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07-12-2016 MinutesMINUTES REGULAR MEETING July 12, 2016 A Regular Meeting was held by the Schertz City Council .of the City of Schertz, Texas, on July 12, 2016, at 6:00 p.m., in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Texas. The following members present to -wit: Mayor Michael Carpenter Councilmember Jim Fowler Councilmember Daryl John Mayor Pro -Tern Cedric Edwards Councilmember Grumpy Azzoz Councilmember Robin Thompson Staff Present: City Manager John Kessel Executive Director Brian James Executive Director Dudley Wait City Attorney Charles Zech City Secretary Brenda Dennis Assistant to the City Manager Sarah Gonzalez Call to Order — City Council Regular Session Mayor Carpenter called the meeting to order at 6:01 p.m. Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Mayor Carpenter) Mayor Carpenter provided the opening prayer followed by the pledges of allegiance to the flags of the United States and the State of Texas. City Events and Announcements • Announcements of upcoming City Events (B. James/D. Wait/S. Gonzalez) Mayor Carpenter recognized Executive Director Dudley Wait who provided the following announcements: • Thursday, July 14, 2016 - Northeast Partnership Meeting, Olympia Hills Golf Course and Conference Center, 11:30 a.m. • Tuesday, July 19, 2016 - Monthly Chamber Luncheon, Schertz Civic Center, 11:30 a.m. • Wednesday, July 20, 2016 - Biz Ed Seminar & Networking Breakfast, Schertz Civic Center,Topic: Cyber Security, call extension 1951 to register, 8:00 a.m. to 11:00 a.m. • Thursday, July 21, 2016 — Chamber Mixer hosted by M/I Homes, 10378 Obernal Path, 5:30 p.m. to 7:00 p.m. • Friday, August 5, 2016 — TML Region 7 meeting City of Kerrville, Kerr Arts & Cultural Center Reception 5:30 p.m. Dinner & Program 6:30 p.m. Please RSVP by Friday April 22, 2016. 07 -12 -2016 Minutes Page -1- • Announcements and recognitions by City Manager (J. Kessel) Mayor Carpenter recognized City Manager John Kessel who stated that recently the Council had met the new Animal Services Officer, Colette Dorrell. Since meeting her, she has taken her Animal Control License at the state level and passed. Mr. Kessel also mentioned that Senior Computer Support .System Engineer Eric Haugen recently passed his Comp TIA Project Management Certification. Please congratulate both employees when you see them. Mayor Carpenter asked everyone in attendance to keep Mr. Dean Weirtz who is head of our Schertz Historical Preservation Committee in your prayers during his illness. New Employee Recognition • Parks, Recreation & Community Development — Assistant Director of Parks, Recreation & Community Services Lauren Shrum • Police Department — Civilian Evidence Technician Jordan Brouchoud •. Water Administration — Receptionist/Dispatcher Dawn Hampton • Fleet Department Fleet Mechanic I Steven Brozovic and Brian Siepert Each new staff member was introduced to Council by their Department Manager /Supervisor who also provided a short bio on them. Each employee was allowed an opportunity to speak if they wished and Mayor and Council welcomed each one to City staff. Presentations: • Presentation regarding the YMCA Community First Camp. (J. Kessel /S. Gonzalez/L. Klepper /C. Jaeger) Mayor Carpenter recognized Public Affairs Director Linda Klepper who recapped the recent events with the YMCA Community First Camp students as they held a mock Council meeting recently. Ms. Klepper introduced Curt Jaeger, YMCA Community First Camp Coordinator who provided details on the program and camp activities. Hearing of Residents Mayor Carpenter recognized the following individuals who spoke: • Mr. Carl Douglass, 2550 Woodland Village Place who spoke on what he has is an observation and a possible recommendation. Mr. Douglas stated that imagine his dismay when he opened the July 6t' edition of the Herald and found an old article published from last year regarding the city charter propositions. He suggested that when this happens that the city have some sort of mechanism to alert the paper, place a notice _on the City's webpage of the miss- printed article and request from the paper that a retraction be printed. 07 -12 -2016 Minutes Page - 2 - • Mr. Ken Greenwald, 205 Westchester, who provided Mayor and Council a copy of a recent newspaper article regarding "Air Force allowed to object to the Post Oak Clean Green Inc. landfill ". Mr. Greenwald read portions of the article and provided his comments now that the Air Force is allowed to be involved. • Mr. Brent Bolter, 2633 Clover Book Lane, who spoke against agenda items 8 and 9 expressing that the city needs to wait and pause, and let the infrastructure catch up to accommodate future growth. • Mr. Armando Cruz, 6070 Covers Cove, who spoke regarding several work orders that have been placed to clean out the ditch by Nortex Farms. Mayor Carpenter requested Mr. Cruz get with staff this evening and directed Mr. Cruz over to Executive management. Consent Agenda Items The Consent Agenda is considered self - explanatory and will be enacted by the Council with one motion. There will be no separate discussion of these items unless they are removed from the Consent Agenda upon the request of the Mayor or a Councilmember. 1. Minutes — Consideration and/or action regarding the approval of the minutes of the Regular Meeting of June 28, 2016. (J. Kessel/B. Dennis) 2. Ordinance No. 16 -M -18- Consideration and/or action approving an Ordinance by the City Council of the City of Schertz, Texas amending the City of Schertz Code of Ordinances and certain other ordinances by amending the Fee Schedule and establishing and setting fees related to the sewerage transportation, treatment and disposal for the properties serviced by the San Antonio River Authority (SARA). Final Reading (D. Wait/J. Hooks /J. Walters) The following was read into record: ORDINANCE NO. 16 -M -18 CONSIDERATION AND /OR ACTION APPROVING AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AMENDING THE CITY OF SCHERTZ CODE OF ORDINANCES AND CERTAIN OTHER ORDINANCES BY AMENDING THE FEE SCHEDULE AND ESTABLISHING AND SETTING FEES RELATED TO THE SEWERAGE TRANSPORTATION, TREATMENT AND DISPOSAL FOR THE PROPERTIES SERVICED BY THE SAN ANTONIO RIVER AUTHORITY (SARA) 3. Ordinance No. 16 -T -17 — Consideration and/or action approving an Ordinance authorizing an Assignment and Assumption Agreement among Corridor Hotel II, LTD., and Silverwest -I Schertz(F) LLC. Final Reading (J. Kessel/K. Kinateder) The following was read into record: ORDINANCE NO. 16 -T -17 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN ASSIGNMENT AND ASSUMPTION AGREEMENT AMONG 07 -12 -2016 Minutes Page - 3 - CORRIDOR HOTEL II, LTD., AND SILVERWEST -I SCHERTZ(F) LLC., AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized Councilmember " Thompson who moved, seconded by Councilmember Fowler to approve consent agenda items 1 -3. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson voting for and no one voting no. Motion passed. Discussion and Action Items 4. Resolution No. 16 -R -50 — Consideration and/or action approving a Resolution awarding and approving the City of Schertz Bank Depository Contract to Schertz Bank & Trust. (J. Kessel/J. Santoya/J. Walters) The following was read into record: RESOLUTION NO. 16 -R -50 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF - SCHERTZ, TEXAS AUTHORIZING A CONTRACT FOR BANK DEPOSITORY SERVICES BETWEEN THE CITY OF SCHERTZ AND SCHERTZ BANK AND TRUST Mayor Carpenter recognized Assistant Finance Director James Walters who stated currently Schertz Bank & Trust is the City depository. The existing depository contract was for a three - year term with two one -year renewal options which expired October 2015. The City solicited proposals for bank depository services on May 17, 2016 on www.publicpurchase.com with notifications to all vendors registered on Public Purchase. The request for proposals was also published in the Northeast Herald on May 18 and May 25 and in the Daily Commercial Recorder on May 17 and May 24. Proposals were requested to ensure the City is being provided excellent service at a competitive rate with a financial institution that is financially strong. The depository contract is for a term of three -years with two one -year renewal options. The start date for the bank depository contract is September 1, 2016. The deadline for submitting proposals was 11 a.m. CDST on June 16, 2016. Three banks submitted proposals to the City. The three banks are Schertz Bank and Trust, Frost Bank, and Wells Fargo Bank. The proposals were evaluated based on the following criteria: Customer Service, Financial Cost/Benefit, Banking History & Financial Strength, and Performance. The bank depository proposals were reviewed by a selection committee made up of staff members that have regular contact with the depository. Based on the evaluation criteria the selection committee unanimously voted to recommend Schertz Bank & Trust to continue providing depository services to the City. Mr. Walters addressed questions from Council. Mayor Carpenter recognized Mayor Pro -Tem Edwards who moved, seconded by Councilmember Thompson to approve Resolution No. 16 -R -50. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson voting for and no one voting no. Motion passed. 07 -12 -2016 Minutes Page - 4 - 5. Resolution No. 16 -R -51— Consideration and/or action approving a Resolution by the City Council of the City of Schertz approving the Schertz/Seguin Local Government Corporation Fiscal Year 2016 -2017 Annual Budget. (D. Wait/A. Cockrell /A. Briggs) The following was read into record: RESOLUTION NO. 16 -R -51 A RESOLUTION BY THE, CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS APPROVING THE SCHERTZ/SEGUIN LOCAL GOVERNMENT CORPORATION FISCAL YEAR 2016 -2017 ANNUAL BUDGET, AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized Executive Director Dudley Wait who introduced SSLGC General Manager Alan Cockrell who stated the FY2016 -2017 O &M budget is lower than the FY2015 -2016 O &M budget. This is due in large part to .a reduction in the water leases, as SSLGC purchased the Booth Property which was a large water lease payment, and staff worked diligently to reduce a portion of its operational items. With the decrease in those line items, staff was able to reduce the FY2016 -2017 O &M budget by over $600,000 from the current fiscal year's budget ($10,188,508 to $9,574,754). There is water rate increase included for FY2016 -2017 of $0.05 /1,000 gallons. This is a result of the uncertainty of future excess water sales, which have led to significant challenges and reassessments regarding SSLGC's long -term financial forecast. With the impending reduction/loss of excess water sales, additional rate adjustments are recommended beginning October 1, 2016. FY2016 -2017 budget reductions and debt schedules have worked to minimize the impact of the phasing out of the excess water sales (Dan Jackson, Willdan/Economist. com). The last time that SSLGC raised the water rates was FY2011 -2012, this was a result of increased water lease payments ($0.08/1,000 gallons). SSLGC desires to have the FY2016 -17 budget approved by the City of Schertz City Council. Mayor Carpenter recognized Mayor Pro -Tem Edwards who moved, seconded by Councilmember Thompson to approve Resolution No. 16 -R -51. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson voting for and no one voting no. Motion passed. 6. Resolution No. 16 -R -52 — Consideration and/or action approving a Resolution by the City of Schertz approving the Schertz/Seguin Local Government Corporation Fiscal Year 2016- 17 Water Rates. (D. Wait/A. Cockrell/A. Briggs) The following was read into record: RESOLUTION NO. 16 -R -52 A RESOLUTION BY THE CITY COUNCIL OF THE. CITY OF SCHERTZ, TEXAS APPROVING THE SCHERTZ /SEGUIN LOCAL GOVERNMENT CORPORATION 07 -12 -2016 Minutes Page - 5 - FISCAL YEAR 2016 -17 WATER RATES, AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized SSLGC General Manager Alan Cockrell who stated the proposed water rates for the period commencing October 1, 2016 and ending September 30, 2017 have been prepared by the Schertz/Seguin Local Government Corporation ( SSLGC). It is the desire of SSLGC to have these water rates for FY2016 -17 approved by the City of Schertz City Council The City of Schertz is a member of the Schertz/Seguin Local Government Corporation. It is through the SSLGC that the City provides water to it citizens and businesses. Approval of the water rates will ensure that the citizens and businesses of Schertz will continue to receive this vital service. The fiscal impact is as follows: 1. O & M Rates were increased by $0.05 11,000 gallons 2. Debt Service Increase was due to the Guadalupe Project Mayor Carpenter recognized Mayor Pro -Tern Edwards who moved, seconded by Councilmember Fowler to approve Resolution No. 16 -R -52. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson voting for and no one voting no. Motion passed. 7. Resolution No. 16 -R -54 — Consideration and/or action authorizing on -call contracts with Advanced Water Well Technologies and Austin Armature for pump and motor - maintenance services. (D. Wait/J. Hooks) The following was read into record: RESOLUTION NO. 16 -R -54 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING ON -CALL CONTRACTS FOR PUMP & MOTOR MAINTENANCE WITH ADVANCED WATER WELL TECHNOLOGIES AND AUSTIN ARMATURE AND OTHER MATTERS IN CONNECTION THEREWITH Mayor Carpenter recognized Assistant Public Works Director Jimmy Hooks who stated the City has various large water pumps that move water around the City from our Live Oak pump station to various storage sites and to residents and businesses. These pumps are essential to maintaining water service for drinking water, firefighting, industrial use, and irrigation use around the City, particularly during peak demand times. The Public Works Department operates two well sites and three booster stations throughout the City that require pumps and motors to push water through the system and into storage tanks for use by citizens and businesses. Any of the above pumps and motors could experience mechanical failure that would result in repairs. Typically, this is an urgent repair that the City would contact repair vendors based on 07 -12 -2016 Minutes Page - 6 - their availability, their workload, and their experience. For this reason, the City would like to retain qualified firms to perform maintenance and repairs as needed. The project was publicly bid using a Request for Proposals (RFP). Two proposals were received for this project. Public Works recommends awarding on -call contracts to both qualified firms, Advanced Water Well Technologies and Austin Armature. This will provide for a back -up if one of the firms is not immediately available to provide service. Based on the nature and scope of the work, as well as, historical data, any one pump and/or motor maintenance project could cost upwards of $30,000. If there were two separate incidents in one fiscal year, the likelihood of exceeding $50,000 with one of these vendors is high. For this reason, we are requesting a not -to- exceed amount of $75,000 with each vendor per fiscal year. This will allow for a buffer amount in the event that more than 1 -2 pump or motor failures occur. The fiscal impact of the project will not exceed $75,000 with each vendor per fiscal year. The services will be paid for from the Water Maintenance fund. Mr. Hooks addressed questions from Council. Staff recommends approval. Mayor Carpenter recognized Councilmember Azzoz who moved, seconded by Councilmember Thompson to approve Resolution No. 16 -R -54. The vote was unanimous with Mayor Pro -Tem Edwards, Councilmembers Fowler, Azzoz, John and Thompson voting for and no one voting no. Motion passed. 8. Ordinance No. 16 -S -19 — ZC2016 -005 — Conduct a public hearing and consideration and/or action approving an Ordinance by the City Council of the City of Schertz, Texas on a request PH to amend the Comprehensive Land Plan by changing approximately 6 acres of land from "Highway Commercial." to "Commercial Campus" on the Future Land Use Plan. The area is generally located southwest of the intersection of FM 2252 and IH -35, and is specifically described as 5.929 acres out of the Robert Martin & JNO.F. Walker Survey No. 113, Abstract 244, City of Schertz, Guadalupe County, Texas. First Reading (B. James/L. Wood/B. Cox) The following was read into record: ORDINANCE NO. 16 -S -19 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AMENDING THE COMPREHENSIVE LAND PLAN BY CHANGING APPROXIMATELY 6 ACRES OF LAND FROM HIGHWAY COMMERCIAL DESIGNATION TO COMMERCIAL CAMPUS DESIGNATION ON THE FUTURE LAND USE MAP. Mayor Carpenter recognized Senior Planner Bryce Cox who stated Saigebrook Development is requesting to amend the Comprehensive Land Plan by changing approximately 6 acres of land from "Highway Commercial" to "Commercial Campus" on the Future Land Use Plan. This area of the Future Land Use Plan was evaluated with the most recent Sector Plan Amendment to the Comprehensive Land Plan that was adopted by City Council on July 16, 2013. The subject property is currently designated as "Highway Commercial" which' is intended for regional scale retail and commercial uses that can take advantage of the highway 07 -12 -2016 Minutes Page - 7 - frontage. The areas designated as "Highway Commercial" are located at major highway intersections to maximize access to the region and adjoining neighborhoods. It is characterized with a land use mix of mostly large format retail with restaurants and entertainment uses or mid -rise office buildings. It may also include lodging and related uses. The applicant is requesting to change the Future Land Use Plan for the subject area to "Commercial Campus" in order to allow for a multi - family development. The "Commercial Campus" land character is intended to encourage the development of lower intensity commercial and office uses in locations between major intersections as a buffer between the interstate highway and adjoining neighborhoods. "Commercial Campus" can also accommodate light manufacturing or flex office uses set in a campus like environment in addition to multi - family residential located at mid -block locations and as transitions between office/ light industrial uses and adjoining single - family residential uses. It is generally characterized by mostly office, research, flex - office, and supporting uses, light industrial and assembly uses, educational and other institutional uses. In addition this category may include some multifamily uses at midblock locations and as a buffer between the highway and single - family neighborhoods only. As identified in the Comprehensive Land Plan, multifamily should generally be considered only in locations that may not be ideally suited for retail, office, or light industrial uses such as midblock locations, behind major commercial uses, and on sites with enviromnental constraints. In addition, multifamily uses should be incorporated and/or phased in with other retail and office uses. The applicant has submitted a concurrent rezoning application in which they are requesting to rezone this area to allow for a multi - family development. The public hearing notice was published in "The Daily Commercial Recorder" on June 24, 2016 and the "Herald" on June 29, 2016. Five (5) public hearing notices were mailed to surrounding property owners within two hundred (200) feet of the subject property on May 27, 2016. Staff has received 1 property owner response in favor of the request and 1 property owner response opposed to the request from the area within the 200 ft. notification boundary. A total of 7 responses have been received in favor of the request. A total of 544 people have submitted responses opposed to the request including a petition received June 8, 2016 containing 255 signatures and a second petition received June 17, 2016 containing 328 signatures. Public hearings were held at the June 8, 2016 and June 22, 2016 Planning and Zoning Commission Meetings. A total of 49 people spoke during the hearings.. The comments generally made in favor of the request were: • The proposed apartment complex is not a subsidized rent facility. • The complex would contain both restricted and unrestricted units. • All tenants are required to submit proof of employment & subject to a background check. • Most residents are hardworking people trying to start over or just trying to live their lives. • The residents of these apartment complexes are not criminals. • The apartments do not allow anyone in with a violent record. ® The minimum qualifying income requirement is 2.5 times the rent. 07 -12 -2016 Minutes Page - 8 - • The project would improve sewer infrastructure for surrounding properties increasing their values. • Affordable housing projects provide staffing for big box retail. • There is a demand for this type of housing. • Previous opponents of other affordable housing projects, years later, learn that their fears do not materialize. The comments generally made opposed to the request were: • Concern that there will be an increase in crime. • Concern that there will be an increase in traffic. • Concern that the development will add to the overcrowding of schools. • Concern that the development will decrease property values. • Apartment tenants do not have as much investment in the community as homeowners. • Approving will result in a loss of commercial retail space. • Concern with the lack of nearby public transit to serve the potential residents. • Concern with the lack of pedestrian routes to employment and essential services. • Concerns with safety for children because there is no place to play and no sidewalks to go anywhere. • Concern that there will be an increase in noise in the area. • Concerns with locating a multi - family project in an area with potential environmental hazards around. • Inadequate infrastructure to support multi - family development. • Consideration of a project that is age restricted to seniors only. • Concerns that the apartment complex will not be appropriately monitored and maintained by the owner. • Letters from the charities are "form" letters and the same letters are provided on multiple proj ects. • The proposal is not consistent with the Master Thoroughfare Plan or the Comprehensive Land Plan. • There are existing Schertz residents that can fill available lower entry -level jobs. On July 1, 2016, Saigebrook Development submitted a letter to the City requesting a continuance of this item to the July 26, 2016 City Council meeting in order to provide additional time to respond to .community concerns. They indicated in the letter they would be notifying the Belmont and Riata HOAs of their request to continue the case. Saigebrook Development is proposing to amend the Comprehensive Land Plan by changing approximately 6 acres of land from "Highway Commercial" to "Commercial Campus" on the Future Land Use Plan, generally located south west of the intersection of FM 2252 and I11-35. This request is running concurrent with a request to rezone the same property from General Business (GB) to Planned Development District (PDD) in order to allow for a multi - family development. The proposed site is located at the intersection of FM 2252 and IH -35. There is existing commercial development to the west. The property to the east is currently undeveloped, There are several existing single family residential dwellings south of the property. 07 -12 -2016 Minutes Page - 9 - The Master Thoroughfare Plan (MTP) identifies a continuation of FM 2252 south to Old Wiederstien Road along the eastern boundary of this property and the MTP also identifies a 60' east west collector road along the southern boundary of the property which is intended to serve as a commercial backage road. The subject property is ideally located for commercial/retail development being bounded by the extension of FM 2252, the 60' east west collector and IH -35. As identified by the Sector Plan Amendment to the Comprehensive Land Plan, the "Commercial Campus" land designation is intended to encourage the development of lower intensity commercial and office uses in locations between major intersections as a buffer between the interstate highway and adjoining neighborhoods. The subject area is located adjacent to a major highway intersection in which commercial/ retail development is able to take advantage of the easy access to the highway. At these major intersections, "Highway Commercial" is the most appropriate land designation. The development of this area in accordance with the "Highway Commercial" characteristics promotes the Economic Prosperity and High Quality of Life policy values from the City's 2016 Strategic Plan. Commercial development of this area also furthers the City's goals of a stable, diverse commercial base, supporting the Economic Engine portion of the complete city model identified in the Strategic Plan. It is the opinion of Staff that this area is appropriately designated as "Highway Commercial" and thus recommends disapproval of the Comprehensive Land Plan Amendment request. The Planning and Zoning Commission conducted public hearings on June 8, 2016 and June 22, 2016 and offered a recommendation of disapproval by a unanimous vote. Staff has no objection to the request by Saigebrook Development to table this item to the July 26, 2016 City Council Meeting at the discretion of City Council. Staff recommends disapproval of the request to amend the Comprehensive Land Plan. Mr. Cox stated that the applicant does have a presentation. Mayor Carpenter invited the applicant up to provide their presentation. Mayor Carpenter stated to make a note that a request was made in writing to the City Council that this item be postponed to a later date and if the Council wishes to do 'so he is sure someone will make a. motion to that effect otherwise he will have the applicant come forward to make his presentation. Mayor Carpenter recognized Mr. Trey Jacobson with Golden Steves Gohen &Gordon LLP, Attorney At Law and Ms. Megan Lasch with Saigebrook Development who came forward providing updated information regarding the project through a PowerPoint presentation. During the presentation Mayor Carpenter recognized Councilmember Azzoz who stated that the applicant had requested this item be tabled until the July 26, 2016 meeting and wanted to know if the applicant would be continuing his presentation. Mr. Trey Jacobson stated that he did ask but it was at the will of the Council if he should continue with his presentation. Mayor Carpenter recognized Councilmember Azzoz who made a motion to grant the table. Mayor Carpenter stated that the motion is out of order and does not follow the 07 -12 -2016 Minutes Page -10 - guidelines of the Councils Rules of Conduct and Procedure and therefore at this time he invited the developer to continue. Mr. Jacobson continued his presentation highlighting the only available competitive areas left in Schertz. All of the sites are either commercial, industrial M1 or single family residential. If Schertz wants housing options for its residents (including affordable options) it needs to enable developers to utilize funding that creates affordability. Currently, none of the sites zoned in Schertz for apartments are competitive for funding. Most competitive sites are located in the IH -35 corridor area. Most are zoned in commercial or industrial areas. Avanti Canyon is already set to receive funding from the state at the end of July at this precise location. It must have the proposed zoning to proceed. If the zoning is not approved, the development dies and the funding will go to a different project in San Antonio. He continued explaining the land use and zoning differences. He provided a site plan of the development and emphasized the green spaces that would be provided in the area, all of which exceed the requirements of the city. Mr. Jacobson also discussed and explained traffic impact situations, which for apartments is usually lower than for other types of development. Earlier it was noted by Senior Planner Bryce Cox that the P & Z Commission's recommendation was for a denial. While the P & Z Commission acknowledged the need for affordable housing, the reason for their recommendation was because P & Z disagreed with its location and were concerned about the impact on the potential for future commercial development along IH -35. While there is a general assumption that general business `GB' development generates more taxes than the proposed apartment development, it is not guaranteed. Today, along IH -35, there are over 290 acres available for development. This apartment site would only utilize 6 acres. Additionally, at this time there is a lack of utilities in this area so they would have to extend 1,300 feet of sanitary sewer connection which ultimately would allow other developments coming in later to simply tie in. They would do the same thing with a water line. Ultimately, council will be voting yes or no. If you vote no, what you have right now is a vacant site with inadequate utilities which could remain vacant for years generating only $12,000 in property taxes. There is a wide variety of potential future users that could generate 2 -4 times the traffic of apartments and the land use could be unattractive. Ultimately, it could actually produce less taxes than the proposed apartments. If you vote yes, you get an $18.8 million apartment development which will conform to PDD standards, site plan, enhanced landscaping and design. Construction can commence in 2017 and open for business in 2018. This would be a much needed housing option for Schertz residents and employers. Again, there would be minimal loss of commercial property, private financing of an extension of city utilities, and facilitation of future development of other commercial businesses. The projected increase in community property taxes is between $62,500 and $87,500 annually. Mayor Carpenter recognized City Manager John Kessel who stated that this is a Comprehensive Plan consideration and there are a number-of different land development tools that range from the Comprehensive Plan to the zoning ordinance to site plan and subdivision standards to a building permit. This is your most discretionary item, and when you get down to the building permit, if it meets all the ordinances in place, it is not discretionary and you would never vote on that, it would be handled administratively. You would also want to think about the zoning case in the context of the comprehensive plan — rarely would you want to 07 -12 -2016 Minutes Page - 11- zone outside of the general character of the comprehensive plan. If you have a like situation in a like property somewhere else, would you make the same decision on the zoning? Treat this like you are treating the zoning but take a larger perspective of your vision for the community and act accordingly on that. l Mayor Carpenter provided commentary about the public hearing process and request for decorum. Mayor Carpenter opened the public hearing and the following spoke against this item: • Mr. Todd Buske, 2713 Abacus Court • Mr. Dana Eldridge, 2628 Gallant Fox Dr • Ms. Lorene Reynolds, 760 High Trail Rd • Ms. Mariana Anderson, 757 High Trail Rd • Mr. Greg Howell, 2525 Pillory Point • Ms. Benita Bolter, 2633 Cloverbrook Ln • Mr. Gary Weaks, 2700 Sterling Way • Mr. Jeff Womack, 2944 Mineral Springs • Ms. Penny Jennings, 2501 Hourless Oaks • Mr. Eric Beam, 570 American Flag • Mr. George Antuna, 3636 Woodlawn Farms • Ms. Wendy Kincade, 1633 Canyon Oak, Oak Trails Estates • Mr. John Long, 6073 Covers Cove • Mr. Mike Tarr, 574 Secretariat Dr • Mr. Richard Stephens, 2557 Grenada Gait • Mr. Brent Bolter, 2633 Cloverbrook Ln Mayor Carpenter recognized the following who spoke for this item: • Mr. Chris Escalante, 499 Hollywell Bridge, who works for one of the VSO's • Ms. Lenor Martinez, 17321 Lookout Road (Property mgr. Liberty Pass — Selma) • Mr. Steve White, 415 Mitchell, in favor because development spurs development Mayor Carpenter recognized the following who spoke in need of affordable housing: • Mr. Gary Inmon, 417 Frank Baum Dr., commended the Schertz Police Department due to the recent activities. Mr. Inmon stated he is not against affordable housing or welcoming additional students to his schools, the problem he had was economic. The change in land designation would decrease potential commercial development, reducing property tax revenues, the school district's only source of funding. • Ms. Rita Hollingsworth, 1537 Circle Oak Dr, (St. Vincent de Paul Society) As no one else spoke, Mayor Carpenter closed the public hearing. Mayor Carpenter stated that at this time the item is open for Council comments and questions. In most times, as Mayor, he defers to Council and lets the Council have the first word. Mayor Carpenter stated that he used to sit in seat 5 where Councilmember Thompson is and he would marvel from time to time at Hal Baldwin and how only rarely do what he is doing right now in speaking 07 -12 -2016 Minutes Page -12 - first and then allow the council to follow. Mayor Carpenter stated that he would like to take the privilege to provide his comments. Several things are in play here and it is a complicated situation. The first thing is that we acknowledge the rights of land owners to dispose of their property as important. All of us have this right if we own land. Property owners also have the right to develop their property. These things are inherent to our system of government. This has to be balanced with the rights of the community, a political subdivision like we are as a city, to shape our community in our collective image. We also have state law which governs us both as a community and as individuals, and as a municipality, cognizant of what the law allows us to do and where we are constrained. We have a City Charter, because we are what you call a Home Rule City, so akin to the constitution that we have for our Federal Government, we have a City Charter that tells this governing body how it can and cannot act. There is also a need for balance and we have a need for this in our city, a variety of housing options, and for a lot of reasons. We do have a diverse community. We have a wide swath of folks who live in the City of Schertz. We also have a variegated economic development need. We have a need for a diverse workforce to reach our economic development goals, which are far reaching and wide in their scope. We also need to build self - sustaining neighborhoods that are well organized and not just rows of houses. If you look at some of the things we have proved over the last few years you will see we have moved away from sort of free standing type of developments to planned development districts that have many uses within their bounds. We also have to balance that with our desire to live in a community that conforms to the vision that is expressed by the entire community in the aggregate, not just those that are here, but the entire community. Since he has been on council we have had our stated desire here in Schertz to see slower residential growth when compared to commercial growth, and we often refer that to economic development. As Mr. White pointed out earlier, economic development is critical for the long term sustainability of our municipality. We also have our repeatedly stated desire to maintain both our predominant culture and our small town feel. If you look at our minutes, all the way back to 1958, this has been stated again and again and again by many people who have come before us on this council and have lived in this city. In simplest terms our desire to peruse our god given rights, and pardon him if he is waxing philosophical here, of life, liberty and the pursuit of happiness belongs to us as a community in the aggregate. There are other considerations too. There is consideration of precedence, what is our past telling us about our future, which has been referenced by a number of folks here talking about a comprehensive land plan, talking about our ability to be flexible, and what has worked and what hasn't worked for the City of Schertz; also of intent, our current intent, our historical intent and our future intent. This is a land planning consideration for this particular item and he is going to quote himself and sorry it's a little rude to do some times. He has said many times, if you look in the minutes, since we are what is called a Home Rule City, we have a Home Rule Charter. Like he said earlier, it is much like a constitution, it's where the people vote on a document that tells this government how it can and must act. We are bound by that as well as state law. This Home Rule Charter is direct guidance to the members of this council. So the quote that he has been heard to make from time to time "that means this is our home and we make the rules ". That is what home rule means to him. As to this item that is before us, and as he said before that over the last 50 years the city has provided itself zoning and use guidelines, comprehensive land plans, actual zoning, parks plans, annexation plans, and a host of other documents committed as self - guided works that have served us well. 07 -12 -2016 Minutes Page - 13 - A bit of history, this piece of land that is being discussed now was annexed in 1981, both sides of IH 35, just about as deep as it is zoned commercial, were annexed in 1981 when Jack Stomackin, Sr., was the mayor. By the way, he served one term and the one thing he did was get that land annexed between the City of Schertz almost up to the City of New Braunfels on both sides of the interstate, because there was a vision about how that land would be used. He, at the present time has spent the most time .on council from the others present and they had things like this come up before, particularly at FM 3009 and Live Oak Road. In 2007 you will fmd some interesting commentary there, but in the simplest terms of his experience and personal belief that the burden for proving the need for a land use designation change rests with the applicant, it rests with the land owner or developer. His experience has also taught him that when the staff, Planning and Zoning Commission and the community have potentially spoken in one voice, that they rarely if ever committed an error in judgment. Given that. it is his personal recommendation to his colleagues to deny this request that is before us. Mayor Carpenter opened up this item for discussion to council. Mayor Carpenter recognized Mayor Pro -Tem Edwards who began by reciting some scripture. He said we (Council) have a charge to do what is right by all people in this community. Sometimes we have to protect the individual from the masses and also then sometimes protect the masses from the one individual. He read the city vision from the agenda. He said we have had a lot of changes in the city. He referenced the city sign ordinance and said we have very strict building standards which have changed over the years. He said he was glad to see so many people here this evening regarding this item but he would really also like to see them during budget time when there are a lot of other things going on in the community. There are a lot of things that go on in these chambers and he invited them to become involved in these other areas as well. He referenced the Gateway project that was mentioned by someone earlier which staff/council had recognized as something where they needed more guidance on other than what was available in our standard City UDC. We knew change was coming. We needed a master thoroughfare plan. It is great to have foresight and visionary leadership, especially from others who came before us and taught us to be patient when determining what a right fit is for our community. There have been times when we as council have turned down past major economic development projects that would have been great for the city, but is it the right thing to do against Garden Ridge or Cibolo (our sister cities). Sometimes we just have to say to ourselves, `I'm going to do what is right.' Mayor Pro -Tem Edwards disagreed with what someone said earlier that multi - family is second class. He thinks it is a stage of life that you go through. In addressing the developer he said if they are saying this is the only spot they can find for this project, then we have an issue —we have a `no' vote. In summary he said he thinks it is good principal and good discipline and we must be patient. He feels we cannot rezone this property at this time. Mayor Carpenter recognized Councilmember Thompson who stated he has noticed the objectivity with which the city staff and administration tries to develop things. Emotional issues will always come before the council and emotions can sway easily. The Comprehensive Land Use Plan gives us a foundation when emotions want to sway us. We also have a Master Thoroughfare Plan being considered because staff is looking at what our city will possibly look like 40 years from now. It will give us the filter we need to work through issues at that 07 -12 -2016 Minutes Page - 14- time. We have a Master Facility Plan that needs to be developed as we grow as a city staff. We have a Master Street Plan also soon to be developed. All of these are filters to help us in future decision making. He looks at other things as well, such as the School District, staff, the Planning and Zoning Commission, etc. If they all say no, then there is a reason. We are concerned with not just today, but with the next 40 years. He believes in the long term this project is detrimental to the City of Schertz. Mayor Carpenter recognized Councilmember Fowler who stated there had been a vision in the 1980's by previous councilmembers /mayors before we came on council that the area along IH -35 would grow, and it has. He agreed with Councilmember Thompson's statement that we are planning for the next five years. We have been projecting our growth and we are right on track. Yes, we need this type of housing. However, when he looks at what they are trying to do by keeping the commercial areas in their configuration - - -it is important. If we start doing things outside of our long range plans, then we change the atmosphere and it causes morphing. He is afraid the morphing with then takes us in a direction we don't want to go right now. If we keep chipping away at our `commercial zoned' property, we will continue to limit ourselves. Another reason he doesn't agree with this proposal is he thinks it will isolate the residents and they will be located in a spot where they won't feel like they are part of the community. He just does not agree with this particular location for this project. Mayor Carpenter recognized Councilmember Azzoz who stated that he wants to start by saying he made the motion earlier to give the developer the delay they requested, and that was a legal motion that he made. He doesn't see the procedural fault in it but hopefully it will be discovered at a later time. Mayor Carpenter interrupted asking if he was raising a point of procedure and is asking him for an explanation? Councilmember Azzoz stated that he wanted to know why the motion was not approved. Again, Mayor Carpenter stated that if he has raised a point of procedure, then we do not have within our 'rules a disposition motion to continue or to table any item; it's not part of our available disposition of motions. Again, Councilmember Azzoz stated as a point it was legal. Councilmember Azzoz stated that he is a business person and wishes for those present to hear his opinion. The area in question, and as he has listened to everyone, there are faults to it, there is good and bad, but unpredictable. He is a self -made man, he has lived under the bridge, so he knows what good times are and what hard times are; there were times when he couldn't afford things. He lived when it was very cold and hot outside. He experienced life and appreciated it at its best, he never looked down on anyone and he never looked up to anyone; he looked them straight in the eye and told them the truth. That area in question, and if he wants to agree and side with you today he will say no, it's a bad idea because we have to use this year that this developer is going to come and is going to generate a lot of money, and by the way, the business is going to be phenomenal that's going to go in there and it is not going to conflict with your life or is going to disturb any of your children or lifestyle or bring your property value down. You are willing to take the risk of what would go up there beside this; willing to take the calculated risk. He has made bad decisions before but in the end of the day, it all worked out. We don't want to send a message out there that we don't want more people moving to Schertz because we are overpopulated. Guess what? You're taxes are going to go up. Also, if we do this, we won't get the businesses (economic development) to follow. They need people for jobs and to be able to provide services to you. They will go outside the city to get staff. A 07 -12 -2016 Minutes Page - 15 - project like this could be beneficial to a lot of folks. We have to make a decision based on all the people of the city. This is `affordable' housing, not `Section 8' housing. We need to look at the future. He said this area was available to be developed seven years ago. It could go on being available a lot.longer. He took a ride along FM 1604 and saw beautiful complexes, and homes. Also, right along the side of these housing developments were many businesses. These are his thoughts on the matter. Mayor Carpenter recognized Councilmember John who stated he has lived here in Schertz for 40 years and he thanks everyone who chose his hometown. He has waited a long time to see all kinds of development to come because that is what it takes to get this community balance right. However, if you all are willing to wait (based on all the recommendations provided tonight) he thinks that property should stay zoned commercial. Mayor Carpenter recognized Mayor Pro -Tem Edwards who moved, seconded by Councilmember Thompson to deny Ordinance No. 16 -S -19 on first reading. The vote was 4- 1-0 with Mayor Pro -Tem Edwards, Councilmembers Fowler, John and Thompson voting for and Councilmember Azzoz voting no. Motion passed. 9. Ordinance No. 16 -S -20 — ZC2016 -003 — Conduct a public hearing and consideration and/or action approving an Ordinance by the City Council of the City of Schertz, Texas on a request PH to rezone approximately 6 acres of land from General Business (GB) to Planned Development District (PDD). The property is generally located southwest of the intersection of FM 2252 and IH -3, and is specifically described as 5.929 acres out of the Robert Martin & JNO.F. Walker Survey No. 113, Abstract 244, City of Schertz, Guadalupe County, Texas. First Reading (B. James/L. Wood/B. Cox) The following was read into record: ORDINANCE NO. 16 -S -20 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AMENDING THE OFFICIAL ZONING MAP BY ZONING APPROXIMATELY 6 ACRES OF LAND FROM GENERAL BUSINESS DISTRICT (GB) TO PLANNED DEVELOPMENT DISTRICT (PDD). Mayor Carpenter recognized Senior Planner Bryce Cox who said Saigebrook Development is requesting to rezone approximately 6 acres of land from General Business (GB) to Planned Development District (PDD) in order to construct a multifamily apartment complex. The property is generally located south west of the intersection of FM 2252 and IH -35 and is currently undeveloped. Mayor Carpenter recognized Senior Planner Bryce Cox who pointed out that staff has received a lot of concerns from residents on this item about the project being a tax credit apartment complex. However, while considering zoning cases, how a project is funded is not considered by city staff when evaluating zoning cases. The requested zoning change is not in conformance with the City's Comprehensive Land Plan and in addition, the Planning & Zoning Commission has also recommended disapproval of this request at their meeting on June 22. City staff also concurs. 07- 12 -20M Minutes Page -16 - Mayor Carpenter opened the public hearing and as no one spoke, closed the public hearing for Council comments. Mayor Carpenter recognized Councilmember Azzoz who wanted to point out that the developer asked for a delay and never got an answer. Mayor Carpenter stated we don't have a motion to table in our rules, we don't' have a motion to continue with our rules, the proper motion is a motion to postpone to a particular time and that particular time needs to be named. Mayor Carpenter recognized Councilmember Thompson who moved, seconded by Mayor Pro -Tern Edward to deny Ordinance No. 16 -5 -20 on first reading. The vote was 4 -1 -0 with Mayor Pro -Tem Edwards, Councilmembers Fowler, John and Thompson voting for and Councilmember Azzoz voting no. Motion passed. Roll Call Vote Confirmation Mayor Carpenter recognized City Secretary Brenda Dennis who provided the roll call votes for agenda items 1 through 9. Requests and Announcements 10. Announcements by City Manager • Citizen Kudos • Recognition of City employee actions • New Departmental initiatives City Manager John Kessel reminded Council to please RSVP their ability to attend the July 29t' Retreat Meeting. 11. Future Agenda Item Request for City Council: This is an opportunity for City Council members to request that items be placed on a future agenda. No discussion of the merits of the item may be taken at this time. Should a Council Member oppose placement of the requested item on a future agenda, the Mayor, without allowing discussion, shall ask for the consensus of the other City Council members to place or not place the item on a future agenda. No further requests were made. 12. Announcements by Mayor and Councilmembers • City and community events attended and to be attended • City Council Committee and Liaison Assignments (see assignments below) • Continuing education events attended and to be attended • Recognition of actions by City employees • Recognition of actions by community volunteers 07 -12 -2016 Minutes Page - 17 - Mayor Carpenter recognized Councilmember Fowler who stated that they have now received a permit to do the demolition on the trailer (home) on Cabana Drive and he will meet with the City Marshal tomorrow to start this project. Phase I will be to remove all of things in the mud room. Phase II is to stabilize the carport. Phase III is to demolish the mudroom. He welcomes any more volunteers that would like to assist. Mayor Carpenter recognized Councilmember Azzoz who stated he and his company have been contacted by several police officers from Dallas and asked them to omi in to do a fundraiser for the Dallas fallen officer's families. This will happen July 25 - Trinity Oaks and Operation Comfort. He asked for everyone's support if they can make it. Adiournment Mayor Carpenter adjourned the meeting at 9:05 p.m. Aael Carpenter, Mayor ATTEST;: e� Y Brenda Dennis, City Secretary 07 -12 -2016 Minutes Page -18 -