sales tax revenue, which could increase over the summer. And so we're interested in engaging HDL as a full-service sales tax administrator, as well as leveraging their economic development expertise to support our implementation of the comp plan. This agreement has been reviewed by the city attorney's office, and we are requesting that you approve the vendor and the agreement. I don't know if I need to tell you.

How much is the agreement?

The full sales tax administration is $4,800 and the economic development is $3,600 for a total of $8,400.

Is that per year?

Pardon? Is that a one-time?

Is that just for this year? Yeah. Okay. Anybody have questions for Molly on this? And as you well know, the reason we're doing this is to diversify our tax basis in the event the legislature does something that harms us with regard to property taxes, which could happen, and with regard to making sure that we're collecting the sales tax that we should collect instead of it going to other sister cities.

It helps our comprehensive plan as well so that things that are zoned commercial, we have a better idea, at least as a perspective, how much tax revenue a particular type of entity might provide. So I think that's going to be really helpful.

I will entertain a motion. Mayor.

Oh, sorry. Donnie's setting me up here. On page 120 of the packet, there is a section 1. Sorry, 2C. Donnie says y'all need to include that in your motion if you want to authorize it.

Page 120?

Yes, sir. Section 2C.

I think you want to check that you authorize.

So is this in addition to the motion? Okay. Okay. Does anybody have a motion? Mr. Morgan, perhaps you? Really? Really?

I move to approve HDL Companies Agreement for Sales Tax and Economic Development Advisor, contingent upon approval by the city attorney in the amount of $8,400.

And I think we need to include that bold heading there, to research the...

to receive tax research services per the agreement.

Yeah, I mean, it's fine. It's 2C, 727. I mean, we'll check it. I mean, that's what you're asking, yes.

Yes. Motion made by Council Member Morgan. Do I have a second?

Second.

Second by Mr. Fetchner. Any discussion? All in favor? Aye. All against? The ayes have it. Thank you, Molly. Okay, we're going to move on now to resolution 2026-16, and that's going to be Susie Quinn.

Yes, the resolution for the council rules of procedure is supposed to be done every January following a legislative year. It is taking us time to go through all of the rules, and we've made several suggestions, and they are included in your packet.

Okay, counsel, I assume you've had the opportunity that I have to review these things, and she's done a fantastic job going through word for word, line by line on these. And do we have any additional questions of Susie? In that case, I will entertain a motion.

I move to approve Resolution 2026-16 with the suggested changes to the council rules of procedure.

Council Member Waddell makes the motion. Do I have a second? Second. Second by Mr. Morgan. Any discussion? All in favor, aye. Aye. All against, no. The ayes have it. We're moving on now to F9F, and that's Susie Quinn again.

Yes, since coming here, there is an agenda software in place. It's called Civic Plus Essentials, but there was never any training provided to the other departments. So it's meant that I've had to take everyone's items online enter them myself, and it is not user-friendly as far as on the website for citizens or for staff. So in working in several other cities, I've worked with several other softwares, and Diligent has a very good agenda software, but they actually came in cheaper than what we were paying Civic Plus and the other Granicus that I looked at. It provides, as you can see, it's $4,700 with training included, and that would be for all of staff. And Civic Plus is $8,000, and training is on top of that at $240 an hour. And then Granicus came in at between $9,000 and $11,000, depending on training time. So I would Hope that you would allow us to change agenda software and approve that we go with diligent.

We like that song cheaper. That's a good one. Any questions for Susie? She's familiar with this software. She likes it. Going to teach us probably. Okay.

I'll entertain a motion. I move to approve the city manager to enter in a contract contingent upon approval by the city attorney. with Diligent Brand to provide agenda software services outlined in the closed quote as presented by staff for an amount not to exceed $4,750 annually.

Motion by Mayor Pro Tem Morgan. Do I have a second? Second. Second by Mr. Weatherby. All in favor? Aye. Aye. All against? And the ayes have it. Thank you, Susie.

I would like to make one comment. their contract does include a 5% increase annually. But to get to the $8,000 we were paying Civic Plus, it would be seven years down the road. By then, we might be looking at a different agenda software anyway. So, okay. Thank you.

That's great. That's great. Thank you for your good work on that. Brings us to 9G, which is the approval of NIRMAP quote and contract. And Rick William, no. Jim.

A newcomer, his first time.

Council members. This data is just required for coming up with the impervious cover fee and it's helping with the drainage study. It's getting ready to happen. We're just acquiring AI data to show us what's impervious and not impervious.

Great. Can we have a... An amount on that, is it $9,974? Sounds about right, yes sir. Okay, any questions for Jim?

Oh, excuse me. I'd like to add, this is a GIS software. And so it sits on top of our system. It has a better imagery a lot of times than the one that we have. And also it gives us the ability to not only just look at impervious cover, which is part of our way that we will calculate our drainage fee in the future. But it also gives us ability to look at our tree canopy also and measure that, which is one of the things that comp plan and trying to make sure if we do have a tree mitigation program in the future, we're able to use something to balance and where we're going to put things, where we're going to plant trees and also keep up with track with a loss or a gain of canopy for our future.

Does that do it automatically on the software itself, the canopy, or is that a visual lot by lot that you have to do?

No, it's through the process itself. It measures the tree canopy. Yeah, the technology's come a long ways with the GIS, and so it can do things that took us massive amounts of time. Now Jim can do it from his computer, so it's a good deal for us.

Okay, great. Any other questions for Jim or Jeff?

You going to help us with the comprehensive plan? Yes, sir. I know we put a lot of pressure on you.

It does. One of the items in there is about tree mitigation, and this helps us to identify what that is and gives us a KPI.

That would be great. Okay. Anybody have a motion for me?

I move to approve the city manager, our mayor, to enter into a contract contingent upon approval by the city attorney with Nearmap U.S. Inc. to provide the services outlined in the enclosed contract as presented by staff for an amount not to exceed $9,974.16. Motion made by Ms. Waddell. Do I have a second? Second. Second.

Second by Mr. Morgan. Any discussion? All in favor? Aye. All against? And the ayes have it. Jim, you got your software, buddy. Okay, Ray.

Ray. Yes, Mayor, Council, Ray Garcia, Utilities Director. This is the FY26 Water and Wastewater Impact Fee Study. I'm going to introduce to you Grady Reed who is the project manager from HDR who's conducting our Water and Wastewater Impact Fee Study with the committee.

Grady Reed. Good afternoon, Mayor and Council. My name is Grady Reed. I'm a senior project manager with HDR Engineering. The first part of this is just informational, and then we do have an action item on the back end of it. The city has been going through the process of updating their water and wastewater impact fees. Previously, you held a public hearing on the new requirement of the financial audit, so we have checked that off. So really, at this point, what we have left to do is to do the public hearing on the impact fee adoption itself and those changes. The capital improvement advisory committee, that is the board that is set up to help us work through this process. They have been meeting diligently to go through this. We've had several meetings with them. We started on February 19th where we just kind of walked them through the process and the expectations for that committee and what our goal and what we're really trying to do. On March 23rd, we had a really good discussion on the capital improvement plan that we were using for this update of the water and wastewater impact fees and really explained all of those projects to them, the purpose of those projects and how those projects kind of fit together. And so they really had a really good, left that meeting with a really good understanding of the projects that we were basing this fee on. On April 27th, we presented the draft impact fee advisory report to them and had some discussion of the report. Our impact fee methodology was included. And then on May 11th, they did meet again. We reviewed some changes that we made to the draft report between April 27th and May 11th based on some city feedback and updating costs for some of the projects. And at that time, the CIAC approved final report so that report i believe has been forwarded to you or will be forwarded to you soon we cannot really discuss the report at this meeting but by the ciac approving their report they made the findings that the land use that we're using appears to be reasonable again that the cip has been reasonably reasonably defined and we spent uh quite a bit of time going through the cip and that the maximum impact fees have been reasonably calculated. In addition, the CIAC is recommending that council approve the maximum impact fees as calculated in the report. Again, that will be discussed during the public hearing, which is the action item that we're asking for. So we're requesting that city council set a public hearing date to hear comments on the proposed new maximum impact fee for a date of July 21st, 2026. We will have to send out public notice at least 30 days prior to that hearing.

What date was that?

July 21st of 2026. Okay.

Could be our regular July council meeting.

Okay. Yes. We've got June 16th.

It's... Sorry, it's 60 days, so it can't be the next meeting. It's the 60 days from now.

Yeah, we cannot hold the public hearing in June just for this one, this 30 days notice. And then there is also a new requirement that we have to have posted the updated CIP that has to be made available to the public at least 60 days before the 30-day notice goes out. And there's also been changes in rules that you can only update your impact fees every three years. The last impact fee update was in July of 2023, so we want to make sure that we hit July of 2026. So this is the action item. On July 21st, we will hold that public hearing. That will be the opportunity for the public and council to discuss the report. and the updated impact fees, and then council can take action on July 21st or up to 60 days after that public hearing.

Great. Any questions? Okay. I will entertain a motion.

I move to accept the FY26 Water and Wastewater Impact Fee Study Committee Report as presented and to schedule a public hearing for July 21, 2026 during the City Council meeting.

Motion by Mr. Weatherby. Do I have a second? Second. Second by Mr. Fetchner. All in favor? Aye. All against? And the ayes have it. Thank you very much. Thank you. We'll see you July 21st. Now we move to our consent agenda. And first thing I want to ask, is there any item on the consent agenda that anyone would like to pull off and either discuss or table for our next meeting? Hearing no objections, do we have a motion to approve the consent agenda? I move to approve all the consent agenda items as presented. Motion by Mr. Weatherby. Do I have a second?

Second.

Second by Mr. Fetchner. All in favor? Aye. All against? And the ayes have it. Consent agenda is approved. That now brings us to our monthly reports.

I would just make it short, but I think it's important for you all to understand the status of our high storage pump station and transmission line, kind of where we are on that. Would you mind giving an update on that?

So we, Mayor and Council, so we have completed the actual tie-in. Thursday the 21st of the high zone transmission The tie-in is at the high storage pump room where on Pawnee, okay? That tie-in of the high zone has been completed 21st, which is Thursday, I believe. Thursday, we will be actually testing and turning that on. So that part will be complete at that time. The tie-in is actually complete, so everything is bolted up and everything is lined up, ready to go. that has been sitting there waiting for the test. The punch list now will start in terms of all of the corrections that need to be taken care of and this is mostly street remediation Those things that got left out of the actual repairs that we had been way that have been completed and from there once a punch list is done that Should complete the high zone transmission main This is the baby that won't quit crying. Yeah, most definitely most definitely I And again, we appreciate the patience of the public as well. It's been a time, but it could be worse.

You've done a good job taking care of the citizens. We appreciate it. Any questions? Okay. Thanks, Ray. Appreciate it very much. Congratulations. We did no kidding.

I'm sorry.

Make sure that road looks good.

we did receive some good positive comments after the fact too, on the road pavement from people that were very, very tight. So on, on that. So they really appreciate it very much. The only other thing I have, I think is going to be, uh, Rick's going to talk a little about the, um, uh, the, the, the, uh, new city, uh, the old city hall renovations. We just started that. So we'd like to.

Yes. Yes. So, uh, thank you, mayor council and the remaining residents, or maybe just staff. Uh, So as Jeff said, we have started the renovations in the old city hall in typical fashion. We did it where we're doing voting and we've got contractors in there and we're still conducting business, et cetera, out of that. So if you go over there now, we have the access is blocked in a very specific way so that we can still facilitate voting. So far, the report has been a little bit optimistic. And so it's a little better than I originally thought it would. We did get a roof report back. So the flat section of the roof, when you walked up to the employee entrance of the city hall, you had that white section. Most of that will have to be replaced. Wasn't a huge shock to us. Well, at least that's what the report's saying. But other than that, they've done a lot of the tear out of some of the interior stuff. They found the structure to be in good shape. We found some interesting relics of how the building was put together, et cetera. It looks like there's some portions that used to be outside that are now inside. And so just some stuff like that. But it's going according to schedule or maybe a little bit, Robert's not in here still, a little bit ahead of schedule even and under budget so far.

Who are y'all knocking for?

I'm just making sure that I'm not jinxing it. I'm very pessimistic by nature, so...

Good deal. Good report, Rick. Thank you very much. And I understand that the judge, Madison, likes it so much that he wants to stay over there.

He has requested. I talked with Jeff, so we're going to look and see what that will impact cost-wise, and I'll get a separate bit on that, and we'll discuss that and see if that's something you'll want us to proceed with. He doesn't like the echo, I'm told.

Yeah, one last thing is, Tim, update on just the kind of the road. We're starting road construction.

Good evening, Mayor and Council. So we've paved out the last section of our road reconstruction. We have a little bit of hydroseeding to do, but other than that, all the way from Mountain Dew all the way to... Fox Hollow Park is all paved out now and redone. So we've come all the way around from the mausoleum over to Dew Drop and Mountain Dew and Mountain Dew all the way to Fox Hollow Park. New drainage structures the whole way and all paved out. Really, I'm kind of proud of that section. So if you all get the opportunity, you need to ride out there. Also this morning at 10 o'clock, we had a pre-bid meeting for the road reconstruction seventh. So we'll be getting out. Those are the 26 streets that you and I have already spoke about. So we had a pre-bid meeting on that. And we will open the bids, I believe, at the end of May. And it will be presented in July for y'all's approval. I'm sorry, June. And we also have the steel coat re-bid coming up relatively quickly as well. And hopefully in June, that'll be ready for y'all to approve. Good job. Thank you.

That is all. Is that it? Do we have any liaison reports that you'd like to give? Okay. Hearing none, unless there's an objection, I will adjourn this meeting. No objections here. This meeting is adjourned.

Oh, wow. You're going to like this buck. What?

At 535.