City Council - Regular Meeting

It's green. It's green. It should be working.

Testing. Yeah. Good afternoon, Horseshoe Bay.

Welcome to the first city council meeting at the new digs. And I hope you like them. Uh, thank you all for being here. I'm going to call the meeting to order because I am establishing a quorum here of every one of our council members present and I'm glad to know that. So, we've got a full council uh here for this first meeting and uh I thank you all for coming. I'll have a few announcements in just a few minutes. But first, as we typically do, I am going to ask uh our minister uh Scott Vermillion of the Church of Horseshoe Bay to give our invocation. Please, sir. Lord Jesus, we are so grateful for uh this building as it represents a vision coming to reality. For many years, this has been a dream and a hope. And now we get to stand in it and conduct our business in it. And we know that uh when good men and women put their their minds to work and roll up their sleeves, good things can happen. And so we pray as we inaugurate this building with the the first city council, we pray that the work that is being done here, the conversations that will be had, the decisions that will be made will will dream up new projects and new establishments will continue to help this good this good city uh continue to grow and continue to thrive. We thank you for the men and women who serve on the council. give them wisdom and give them all the encouragement that they need to lead us well. 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 under God, one and indivisible. Seated.

I also failed to announce that uh Dr. Vermilion was a a past student of our citizens academy and he along with his wife and uh if you have not uh explored citizens academy my suggestion is that you you check into it. It's a very uh wonderful opportunity for you to see how city government works and see your city staff that you uh uh depend on so much. see how they they operate. So I thank you uh Dr. Vermillion and I was uh wanting to also say to remind people if you plan to speak today uh that you need to sign in at one of the two desks over here, the small desks uh so that we may have uh you um on our record. And when you do speak, we need for you to come to the podium, please, and announce your name and where you live uh before you actually speak. Thank you very much. To keep keep order,

uh my my council member uh Mr. Weatherbe reminded me that there's a maximum of three minutes. So, uh we've got some uh uh reminders that we'll give you as well. Uh I also wanted to thank our city staff and all of the people that were responsible for uh everything from groundbreaking ground groundbreaking to what you see here today on this uh new city hall. And I thank each one of them. They had to not only do uh work with the city hall and getting it planned uh furnished and so forth, but they had to do their jobs at the same time. And it has been a real stretch for them to uh keep up. And I thank you all for what you've done um in in this respect. So we are going now to um open this meeting at 304 and we are going to have some u uh recognitions. The first one is going to be uh patriot awards from the employer support of the guard and reserve. That's ESGR. And Mr. Costco is going to introduce Lewis I believe.

Yes. Thank you, council. This award recognition that we have for the two police chiefs is going to be presented by Leth. Say your last name. Beth. Yeah. How do you say your last name? Sleti. Sillet. Okay. He's going to uh represent what this award is and why uh the two chiefs are getting it.

Thank you. Thank you for that kind introduction, Mr. Mayor, fellow council members, citizens of Horseshoe Bay. I am Lewis Cletia, resident of Highland Haven, and I'm here representing as a volunteer ESGR. ESGR has basically three functions. It's uh four functions actually if I add one more tonight but it's a military outreach employer outreach ombbudzman services where we help mediate cases uh between the employee and maybe the military service that they have through ES through the uniform services employment and remployment rights act. And then lastly, we offer recognition not only to individuals but also to organizations. And but today we are meeting because a member of the Horseshoe Bay Police Department, Mr. Nicholas King, has recommended not one but two Patriot Awards for the Chiefs here at Horseshoe Bay. And it is my distinct honor to call forward Chief Jason Graham and Chief Paul Nelson if they would come forward. So Chief Graham, this is a patriot award indicating that you are a patriotic employer and contributing to the national security and protecting the liberty and freedoms of the members who serve in the guard. And same thing with you, Chief Nelson. this is an award for you. And I'd like to just quickly indicate what the comments were of the nominator in this regard. And it was by Mr. Nicholas King. He says, "My supervisors support the soldier throughout his pre-eployment training and deployment overseas," which he is, by the way, at this time. Uh my supervisors recognized this employee for

his service in the National Guard and maintaining a great environment for the soldier to work at the forebe police department. His supervisors employ many current US military guard and reserves and numerous veterans. And for that he is very pleased to recommend both of you as I am to present these awards. And not only the awards, but you also get a patriot award and pin to go with your uniforms as well. Sir, congratulations on your awards. Chief Graham, Chief Nelson, we want you to know that we appreciate your service. We honor you. We thank you for keeping us safe and we here at Horseshoe Bay respect our law officers and our National Guard. Thank you very much. We are going to move now to introduction of a new city team member and I am excited about this one.

Yes sir. Thank you so much uh council mayor. Um very pleased to announce Susie Quinn uh as our new city secretary. Um, Susie comes with over 30 years of experience as a city secretary. Susie has retired twice from her career, 2011 and 2024. Uh, she came and worked for us as a in an interim position that she loved it so much here. She said, "I'm coming out of retirement again because I love this town." So, that was really good for us. Uh, she comes with that large uh that uh tenur experience in as city secretary. Uh she's been doing recently she's been doing uh interim work across the state of Texas to stay mentally sharp as well as supplemental travel budget. She began traveling in 2022 and has been to Rome twice, Paris, Normandy, Ireland, and took her first Alaskan cruise recently. So she liked to travel. Uh Susie is a Texas registered municipal clerk through the Texas Municipal Clerk Association and is a certified municipal clerk through the International Institute of Municipal Clerks. Susie has four children, seven grandchildren, and one great grandchild. The city is excited to have someone as well seasoned to join our worldclass staff. Please help me in join in Susie as our new staff member. Okay, thank you and welcome Susie. I've had the opportunity to get to know her as all of our staff members have and she is a real charm, I'll tell you. Thank you very much. Uh we uh have one proclamation today and it's a proclamation of gratitude to Perdales Electric Co-op and I think Beth

Kcki is here. There she is. Um and uh I as you approach are you going to speak to us? Okay, please do. Uh she is also planning an upgrade that we will hear more about at a at a uh subsequent council meeting of our entire city with the capacity uh that we have to uh a avoid any outages in the future. We hope so. You'll hear more about that in the weeks to come. But first of all um I turn it over to you to

Thank you. We are very excited to be here today. Um we really appreciate um the partnership and the communication that occurs between PEC and the city of Horseshoe Bay. Um I think everything ran very smoothly and and we're very appreciative to your team for quick communication and and staying on top of it. With your permission, I'm going to read the proclamation or at least pertinent parts of it that I want to sign and give to to you. Uh and it's a proclamation of the city of Horseshoe Bay, Texas, appreciation for assistance from PEC's cooperative team. Whereas an extremely cold weather event in Horseshoe Bay occurred January 24th to January 26th, 2026. And whereas Horseshoe Bay experienced multiple electrical outlet outages that directly impacted three major facilities in our water and wastewater system. And whereas PEC's leadership and exemplary partnership marked by immediate response and real time resource allocation proved to be highly effective. And whereas the city of Horseshoe Bay recognizes the outstanding service provided by the PEC's dedicated staff who were essential to maintaining our operational continuity. Now therefore be it proclaimed by the mayor and city council of Horseshoe Bay, Texas that we extend our sincerest gratitude and appreciation to Perdinalis electric co-op team for their exceptional response. unwavering commitment and vital support during this challenging weather event. Thank you.

And I have a proclamation to give to you. Yes, sure. She would like a picture

over here. I was out only six hours this time.

I would say while they're taking the picture, it was uh it was we had a lift station issue. One advisor went down in a in a water plant within the area that was outage. Uh so we made a phone call to PEC to see if they could kind of change resources over from where they were working on to help us get those lift stations and water systems up and they did and that was very much appreciated because those those things if we don't have power to lift stations they can cause overflows and so they were really beneficial for that. So very much appreciate our partners with PEC Now we come to the time of our council meeting that we entitled public comment. That's an opportunity to you for you to speak to uh any matter that is not uh on the agenda uh today uh or is not a public hearing item actually. And um it is an opportunity to speak on any matter about the community that you feel is pertinent uh to the community itself. and be because it is not on the agenda, we cannot um engage with you because that would be a violation of our notice provisions. So, we will be glad to hear from you with with three minutes uh allotted and uh if you've signed up and I do have some people signed up and the first one uh on this is uh Timber Ridge

Cundy's condos. Sorry, Gordy. Uh, he wants to speak about the driving range at Slick Rock and Netting.

We're just here to uh these are some of the owners of the condominiums, but we're here to express um our uh concerns. Yeah. Concerns. We had started back in November. Can I get you to identify your your names for us? Ron Ronnie Spencer. Ronnie Spencer. And I've been there for a year. I just moved there. I Rose David Runner. Cord Shaw.

Okay. Sorry about that. Anyway, we've been told by the golf course that there's a city ordinance that will not allow them to put up a netting along the driving range. We live in the 26 condos on the west side of the driving range. And uh so we've been going around with this. Um but uh we're here today because we aided the city ordinances. There is no city ordinance according to whatever AI is. Um but uh we want to make you guys aware of it and they are reluctant to put up netting to protect our condos. In the first 14 months that I lived there, we had 15,000 golf balls hit into our condominiums. We cannot even use our outside areas of our condominiums without possibly getting hit by a golf ball. And these individuals here have had Bob just showed up. So Bob Tyrone um uh thousands of dollars of damage to vehicles, windows, and other things. Uh, so we're putting it in front of you. We want to know if there is a city ordinance. If there is not, then we want you to talk with Horseshoe Bay ownership about getting this done. Um, we've been I was with Mr. Costa back in November on this issue. Um, and then this got built and all the other things kept getting it shoved down the road. But,

um, it's it's an urgent need and we have several condos that are being sold in our area and they can't sell because the realators are saying it's your property's no good.

Thank you, Gordy. Appreciate it. Well, I was going to say and I've been here a year and uh I have three windshields and I have six holes in the siding of my of my condo and in my garage when the garage doors open and I have two holes in the sheetrock where golf balls have come through there. So, it's uh you know pretty costly to me so far. Uh Rick, I'm going to ask you to uh give information with John Byum for uh any additional information. Thank you all for showing up.

Okay, that is the remainder of our open session. That's not on our agenda. The rest of you who did sign up will be allowed to uh speak on the agenda item for which you signed and uh thank you very much for doing that. I am going to take one matter out of uh order council and because we have an out of town presenter at Houston and somebody said there's traffic in Houston so he has to get back at some point and it's uh John Watson and we're going to take 9A when our our business agenda out of order right now and hear from uh our audit our city audit And first of all, we're going to hear from Molly Jester. Molly.

Good afternoon, Mayor, Council, and citizens. I'm Molly Jester, and I'm going to introduce John Watson of the auditing firm uh Brooks Watson and Company. They um finished our audit this year. He's going to do a presentation and the audit is in the packet. It's pages 38 through 139. It is a draft, however. It is now final and that will be up in our website or you can come visit my office if you need a copy. Um let's see. So it's as of September 30th, 2025 is the audit fiscal year end. Council members, Mayor Jeff Jones, Mayor Pro Tim Larry Morgan, Councilman Frank Hia, and Finance Director myself, Assistant City Manager Rick Williams, and City Manager Jeff Costa. We've all reviewed and approved the audited financial report. Uh John, just so you know, um the council has the presentation. There will be a presentation on the board. when you're ready to advance the slide, just let us know because we'll be doing that from here. So, this is John Watson.

Great. Uh, thank you, Molly. Can everyone hear me? Okay.

All right. Great. Mayor, council, appreciate the opportunity to be with you um this afternoon. Um, so I do have a PowerPoint present presentation. Uh, if we could get to it. Um, there it is. Uh, so as Molly said, we completed the audit over the year ended September 3025. Uh, my name is John Watson um with the audit from Brooks Watson and Company. Um, we'll get right into it. Uh, feel free. I'll I'll open it up to questions at the end. Uh, if you don't mind waiting. Uh, quick overview of the audit process. The the audit followed US gas. That's generally accepted auditing standards. It's a three-phased approach. The first phase is the planning phase. We try to focus our audit on risk based risk based approach where we focus on procedures on those areas we find most susceptible to risk of error fraud. And that leads into the fieldwork stage where we test balances. So we draw we test balances uh read underlying reports draw samples and dodge them to underlying evidence send confirmations to third parties and make sure they're showing the same results. where there are any differences we determine as to why and propose audit adjustments and that kind of leads into the last phase which is the conclusion and reporting phase. So we evaluate those testing results and prepare the audit report and some communications I'll go with through with you uh today. Next slide please. The report itself there are five sections to it. Uh first section is the audit opinion. So that's a letter from user independent auditor describes whether the financial statements are consistent with US GAP that's generally accepted accounting principles or if there are any modifications we'll look at that uh management discuss discussion and analysis follows that that shows current year results and significant activity over the year and then compares to prior year so you can see this changes year-over-year basic financial statements are shown after that those

are presented on two different basis of accounting we've got governmentwide statements ments which are presented on full acral has all your capital asset activity long-term debt activity and near-term activity as well and then fund level statements which for the governmental side are presented on modified acral more of a near-term look uh of your financial position and changes in the back of the report there are your notes to the financial statements shows uh a lot of details over those changes and explanations and then the very back your report got your budget actual schedule for the general fund which we'll take a look at uh your pension schedule for the TMRS pension and then some combining schedules for the non- major funds. So that is everything within your financial report. Next slide, please. So I mentioned the independent audit report. There's four types of opinions you could receive and those are listed here uh from green to black. Green being the best. Uh the city received an unmodified opinion. So that is a good thing. That is the highest level of assurance the CPA can provide. So we're happy to offer that today. Um, want to thank the finance department and management, uh, Molly and her team as always, uh, do a great job of getting us all the information we request. It's it's a pretty thorough process and they continue to, uh, work with us very well in that regard. So, we're grateful for that and big reason we're here uh, able to offer this opinion today. Next slide, please. Some financial highlights. So, keep in mind this is as of September 3025 and the year ended the same. uh first bullet total assets exceeded total liabilities by around 52 million for the year. Uh unassigned fund balance in your general fund was about 10.7 million which was uh about 81% of your annual general fund expenditures or about 10 months. Uh your city's policy is to have a reserve equal to or greater to 2.5 million or 3 months of operating expenses. So you're in really good shape there with your

reserve. Um last bullet you see you had an overall increase in your net position of about 3.9 million for the year. Next slide. This will look a pie chart of your governmental revenues. So this is just the governmental activities not the business type activities which we'll look at uh to come. Um so total governmental revenues for the current year was 19,125,000. Prior year it was 17,528,000. Uh sales taxes make up 16% of that, a little over 3 million. Prior year it was also 16% uh 2,747,000. Property taxes make up 57% about 10,877,000. Prior year it was about 54% uh a little over 9.5 million. Charges for services made up 15% uh about 2 2,781,000. Prior year was also 15% uh 2,666,000. PIT assessments were 1% uh 265,548 and prior year was 2% 348,133. Next slide. Okay. So that was the revenue side and this is the expense side. Another pie chart. So where are we deploying those funds on the governmental side? Uh governmental expenses were 16,635,163 for the current year. Prior year it was 15,688,000. Your largest expenses is public safety makes up 45% about 7.5 million. Prior year it was about 6.6 million. General government makes up 15% uh 2,456,000. Prior year it was 18% uh 2,835,000. Highways and streets made up 19% uh 2 million or sorry 3,239,000 approximately. Prior year it was 18%

about 2,846,000 and interest in fiscal charges made up 8% uh 1,387,000. Prior year it was 9% uh 1,457,000. Next slide. Okay. So that was I mentioned your accounting and report is presented on two different basis of accounting. So that was the governmentwide look and this is the modified acral look at your funds. So a little more detailed look. So we've got your general fund on the left here and then other governmental funds working left to right. So the general fund uh circled in red here we see a net change in fund balance of 1,710,742. So revenues less expenditures and some other financing activity. uh it still led to a positive a surplus there of about 1.7 million and that's feeding into a positive fund balance at the end of the year of 10,779,423. So I mentioned that 10-month reserve uh toward the beginning of the presentation. This is feeding into that reserve. So it's a positive change in contribution to that reserve. Summit rock pit fund to the right here uh operate at a surplus as well 289,5001. The capital projects fund expended a lot of funds for cap capital outlay for new building uh during the year and that was uh 11 bill477,466. So it utilized a lot of the a lot of the balances uh reserved for that purpose during the year and then other governmental funds was a surplus there of 351,798. So everything here uh work consistently with our expectations. Next slide please. Okay, so this is a look at your budget to actual for the general fund. Uh, and you can look at the detailed uh budget analysis on pages 80 and 81 of your report. This is just a summary. Uh, we've got revenues at the top,

expenditures below that, some other financing sources, and then the net change at the bottom. Your final budget, so that's the original budget plus all budget and amendments is in the left column. In the middle column is the actual results. And then in the right column is the variance between the budget and actual. So we can see top right working from top down. Um revenues exceeded budget by 13,792. That was a positive inflow to your budget. Um total expenditures actual exceeded budget by 121,133. Other financing sources uh exceeded budget by 59,085. So this led to a a variance there of 48,256 which is bottom right. Next slide please. Okay. So all that information related to the governmental revenue and expense side. Uh in addition to that we have the business type activities. These are your proprietary funds. Uh you've got the water utility fund. So here uh similar to the name here it should operate similar to a business. So we call the revenues operating revenues. At the top here, we've got operating expenses below that. And then operating income and and indeed you did have an income here of 1,278,88. So your operating revenues exceeded operating expenses by that amount. Also got some non operating activity and some contributions during the year, some transfers in on some projects coming over and you see that below. So that fed into the positive net change in net uh sorry change in net position for the year of 4,132,747. Next slide please. Okay, this is a 2-year look at your pension. So these are the last two um years of of activity for your pension. The pension's relatively new for the city. Uh that's why it's not too robust

as far as number of years yet. Uh we've got the most recent valuation on the left which is 123124 and then the year before on the right. In the bottom left here in yellow and circled in red is the position. So the net position of the pension at your end. Negatives in this case are a good thing. They represent an asset. So -15,321 was your position for the pension at your end. That means the assets set aside to fund the pension exceeded the projected liability from your actuary. Um, so that's a good thing. It's it's over 100% funded. In the prior year was very close to 100%. Um, and that's at 225 you see. So where does that relate? We've got a couple bullet here bullets here at the bottom. Um basically average nationwide in 2024 uh study by NCP these nationwide study of government pensions uh 75.4% is average. So sitting a little above 100% is is obviously above average. So it's a wellunded pension. Um how does it impact the city? Second bullet. It impacts the city through uh contributions. So the city pays into the pension to make sure it uh it's funded properly and uh that's what's noted here. So your your contribution rates were 8.12% in 25 and a little higher in 24 8.26%. So ideally if you're in a wellunded position shouldn't see uh large spikes in those those contribution rates. So that's good. Next slide please. Okay. So, that's all the information I wanted to share in regards to the numbers and the audit. Uh, in addition to that, we have a a couple letters. We call them the SAS 114 letter and SAS 115 letter. Um, I'll go over uh basics of the letter. I went over the letter and the results in quite a bit of detail with the audit committee uh last week,

but just want to share the high points there. So, basic information noted in the first letter, the SAS 114, uh, it discusses our independence. So, we're completely independent, don't have any uh relationships with the city outside of our our audit contract here. Um, it also goes over audit adjustments. So, uh we propose audit adjustments as a part of our testing when we when we uh encounter things that need correction and those are listed within that audit letter. In addition to that, uh there was a change in accounting standards uh Gazsby 101 which related to the acred liability for sick time. So, there was a change in how sick time was recorded. uh essentially more of it is going to be recorded by all cities. Um it's based on estimated usage rather than payment at termination. So that's that was a big change for the city and all cities this year and uh that was something that was adopted within your financial statement. So important to note that that is a change uh from prior year in regards to your accounting. The second letter we call the SAS 115 letter. Um we go through control internal controls processes make observations over a lot of things in the accounting and that's where we like to provide feedback on things um and that's what that letter is used for. So we have a couple things we went through uh in that letter and again went through in a lot of detail at the audit committee meeting. So um hope hope the city finds it useful. Uh with that that's everything I wanted to share. I really appreciate your time. Um, and it's great as always to serve as your auditor and uh open up to questions. Thanks again,

John. Thank you very much. And I thought you were going to be here and have to get back to Houston. That's Did that change? It it did change. Yeah, I ended up getting the opportunity to do this virtually, which I should have mentioned at the front. I I'm certainly grateful for that cuz I I did have a a scheduling issue and this was brought up and and I jumped on it and I'm I'm very appreciative for the opportunity. That's fine cuz you we've got a brand new screen and you're huge on that screen so it's all good.

Uh council, any any questions for John? We uh we had the opportunity uh Frank and I did and and Larry to uh visit with him earlier and uh do we have any follow-up questions? No. Okay, John. John, thank you very much. Thank you all. I appreciate you.

If you're like me, the you know, I kind of want to know, well, what's the long and short of all this? And I talked with my council member Larry Morgan who is our uh pro Tim and he said who is a CPA. He said it's all good. It's real good. So that's what I want to know. That's what I want to know. Uh okay. We have our second presentation now which I am going to be so glad to see on this big screen and it is on the You need to do the motion. Oh, we need to do on the You want the motion on the audit? Okay.

Uh do I hear a motion for uh approval of the uh audit? I move to accept the audited financial report for the year ended September 30th, 2025. Motion by Mr. Mr. Morgan. A second. Second. Second by Mr. Weatherbe. All in favor? I.

All against. The motion passes. Thank you. Thank you, Molly, for reminding me of that. Um, now we're going to go to the uh first quarter. Before we get to the water quality, we're going to go to the first quarter uh financial report. I'm sorry, Molly. I kind of jump roped you there. took it out of order. I forgot.

Okay. Um, this is the first quarter financial report. So, it's from October, November, December. It's three months and it's pretty much early on, so keep that in mind. Um, there's a lot of timing. Things aren't linear. And um let's go to the general fund revenue analysis. If you okay the pointer not really working but you can see the bottom line uh for our revenues we're at 30% which is good. Um it's greater than 25%. You can see some things are over some things are under. Again it's timing and things are not linear. Are there any questions on the general fund revenue? Okay, we'll go to the expenditures. And again, it's three months worth. If you look down at the bottom, um the percent is 24%. If you remember, the revenues on the previous page were 30. So that is good. Our revenues are doing very well. The expenditures are a little under 25%. Again, you can look and see at the various lines. Some are up and some are down. Again, it's just some timing differences. Are there any questions on the expenses?

Questions? Nope.

All right. So, the next page is the general fund capital expenditures. If you look down at the total line, we are at 6.5% uh complete. And basically if you see something at zero that means it hasn't started yet or there could be a lead time or it's when it's needed and then you will see the various other percents where things are um already purchased and those are at a greater percent. Are there any questions on this for the capital fund expenditures? I mean general fund capital expenditures. If not, we'll go to the next page. The utility fund revenue analysis. Again, it's three months worth, so you expect 25%. If you look down at the bottom, good news is um we are currently at 25% on our revenue. Again, you'll see some timing, some things haven't happened yet, or it could be like the interest income. We're doing well on that. Are there any questions on the utility fund revenue? We'll go to the utility fund expenditures again. Three months worth. You would expect it to be at 25%. If you look at the total, that's 20.74. So, we're doing well there. If you recall on the previous page, the revenue was at 25%. So, our revenues right on spot and the expenditures are under. So, that's good news. Any questions on this slide? Okay, we'll go to the next page, which is the capital expenditures for the utility fund. And if you go down to the bottom, we're at 12.85 85%. And again, there's a lot of lead time. Projects haven't started. If they're

greater than, you know, 80 to 90%, they're about done and there's a lot of activity going on. Are there any questions on any projects or this slide? Okay, we'll go to the capital fund revenue for three months. We're at 15.58%. Again, this is not linear. Um, you can see on the next two the second and third line, we haven't gotten our bond yet, which will be discussed um coming up. Are there any questions on the individual lines for the capital fund revenue? Okay, we'll go to the capital fund expenditures for the three months, first three months. And again, it's the same thing. There's timing. It's not linear. If it's a low percent, then it really hasn't started. Or if it's a greater percent, the project's about done. You can see it. City center and fire station are on there and various others like streets. Are there any questions on this slide? Okay. Well, that was it for the presentation. Thank you.

Any further questions for Molly? Okay. Thank you, Molly. No questions, but uh great job. Yeah, great job. Absolutely. Do you do household budgets? That was a nervous laugh. Uh Jeff Costa, you've got something on the city's water quality. Yes, sir. Uh what do you got?

Mayor and council, it's my pleasure to uh introduce our newest video. Thought it'd be great to do it on our big screen that we have up there. First time that we had this opportunity. And we've done a a couple of videos in the utility department and uh some of the development services and I think that um Corey who has done some really good work on our uh video to to bring up the level and I thought it was really uh a really good thing to talk about that not only are we going to have uh this video but we're looking at trying to put out one video per quarter uh as as part of our media. And of course the folks that are doing this, they have other jobs too, but uh she's really elevated this up. Corey, stand up for a second. Yeah, she she really has put in a lot of effort on this and and I think you'll see it the quality looks professional. And so, uh, what I would like for y'all to do as we run this video, but I I would like for y'all to, uh, city council members and and the public to reach out to your your, um, your council representatives. And if there are things that you think that we need to do better, um, that's a new medium of communication is through videos. And so, if there are things that we need to do, please tell your council members and they feed it through the mayor and then we will sit down and we'll put priorities on what videos come out from the future. But as it is, I'd like to just go ahead and uh roll this video. Um is uh Jules, you out there. We don't have sound. Jules

new equipment. But as you can see the video quality very professional not that we didn't do good quality but she has to quality kind of generic sense but we are going to be looking at some more technical one quality came There's a lot of different things that we can have. We'll try

Jeff. Uh why don't we do this? Uh we'll see if Jules can do some troubleshooting and we'll move on and come back to this if uh we have a chance. Okay. Thank you.

Congratulations. you're in the first visit here. All right. Uh we're going to move on now to public hearing items and we've got two public hearing items that are actually uh have been opened in our last meeting in January and were not closed. Uh we have developed some additional information that we're going to talk about today. And uh these are two items uh on the public hearing uh agenda that are very interconnected and they're A and B and we're going to uh take both of those uh together but we will vote on each one of those separately when we get to the voting uh issue. So um we are going to take up now uh item 8A which is already open from our last meeting and it is a request for a variance of the sub subdivision regulations uh from that limits cut and fill not to exceed 4 feet in depth for a subdivision known as Caprock Thundercloud a 4.47 47 acre development in Bay West Boulevard, zone 3, Horseshoe Bay West. And we have uh the applicant who is here with several people. Uh and I'll let uh Brienne you uh introduce those later. We're first going to hear from our uh our development services uh director, John Bum. And John Daddy say you need to open it.

Both meetings. Are you gonna both items? You want me to open both at the same time? Did you just say that they're both already open? It will announce the time then.

Okay. We're we're also open on 8B which is uh not closed from the last time and it's a public hearing continuation discussion and consideration of a request for variance of subvdision regulations that limit cuts and fill. cut and fill not to exceed 4 feet in depth for a subdivision known as Cap Rock for two garden homes uh in residential lots uh known as the RUD house located off of Bay West Boulevard zone 3 and that that also has remained open from our last meeting as well. So no need to open that. Well, just say the time that we're continuing and open.

Okay, we'll continue the time at 3:49. Okay. Thank you, John. Mayor, council, good evening. Uh, John Byron, development services director for the record. This is a continuation um from the last meeting. Um, again, it's one development, two different parcels, which is why there is um two variance requests. At the time of staff report, um the engineering team was still reviewing, so staff wasn't ready to make a recommendation. Since then, the engineering team has cleared all comments when it comes to the variance for the cut and fill and the applicants have a presentation to introduce this project to you. So,

Miss Kelsey, could you state your name for the record and your position? Brienne Kelsey, uh, Replay Destinations, senior vice president of development for Replay, both developer and applicant for both applications.

Okay. Can I also say that I've I've asked you to come and give a full presentation of what uh your project looks like and uh I know that the variance is for cut and fill. Yes. But the community wants to know exactly what the what the plans are and the plans not only for the engineering which we discussed at length last time but the plans for parking uh off off uh off-site parking so that it doesn't un unduly interfere with uh you know the uh residential areas and also about the engineering with regard to taking down the the uh retaining wall also there on Bay West. So with that in mind, I will let you make a presentation.

Thank you very much. Um this might go slightly over 3 minutes given Yes. Yes. You you're the applicant. You you

the ground we're trying to cover today. So, for the record, um, mayor, fellow council members, uh, staff, and the community and citizens of Horseshoe Bay, um, thank you very much for the opportunity to, um, stand before you and present this project and this development. It's a brief introduction to Replay Destinations. This is the development project team. Um, many of them are here today. Many of them you may actually recognize with a few of the community already in our conversations to date. Um, as I just mentioned, Brienne Kelsey, senior vice president of development. I have the pleasure of working with Lucas Sandage, who is sitting here today as well, our senior development manager, Daniel Wright, uh, who's our land development manager, and then Jordan Dvers on the bottom right here, who is our construction manager, um, with a project. Myself, Lucas, and Jordan are based in our Scottsdale office for replay. Daniel is based here. He's actually based in the Austin uh area. We're working on getting him an address for Horseshoe Bay, just for the record. Uh what I would like to do is walk you through a little bit of the presentation here in the agenda that we have today which is the project team who is working with us on the development. Um outline and give you guys a little bit of more information on who is replay. We recognized we are new players probably for most if not any of you um in this particular market. uh walk you through a bit of our portfolio, some of our design themes that we're looking at for the particular site and then get into the details of the master plan, the development plan leading into more of the technical components that Mayor Jones I think

referenced um in the conversation. When we get to the technical piece, you're going to see me step aside and um I have our representative with us from DTJ, who's our site planner, our landscape architect, and our architect for the project, Cindy Pedrioli, who's the senior associate, who's going to walk you through some of the details. Um just so you know when that happens. Oh, that changed colors on us. This is the project team. Hopefully you can kind of see that um up in front of you. Um the three key team members um that we're working with, each of them all have 20 plus years experience. So I like to do math on things. That's almost 60 years of experienced um folks in the industry. not only practiced across the US, but also practice very specifically in the Hill Country area and in the Austin area. On the left is um that's DTJ Design, who's our planner, our architect, and our landscape architect. They've got several offices um and they have um an office in Austin um as well too and a fair bit of experience between a few communities in Lakewood Horseshoe Bay and Austin that are relevant to the project mix. In the middle is DCA, Dick Clark and Associates. Another fabulous firm that we've recently brought on board from a conceptual architecture level given their experience in the market and specifically with built homes, single family homes in the Horseshoe Bay area, um more on a custom resident side. And then we have Kimley Horn, very important to this application and this um project you have in front of you. um

as our civil engineer of record. Um this team will stay with us from start to finish on the project. So from concept all the way through to construction drawings to execution at the end of the day. Um Kimley Horn's got a lot of experience in the market that spans from residential to commercial. um more particular um they are very familiar with the type of conditions um that we are dealing with this particular site and how to effectively manage them. the development pro proposal you have today, one project. Um, and just for clarity on this, it is two applications that are in front of you uh for review and consideration. But we see this as one development, one residential development. Um, one site is four acres with a planned 10 residences and the other site, the smaller one, the red tract as we like to call it, is a 1acre site with two planned residences. So, a total of 12 residences that are all standalone single family homes applicants replay destinations and DTJ's design as well um for clarity on the application to date. So, who are we? Who is Replay? Our home office is actually in uh Vancouver, Canada. Um but we've got, as I mentioned, a couple of offices across the US. Our focus is on destination resorts and community environments. We play in the field of secondary, tertiary, vacation homes um in areas where there's established resorts and there's a reason to go um and experience things. We have almost two decades of

experience and that experience for us is not only the residential product and the residential development um that we like to bring forward but it's also the idea of creating experience. One of the taglines that you probably see if you've looked at our website at all is we are experienced driven real estate. So it's not just about the homes the real estate that's there. It's the places we create. the community we create. It's the communities we integrate within. And it's the moments and the opportunities that we are super purposeful in finding markets that we want to develop and participate in. The image you see here on the right is an example of a recent community um in the mountains, Keystone, Colorado. If any of you are skiers at all, this is a ski in ski out property. This one is called Riverrun. Um it's the community is actually called AL al cove and we just recently completed it about a year ago um with residences um in it. This is also a DTJ project that we worked um with DTJ on previously. Here's a map of our portfolio. Um what's really relevant to look at um we go as far east as the Caribbean and the Bahamas and as far west as the Hawaiian Islands um with our experience today in communities that you can see the similar vibe and the trend that I've mentioned on being focused on things that are beach related, golf related, mountain related and then recently in California wine um destination related and now of course horseshoe Bay that's got a lake component as well from a waterfront activity standpoint. Um, two significant projects with us. One in Scottsdale, Arizona, one in the

Mill District area. The Scottsdale project uh is steps away from the Phoenician Hotel. Um, it's about an it's a multi-phase development that's 195 homes, sits amongst the golf course, a resort, and at the base of Camelback Mountain. If you're familiar with the Scottsdale in the Phoenix market, it is it was a four-phase project. And when I say four, it's occupied up to three phases. Right now, we're working on our final phase, the fourth phase, which is 60 homes um currently going through pre-sales. And the name of that project, if you're curious, is called Summit by Olsson Kundik Mill District. If you head over to the coast um in Northern California in a tiny little town called Hielsburg is all about wine country. Uh it's almost your quintessential what I like to call a Mayberry feel to it um with the town and the look and the quaintness of the size of it. It's a multi-phase project as well about four phases at the end of the day. We've only just finished phase one on that property which is 43 homes in a development called Canopy. again wine country focused and we're now working on the amenities that go with that um development which is a pool house, a fitness area and a very small boutique hotel called Olivia. So why caprock? Why are we interested in horseshoe bay? Why are we here having the honor of speaking you with you today? It is about experiences and creating experiences. It is about community. We are attracted and selective on the new markets that we are um very intentional intentionable on where we want to participate and make an impact

where there's a natural connection to gather to play to recreate and to dine. In replay there's two words we use a lot. One is magic and one is logic. They do kind they go hand in hand and one truly informs the other from the magic to the logic. Logic you can really think about as the execution side of it. The magic for us is a secret sauce of Horseshoe Bay and Caprock. You have golf, you have four golf courses, resort, you have lake and water activities all along LBJ Lake. There's a moment in a destination when you arrive in Horseshoe Bay. Whether you're coming from Austin, whether you're coming from San Antonio, or you've traveled further away to get to this great community. The magic of Horseshoe Bay also goes a bit further in the fact that you guys are a dark sky community. That's an amazing thing to be a part of. Um, and m much of our developments that we participate in have the same level of an initiative. There's a reason you're you are all here and you have a great amount of history. A traditional ranch established as Quo Ranch. So design and positioning, there's three elements that we look at um and specifically for this particular property and development at ThunderCloud. master planning, landscape, and architecture in no particular order, but they all come forward all together as key components of how we evaluate and have a respect for what is natural and existing on the land from its views, from its topography, and to its grades. And then how does the neighborhood relate to the roads that are already there and all the existing environment that is already in existence as well. So

from a master planning perspective and this is really what DTJ was tasked to us tasked with when they engaged with us was finding that sense of place and how the development really sits naturally within the site as best it can not necessarily based on highest use at the end of the day with the density it we look at programming and access to the site and how entrances work from a vehicular component all the way down to a pedestrian component down to a golf cart experience, which there tends to be a fair amount of golf cart traffic um in this particular area. So, it's really making sure the development um pays attention to what the site offers. And this site is a beautiful spot. Standing on it, the views are tremendous. You're in a great location. You're walking distance to the clubhouse. all things that I think everyone is quite familiar with in in this room. Then we take it into the world of architecture and start to think about things such as this rendering that or this image that you see in front of you as an example. This is not exactly what it's going to look like, but inspirational feeling on what is it we want to celebrate and we need to celebrate within the area and within the region. two words come to mind um with our team which is crafted modernism appropriate to the Hill Country articulation. It needs to be timeless. It needs to work with the existing architecture and it needs to complement um the existing components such as the cap rock clubhouse and relate within a community so it all es and flows together. key ideas that we've been looking at with the team between DTJ and DCA is indooroutdoor living, the materials we use that are warm and uh warm and

inviting, expansive windows, and yes, we have um we will have a request going forward that talks about the flat roof component, which is one piece of this rendering that you're seeing in front of you right now. from a landscape component on a landscape architecture. Landscape is just as important as the architecture and having that feeling of the indoor outdoor experience between each home. Each home um from a programming standpoint that we're envisioning has private courtyards. The roads and the streets allow for children, younger generation to gather and play and enjoy the space. And it's an extension of the architecture, paying very close attention to the fact that not necessarily needing to be all turf, but native plant materials that are meant to grow here and live and breathe in this environment. So this is just a this is the ask today. The application in front of you getting into is bas is focused on cut and fill variance which is we're seeking relief also known as a variance to allow um cut and fill in certain parts of the site that exceed the current 4-foot limit limitation. And we looked at this in five key categories. site constraints, topographic conditions, storm drain, drainage management, building placement, so where your foundations go, and then other key design of parameters on how this all works together. As we shared, this is a continuence from the January 2026 council meeting. We are pleased to be here today being able to make a uh presentation with everyone present. The last component of this is this is the best we could do on

synthesizing the number of steps there are in this process um with working with staff right now. So John hopefully I'm not stealing your thunder on process at all or your next presentation. Uh we've passed step one that's pre-application meeting. Uh we started working with the city uh I think actually before you started John but that was last October uh with this application right now. We're kneedeep in step two which is this cut and fill variance um with our current council hearings before you today. And then we as I kind of mentioned as an indicator with the architecture is the flat roof component would uh go before the board of adjustments in April under a sepate application. There's one item I do want to share in here is a key next step um that we have scheduled right now and we're working to celebrate and share word on with everyone is the fact that we'd be hosting a community open house on site in March. Um and I think that says March 19th um in terms of so more to follow on that but that's a opportunity for the community to come and meet us replay speak more to the resort speak more um to ownership and um understand what it is we're we're building on steps three I'm not going to go through each of these for you but it very much takes you to you know final project acceptance and completion for us which is um a fair amount of work to get us um to a point where we'd actually be able to be under construction on the site. Best case scenario with those dates would be end of this year, beginning of next year, 2026, 2027 for us to get through all of the steps along the way um between requirements on platting requirements with a drainage plan,

building permits, grading permits, a demolition permit. um to advance forward on the development right now. So this should look very familiar. Um I've we've put in here both uh development sites so we can have some understanding obviously of the proximity with the caprock clubhouse being in the middle and then thundercloud to the north. Azerite is highlighted below but is not before you today. This is going to go through its own entitlement and permitting process right now. Um working with staff that's more likely a spring um approach when that comes forward on things. So why that's somewhat important right now is because this is a phase development. So we're focused on Thundercloud advancing forward first and then Azureite would come next as the second phase um between these these two developments. This is the overall master plan for both Thundercloud and Azurite. Again Thundercloud to the north top of the drawing and then Azerite to the south. Thundercloud is 12 units and Azurite is 33 units. They're meant to live and breathe as one development when they're all finished um at the end of the day, but two slightly different offerings with the residential um product between the two. Azurites a little bit more intimate and denser um in its um development take whereas Thundercloud is a different um demographic um that is differentiated by size of a home and a lighter density.

So, as we get into the overall conversation on um the development and our plans in front of us right now, I did want to take a moment and recap what we have learned and what we have heard um from the many conversations we've had uh with the community with council um and with staff on things right now. And we'll come back to this kind of towards the end just so I can um pave your expectations a little bit on it. one is the red track and really understanding the impact of a safe foundation removal that's next door um to a current homeowner's uh lot and home. These are not in a particular order of priority either. This just um highlights here. Uh secondly is the operations of the resort. There's um a lot of interest in understanding um with our development with what we have planned what that means to the overflow parking that continues to happen um on that site today. Um additionally, we've heard there was some concern on vehicular and how golf cart uh circulation would be working. Construction logistics naturally always one of keen interest especially for those that are the immediate neighbors, folks that um frequent the clubhouse. But how much noise can we expect? What's the traffic going to look like? What is construction parking look like? And how does access work is another one. And then finally, there's much more of the technical sight specific items which I think you've mentioned, Mayor Jones is the drainage setbacks and slopes that we'll get through and Cindy will walk through some of those things. So, this is a closer look of the preliminary site plan. Um just to give a little frame of reference of uh layout here

we have well let's go back to three three plan types there's three shades of brown plan A B and C that are basically three different types of residences that range from 2600 square ft all the way up to 5200 square ft. um fairly large um homes taking advantage of the lot conditions that we have there. So, no more than 12 um single family residences at the end of the day. Two entry points from a vehicular standpoint to the site. One here and these two lots which sit next to that are on the RUD tract will have their own dedicated driveways, but they will not connect from a ve vehicular standpoint. they will connect from a pedestrian standpoint to the community in um in in itself in its existence right now. Another key component of this from a golf cart perspective, sorry guys, uh from a golf cart perspective, the idea is carts from these homes um could then travel direct access through to the clubhouse without having to jump on the road as it exists today. And with that, I'm going to let Cindy walk you through the next level of um the plans. Good.

Hello, I'm Cindy Pedrioli with DTJ Design and as Brienne mentioned, we are working with the team on land planning, landscape architecture, and preliminary architecture. As the variance uh stated that we submitted for both of these applications, we're requesting the technical variance at the early stages for uh sections 30-5-30 341A and 342B that states cut and fill on attractive land may not exceed 4t of depth with certain exceptions. And those exceptions do include uh roadway rightway uh construction of building foundation or swimming pools and construction of water quality control or detention facilities. So in this very colorful slide that you see here uh we have um shown kind of the approximate location of the proposed roadways and the foundations on the buildings. Uh the bright pink and dark red areas are the largest areas of cut and the dark green would be the largest areas of fill. So you can see that chart right there. Uh and we broke these out into thundercloud north and thundercloud south. But basically we're talking about these as two separate ones. Thundercloud North as the way that the application is done is the RUD parcel and Thundercloud south as the way it's labeled in the application is these other 10 homes. The first area that is uh over 8 ft of cut is up next to the existing foundation of the old rud house. The area here, as most of you know, that wall is over 20 feet in height along that north property line as it exists today. And to remove those walls

requires significant excavation behind them. To bring those down and reconfigure them into a more stepped condition doesn't necessarily mean that there will be a wall uh there won't be a wall in that area because we do still need to provide access directly off of Bay West in that area. However, uh you will notice that over 40 ft from the back of the area of disturbance that we're proposing here is to remain undisturbed. And on the RUD property specifically, we are looking at um trying to stay primarily within the existing uh footprint that is still there. So part of the the breakdown that I'll show you in later slides here shows that those areas of the existing foundation are coming down and um then walls are kind of being stepped down to uh accommodate that grade. The other area is the detention pond area in the southeast part of the site and you can see specifically on this end and a little bit on this end. Detention ponds are required to be relatively flat in order to obtain the volume that you need to accommodate the site runoff and so therefore that area would be end up being flatter than the existing condition and therefore walls on um the sides of it in order to accommodate that volume. We can look at other options if we had to to reduce those wall sizes. However, that increases the land area that we would need to excavate in order to accommodate that volume. So, uh, detention and water quality ponds are always volume based on that. The areas in medium green and fire engine red are in the 4 to8 range of cut and fill and um, those are mostly to get the sights flat, to get the pad sights

flat and lowered to step down to the natural grade. Any areas that are in white here that you see on this, we do not anticipate grading into and leaving the um natural vegetation that's already there. The following um we will have a couple cross-section maps and I'll walk you through each of those. This first one is on the north parcel and it uh shows a cut of the existing walls as I mentioned on the back side of the old foundation and the proposed new house and smaller stepped walls to get back to existing grade. As I mentioned earlier, we're keeping within the existing footprint as much as possible. And you'll notice that there's nearly 40 linear feet from the east property line to the area that we assume that we will be disturbing. And we are taking some of those larger walls down and creating smaller segments of walls. Right now, the lot the walls, even though they're not as big as the one that runs along that north property line, it uh we have close to 8 to 13 tall walls on the back side of that foundation on the east um east side of that foundation wall. The cross-section in the middle of the site um shows a flattening out of the grade from Bay West Boulevard to the east edge of the property, which helps lower the home slightly a few feet from the existing ground. And these changes are within that 0 to 8 foot cut of infill range that I was discussing. This also helps lower the finished floor, which is what we call the kind of the entrance floor into a house. the finished floor of the proposed homes to not sit as high as the natural grade in proximity to Bay West Boulevard. One

item I forgot to mention that you can see is more apparent in these cross-sections is that all of the houses on the west side of the property are intended to be walkout conditions where there is a uh lower level basement type condition. that helps absorb some of that cut and fill uh cut specifically to get down to grade quicker without having to um cut um land and build larger walls. The last cross-section here is on the south end and takes in a small portion of the uh of the detention pond area. Here you can see that we are cutting on the west side of the site in order to get the private drive in as well as the house on that west side. And then um we are filling slightly to balance those out so that one isn't sitting well below the other as they face across the street from one another. And uh so as we the primary focus has been on cut but we are doing some fill but we are doing that very strategically in order to balance the aesthetics of the site as well as the the the earth work of that site. Do you want me to keep going to talk about the drainage? Okay. So, uh, and we have, uh, Robert Parvar with Kimley Horn here as well to discuss any, uh, questions you have about the drainage, but this is the preliminary drainage area map that we're talking about. And I apologize it's not super clear on the screen but there are arrows showing generally um as we all know the site mostly grades from from west to east and then also slightly drains um the red rud parcel drains kind of slightly to the north and the rest of the site generally and there is some

directional kind of going to the south but in general overall the site drains from the west to the east side and so as part of that we Um, with new development, we're required to add to the detention and water quality pond. And as I showed in the earlier slides, we are doing that on the southeast corner of the property. This will improve drainage overall for the entire area of development that we're looking at here in order to um collect more of those drainages that are flowing off of this this hillside and down into the golf course. and then releasing uh that that cleaner water through the water quality filtration and releasing that at a a historic rate or lower in order to uh pres prevent um erosion and other other problems that may may occur there. We're not just going to develop the top and let it run off as it as it exists.

Can you show us where those retaining U ponds are? The new one? Yeah, the new one. There's the proposed grading that you see right there. And that Whoops. Sorry. My bad. Got tricky with the buttons. Uh this area right here. So it is near the uh clubhouse on the souththeast corner of the site. And then from the rut house, where where is the drainage going to go? Goes east. If you look at the top, the drainage will go east. It goes due east to where

it will uh continue. We are not increasing the amount of imperous area on that site. We'll so it will continue to um go through the landscape the existing landscape here on the property and then off the property as well.

It's hard to see here on your ex Yeah, this is not going to add more water. Okay. Okay. Because you're basically on that area replacing the size the same size foundation. I guess it's no it's no additional impervious cover. There is it's probably if anything it would be negligible. But yes, we anticipate it not increasing the impervious area. And you're using the exact same footprint then

the the footprint area for two houses instead of one. Um, so you can see the area that um, and this shows it a little bit. Sorry, I keep hitting the wrong button. This area right here, the darker lines and these lines kind of right in the center where my arrows at are the proposed walls that we anticipate. You can see in the aerial underneath that that that's approximately where those existing walls are located as well. So, we're not anticipating excavating further to the um to the east of the existing foundation and and disturbed area of that property.

Cindy, at the very top corner of that, there's a an annotation. Uh that's difficult to see, but is that an existing drain? If um because I I had one of these charts that I could blow up the existing it. Are you talking about the northeast corner? Northeast corner. Yeah. CMP. CMP. Is that an existing? Yes. Yeah. Okay. I apologize. No problem. So, we're going to reuse some of the existing drainage. Mhm. So you're you're saying this will actually be beneficial to drainage of the entire parcel?

Absolutely. We believe that it will. Okay. Yep.

That's all I have on a technical standpoint. I'm going to turn it back over to Brian to finish it up. Just a couple of items I wanted to go back through um that we presented as inherently things we've heard from the community on on concerns. One of them is the rud parcel and our strategy and our path forward um on the foundation and the exposed foundation that um sits there today. Uh we have engaged a licensed uh structural engineer um as of today to not only oversee right now but to guide the entire demolition process with some investigative findings which we are working on right now um with their current assessment and the scope of work and evaluations. One of the pieces of the puzzle for the structural engineers, they will actually beyond just a visual analysis go in with some very cool technology to do an X-ray of what the asbuilt condition is today to understand how it's attached um to the hillside, which will inform the path forward and how we safely remove it, not impacting the family home, the Lloyd's home that's just adjacent to it as well um with the current existing uh foundation

and That's being studied right now as we speak. Yes. Yes. I think that's a requirement for us to submit, if I'm not mistaken, John, for us to even um uh pull a demolition permit, correct? Any sense of timing for the delivery of the report?

Um I'll have to ask my team about the timing. probably about well okay four weeks four to six weeks this slide's familiar this is where we're sitting here today um with step two on things a couple other um components of this um that we highlighted earlier that I do want to share with you that's very important is one how are we resolving or handling um the issue with overflow parking that currently exist on that site. Um I got a great opportunity today to touch base with Jordan while he was here in addition to the resort on the path forward there. They are um the resort is very well aware there's a problem uh with the overflow parking particularly on the Thundercloud site. I'm not going to speak to the Azerite site right now because that's not what's in front of you, but of course how this is um handled with Thundercloud right now and they're working on identifying a parking plan to resolve the issue um so that there's cars in the overflow parking does not occur um at Thundercloud or will impact anything along the road in the future with things. I don't I'm not the one to give you the plan and what that looks like, but I wanted to share the commitment level that you have there on behalf of the resorts um and the Jaffy family.

Would you be able to bring us a proposal by the next city council meeting perhaps? Can I get back to you on that? Okay. Yep. I I know. But it's also an issue for the community to know that that there's not going to be parking on the uh lateral streets. They can't well any circumstance I understand they're not supposed to. Pass that's a to

uh it it is it's a tricky one. We recognize that as well too with the proposed residential development. what we have planned. Um, however, it's an operational issue that we're working with our partners on and okay, how does that work and how do we keep both things operating safely and succinctly? Um, it's just not under our purview to present for you is probably the best way to say it. And as I look at these overlays, it looks as though the uh 10 homes are going to actually uh intrude into the overflow parking that that the club has right now. Uh completely.

Yeah. There'll be no So there will be no Yeah, it's it's Yeah. Yeah. They they can't park there. Okay. I guess Frank my concern and I don't disagree with the intricacies of all that are involved but uh from a safety perspective to start excavation where basically the parking lot exists today it just seems prudent we would know how we're going to manage that and I I think it's workable. I think it's doable but I think it should be known prior to moving into excavation. Again that's not really replay issue. That's a resort issue. It's a city issue.

Well, we can we can talk about that later, but I I don't want to take any more of your time up for your presentation. Uh but that that will be a discussion that we need to have. Uh but I would say this, I think what you've got here is a flavor of uh figure out the overflow parking sooner rather than later. Yeah, for sure. I recognize that like it's it's just hard to take ownership of all the all the challenges we have right here, right? We we kind of help guide the conversation and and get it going, which is the commitment. I think that's that's been shared today on a resolution there that should be coming forward. I think you'll on behalf of the resort

a wonderful job engaging with the community. We really appreciate that and uh the transparency and the communication. I know these are resolvable. I don't I don't think there's an impass that can't be be resolved. I think it's clear to us what those are. Um I was going to ask one question related to the the cross-section diagrams. So it looks like some of the cut could be used for the fill. So that might reduce some of the construction traffic if there we go. The the red moves to green. Yes.

And so that I don't know if you have any sense of how much reduction that that provides, but that's good. we don't have to move it far, you know, and fewer trucks driving up and down the road. That that's a positive thing. I I like Cindy's note on the how she stated the request for the variance. Uh with the significant elevation changes on the property, the proposed creating is designed to work with the housing footprints and eliminate extended foundations. In addition, the front of the homes are designed to drain towards the central private street, which results in either cut or fill on either side. And so you're trying to improve drainage, you're trying to improve aesthetics, you're trying to have these houses not be too too high on the on the mountaintop at the top of the hill. So I I think those all make good sense. The retention pond is going to be I know you've walked it, Frank. It's it's going to be a great addition to improving the drainage and that that makes all of the cut and fill makes sense. I'm just concerned about the citizens concerns. Yeah. That have been mentioned to us

and and again I I I think it's doable as well. It just is going to take some finessing.

Yeah. AB: Absolutely. And there's there's one design element, too, if you're if I can put your eye to it since we're up on this section right now to look at is we've really tried to nestle the homes into the existing topography as best as possible. It's very purposeful on how they're grounded instead of coming up and out um and having expansive and large uh sloped roofs associated with them to help preserve that um that component and that design um acumen that we have um with this particular site. If there's one a couple more things I can just conclude with Mayor Jones, if you're okay with that. Yes, I am.

Okay. Uh one thing I just want to go back to Sorry guys. How did I get all the way here? I ask that every day. I just went reverse on it. I just trying to get to the master. There we go. Just back. I was just going back back through the presentation. There we go. Thanks.

Thank you. One thing I just wanted to to kind of close out here two or two things actually sorry two points I promise that would be it no more than two on um our concept plan and our site plan here which I think is very important for everyone to understand too and I didn't necessarily highlight this in the beginning of our presentations when we do development um and this is exactly the same case um that we would uh deploy and engage with for this Thundercloud site is we don't start construction until we hit a pre-sales threshold with our communities. Uh meaning there's a certain window of how many sales we want to see, not just one or not just two that are moving forward on a sales and marketing basis before we start building on a site. So, I think that's important to share and even on a site that's only, you know, 12 units, it's going to be a fair good sense of us on a sales and marketing side before we actually launch forward um on construction in um in the neighborhood thing. So, we're not um we're not necessarily what I would say is like a merchant or a spec builder. Um not that that's a bad thing, that's just not replace um focus.

Yeah. Yes. Y ideally we do it all at once. Um that's a good sales problem to have. Uh but yes, that's how we go through all of our developments no matter the type of build and the residential um component with it. Um so that's just one thing I wanted to highlight on on on how we how we go through things. And now let's see if I can drive a little bit better. Here we go.

Oh, thank you. No,

I think that's four weeks at best to get to that point. Yeah, if we can do it faster, I will push for that, but I can't speak for behalf of our structural engineer and their bandwidth. So, yes, I absolutely understand and respect that with things. Um the only other item I was going to conclude with on a next step basis and it's great news to hear that with staff and all the work and the effort to date. I want to thank each of them um with us John and all your all your teammates uh that we've been working with on the application um and with our comments that have cleared recently on things. We all know what the natural next step is which is going to be a recommendation on behalf of staff for both applications. Fair. Any more questions for Miss Kelsey from the council? I also want to thank you for uh I have uh peppered you with things to do and questions and you have uh been very forthcoming and have gone the extra mile as well, not only with me but with the community. And we're a very engaged community. uh and and you'll be our neighbor and so we want good neighbors.

Thank you very much for uh for realizing that we're just doing our job. Okay. Absolutely. Um anybody else for Miss Kelsey? Okay, I'm going to turn it over. Do you have anything to add, John Byron? That was a great presentation. So, thank you. Um with that, just as a reminder, we did get confirmation from the engineering team on Thursday that engineering is good with it. So now I can confidently say I feel good with it because engineering feels good with it. And then just as a reminder, we're still in a public hearing. Yes. Yes, we are still in a public hearing. And John, for clarification, that's that's the engineering related to the cut and fill strictly for the cut and fill. Correct. Which is what the variance that not related to the not for Yes. Absolutely. Retaining wall.

Correct. Yes. Thank you.

And um Okay. U any questions for John before we move to the um public comments? Okay, I'm going to take up public comments on this issue now. Uh first of all with uh Richard Gray who uh has signed up to speak on 8A and 8B Thundercloud. And if you could approach the U podium and state your name and address. The actual numbers.

That's it. Back up. Yeah, right there. That one.

Your name, please. Richard Gray 101 Diamond Hill mayor uh council members um I met with the developer this last uh developer representative this last week and many of the issues that have been brought up today we covered I think there's four major ones public safety the intersection of Bay West and Thundercloud which is a blind intersection uh I think the second is the parking there is uh not we don't have a answer to the parking for workers, club members and um construction people. I think the third is road damage and I'll come back to that in just a minute. And finally, it would be the impact of this kind of development in our community both on our water supply, our power, our city services. Um, I don't know what the impact fees would be or whether we should have reserves for damage from the construction or potential damage from the construction or at least the impact of that on the neighborhood. I think there are a couple of things and observations I made from the presentation that you gave. One is that this is going to dramatically change the character I think of our Applehead West community. Um both in the con the design and also the comments that it we're looking at vacation resort second home lock and leave type residences versus what we have for the majority of the Apple West community. Um and I'd like to get back to those at maybe a later point in time. The main concern I have is actually with the execution of this. And when the club was building the restaurant, we had a considerable amount of damage. It doesn't really show very well on this slide, but if you look at where Diamond Hill intersects um Bay

West and where Thundercloud intersects Bay West, all of those corners are very tight corners. And in the um in the construction process, all of that old brick work that was uh the original um uh features of the area were all destroyed and had to be rebuilt. And of course, it doesn't look the same when it's rebuilt. Um, so I would I would focus I think at this point um on just the logistics of getting large construction equipment into this site, where the construction workers are going to park, where the materials that they're going to use are going to be kept um and how that's going to impact um the uh traffic flow both on uh Diamond Hill, of course, certainly on Bay West. That's all I have.

Sure. I'm in my three minutes for once. Uh yeah, you've got another 15 seconds. I'll hold it until Frank gets

I want to address that, Richard, because uh I brought that up. Daniel and I have talked considerably. There's no question that turning into Thundercloud with an 18-wheeler, which they're going to have to do to do joistices and things like that, they're going to have to take the curbs out. They're going to have to take those medians out in order to do that. They've recognized that and they realize that in any of those cases, they would rebuild those. And I'm sure that they will rebuild them better than the last time it was done. and I know exactly what you're talking about and they know that. So, so and and again the the the beauty of some of this and and we'll see this when we get an actual construction plans and everything, but I see the logistics. They understand that there's a problem with that. They're also trying to do this where there will be less 18-wheeler and more. And the the big thing that that I hope you guys realized was the cut that they're asking for will end up being the fill which will minimize the amount of dump trucks coming up and down Bay West. And I think that's an important important thing for everybody to realize.

So I think but I understand where you're coming from and I'm on top of that and know that I'm on top of that. Thank you. Okay. Thank you, Mr. Gray. Uh, we have also Lori Watson who wants to speak on the same issue. Hi, Miss Watson. Good afternoon. Your address, too.

I I am Lori Watson. I reside at 18 Diamond Hill Drive, just right around the corner from Richard, um, along with Hal who, um, lives there with me. Um, and I agree with everything that Mr. Gray has just said, um, I one of my main concerns is the parking situation and that that be addressed sooner rather than later since as soon as this project gets off the ground at all, obviously we are going to have a lot of construction traffic and everything else. Um, anytime those um, tournaments are played, you have literally hundreds of cars in that parking lot that is full and parked there all the time. In fact, they just had one this past weekend that was pretty full. Um, so my concern is is that from when I look at the drawings that they've put up regarding this second phase of the plan that, you know, basically they say we'll address the parking at a later issue, uh, later time. Um, the concern is that the parking needs to be addressed on the front end, not later on. And it looks like that they're planning on building out a lot more of those homes down on the Azerite land, which now is used as that backup location for staff and also for all the people that are there at the tournaments. And I do understand that they're saying that there's it's a discussion with obviously the resort. I just think I agree with what everybody's saying here that we need to address it now.

Thank you very much. Thank you. Appreciate it. Any other questions for Miss Watson? Uh, council, would you like to discuss this at all? Oh, there is. They didn't sign up.

Oh, they did not sign up. I'm sorry. Uh, yes, sir. Uh, why don't you come forward to the podium and state your name and I'll give you two and a half minutes. Jeff Sinclair, Diamond Hill. Appreciate everything we're doing to look into this opportunity. And I support Richard's comments. We live close enough that if this is approved, and this is going to sound different, but it's important to me. I'd like to see the fire prevention plan for construction and the fire safety plan from the developer. That's part of the construction. Will that that will come, Jeff? We have not seen that yet. But any approval?

That's Yeah, that's a that's a given. That's a given. It's a given. I never just wait on givens to happen. Okay. Thank you, Jeff. Um, okay. So, we've gotten our public discussions in. All right. I'd ask if there's anyone else. Is there anyone else? Oh, Gordy. I'm violating my own rule, but it's a new building. Why not?

Gordon Shaw. Um 1205. I've been up here already. I would like to know how many parking spaces are on that circle on that street there that comes in and out of those 10 homes. Because living where I live right now, those are going to be Airbnbed and there are going to be a lot of cars parked on that street. Any questions for Gordy? Would you like to answer that if you have that?

I don't I'm not sure how you could answer that. Yeah.

Those are 10 homes. The driveways will the driveway other other than what's accommodated on the individual driveways and the garage conditions right now. That's the parking count we've got calculated with the associated site right now.

Um I I do want to make one reference just in clear and how we how this is intended to operate at the end of the day. And I and I've heard some conversations lock and leave s which means nightly use and nightly rental. That's not the case for this neighborhood on an operational basis. It's a longer term rent if best um with how this intends to operate. Just to understand a little bit on the amount of activity we expect to see with homeowners using their homes rather than renting it out all the time. Is this a gated street? Yes.

And as I recall from talking with you before, the price point is a little bit north of most Airbnbs. Yes. Okay. Yes. Yes. And and we'll and we will need to I mean, it's it's it's not unheard of that we don't know the parking count on that street. We'll need to solve the parking for this site site specifically and demonstrate that to staff

um with our parking plan. That's that's an expectation. Great. Uh, anybody else on the council? Uh my suggestion and you don't have to follow it is that we continue this until we get both of those additional studies in uh both with regard to the um taking down the retaining wall that exists right now and until we have a a significant plan that is a doable plan for the off-site parking or on-site parking.

Yeah. Well, the on-site parking they they can do that in the construction plan because I assume where the existing overflow is where they will put employee parkers, the workers as they do this. The the big question here is again this is not a city issue. It's really a resort issue. Where do we put uh we need to have conversations with the resort that this is this is a pending because initially they'll move the overflow when this project starts down to Azerite but Azerite will I mean eventually they've got to come up with a a parking plan. I agree with you Frank

and and and again replays forced we're forcing them to take some action in this but it's really a resort issue. It is, but it's also uh a uh it's our due diligence. Yeah, it's our due diligence, but it's also the replays responsibility to deal with the resort. And I I'll be glad to to I think we should help them. Yes, I do too. What I'm suggesting it's resolvable and it is together we we can figure it out and resolve it. But I I think it's important to be resolved prior to approving the variance.

Okay. Uh at least a direction of what the resolution appears to be. Well, and and okay, I'll let it just logistically it it seems prudent. Well, again, I would suggest that we hold this open, this public hearing open. We do not close it and until a a given time when we can get additional information in and continue this matter uh both a uh 8A and 8B. Do I hear a uh motion for 8A? Yes. I'm for both A and B. I I move that we do a continuence. Let's do it one one at a time.

Okay. for a I move that we continue this on till next month or till such time that replay is able to get the engineering study to help us better understand how they will take the wall down that's next to the Lloyd's house on the northern part of the RUD Foundation and the parking issue and that that would be the second part would be that uh we get some resolution on a long-term fix from the resort on how they will do overflow parking that will affect Caprock. Would you agree to keep the U? Yes. Both hearing open. They both need to be.

Okay. On 8A, the motion is made to keep the hear uh public hearing open and to continue it by uh council member um Hosia. Any second? Second. Second by council member Fetchner. All in favor? I. All against. We will hold this open and let you do a little more work for us and you'll let us you'll let our staff know when you're ready to to roll again. Okay. Thank you very much. Great presentation, too. Yes. Now, now we want to go Yeah, we want to go to B now. Okay. Um uh would you like to make a motion since you're getting used to it?

You've had practice. I'm good. I'm I'm doing the same thing. Oh, wait a minute. Wait a minute. Can I ask for clarification? Is that uh next meeting or engineering or or until they get the engineering or is it at the next meeting? Well, whenever they need to come back. Yeah. They're not sure when they can get the engineering. When they hearing and John can get it, review it, sign off on it. So, it's continued until we receive the engineering. That's correct. Okay. Yes. Is that Yeah. There may be very little action at the meeting next month. That's why I didn't say March. Yeah. Because I don't know that it'll be March month. I said until the engineering if it's March that's fine. If you can get it done by March I love it.

Absolutely. That would be the goal for us is to have it complete and ready for making a recommendation in March. Okay. With those two items. But we'll still show on both applications. Yes. Sorry. Perfect. Thank you. Mr. Hosia, would you mind taking another Okay. On on what is this? 8B. 8B. I move that we continue this one that uh we as part of the city help replay in negotiations with the resort to try to come up with a long-term parking solution for caprock about the engineering.

Yeah, I think B is actually the north lot there, Frank. It is. This is the north lot. Yeah, the north. What did I do on the first one? that you did the south lot, but you you covered both. It's all right. That was Well, if this is the north, then I go that we get the engineering done on the on the north wall of the RUD Foundation that it's adjacent to the Lloyd's house that we get on how operationally we will take that wall down, how they will take that wall down and parking. So, this is a parking too. Yes.

Okay. And then then we resolve the parking related to uh uh absence of cap rock the thundercloud overflow. Okay. Uh can we uh would does your motion include keeping the public hearing open? Oh yes. That we keep this open until such time that we get motion is made by Mr. Hosia. Do we have a second? Second. Second by Mr. Weatherby. All in favor?

I. All against we will keep the hearing open and wait for your additional information and um continue. Uh do we have a uh we're going to No, we're not going to close anything right now. We don't close it. We just move. I'll go ahead and state the time just for giggles. Um it's 4:57. She's always saying state the time. So, uh, do we have our audio visual on the water quality fixed?

And can we make it full screen? Hi, I'm Cory from the city of Horseshoe Bay and today we want to talk to you about water quality and what affects the quality of your water once it goes beyond your meter. First, let's take a look at where your water is coming from. It may not seem like it, but the water coming from the forces comes from Lake LBJ. The city has two rural water pump stations pulling water out of Lake LBJ to send it to our central and west water plugs for processing. Here's Joel to help explain the process of cleaning your water to turn it into safe drinking water for everyday use. Hi, I'm Joel, the plant operations supervisor. My job is to lead both central and west water plants along with the sewer plant. So what happens to the water once it comes out of the lake? Well, when it first gets pulled out of the lake, it's dirty and full of harmful bacteria like giardia and cryptosperidium. Our job here at the water plants is to clean the water and make it safe to drink. First, we inject the water with chemicals to kill off the majority of bacteria and germs. Then the water goes through two different processes of filtration before a second chemical injection to ensure disinfection. Finally, it is ready to drink and is sent to our storage facilities before distribution. Here's George to discuss that process with you further. Thank you, Joel. Hi, I'm George, the field operations supervisor. My job is to lead the field department, ensuring delivery of your water and removal of your waste. My team is responsible for maintaining over 185 mi of water pipes, ensuring safe delivery

of your clean drinking water to your home. We also maintain 125 mi of wastewater pipes, ensuring safe removal of your waste. Every day, my team is out in the field repairing leaks and taking calls from citizens. What my guys go through is commendable, and we strive to be the best. Water quality standards are high in Texas. Back to Cory, who can tell you more about that.

Thanks, George. My role as regulatory and compliance administrator is to check the results of lab work here at the plants to ensure we meet the minimum standards set by TCEQ and the EPA. I then report these results to the state at regular intervals throughout the year. If we ever had an issue that would cause our water quality to decline, we would be required by law to let you know and to issue a boil water notice. I'm pleased to say our water operators do a fantastic job of maintaining the water quality well above the legal standards. We guarantee that we are delivering safe, clean water from our plants right up to your water meter. Now, what happens beyond the meter is up to you, the homeowner. George, can you explain a little more on that?

Yes, thanks Cory. The city is responsible for providing safe, clean, good quality water up to your water meter. For most people, the water coming out of your faucets is the same good quality water. But there are some things that can change the quality of water once it goes beyond the meter. For instance, poorly maintained pipes or pipes made from lead or copper. It's essential to ensure your plumbing is to a good standard. To avoid leaks and more importantly potential contamination, a reputable plumber should be able to check the quality of your plumbing. Joel, what are some other things that can affect your water quality? I'm glad you asked, George. Some other things that may change the quality of the water include water softeners, water filters, and water heaters. Let's look at water softeners first. Many people like to install water softeners believing them to increase the quality of the water, but in reality, they can sometimes reduce the quality by removing chlorine from the water. Water without chlorine in it will eventually start to grow bacteria. Water filters tend to present the same problem. They remove chlorine and allow bacteria to grow. Water heaters that are not maintained properly can produce a sediment at the bottom of the tank which becomes a breeding ground for bacteria. If you are concerned about the quality of your water, you can call the city and one of our industry professionals will take the required samples either side of the meter to test the quality of your water and hopefully help identify any problems.

Hey Joel, what about privately operated laboratories? I've heard that some people send samples to test outside of state approved laboratories. I'm glad you brought that up. There are many privately operated laboratories throughout the country that can test water quality samples. However, most are not state regulated and have been known to produce results that may not actually have anything to do with true water quality by state standards. They can also be very expensive and timeconuming to get results. The lab we use is in Austin and is state regulated, so we can trust the results to be accurate and reliable. Well, I think that about wraps things up for us, Joe. Thank you. I'm Corey.

I'm Jordan. And I'm Joel. On behalf of the city of Horseshoe Bay, thank you for watching and join us next time. And remember, conserving water is conserving life.

That was it is posted. Yes. And we hope to have many more of those u on different issues coming up. And that was professional. Thank you. I'm going to take something out of order. I'm going to take uh 9F out of order so that uh Mr. Jordan can um speak to us and um is this is on the Mosalem and Jeff, can you give us a rundown of what we're going to see here?

Yes, sir. Um, we've been working with the Mausoleim group that has taken over the Mausoleim from the Horsey Bay POA over the last year and has done a really good job of expanding the capacity for the Mausoleium infrastructure out there. Um, when they started looking at it, they started looking at uh laying out their master plan. What they requested from us is a second piece of property that surrounds the existing mausoleium structure, which the city actually has no plans for that other than we do have our trails that run through there. And so we see no reason not to provide this this piece of property to them, which is 3.119 3.1 3.139 3.4 for um acres of land that is uh adjacent to their existing property. There's actually two two pieces of property. They're just broken up by the mausoleum and they border the Leno County line and go through there. So, um so they came to us requesting uh for us to to donate that additional piece of property. For the last couple months, I've been working with the survey to kind of get that set up. And one of the things that that I determined is probably best for us to do is to also uh with the donation of this property since it has city um uh trails on it uh and it's used for the public to have the public access. And so exhibit C on this this item is the uh the public access easement to go with that property once it is provided to the um the association if that's what

this will not affect our trail system at all. No, we have a it's a 20 foot uh 10 foot center on the middle of the trail trail. Most of the trails that the city owns are are dirt track part trails and so they will remain that until we we decide to do those as paved or some other reason. But this will provide us perpetual access to those trails to complete the trail that goes from the bottom of the hill by 2147 all the way up to the mausoleum. Great. Uh anybody have any questions for Jeff Costa? Does this have any impact on insurance at all? On insurance? On insurance? No. Okay.

Okay. And we have uh Mayor Steve Jordan has signed up to speak on this. And I I want to uh re uh recognize all of our mayors who were here. One of them ducked out, I see back there. Elsie Thurman did, but Cynthia Kleinmith is still here as well. We We're glad that you made it. Jeeoff, I may be making too much of a technical challenge, but we do have handheld microphones if you'd like to stay seated, don't we? If you'd prefer to You okay up there? I'm okay. Okay. If I have to sit down, I'll sit down. Okay. Hit us.

Thank you, Mayor Jordans. Council members, it's good to be back. I have uh been anxious to see the new Hawk City Center and uh it's beautiful. I came earlier today for the ribbon cutting. This has been a great day for the city and I want to thank you for the donation of additional property to the mausoleum. I uh I am president of the memorial association which in which is the mausoleum and uh several of our board members are here today. I've been asked to give you a little history on where where we are and how we got here. the uh a few years ago I was contacted notified that the uh mausoleum was in was unckempt and in disrepair. I went out there and met with a couple others and found that to be true. So knowing that this was an important issue for our city, I asked the current former board to resign and I would appoint a new board which I did. We have since in the last couple years we've come a long way. when at that point in time the mausoleum was as I mentioned in bad

bad shape. It also had 33 members 33 uh 33 families on the list waiting to purchase either a or a niche but there was no room no room. So, as we move forward, my new board got to work. We hired a company to provide plans for the new mausoleum, which we did. And in a year's time, if you were to drive out there, you would find mausoleum 2 is complete. And uh I'm real proud of it. We're all very proud of it. So, I've been asked to give you a little bit of history and a little bit of information on this mausoleum. Horseshoe Bay Memorial Association purpose was to establish, maintain, improving in existing and future development of a memorial park. Official name is now Memorial Park and Gardens. We now have a little over 12 acres with the help of the city and the resort. And this gives us a lot of room for the future to make it exactly what I think everybody would like to see. The original condominium was it consisting of crypts and niches and as I mentioned it's it was full. that there was no room to ex to expand. There was no room to add any. There were no empty. Well, they were empty, but they

had not been been filled with a with a body. But in any case, uh we have the additional 6 acres resort has given us and now with the addition the city another six acres. So, I want to thank you guys for we we couldn't be here and to be doing what we're doing without your help. The association amended our bylaws removing the restrictions that the mausoleum facilities would only be available to the members of the Horseshoe Bay POA which was not the way I wanted it or I think you would want it. So we have rem we removed that and this is available to all property owners in Horseshoe Bay. In summary, we have approved a master plan for Memorial the memorial facility. Memorial Park will be a community condominium miselium structures. In addition to the two we that we now have, we are planning three or four or five more. We'll have room to do that. The cremation benches are in the plans for two or four internments. Above ground internment vaults, single double in family, estate internment, above ground mausoleiums, memorial benches, memorial plaques,

memorial gardens, memorial walking trails and rest stations. We are hoping to have a chapel with restrooms and a graded a a gated monument entry. So, this is all in our master plan. It's been approved. We have been very fortunate. As we got started, I was contacted by an anonymous donor who gave us $630,000 to start and build Mausoleum 2. We use that funds and that is we are selling those funds go into a a reserve account. We now have $500,000 in that reserve account. When it when the mausoleum 2 is completely sold, we'll have over a million dollars in the reserve account for the future.

That is great. Thank you, Steve. Thank you so much. And don't get rid of 8 C and 8 D cuz those are mine. I've already paid for them. Got it. Okay. Thank you. And thank your whole group. We have Did you have something else, Jeff, before we have a motion? And

yeah, I just wanted to say that u when I was putting this package together, there was um right after that, there was a survey done and there was some some changes to the um to the area. And so that I gave you a handout that had that. And so that will be the one that we use for moving forwards because it has the correct uh information on the pages it was recorded on. And then also I noticed that on the the motion I have 3.16 acres which was the original and it needs to be 3.1 339 in a motion.

Uh if anybody has that in front of them I'm having trouble locating mine. Ruben, can you make that motion for us? I recommend the council approve the attached resolution provided by staff to donate the city's 3.1339 acre track identified as requested by the memorial association for the public person purpose of expansion of the existing community mausoleum expansion project and authorize the mayor to sign the warranty deed transferring the property with the required covenants and public access easement. Motion by Mr. Fetchner. Do I have a second? Second by Miss Wadell. All in favor? I.

All against. Motion passes. Thank you. Mausoleum Group. All right. We're going to move now back into our ordered uh business items. We're going to go with B and that should be Molly who's going to give us a resolution 2026-08 authorizing the publication of notice of intention to issue certificates of obligation.

Yes. Good afternoon, Mayor and Council. Molly Jester. And if you recall during the budget process, um council tentatively agreed to a bond for approximately 8.4 million uh to address our street reconstruction and our infrastruct infrastructure needs. In addition, drainage facilities have been added to the purpose, the wording, but not any dollar amount increase. And to proceed with this certificate of obligation bond sale, council must approve the notice of intention to be placed in the local newspaper and on the city's website for a minimum of 45 days prior to the sale so that residents may have the opportunity to petition against the sale. This is also in pages 140 through 145 in your packet. The preliminary timetable for the bond sale was drafted by Specialized Public Finance, Inc. and both exhibit A and B are included and are based on the current debt obligation for the city.

Any questions for Molly? Uh, do I'll entertain a motion. Pardon me. I move to approve resolution 2026-08 authorizing publication of notice of intention to issue certificate of obligation series 2026 for the city of Horseshoe Bay. Motion made by council member Wadell. Do I hear a second? Second. Second by coun mayor pro Tim Morgan. All in favor?

All against? Motion passes. Thank you, Miss Jester. Uh we will move now to item C which is uh I believe Doug Fowler, Chief Doug Fowler, approval of a vendor for fire department rescue boat. I'm going to start it then the technical is of course

Oh, really? You're going to start it for us? So to ensure compliance with the city procurement policies um requiring an invitation to bid anything for goods and services that exceeds a 100,000 um that that is what we have initiated. The IFB was posted on the city website on December 15th this past year and published in the Beacon and LOO news on December 18th, 24th, 31st, and January 8th and 15th of this year. A total of five bids were received and um technology Nassau Stanley William um the Mson company and ACI boats. The bids were due on January 21st of this year and were evaluated by a committee consisting of fire chief, the assistant fire chief, the finance director, and the purchasing coordinator on January 28th. and staff is requesting council to approve the vendor Stanley aluminum boats. And I want to thank Robert for all of his hard work getting all of this together and coordinating it and putting packets together for us to uh score on

and I'm sorry I skipped over you Molly.

Good afternoon council. Doug Fowler, your fire chief. uh to kind of get you caught up on where we're at with this project. Uh we started almost 18 20 months ago uh kind of running the traps, getting approvals before we actually started taking donations. Um we've taken in over 200 donations and we have a little bit north of $90,000 or roughly about 35% of what we need for for this bid from Stanley Boats. So we still have a lot of work to do. So, and we're we're we've got some things in motion to try and get there. We've got some grants that we're going to be applying for and and uh hopefully we will we will be where we need to be this time next year. Uh the five bids range from 258,000 all the way up to 542,000. And the reason we went out for bid even though we cannot make a purchase today was because of the over 200 people that had made donations. Often times we got the question, how much do you need? Well, we thought we knew. We were going with a uh a company out of Washington, which is kind of like the top of the line for these type of boats, and it was uh $300,000 when we first started this about 18 20 months ago. Um when they put in their bid, it was up to 348,000. So, and and the build was taking two years, meaning they're backlogged because they are so popular. So we said, "Okay, well that makes it easy." So, uh, Stanley it is, and we'll work with this, uh, company out of Canada, and, uh, we will continue our fundraising efforts, and I will keep you informed how we're doing.

Great job, team effort, sir. U, any questions for Chief Fowler? I'll entertain a motion. I move to approve the vendor Stanley aluminum boats for the construction of the emergency response fireboat. Motion uh to approve by uh Mayor Pro Tim Morgan. Do I hear a second? Second. Second by council member Weatherbe. All in favor? All against? And it passes. Thank you, council. Thank you.

Thank you very much for your work. Uh item D, consideration possible action on a request for fourth building permit extension for 109 Plaza Escandido John. Good evening, Mayor and Council. Let's see. There we go. Section 3.03.012 012 of the code allows our building official to grant um the first two building extension per or permit extensions. Anything after that is required um by code to come in front of y'all for um for that request. This application is for the fourth at a 60-day request and that fee would be $10,000 um if granted. With that being said, staff um is recommending approval of this building permit extension. And if um council has any questions, we have our building official and myself um available.

Any questions on this project? Are they going to get it done in 60 days? That was my question. Um they believe so. Yes. If not, we will be back um in front of y'all again. Okay. Do you know how many times we've heard they believe so? That's okay. It happens. It's kind of like the check is in the mail. That kind of Anybody else? All right. I'll entertain a motion then. Make a motion. I move to approve the request by Allan and Luchi for the project at 109 Plaza Escandido for a fourth building permit extension for 60 days in a fee of $10,000. Council member Weatherbe makes the motion. A second.

Second. Second by Mr. Fetchner. All in favor? I. All against? No. And it passes. Uh John, stay up there. Uh we got number E, which is a consideration of possible action on request for third building permit extension on 1407 Swallow. Where is that? I don't even know where that is. Is that in South? Yes. Okay. Okay. All right. Okay. John, do you have any information on that that you'd like to share?

So, this is the third building permit extension request. Um, they are requesting 60 days and that fee would be $5,000 if if approved by council. Um, staff recommends approval. My standard question, will it be done in 60 days? Their letter says five weeks. Okay. So, if not, we will be back again. Okay. Okay. Um, and I'll entertain a motion. I move to approve the request by Juan Rodriguez for the project at 1407 swallow for a third building permit extension for 60 days in a fee of $5,000. Mr. Weatherbe makes the motion. A second.

Second. Mayor Pro Tim Morgan seconds it. All in favor? I

against motion passes. All right. Moves us to the cons. No, it does not. Excuse me. Mr. Costa, you mayor council. Uh we have a an agenda item that we've been working on for several months. Uh having to do with the Summit Rock PID repayment of the money that was uh dedicated to the city for um as it would be an impact fee for the infrastructure coming to the city for buy into the system. Um we've been working on this. It was originally $7.4 $4 million and that included all the water wastewater infrastructure including the two billion two million gate dollar um elevated storage tank that was performed. Um as of current there is 3.148 838.4 cents dollars that are um owed to the city if if we get repayment for this. So, we've been working um with the resort to um to get this done. We've also been having to work with Atlanta County um to get the way that the process goes from the city or take the city basically out of the payment schedule. So, we do not have to fund the money or or uh bring it in then place it and then fund it. And so, it's a it's a process and it costs the city expenses. So, we've kind of um moved that over to where it goes directly to Regions's Bank, who is a trustee, and then it goes straight to the developer for the remainder of the funds that are left uh to be paid from the assessments for the Summit Rock PID. Um so, we have three of the four agreements that we needed to get done on this

project. We were waiting on the one that is with the resort and the city uh to finalize the agreement. Uh we sent it back and forth. Um there is still as of about 15 minutes ago received a a a information that there's still some back and forth that we're having to do. We thought we'd have this done by now. Um however, we don't think it's going to be substantial. I think it's it's just more of understanding of what the the language has and and how we have to stay involved in some of the assessment of the updates going forwards. So, we're going to work through that and hopefully get it resolved. Um, so, um, what we need to do is I'd like to propose a motion that, um, let's see if we can find it here. a promotion, a a motion that the Summerro pay agreement as long as it um president signs and funds the payment and the city uh attorney uh approves its form and the city manager will sign and execute the document. That way we don't have to bring it back again. But if it is substantial and there's changes where the city attorney and I do not agree that we have to bring it back and and if there's language that needs to be uh discussed with the council, then uh I will do that and we will bring it back to the city council the next term. That's that's one option to do it as a motion to to approve it and then um then if it's just not substantial then then I will sign it and as long as Die agrees to the city secretary.

This still on the administrative fee issue. Okay.

Yes. It well it's yeah it's the administrative fee. We send them some some information on that. But then there was email I got back that there was a discussion about we pulled some language out of the contract. Uh but that contract was because we could not give the discretion to the developer on the updates with the uh the the plan the annual plan. We have to still be involved in that by state law. And so we have to just kind of get that worked out with them to make sure they understand that is a state as a requirement by the state for that. If it it turns into substantial then obviously I'll be bringing that back to the council as far as that goes. Or the other option is we could defer this another month. It's really up to y'all.

I would rather not defer it another month. Okay. Personally, I would rather have a condition on here that it has to meet with your approval and with the city attorney's approval. I have a motion if Okay. Is that a precedent? What? We're actually approving something that we Well, but it it's got a condition to it.

What we're approing is that if if it's as it's written. And the question for the resort was if the um there's substantial language changes that that we took out that was in the that they took out in the region original one because we're not involved in it. But by state law, we have to be involved in the uh approval of the update process. The thing that y'all approve every year for the Summer Escanido PID, that is basically going back and reassessing that. uh we have to by law stay in in that process as a public improvement district and so we just have to explain to them that that's the case. If there's still additional issues after that then we will we will we'll table it and we'll you know we

approving it technically if you work through this language next week we'll is the check going to be in the mail? U that is uh part of the motion is is that I won't sign it until it's funded. Okay. All right. I'm I'm all right with that. And our city attorney has seen this motion. Okay. I wasn't going to speak directly to her. Read it. Can you make that motion?

I make the motion to approve the Summit Rock payment agreement. As long as the president signs the funds, uh, the payment and the city attorney approve as to the form and then the city manager can execute. Motion made by mayor pro Tim Morgan. Do I have second? Second. Uh, second by Mr. Hosia. All in favor? I. All against. Motion passes. Additionally upon your approval and the city attorneys. I will let y'all know. um via email. Um no response back to me obviously, but I'll let you know when it happens. Great. Thanks.

Thank you very much. Moves us to the consent agenda. First of all, is there anything on the consent agenda that any of the council members would like to be taken off and debated um individually? The only thing I question because of the continuation of the replay thing that's still okay to in the consent agenda. There's nothing in the consent agenda about replay though. Thought there was. No. Where did I read that? Okay. All right. Forget it then. Okay. Then I say we

uh Anybody like to make a motion that we can approve the consent agenda? I move that we approve the consent agenda as presented. Motion by Mr. Morgan. Second. Second. Second by Mr. Fetchner. All in favor? I. The eyes have it. Uh, moves us now to monthly reports. Um, Jeff. Yes, sir. Uh, I'll make it real brief. We moved into the building. Very happy.

What building you talking about? Yeah, this is great. Y'all y'all did a great job uh sitting here. I think everything's good. We're we're obviously working out some kinks and and some things, but however, I think that we're going to be very happy in our new home, and I hope y'all will, too. Uh we want to thank you and your entire staff. Great. You guys have done yman's work. Yeah. Yeah. Strip. Yeah. Yellow. Yellow. Red. Okay. Sure. like Frank.

Also, um I would like um chief, either one of the chiefs to come up and talk a little bit about our weather event that we had last week and kind of give a synopsis of kind of how things went. Uh we did put a lot of communications out in advance of that. I think that helped a lot, but um there was some issues with people getting out of the road on Monday, uh thinking maybe it was not as bad, but it was worse on Monday than it was. So, I'll

Doug Fowler, your fire chief. Uh, thank you again, Mayor and Council. So, uh, it was, uh, you know, a three-day event and, um, we were monitoring conditions a lot. We also had people out and about, uh, taking care of business. But I think the the best thing that happened is that the citizens listened to the warnings and stayed home. And so, we had very few road incidents that the fire department had to respond to. That might be different for for Chief Graham, but um we communicated and and I I think I sent the mayor and council member Morgan copies of the situation reports and there were two a day, one in the morning, one in the afternoon, just to catch you up to date on what's going on and what we're dealing with. And uh if anything challenging or difficult came up uh that that that was beyond what we could handle at the local level, then it would have bubbled up to you for some assistance. But everything was handled from what I could tell just on the local level.

Thanks, Chief Aller. Chief, you have anything you want to add? How many cars do you have to pull out of the ditch? And I will also say thanks to uh uh Tim Public Works. They worked their butts off trying to get these roads thawed and uh but it was just a a huge challenge, but they were out there every day working their butts off. So, thanks, Tim. Thanks, Tim. I'll second that. With public works, u, that was a lot of salt that we put down. Um, we had about 25 cars, I think. How do we tell these 25 people to stay in their house, right? Hills and Hills and Ice don't mix. And no,

25. That's You told me you weren't going to pull anybody out. We didn't. Oh, you didn't? Okay. Uh that was just it was we were it was icy. Yeah. No, it was ridiculous. But luckily nobody was hurt. So good. Good. Well, thank you very much for staying on the job. And Tim Fen, uh we've got some buttons on uh Bay West. Old cat size. No, they're buttons. Cat size. Buttons, right, Tim? Yes, they are reflectors. today. I anticipate he'll be uh finished up uh by tomorrow.

Great. And we've got some signs that will come in at some point. On order soon as they're ready, we'll get them installed. We we picked six. We'll start it, middle, and end. Thanks for doing that. Looks good. Received a lot of good uh mail from people thanking us for that. And I also want to thank fire department and PD utilities as well. It was a big team effort on that ice storm. Uh worked all, you know, all day and all night and uh I want to recognize them as well. That was a great team effort. Thank you.

Okay. Uh the the time is 5:35, but we are going to um go into executive session and um I'm going to read what we're going into executive session for and you all do not have to leave because we've got our own room back there

or or you can leave. Uh, we're executive session A, receive legal advice pursuant to Texas Government Code section 551.071, consultation with our attorney to deliberate and seek legal advice regarding legal requirements relating to architectural control committee review and approval prior to issuing building permits. And number two, legal requirements relating to the right-of-way in easements, utility lines, franchised utilities, and other users of the right of way. It is now 5:36 and we will retire into executive session. We will not be making any uh decisions during uh executive session. uh we will come out and if any action is to be taken we will do it at that time. Okay.