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09-02-2025 MinutesMINUTES REGULAR MEETING September 2, 2025 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on September 2, 2025, 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: Present: Mayor Ralph Gutierrez; Mayor Pro Tem Tim Brown; Councilmember Mark Davis; Councilmember Michelle Watson; Councilmember Paul Macaluso; Councilmember Ben Guerrero; Councilmember Robert Westbrook; Councilmember Allison Heyward Staff City Manager Steve Williams; City Attorney Daniel Santee; Deputy City Manager present: Brian James; Assistant City Manager Sarah Gonzalez; City Secretary Sheila Edmondson; Deputy City Secretary Sheree Courney Call to Order Mayor Gutierrez called the meeting to order at 6:00 p.m. Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Councilmember Heyward) Councilmember Heyward provided the opening prayer and led the Pledges of Allegiance to the Flags of the United States and State of Texas. Proclamations National Preparedness Month - September 2025 (Councilmember Heyward) Councilmember Allison Heyward presented the National Preparedness Month proclamation to Brandon High, Emergency Management Coordinator for the City of Schertz. This year's theme is "Start a Conversation." Employee Introductions Mayor Gutierrez recognized City Department Heads who introduced the following new staff: • Finance:Alaina Ortiz -Accountant • Fleet: Matthew Chappell -Fleet Superintendent • Parks & Recreation: Margaret Mikula-Administrative Assistant • Police: Jesus Reyes -Police Officer • Public Works Utilities: Edgar Estrada-Water/Wastewater Worker I 1 City Events and Announcements • Announcements of upcoming City Events (B. James/S. Gonzalez) Deputy City Manager Brian James provided the announcements of upcoming city events. • Announcements and recognitions by the City Manager (S.Williams) City Manager Steve Williams congratulated Lizzi Bertoia on her promotion to Library Director. • Announcements and recognitions by the Mayor (R.Gutierrez) Mayor Gutierrez had no announcements or recognitions. Hearing of Residents This time is set aside for any person who wishes to address the City Council. Each person should fill out the speaker's register prior to the meeting. Presentations should be limited to no more than 3 minutes. All remarks shall be addressed to the Council as a body, and not to any individual member thereof. Any person making personal, impertinent, or slanderous remarks while addressing the Council may be requested to leave the meeting. All handouts and/or USB devices must be submitted to the City Secretary no later than noon on the Monday preceding the meeting. Handouts will be provided to each Councilmember prior to the start of the meeting by the City Secretary. All USB devices will be vetted by City IT staff to ensure City property is protected from malware. Mayor Pro Tem Tim Brown recognized the following residents: Bob Jameson, 4504 Brush Creek Dr., brought forth concerns regarding the development at 4723 Roy Richard Drive which is causing damage to his home and being bounced around between city departments. Dana Eldridge, 2628 Gallant Fox Dr., brought forth concerns regarding a data breach by Frontier Waste whereby he received every resident's address and account number in his personal email address. Gabriel Perales, Public Information Officer with the United States Small Business Administration's Office of Disaster Recovery and Resilience, provided information to Council regarding resources available to those physically or economically impacted by the July 4th floods. They offer resources to homeowners, renters, nonprofits, and businesses. Bryan Nugent, 816 N. Main, stated he had recently opened Safeway Driving School in Schertz and provided some background on the company that has been in existence for over 50 years. Robert Stanfield, 12654 Woman Hollering Rd., deferred to Public Hearing. K Steven Layton, 12231 Lost Meadows Dr., provided information related to the Joint Land Use Study related to the properties in the ETJ subject to the Special Election. 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 — Approval of the minutes from the City Council Meeting on August 19, 2025 (S.Edmondson/S.Courney) 2. Resolution 25-R-113 - Authorizing an amendment to the Park Improvement Agreement for The Parklands Subdivision and Parklands II Subdivision (B.James/L.Wood/S.Haas) Mayor Gutierrez asked if either item needed to be removed for separate action. No items were removed. Mayor Gutierrez asked for a motion to approve Consent Agenda Items # 1 and #2. Councilmember Allison Heyward stepped off the dais and did not vote. Moved by Councilmember Michelle Watson, seconded by Mayor Pro Tem Tim Brown AYE: Mayor Pro Tern Tim Brown, Councilmember Mark Davis, Councilmember Michelle Watson, Councilmember Paul Macaluso, Councilmember Ben Guerrero, Councilmember Robert Westbrook Passed Discussion and Action Items 3. Resolution 25-R-118 - Authorizing an agreement with Blue Cross Blue Shield of Texas for medical insurance for plan year 2026 (S.Gonzalez/J.Kurz) Mayor Gutierrez recognized HR and Purchasing Director Jessica Kurz who introduced Resolution 25-R-118. Ms. Kurz provided highlights of the proposal, a comparison of bids received, and outlined the costs. City Manager Steve Williams added that there would be no increase in the costs and minimal disruption with a change in carriers. Mayor Gutierrez opened the floor to Council for discussion. After brief discussion with Council regarding proposals received and increases in industry standards which were addressed by Reagan Latimer, account executive with Gallagher Benefit Services, motion to approve Resolution 25-R-118 was brought 3 forward. Moved by Mayor Pro Tem Tim Brown, seconded by Councilmember Michelle Watson AYE: Mayor Pro Tem Tim Brown, Councilmember Mark Davis, Councilmember Michelle Watson, Councilmember Paul Macaluso, Councilmember Ben Guerrero, Councilmember Robert Westbrook, Councilmember Allison Heyward Passed Public Hearings 4. Ordinance 25-S-035 - Conduct a public hearing and consider a request for a Specific Use Permit to allow Mixed -Use Self -Storage in General Business District (GB) on approximately 2.14 acres, located along the IH-35 North access road, approximately 900 feet west of the intersection of IH-35 and Cibolo Valley Drive, more specifically known as a portion of Guadalupe County Property Identification Number 62840, City of Schertz, Guadalupe County, Texas (B.James/L.Wood/W.Willingham) Mayor Gutierrez recognized Planner William Willingham, who introduced Ordinance 25-S-035, a request for a Specific Use Permit to allow Mixed -use Self -storage in General Business District. Mr. Willingham stated four public notices were sent out on July 25, 2025, no responses have been received to date, and a public hearing notice was placed in the San Antonio Express on August 13, 2025. A sign was placed on the subject property by the applicant. Two prior applications submitted by the applicant were approved by Council via Ordinance 24-S-26 and Ordinance 24-S-170. Both of these applications were subsequently withdrawn. Applicant indicated the property for which Ordinance 25-S-035 is requested is more aligned with the intended mixed -use storage facility planned. The Planning and Zoning Commission met on August 6, 2025, and recommended approval with a 6-0 vote. Staff recommended approval with following conditions: 1. A building permit is approved within two years of the adoption of the SUP ordinance in accordance with UDC Article 5, Section 21.5.1 LF Expiration of Specific Use Permit; and 2. Twenty-five percent of the usable square footage of the first floor of the proposed Mixed -Use Self -Storage building be for office, service, or retail space, and separate from the individual units for rent or lease. Mr. Willingham introduced Mr. James Griffin with Killen, Griffin, and Farrimond, who spoke on behalf of the applicant, Storage Hub. Mr. Griffin confirmed this was the third request, but assured Council there would not be three new self -storage buildings. He stated one of the properties currently in planning process will be a retail -only site, so the SUP will not be used. Second approved SUP site had several difficulties, making it less desirable. Current site has greater visibility and greater flexible use of the space. 4 Mayor Gutierrez stated this item was on the agenda as an open public hearing. Public Hearing opened at 6:59 p.m. No residents came forward to speak. Public Hearing closed at 6:59 p.m. Mayor Gutierrez opened the floor to Council for discussion. No discussion occurred. Mayor Gutierrez asked for a motion to approve Ordinance 25-S-035. Moved by Councilmember Paul Macaluso, seconded by Mayor Pro Tern Tim Brown AYE: Mayor Pro Tem Tim Brown, Councilmember Mark Davis, Councilmember Michelle Watson, Councilmember Paul Macaluso, Councilmember Ben Guerrero, Councilmember Robert Westbrook, Councilmember Allison Heyward Passed 5. Ordinance 25-S-036 — Conduct a public hearing and consider a request to rezone approximately 36.2 acres of land from Planned Development District (PDD) to Planned Development District (PDD), generally known as 13011 Lower Seguin Road, at the intersection of Lower Seguin Road and Red Bud Canyon, more specifically known as Bexar County Property Identification Numbers 310011, 1436811, 1437570, 1394925 City of Schertz, Bexar County, Texas (B.James/L.Wood/S.Haas) Mayor Gutierrez recognized Sr. Planner Samuel Haas who introduced Ordinance 25-S-036. On July 27, 2025, five public hearing notices were sent, no responses have been received to date, and a public hearing notice was placed in the San Antonio Express. A sign was placed on the subject property. Prior application for a PDD was submitted by the applicant and approved by Council via Ordinance 21-S-06, on March 21, 2021. The PDD included mixed lot sizes, housing types, and uses with 3.3 acres designated for commercial uses along the frontage of Lower Seguin Road. Applicant is requesting the new concept plan consists of a base zoning district of Single -Family Residential (R-2), removal of commercial property designation, and rearranging the drainage. The Planning and Zoning Commission met on August 6, 2025, and recommended denial with a 5-1 vote. Staff recommended denial citing the request does not implement the policies of the Comprehensive Plan, does not promote orderly and efficient development, and removes the unique and superior element of the original PDD. Mayor Gutierrez asked if the applicant wanted to address the Council. Neither the applicant nor a representative of the applicant came forward to speak. Mayor Gutierrez stated this item was on the agenda as a Public Hearing. 5 Public Hearing opened at 7:07 p.m. Dr. Randy Klepetko, 11910 Lost Meadows, pointed out that the map appeared to show proposed houses being built in the flood zone. Public Hearing closed at 7:08 p.m. Mayor Gutierrez opened the floor to Council for discussion. After brief discussion, Mayor Pro Tem Tim Brown made a motion to deny Ordinance 25-S-036, seconded by Councilmember Michelle Watson. AYE: Mayor Pro Tem Tim Brown, Councilmember Mark Davis, Councilmember Michelle Watson, Councilmember Paul Macaluso, Councilmember Ben Guerrero, Councilmember Robert Westbrook, Councilmember Allison Heyward Passed 6. Ordinance 25-S-037— Conduct a public hearing and consider request for a Specific Use Permit to allow a convenience store with gas pumps on approximately 4.2 acres of land, located at the intersection of North Graytown Road & IH 10, known as 11185 IH 10 E, Bexar County Property Identification Number 619232, City of Schertz, Bexar County, Texas (B.James/L.Wood/S.Haas) Mayor Gutierrez recognized Sr. Planner Samuel Haas who introduced Ordinance 25-S-037 a request for a Special Use Permit to allow a convenience store with gas pumps at 11185 IH 10 E. Applicant received an approval for an SUP for the same location on June 21, 2023, but did not request a building permit within two years, therefore the permit expired. Mr. Haas stated four public notices were sent out on July 25, 2025, one response in favor has been received, and a public hearing notice was placed in the San Antonio Express. A sign was placed on the subject property. The Planning and Zoning Commission met on August 6, 2025, and recommended approval with a 6-0 vote. Staff recommended approval with the condition that a building permit is approved within two years of the adoption of the SUP ordinance in accordance with UDC Article 5, Section 21.5.11.17 Expiration of Specific Use Permit. The applicant was not in attendance. Mayor Gutierrez stated this item was on the agenda as an open public hearing. Public Hearing opened at 7:16 p.m. No residents came forward to speak. Public Hearing closed at 7:16 p.m. 6 Mayor Gutierrez opened the floor to Council for discussion. No discussion occurred. Mayor Gutierrez asked for a motion to approve Ordinance 25-S-037. Moved by Councilmember Ben Guerrero, seconded by Councilmember Michelle Watson AYE: Mayor Pro Tern Tim Brown, Councilmember Mark Davis, Councilmember Michelle Watson, Councilmember Paul Macaluso, Councilmember Ben Guerrero, Councilmember Robert Westbrook, Councilmember Allison Heyward Passed 7. PLAPP20250187 - Conduct a public hearing and consider an appeal to a decision by the Planning and Zoning Commission for a waiver in relation to wall signage for the Home Depot on Lot 10 Block 1 of the Schertz Station Subdivision, approximately 18.709 acres of land, located at 18541 Ripss-Kreusler Road, Schertz, Texas, 78154, more specifically known as Guadalupe County Parcel Identification Number 68313 (B.James/L.Wood/S.Haas) Mayor Gutierrez recognized Sr Planner Samuel Haas who introduced PLAPP20250187 to consider an appeal to a decision of the Planning and Zoning Commission for a waiver in relation to wall signage for the Home Depot on Lot 10, Block 1 of the Schertz Station Subdivision. Mr. Haas provided background information and examples of signage for buildings of similar size in Schertz. He provided options for Council to consider. Mayor Gutierrez invited the applicant to address the Council. Mr. Aaron Parenica, Engineer for Home Depot, stated that he understood staff s recommendation was based on the city's UDC, however, Home Depot is asking for their current standard prototype for signage. He also stated that he had heard staff mention that perhaps they needed to amend the UDC to allow the larger signage. He said the UDC as it is written and having larger box stores come to Council for a waiver serves the city well. He doesn't believe there is a need for amending the UDC. Mayor Gutierrez stated this item is on the agenda as a Public Hearing. Public Hearing opened at 7:29 p.m. The following residents spoke in favor of approving the waiver: Sean Cleary, 3596 Olde Moss Rd, Joan Simoncelli, 11350 Flores Luna Rd. Public Hearing closed at 7:32 p.m. Mayor Gutierrez opened the floor to Council for discussion. After brief discussion amongst Councilmembers and having questions fielded by Mr. 7 Haas and Deputy City Manager Brian James, Mayor Gutierrez asked for a motion to approve the waiver for Home Depot's signage. Moved by Councilmember Michelle Watson, seconded by Councilmember Mark Davis AYE: Mayor Pro Tem Tim Brown, Councilmember Mark Davis, Councilmember Michelle Watson, Councilmember Paul Macaluso, Councilmember Ben Guerrero, Councilmember Robert Westbrook, Councilmember Allison Heyward Passed 8. Ordinance 25-T-033 — Conduct a Public Hearing and approve an Ordinance approving the appraisal roll; setting the tax rate; levying and assessing general and special ad valorem taxes for the use and support of the municipal government of the City of Schertz, Texas (S. Gonzalez/J. Walters) Mayor Gutierrez recognized Finance Director James Walters, who introduced Ordinance 25-T-033. Mr. James provided the same presentation as shown at the 8/19/2025 meeting and reiterated the changes in tax revenue and foregone taxes. He further stated that to support the budget passed on 8/19/2025, Council needed to adopt a $0.5118 tax rate for FY2026. Mayor Gutierrez stated this item is on the agenda as a public hearing. Public Hearing opened at 7:59 p.m. No public came forward to speak. Public Hearing closed at 8:00 p.m. Mayor Gutierrez opened the floor to Council for discussion. Mayor Pro Tem Tim Brown addressed the omission of information in a Community Impact article related to the DVHS funding the city has not been reimbursed by the State. The article reported on Council's approval of a property tax increase. If the city had received the DVHS funding a property tax increase would not have been necessary. Councilmember Guerrero concurred with Mayor Pro Tem Brown. No further Council discussion occurred. Mayor Gutierrez asked for a motion to approve Ordinance 25-T-033. Councilmember Allison Heyward made the following motion: 'I move that the property tax rate be increased by adoption of a tax rate of $0.5118, which is effectively a 1.1 % increase in the tax rate.' Seconded by, Councilmember Michelle Watson. 8 AYE: Mayor Pro Tern Tim Brown, Councilmember Michelle Watson, Councilmember Ben Guerrero, Councilmember Robert Westbrook, Councilmember Allison Heyward NAY: Councilmember Mark Davis, Councilmember Paul Macaluso Passed 9. Resolution 25-R-101 - Conduct a public hearing regarding annexation vs. land use regulation related to Resolution 25-R-101 Special Election for properties within a five -mile boundary of JBSA-Randolph (MayorB.James/S.Edmondson) Mayor Gutierrez recognized City Secretary Sheila Edmondson who introduced Resolution 25-R-101 a Special Election for properties within a five -mile boundary of JBSA-Randolph. Ms. Edmondson explained the election process and turned the presentation over to Deputy City Manager Brian James who presented information related to annexation and land use regulation. Mayor Gutierrez stated that this item is on the agenda as a Public Hearing to allow residents an opportunity to voice any concerns and provide questions for staff to address. Public Hearing opened at 8:15 p.m. The following residents expressed concerns and posed questions for staff. Steven Layton, 12231 Lost Meadows Clare Layton, 12231 Lost Meadows Dr. Randy Klepetko, 11910 Lost Meadows Joan Simoncelli, 11350 Flores Luna Rd Darren Turner, 12700 Woman Hollering Rd Sean Cleary, 10851 Levesque Lane Maverick Rodriguez, 10308 Overnight Path Nathan Jackson, 12540 Schaefer Rd Robert Stanfield, 12654 Woman Hollering Rd Steve Slate, 8600 Quailwood Run Juan David Flores, 11218 Flores Luna Rd Ray Aaron 111085 Harvest Ridge Public Hearing closed at 8:50 p.m. Mayor Gutierrez addressed some concerns and asked residents to email their questions so Staff could provide answers at the next scheduled public hearing on September 16, 2025. Information available in City Council Packets - NO DISCUSSION TO OCCUR 10. Monthly Update - Major Projects In Progress/CIP (B.James/K.Woodlee) 9 11. Updated Purchasing Policy and Vendor Expenditure Report (S.Gonzalez/J.Kurz) Requests and Announcements *Requests by Mayor and Councilmembers for updates or information from Staff Mayor Pro Tem Brown asked for more information regarding the need for the Special Election. Councilmember Westbrook asked for a draft ordinance on possible land uses and enforcement should land use regulation be adopted as a result of the Special Election. . Requests by Mayor and Councilmembers that items or presentations be placed on a future City Council agenda Councilmember Heyward asked that membership to the American Flood Coalition and for a resolution for the Coalition Against Big Trucks be added to a future agenda. • City and Community Events attended and to be attended (Council) Councilmember Westbrook attended the Thriving Wellness Conference in San Antonio. Councilmember Heyward attended the Linebarger Property Tax Update and the TML Land Use Conference. She gave an update on SB 10 and noted that TML is monitoring it. She announced she is applying for the National League of Cities Small Cities Council Chair and the Federal Advocacy Committee. Adjournment Mayor Gutierrez adjourned the meeting at 9:03 p.m. ATTEST: Sheila Edmondson, City Secretary 10