11-04-2008 AgendaSCHERTZ CITY COUNCIL REGULAR SESSION MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 REGULAR AGENDA TUESDAY, NOVEMBER 4, 2008 Regular Session
6:30 p.m. REGULAR SESSION CALL TO ORDER: INVOCATION AND PLEDGES OF ALLEGIANCE TO THE FLAGS OF THE UNITED STATES AND STATE OF TEXAS. 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 5 minutes. Discussion
by the Council of any item not on the agenda shall be limited to statements of specific factual information given in response to any inquiry, a recitation of existing policy in response
to an inquiry, and/or a proposal to place the item on a future agenda. The presiding officer, during the Hearing of Residents portion of the agenda, will call on those persons who have
signed up to speak in the order they have registered. REGULAR AGENDA 1. Minutes -Consideration ?Consideration and/or action regarding the approval of the minutes of the Regular Meeting
of October 28, 2008. 2. Resolution No. 08-R-49 -Consideration and/or action on an Interlocal Agreement with Schertz–Cibolo-Universal City ISD relating to sewer line facilities. (M. Spain).
(This item was brought back to Council at the request of City Attorney) 3. Ordinance No. 08-T-50 -Consideration and/or action relating to Reinvestment Zone Number Two, City of Schertz,
Texas authorizing Final Project Plan and Reinvestment Zone Financing Plan for the Zone, including reaffirming certain appointments to the Board of Directors of the Zone. Final Reading
(M. Spain). 4. Resolution No. 08-R-50 – Consideration and/or action relating to Reinvestment Zone Number Two, City of Schertz, Texas authorizing an Interlocal Agreement and Development
Agreement. (M. Spain.) 11-4-08 Council Agenda
5. Ordinance No. 08-M-51 – Consideration and/or action amending Ordinance No. 05-M-02 relating to Chapter 2, Article V, “Administration Transportation Safety Advisory Commission to include
alternate members. First Reading (L. Dublin) 6. Ordinance No. 08-S-49 -SUP2008-031A-Consideration and/or action upon a request for a Specific Use Permit of 2.82+ acres land being of
Lot 6 Block 1 of the Hubertus Retail Subdivision to allow the use of a Self-Storage Service Facility in the General Business zoning district (GB) located at the southwest intersection
of IH35 North and FM-1103. First Reading (M. Nichols) (Council postponed action on this item until the November 4, 2008 City Council) 7. Resignations/Appointment/Reappointment to Boards
and Commissions/Committees – Consideration and/or action regarding resignations appointments/reappointments to Boards and Commission/Committees. • Appointment of Tim Brown – Schertz
Economic Development Corporation DISCUSSION AND POSSIBLE ACTION 8. Briefing by City Attorney on FEMA NFIP Grandfathering Rates. (M. Spain) 9. Consideration and or action on questions
and possible items to be placed on the next agenda. (Mayor/City Council) 10. Announcements by City Council Members, Mayor and City Manager: Council Member Fowler -TML Conference, Trunk
or Treat Event Council Member Scagliola – TML Conference, Trunk or Treat Event Council Member Trayhan -TML Conference, Trunk or Treat Event Mayor Pro-Tem Wilenchik -TML Conference, Trunk
or Treat Event Council member Carpenter -TML Conference, Trunk or Treat Event Mayor Baldwin -TML Conference, Trunk or Treat Event City Manager Don Taylor – EXECUTIVE SESSION Called under
Section 551.071 Litigation, pending litigation; Section 551.072 Texas Government Code -Deliberation regarding the purchase, exchange, sale, lease, or value of real property. RECONVENE
TO REGULAR SESSION 11. Take any action deemed necessary as a result of the Executive Session. ADJOURNMENT CERTIFICATION 11-4-08 City Council Agenda Page -2 -
I, BRENDA DENNIS, CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS POSTED ON THE OFFICIAL BULLETIN BOARDS ON THIS THE 30th DAY OF OCTOBER, 2008
AT 11:30 A.M., WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE. Brenda Dennis BRENDA
DENNIS, TRMC, CMC CITY SECRETARY I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE OFFICIAL BULLETIN BOARD ON _____DAY
OF _______________, 2008. ____________________________Title:__________________________ This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped
parking spaces are available. If you require special assistance or have a request for sign interpretative services or other services please call 619-1030 at least 24 hours in advance
of meeting. COUNCIL ASSIGNMENTS Mayor Baldwin Liaison -Schertz Seguin Local Government Corporation Liaison -Schertz Historical/Preservation Committee Interview Board for Boards and Commissions
Investment Advisory Committee ASA Commuter Rail District Board Mayor Pro-Tem Wilenchik Investment Advisory Committee Liaison -Schertz Chamber of Commerce Liaison -Board of Adjustments
Audit Committee Interview Board for Boards and Commissions Chair – TIRZ II Board AACOG Advisory Committee AACOG Economic Development TML Board of Directors TML Municipal Revenue & Taxation
Committee Councilmember Fowler Liaison -Schertz Economic Development Corporation Liaison -Parks & Recreation Advisory Board Interview Board for the Boards and Commissions Councilmember
Carpenter Liaison -Library Advisory Board Liaison -Planning and Zoning Commission Liaison -50th Year Anniversary Committee Liaison -Schertz Youth Commission Liaison – TIRZ II Board Councilmember
Scagliola Liaison -Transportation Safety Advisory Commission Liaison -Schertz Humane Society Alternate Interview Board for Boards and Commissions Liaison – Schertz Sweetheart Sweetheart
Court Councilmember Trayhan Liaison -Schertz Housing Authority Audit Committee 11-4-08 City Council Agenda Page -3 -
Agenda No. 1 CITY COUNCIL MEMORANDUM City Council Meeting: November 4, 2008 Department: Administration Subject: Minutes BACKGROUND On October 28, 2008 a Regular City Council Meeting
was held at the Municipal Complex Council Chambers at 6:30 p.m., 1400 Schertz Parkway Building #4. FISCAL IMPACT None RECOMMENDATION Staff recommends Council approval of the October
28, 2008 minutes. ATTACHMENT Minutes 10/28/08
City Council Regular Meeting October 28, 2008 280 MINUTES REGULAR MEETING October 28, 2008 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on October
28, 2008 at 6:30 p.m., in the Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Texas. The following members present, to-wit: Mayor Hal Baldwin Mayor Pro-Tem
Tony Wilenchik Council Member Jim Fowler Council Member David Scagliola Council Member John Trayhan Council Member Michael Carpenter Staff Present: City Manager Don Taylor Assistant
City Manager John Bierschwale City Secretary Brenda Dennis City Attorney Michael Spain CALL TO ORDER REGULAR MEETING Mayor Baldwin called the meeting to order at 6:30 p.m. INVOCATION
AND PLEDGES OF ALLEGIANCE TO THE FLAGS OF THE UNITED STATES AND STATE OF TEXAS. Council Member Carpenter gave the Invocation followed by the Pledges of Allegiance to the Flags of the
United States and State of Texas. PRESENTATION • Brief presentation of new programs by the Human Resource Department Mayor Baldwin recognized Human Resource Associate Joe Wallace who
briefed Council on the new City of Schertz HR Department initiatives for FY 08/09 that include: New Employee Orientation Program: Welcome Aboard Training Program Employee/Leadership
Development Program Employee Wellness Program INTRODUCTIONS • Introduction of the 2008/2009 Schertz Sweetheart Court. (E. Matlock/M. Kelso) Mayor Baldwin recognized Erin Matlock and
Michele Kelso who introduced the 2008-2009 City of Schertz Sweetheart Court. Ms. Matlock introduced the other members of the Sweetheart Board that were in the audience. Ms. Matlock introduced
Ms. Tri-County, Crystal Wilson, who introduced the following Court Members: Ms. Friendly City Sarah Corder Ms. Freedom Ellen Goos
City Council Regular Meeting October 28, 2008 281 Ms. Liberty Sarah Wiley Ms. Sunshine Julianne Royce Ms. Wilson stated that Ms. Schertz, Taylor Weidman could not make it this evening.
Ms. Wilson thanked the Mayor and Council for a great program and presented the Mayor with a scrapbook of “A Tour of Schertz”. Mayor Baldwin thanked Ms. Wilson for the great work she
did on the project. Mayor Baldwin recessed the meeting at 6:44 p.m. to join the Sweetheart Court in the Council Conference Room for coffee and cake. Mayor Baldwin called the regular
meeting back to order at 6:52 p.m. BRIEFING BY CITY ATTORNEY ON RECENT ATTORNEY GENERAL OPINION REGARDING REPORTS AND ANNOUNCEMENTS BY STAFF AND COUNCIL MEMBERS UNDER THE OPEN MEETINGS
ACT. City Attorney Michael Spain gave a briefing on the recent Attorney General’s Opinion regarding specific posting procedures of agenda items. Ms. Spain stated that no longer could
the agendas have General Announcements on meetings/events attended and upcoming events from Council or Staff. He stated that the agendas need to be specific on the items they will be
discussing. Council discussed this item stating their opinions on the recent ruling. It was agreed that on future agendas an item be placed stating “Consideration and or action on questions
and possible items to be placed on the next agenda”, also discussed was, if Council or staff had items they wish to speak about, they contact the City Secretary with the items and she
would place them on the next agenda. HEARING OF RESIDENTS Mayor Baldwin recognized the following: • Francis Rushing, Schertz Chamber of Commerce President, who announced the following:
-Thanked the Mayor and Council for the proclamation last week. -Thanked the Mayor and Council Member David Scagliola for attending a last minute Ribbon cutting today at Cut and Style.
-October 31, 2008 monthly meeting: Marty Winder, Chairman of the San Antonio Chamber of Commerce will be the speaker. • Cheri Armstrong, 1025 Fawn, who spoke about having sidewalks on
3009. Council Members agreed to have an item placed on the November 18th Council agenda to discuss this item. • Lorraine Crook, 209 Maple Drive, who spoke on FEMA Flood Plan. • David
Scagliola, 3418 Foxbriar Lane, who spoke on the open meetings act, TML Dinner, and the Schertz Sweetheart Court. • Ken Greenwald, 205 Westchester, who also spoke on the FEMA Flood Plan.
Mayor Baldwin recognized Council Member Carpenter who asked that item 3 be moved forward; Council concurred. Mayor Baldwin also stated that item 7 would also be moved forward.
City Council Regular Meeting October 28, 2008 282 REGULAR AGENDA 3. Resolution No. 08-R-49 -Consideration and/or action on an Interlocal Agreement with Schertz–Cibolo-Universal City
ISD relating to sewer line facilities. (M. Spain). Mayor Baldwin recognized City Attorney Michael Spain who introduced this item answering questions from Council. Mr. Spain stated that
he hadn’t received the Interlocal Agreement in time to review and requested the Council move this item to the November 4th meeting. Mayor Baldwin recognized Council Member Carpenter
who moved, seconded by Council Member Trayhan to postpone this item to the next agenda to allow the City Attorney more time to provide Council with the Interlocal Agreement. Vote was
unanimous. Motion Carried DISCUSSION AND POSSIBLE ACTION 7. FEMA FLOOD PLAIN DISCUSSION – Briefing and discussion regarding FEMA Flood Plain. (L. Dublin) Mayor Baldwin recognized City
Engineer Larry Dublin and Public Works Superintendent Jimmy Hooks who introduced this item providing Council with background information on the insurance maps (firms) discussions that
transpired December 2005 with the release of the new preliminary digital flood insurance maps. After several meetings hosted by FEMA and the City of Schertz, and an appeal and revisions,
a final determination was received, which started a timeline when communities passed ordinances to adopt the new maps that would become official. The City of Schertz updated its ordinance
on October 2007 and on November 2007 the new maps became official. Mayor Baldwin recognized Manuel Razo, CFM Field Representative Flood Mitigation Planning Division of the Texas Water
Development Board and Alex Hartman Insurance Agent with State Farm who came forward answering questions from Council. After considerable discussion, City Attorney Michael Spain stated
that he would get with his law firm to go over the FEMA fact sheet that was provided to Council and citizens this evening and would report back at the November 18, 2008 meeting. Council
requested that an item be placed on the November 18, 2008 agenda so that this could be discussed and also stated that citizens should have their questions ready at that time. REGULAR
AGENDA 1. Minutes -Consideration and/or action regarding the approval of the minutes of the Regular Meeting of October 21, 2008. Mayor Baldwin recognized Council Member Trayhan who moved,
seconded by Council Member Carpenter to approve the minutes of October 21, 2008. Vote was unanimous. Motion Carried 2. Interlocal Agreement between Bexar County and Appointment of Director
of San Antonio Metropolitan Health District – Consideration and/or action approving an Interlocal Agreement with Bexar County and appointing Dr. Fernando Guerra as the Health
City Council Regular Meeting October 28, 2008 283 Authority of San Antonio Metropolitan Health District. (D. Wait) (Council asked that this item be rewritten and brought back) Mayor
Baldwin recognized EMS Director Dudley Wait who introduced this item answering questions from Council stating that the changes requested by council had been completed. City Council addressed
the question regarding whether this agreement covered the entire City of Schertz. Mr. Wait stated that this was correct and staff recommended that a letter be written to amend section
4.01 that stated the entire City. Mayor Baldwin recognized Council Member Fowler who moved, seconded by Council Member Scagliola to approve interlocal agreement with Bexar County and
appoint Dr. Fernando Guerra as the City’s Health Authority with an addendum to section 4.01 stating that Dr. Guerra serves the entire City. Vote was unanimous. Motion Carried 4. Resignations/Appointm
nt/Reappointment to Boards and Commissions/Committees – Consideration and/or action regarding resignations appointments/reappointments to Boards and Commission/Committees. Mayor Baldwin
recognized Mayor Pro-Tem Wilenchik who moved seconded by Council Member Trayhan to ratify the resignation of Anthony Vaticalos from the Economic Development Corporation. Vote was unanimous.
Motion Carried PUBLIC HEARING/ORDINANCES 5. Ordinance No. 08-S-49 -SUP2008-031A-Consideration and/or action upon a request for a Specific Use Permit of 2.82+ acres land being of Lot
6 Block 1 of the Hubertus Retail Subdivision to allow the use of a Self-Storage Service Facility in the General Business zoning district (GB) located at the southwest intersection of
IH35 North and FM-1103. First Reading (M. Nichols) (Council postponed action on this item until the October 28, 2008 City Council meeting to allow staff to review the updated site plan
and consider proposed recommended changes that were addressed). Mayor Baldwin recognized Karen Mitchell with the Mitchell Planning Group who introduced this item answering questions
from Council. Mayor Baldwin stated that Council had received a copy of an email from the applicant stating that he would like to postpone first reading until November 4, 2008. Members
of Council discussed this item with the City Attorney Michael Spain and Karen Mitchell of Mitchell Planning Group who answered questions. Mayor Baldwin recognized Council Member Carpenter
who moved, seconded by Council Member Trayhan to postpone Ordinance No. 08-S-49 first reading to the November 4, 2008 meeting. Vote was unanimous. Motion Carried 6. Ordinance No. 08-T-50
-Consideration and/or action relating to Reinvestment Zone Number Two, City of Schertz, Texas authorizing Final Project Plan and Reinvestment Zone Financing Plan for the Zone, including
reaffirming certain appointments to the Board of Directors of the Zone. First Reading (M. Spain). Mayor Baldwin recognized City Attorney Michael Spain who introduced this item answering
questions from Council. Mayor Baldwin recognized Mr. Larry Aiken, Sedona Development
City Council Regular Meeting October 28, 2008 284 who came forward answering questions from Council. Mayor Baldwin recognized Council Member Trayhan who moved, seconded by Council Member
Carpenter to approve Ordinance No. 08-T-50 first reading. Vote was unanimous. Motion Carried EXECUTIVE SESSION Called under Section 551.071 Litigation, pending litigation; Section 551.072
Texas Government Code -Deliberation regarding the purchase, exchange, sale, lease, or value of real property. Council did not meet in executive session. ADJOURNMENT As there was no further
action, Mayor Baldwin adjourned the meeting at 9:25 p.m. __________________________________ Hal Baldwin, Mayor ATTEST: _____________________________________ Brenda Dennis, City Secretary
Agenda No. 2 CITY COUNCIL MEMORANDUM City Council Meeting: November 4, 2008 Department: Administration Subject: Resolution No. 08-R-49 – Interlocal Agreement with Schertz-Cibolo-Universal
City ISD relating to sanitary sewer facilities. BACKGROUND The City Council of the City of Schertz has determined that it is in the best interest of the City to enter into an Interlocal
Agreement with Schertz-Cibolo-Universal City Independent School District (the “District”), relating to sanitary sewer facilities to be constructed by the District. City Attorney, Michael
Spain requested that this item be brought back at this meeting with an updated Interlocal Agreement. As you may know, this item was postponed to next Tuesday because it was not received
by Councilmembers in time for them to review it. I have only a few additional comments on Sections 3.5-3.8; see attached. I asked again about the proposed "escalator", but the City Manager
will not recommend it to Council. FISCAL IMPACT The City will receive a periodic fee for handling funds for the School District. RECOMMENDATION Staff recommends Council approve Resolution
No. 08-R-49 for an Interlocal Agreement between the City of Schertz and Schertz-Cibolo-Universal City ISD relating to sanitary sewer facilities. ATTACHMENT Resolution No. 08-R-49 Interlocal
Agreement will be provided by City Attorney at Meeting
RESOLUTION NO. 08-R-49 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING AN INTERLOCAL AGREEMENT WITH SCHERTZCIBOLO-UNIVERSAL CITY INDEPENDENT SCHOOL DISTRICT,
AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City Council (the “City Council”) of the City of Schertz (the “City”) has determined that it is in the best interest of the City
to enter into an Interlocal Agreement with Schertz-Cibolo-Universal City Independent School District (the “District”), relating to sanitary sewer facilities to be constructed by the
District; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to execute and deliver
an Interlocal Agreement with the District in substantially the form set forth on Exhibit A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and
such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts
thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be
and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United
States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution
and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted
without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice
of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government
Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 4th day of November, 2008.
CITY OF SCHERTZ, TEXAS Mayor ATTEST: City Secretary (CITY SEAL) 50109102.1
EXHIBIT A INTERLOCAL AGREEMENT See attached 50109102.1 A-1
INTERLOCAL AGREEMENT BETWEEN SCHERTZ-CIBOLO-UNIVERSAL CITY INDEPENDENT SCHOOL DISTRICT AND THE CITY OF SCHERTZ The Parties to this Agreement (“Agreement”) are the Schertz-Cibolo-Universal
City Independent School District (the “District”) and the City of Schertz (the “City”) (collectively referred to as the “Parties”). The Parties enter into this Agreement under the general
provisions of the Interlocal Cooperation Act, Texas Government Code Chapter 791, under the specific authority of §791.026 and Texas Education Code §44.031(a)(5). This Agreement is made
for the purpose of efficient and effective use of resources and is in the best economic interests of the Parties. The District and the City are political subdivisions of the State of
Texas. Addresses are as follows: District: Superintendent of Schools Schertz-Cibolo-Universal City Independent School District 1060 Elbel Road Schertz, Texas 78154-2099 City: City Manager
City of Schertz 1400 Schertz Parkway Schertz, Texas 78154 es have identified certain common, legitimate public purposes in ntering into this Agreement; en meetings and authorized their
respective representatives to enter into this greement; new school on certain property (“District roperty”), located within the city limits of the City; HEREAS, the District Property
does not presently have access to sanitary sewer rvice; S, the District has requested that the City provide sanitary sewer service to the District Property; f 1728 Equivalent Dwelling
Units (“EDU’s”) and one or more force mains (“Sewer Facilities”); WHEREAS, the Parti e WHEREAS, the governing bodies of the District and the City have each met in legally convened op
A WHEREAS, the District plans to construct a P W se WHEREA WHEREAS, the District and City agree that the District Property and surrounding areas should be served by a lift station with
a capacity o Interlocal Agreement Page 1 of 7 10/29/08 Schertz-Cibolo-Universal City ISD – City of Schertz
WHEREAS, the District requires 380 EDUs to serve future school facilities within the service area of the Sewer Facilities; and WHEREAS, the District and City agree that the District
will design and construct the Sewer Facilities and convey the Sewer Facilities and associated easements to the City to be included in the City’s public sanitary sewer utility system;
NOW THEREFORE, the Parties for and in consideration of the covenants and agreements herein set forth to be kept and performed by them respectively have agreed to and do hereby agree
together as follows: I. DESIGN AND CONSTRUCTION OF THE SEWER FACILITIES. 1.1 The District will design and construct, or cause to be constructed through independent contractors selected
and retained by the District, Sewer Facilities as described in the plans and specifications for the Ray Corbett Force Main (Solicitation No. 09-001) dated August 22, 2008 and Ray Corbett
Lift Station (Solicitation No. 09-002) dated August 25, 2008 prepared by Don Durden, Inc., d/b/a Civil Engineering Consultants (“Construction Documents”), The Construction Documents
include all Addenda issued prior to the bid date of September 15, 2008 (as it may be extended) and any change orders approved by the District after a construction contract or contracts
for the sewer facilities are entered by the District. The City acknowledges receipt and approval of the Construction Documents. II. TERM OF AGREEMENT 2.1 The term of this Agreement will
begin on the date of execution by both parties. The term of this Agreement will continue until all Available EDUs (defined below) have been allocated or conveyed and all Reimbursement
Payments (defined below) have been paid by the City to the District. III. PARTIES’ RESPONSIBILITIES. 3.1 The District has contracted with a qualified licensed design professional for
preparation of the Construction Documents. 3.2 The City has reviewed and approved all Construction Documents completed as of the effective date of this Agreement. Any Addenda or Change
Orders issued by the District will be submitted to the City for approval, which approval shall not be unreasonably withheld or delayed. 3.3 The District shall procure and contract for
the services of one or more contractors in accordance with the requirements of Tex. Education Code Ch. 44, Subchapter B, to construct the Sewer Facilities. 3.4 The Sewer Facility Cost
(defined below) shall be paid by the District, subject to reimbursement as described below. Interlocal Agreement Page 2 of 7 10/29/08 Schertz-Cibolo-Universal City ISD – City of Schertz
3.5 The City has requested over-sizing of the Sewer Facilities to accommodate 1348 additional EDU’s for its use in providing service to other users and to accommodate future development
(“Available EDUs”) in addition to the 380 EDU’s required by the District. The City will reimburse the District for a portion of the Sewer Facility Cost by charging third-party customers
a Sewer Facility Reimbursement Fee, calculated as set forth in Section 3.6 below, and paying that Sewer Facility Reimbursement Fee to the District (“Reimbursement Payments”) as provided
in Section 3.9 below. Payment of the Sewer Facility Reimbursement Fee to the City shall be a condition of plat approval by the City for any third party who will receive capacity in the
Sewer Facilities. The City shall not convey capacity in the Sewer Facilities without recovering the applicable Sewer Facility Reimbursement Fee. The City shall not be obligated to reimburse
the District for the Sewer Facility Cost until capacity in the Sewer Facilities is conveyed to third-party customers and the City recovers the applicable Sewer Facility Reimbursement
Fees. 3.6 The Sewer Facility Reimbursement Payment shall be calculated as follows: Sewer Facility Cost = Sewer Facility Reimbursement Fee per EDU 1728 EDUs 3.7 The Sewer Facility Cost
is the sum of the following: .1 All costs incurred by the District for acquisition of easements or rights-of-way, including but not limited to engineering and surveying; .2 All costs
incurred by the District for professional design, surveying, procurement and engineer=s contract administration services; .3 All costs incurred by the District for construction of the
Sewer Facilities; .4 A management fee of fifteen percent (15%) of the sum of the above costs to compensate the District for management of easement acquisition, design services and construction
services; and .5 All costs incurred by the District for legal services related to procurement of and contracting for easements and rights-of-ways, design services, construction services
services and agreements with third parties related to the Sewer Facilities; and 3.8 The District acknowledges that the City will charge users of Available EDUs a management fee of fifteen
percent (15%) of each Sewer Facility Reimbursement Fee to compensate the City for costs incurred by the City for management of collection of the Sewer Facilities Reimbursement Fees and
payment of the Reimbursement Payments to the District. 3.9 Within thirty (30) days after receipt of the Sewer Facilities Reimbursement Fee from a third party, the City shall make the
applicable Reimbursement Payment to the District. Interlocal Agreement Page 3 of 7 10/29/08 Schertz-Cibolo-Universal City ISD – City of Schertz
3.10 Nothing contained herein or inferable herefrom shall be deemed or construed to
create any partnership, joint venture, or other association between District and the City. FURTHER, NOTHING HEREIN SHALL CREATE OR CONSTITUTE ANY WARRANTY GIVEN BY THE DISTRICT AS TO
THE DESIGN, CONSTRUCTION MATERIALS, CONSTRUCTION MEANS AND METHODS, THE GENERAL FITNESS OF THE COMPLETED FACILITIES OR THEIR FITNESS FOR A PARTICULAR PURPOSE. The District will assign
to the City all warranties required by the Construction Documents from contractor’s performing construction of the Sewer Facilities. 3.11 After completion of the Sewer Facilities and
acceptance by the City, the Sewer Facilities shall become part of the public sewer system of the City and subject to the jurisdiction of the City. All future maintenance and repairs
after the date of acceptance shall be made by the City. IV. MISCELLANEOUS. 4.1 Notice and Addresses. All notices required hereunder must be given by certified mail or registered mail,
return receipt requested, addressed to the proper Party, at the following addresses: To the District: Schertz-Cibolo-Universal City Independent School District Attention: Superintendent
of Schools 1060 Elbel Road Schertz, Texas 78154-2099 With Copy to: Winifred H. Dominguez Attorney for Schertz-Cibolo-Universal City Independent School District Walsh, Anderson, Brown,
Schulze & Aldridge, P.C. 100 N.E. Loop 410, Suite 1000 San Antonio, Texas 78216 To the City: City of Schertz 1400 Schertz Parkway Schertz, Texas 78154 Attention: City Manager With Copy
to: Michael L. Spain Attorney for City of Schertz Fulbright & Jaworski L.L.P. 300 Convent Street, Suite 2200 San Antonio, Texas 78205 Either Party may change the address to which notices
are to be sent by giving the other Party notice of the new address in the manner provided in this section. Notices shall be deemed to have been received three (3) days after deposit
in the mail. 4.2 Parties Bound. This Agreement shall be binding upon, and inure to the benefit of, the Parties to this Agreement and their respective legal representatives, successors,
and assigns. 4.3 Prior Agreements Superseded. This Agreement constitutes the sole and only agreement of the Parties regarding their responsibilities to each other concerning the work
noted herein on the Sewer Facilities and supersedes any prior understandings or written or oral agreements between the Parties respecting the Project. This Agreement in no way modifies
or supersedes Interlocal Agreement Page 4 of 7 10/29/08 Schertz-Cibolo-Universal City ISD – City of Schertz
any document executed by the Parties prior to this Agreement which does not involve the Project. 4.4 Amendment. No amendment, modification, or alteration of the terms of this Agreement
shall be binding unless it is in writing, dated subsequent to the date of this Agreement, and duly executed by the Parties to this Agreement. 4.5 Violation of Law. The City and the District
shall not violate any Federal, State or local laws, regulations or ordinances in the performance of this Agreement. 4.6 Enforceability. If any provision of this Agreement proves unlawful
or unenforceable by a court having jurisdiction over the Parties or the subject matter, such provision shall be severable from the other provision of this Agreement, and all remaining
provisions shall be fully enforceable. 4.7 Governing Law and Place for Performance. This Agreement shall be governed by the laws of Texas, which state shall also be deemed the place
where this Agreement was entered into and the place of performance and transaction of business business and Parties. In the event of litigation pertaining to the Agreement, the exclusive
forum, venue, and place of jurisdiction shall also be the County of Guadalupe and the State of Texas unless otherwise agreed in writing by the Parties. The Parties acknowledge that each
has had the unfettered opportunity to review, revise, and negotiate the terms of this Agreement and that if in the future there is a dispute as to the meaning of any provision herein,
then no such provision shall be construed against the drafter of the Agreement. 4.8 Signature Warranty Clause. The signatories to this Agreement represent and warrant that they have
the authority to execute this agreement on behalf of the District and the City, respectively. 4.9 No Waiver of Immunities. Nothing in the Agreement shall be construed to waive any immunities
from suit or liability enjoyed by the District, the City, their past or present officers, employees, or agents or employees. 4.10 No Third Party Beneficiary. This Agreement inures to
the benefit of and obligates only the Parties. No term or provision of this Agreement shall benefit or obligate any person or entity not a Party. The Parties shall cooperate fully in
opposing any attempt by any third person or entity to claim any benefit, protection, release or other consideration under this Agreement. 4.11 No Joint Venture. Nothing contained herein
shall be deemed or construed by the Parties, or by any third party, as creating the relationship of principal and agent, partners, joint venturers or any other similar such relationship
between the Parties. 4.12 Approval by Governing Bodies. This Agreement has been approved by the governing bodies of the City and of the District. Interlocal Agreement Page 5 of 7 10/29/08
Schertz-Cibolo-Universal City ISD – City of Schertz
4.13 Payment from Current Revenues. Each Party paying for the performance of governmental functions or services must make those payments from current revenues available to the paying
Party. 4.14 Assignment. Neither Party may assign its interests in this Agreement except upon receiving the written consent of the other Party. [Signatures on next page.] Interlocal Agreement
Page 6 of 7 10/29/08 Schertz-Cibolo-Universal City ISD – City of Schertz
Interlocal Agreement Page 7 of 7 10/29/08 Schertz-Cibolo-Universal City ISD – City of Schertz EXECUTED TO BE EFFECTIVE this ________ day of ____________________, 2008. SCHERTZ-CIBOLO-UNIVERSAL
CITY INDEPENDENT SCHOOL DISTRICT By: Dr. Belinda Pustka, Superintendent of Schools CITY OF SCHERTZ By: Don Taylor, City Manager
Agenda No. 3 CITY COUNCIL MEMORANDUM City Council Meeting: November 4, 2008 Department: City Attorney Michael Spain Subject: Ordinance No. 08-T-50 – Reinvestment Zone Number Two – Sedona
(Final Reading) BACKGROUND By Ordinance No. 06-T-61 dated December 19, 2006, the City created, pursuant to Chapter 311 of the Texas Tax Code, “Reinvestment Zone Number Two, City of Schertz,
Texas” (the “Zone”) to promote the development of the Sedona mixed-use project within the Zone through the use of tax increment financing, based on the conclusion that development would
not otherwise occur solely through private investment in the reasonably foreseeable future. Ordinance No. 06-T-61 created a Board of Directors for the Zone (the “Zone Board”) and authorized
the Zone Board to exercise all the rights, powers, and duties of a board under the Code, and to act on behalf of the City within the limits of the Code. On October 27, 2008, the Zone
Board adopted the Final Project Plan and Reinvestment Zone Financing Plan for the Zone, and pursuant to Section 311.011(d) of the Texas Tax Code, the City Council must approve the Project
and Financing Plan by ordinance after its adoption by the Zone Board. By Resolution No. 07-R-37, dated October 30, 2007, the City designated eight (8) individuals to serve as members
of the Zone Board, but based on the proposed contribution by Bexar County to the Zone, the total number of Zone Board appointments authorized for the City pursuant to the Project and
Financing Plan is six (6). Two of the directors appointed by the City, C. A. Elder and Steve White, have agreed not to serve as City appointees, but Steve White is expected to be appointed
by Bexar County as one of the two County representatives on the Zone Board. We are confirming that the City can remove and reappoint its Board appointees at any time; if so, the City
will always have six (6) “friendly” representatives on the Board, a majority of the total Board of eleven (11) City Council approved this item on first reading at their meeting of October
28, 2008. FISCAL IMPACT The City foregoes ad valorem taxation on the improvements made to the Sedona development area until 2027, but the City receives all infrastructure (water, sewer,
fire/EMS station, and CCM Agenda Item 7.doc
City Council Memorandum Page 2 parks), built to its standards, and is expected to contract with the Zone to provide certain services (utilities and public safety). RECOMMENDATION Adoption
of final reading of Ordinance No. 08-T-50 ATTACHMENTS • Ordinance No. 08-T-50, including as Exhibit A the Final Project Plan and Reinvestment Zone Financing Plan • Summary of Final Project
Plan and Financing Plan • List of Zone Board Directors • Schedule of completed and to-be-completed tasks • Sedona Development Summary • Texas Comptroller’s Summary of Tax Increment Financing
ORDINANCE NO. 08-T-50 APPROVING THE FINAL PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN FOR REINVESTMENT ZONE NUMBER TWO, CITY OF SCHERTZ, TEXAS, AND CONTAINING OTHER PROVISIONS
RELATED THERETO. WHEREAS, by Ordinance No. 06-T-61 dated December 19, 2006, the City of Schertz, Texas (the “City”) created, pursuant to Chapter 311 of the Texas Tax Code, as amended
(the “Code”), Reinvestment Zone Number Two, City of Schertz, Texas (the “Zone”) to promote the development of the Sedona mixed-use project within the Zone through the use of tax increment
financing, which development would not otherwise occur solely through private investment in the reasonably foreseeable future; and WHEREAS, Ordinance No. 06-T-61 created a Board of Directors
for the Zone (the “Zone Board”) and authorized the Zone Board to exercise all the rights, powers, and duties under the Code, and to act on behalf of the City within the limits of the
Code; and WHEREAS, pursuant to Section 311.011 of the Code, on October 27, 2008, the Zone Board Board adopted the Final Project Plan and Reinvestment Zone Financing Plan (the “Project
and Financing Plan”) for the Zone in the form of Exhibit A attached hereto and incorporated herein for all purposes; and WHEREAS, pursuant to Section 311.011(d) of the Code, the City
Council must approve the Project and Financing Plan after its adoption by the Zone Board; and WHEREAS, by Resolution No. 07-R-37, dated October 30, 2007, the City designated eight (8)
individuals to serve as members of the Zone Board; and WHEREAS, pursuant to the Act, and based on the proposed contribution by Bexar County to the Zone, the total number of Zone Board
appointments authorized for the City pursuant to the Project and Financing Plan is six (6); and WHEREAS, the City desires to re-affirm certain of its appointees to the Zone Board; NOW,
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: Section 1. The City Council finds that the Project and Financing Plan meets the requirements of Section 311.011
of the Code, is feasible, and conforms to the City’s master plan. Section 2. The City Council hereby approves the Project and Financing Plan for the Zone, as adopted by the Zone Board.
Section 3. The City re-affirms the following individuals to serve as members of the Zone Board: George Antuna, John Bierschwale, Bob Cantu, Michael Carpenter, Chris Price, and Tony Wilenchik.
C.A. Elder has agreed not to serve on the Zone Board, and Steve White shall not be appointed to the Zone Board by the City, but is expected to be appointed to the Zone Board by Bexar
County. Section 4. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby adopted by the City Council and made a part of this Ordinance
for all purposes. 60132537.2
60132537.2 Section 5. All resolutions and ordinances, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of
such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters resolved herein. Section 6. This Ordinance shall be construed and enforced in accordance
with the laws of the State of Texas and the United States of America. Section 7. If any provision of this Ordinance or the application thereof to any person or circumstance shall be
held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby
declares that this Ordinance would have been enacted without such invalid provision. Section 8. It is officially found, determined, and declared that the meeting at which this Ordinance
is adopted was open to the public and public notice of the time, place, and subject matter of the the public business to be considered at such meeting, including this Ordinance, was
given, all as required by Chapter 551, Texas Government Code, as amended. Section 9. This Ordinance shall be in force and effect upon the date of second and final reading and any publication
required by law. PASSED AND APPROVED on first reading this the 28th day of October, 2008. PASS, APPROVED, AND ADOPTED on second reading this the 4th day of November, 2008. CITY OF SCHERTZ
Mayor ATTEST: City Secretary
EXHIBIT A Project and Financing Plan FINAL PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN for REINVESTMENT ZONE NUMBER TWO, CITY OF SCHERTZ, TEXAS Sedona Development Project October
27, 2008 60132537.2 Sedona Project and Financing Plan
TABLE OF CONTENTS Page I. EXECUTIVE SUMMARY ...............................................................................................1 II. PROJECT PLAN .........................................
.....................................................................2 III. REINVESTMENT ZONE FINANCING PLAN............................................................... 5 IV. ZONE
BOARD MEMBERS .............................................................................................8 EXHIBITS A. LEGAL DESCRIPTION OF ZONE B. EXISTING USES AND CONDITIONS C.
LAND USE PLAN (SHOWING PROPOSED IMPROVEMENTS) D. DESCRIPTION OF PUBLIC IMPROVEMENTS E. DEVELOPMENT SCHEDULE, BUDGET, AND ASSUMPTIONS F. ESTIMATED PROJECT COST SCHEDULE G. PROJECTED CAPTURED
APPRAISED VALUE H. PROJECTED TAX INCREMENT REVENUE I. ECONOMIC FEASIBILITY STUDY 60132537.2 i Sedona Project and Financing Plan
SEDONA DEVELOPMENT PROJECT ARTICLE IIEXECUTIVE SUMMARY. Section 10. In Ordinance No. 06-T-61 dated December 19, 2006, the City Council of the CITY OF SCHERTZ, TEXAS (the “City”) designated
TAX INCREMENT REINVESTMENT ZONE NUMBER TWO, CITY OF SCHERTZ, TEXAS (the “Zone”) to enable the development of approximately 825 acres of land which may contain up to 2,200 residential
units pursuant to the PUD (described below) with estimated average sales prices of $140,000-$240,000 per single family home and approximately 130 acres of open space including, but not
limited to, public parks and trails to be known as the Sedona development (together, the “Project”). The Project will result in a primarily residential development located in the southern
portion of the City. The Zone was established pursuant to the provisions of the Tax Increment Financing (“TIF”) Act, Chapter 311, Texas Tax Code, as amended (the “Act”). Section 11.
The developer of the Project is SCHERTZ 1518 LTD. (the “Developer”). The Developer is requesting that the City, BEXAR COUNTY, TEXAS (“County”), and the SAN ANTONIO RIVER AUTHORITY (“SARA”),
participate in the tax increment financing to help fund public infrastructure improvements to be located within the development. The duration of the Zone is projected to be twenty-one
(21) years with the Zone being in existence through calendar year 2027. Section 12. The cost of the public infrastructure improvements and related capital costs for the Project (exclusive
of financing costs or interest) is estimated at $41,195,225. The total project costs including administrative costs are estimated at $41,801,420. The proposed public infrastructure improvements
for this project include the installation of, and improvements to, streets and drainage, utilities, and sidewalks; the development of public parks; the construction of a fire station
and EMS facility, sewage plant, lift station, and public cemetery; the designation of a school site; and the construction of other public improvements. The Developer will pay such such
costs and will be reimbursed by the Zone’s TIF fund only to the extent that tax increment revenue from increased property values is generated, up to a maximum reimbursement of $45,000,000.
Section 13. The Project is a master planned community and has been approved by the City as a mixed-use Planned Unit Development (“PUD”). It will function as a key component within the
Schertz Southside Development Initiative and create the demographic basis which will in turn create demand for commercial and industrial developments to occur along the City’s portion
of the south IH-10 corridor. 60132537.2 1 Sedona Project and Financing Plan
ARTICLE IIIPROJECT PLAN. Section 14. Overview Tax increment generated within the Zone will provide the financing needed to undertake public improvements in an area of the City which
would not otherwise be developed into a planned residential community. Attached as Exhibit C is a Land Use Plan showing the location of the proposed improvements to and proposed uses
of the property within the Zone. The Sedona development will help to increase area population, provide additional housing, and encourage economic development. This Project Plan in this
Part II and the Reinvestment Zone Financing Plan in Part III (collectively, the “Project and Financing Plan”) provide for the funding of streets, sidewalks, water, sewer, wastewater
treatment, drainage improvements, other public facilities, utility improvements, landscaping, and public parks that will be dedicated to the City, as well as associated engineering fees,
legal fees, financial advisory fees, and administrative costs. (a) Single-Family Residential Development Approximately fifty percent (50%) of the 825-acre Project tract is designated
for the construction of up to 2,200 residential units with initial sales prices ranging from $140,000-$200,000 per single family home and an average lot size of approximately 7,440 square
feet. It is expected that the homes will be constructed in accordance with the Development Schedule attached hereto as Exhibit E. By 2015, sales prices for single family homes are anticipated
to range from $160,000-$240,000. (b) Parks and Open Space Approximately fifteen percent (15%) of the total 825-acre tract will be open space, some of which will be dedicated by the Developer
to the City for public parks. The flood plain areas of Woman Hollering Creek will consist of a linear park, greenbelt, and open space. The Project will include the development of over
13 acres of the original landowner’s early 1900’s farm and ranch into a park and cultural area, and several other pocket parks throughout the community. The location of the public parks
is is shown on the Land Use Plan. In addition, the Developer shall cause Two Hundred and Twenty Five and No/100 Dollars ($225) per developed lot to be contributed to the City at the
time of final plat approval solely for the design and development of parkland. In lieu of making this contribution, the Developer may, at its option, and upon written notice to the City,
directly cause parkland improvements approved by the City and the Zone Board to be made, the costs of which shall be at least equal to Two Hundred and Twenty Five and No/100 Dollars
($225) per developed lot, to be constructed on the designated parkland at no cost to the City or the Zone Board. The City and the Zone Board must approve such parkland improvements and
the costs therefore, such approval not to be unreasonably withheld, conditioned, or delayed. (c) Public Improvements, Fire Station/EMS Facility, Cemetery, School Site, Residential Outdoor
Recreation The highest priority public improvements to be undertaken in the Zone are (i) the new wastewater treatment plant (the “Water Treatment Plant”) to be constructed in phases
up to its total capacity and (ii) the drainage improvements around FM 1518 (the “Roadway Improvements”). Design elements for certain public improvements will also be mandated by the
City, including but not limited to the interior and exterior design of the fire station/EMS facility. Sidewalks are to be constructed implementing the City’s signature brick inlay design.
Approximately twenty-five percent (25%) of the total acreage will be used for public facilities/outdoor recreation, as shown on the Land Use Plan at Exhibit C. The Developer 60132537.2
2 Sedona Project and Financing Plan
will also designate a site to be purchased by the Schertz-Cibolo-Universal City School District for construction of a school. (d) Commercial Approximately six percent (6%) of the 825-acre
tract is designated for the construction of retail and retail service facilities. (e) Connecting Road The City reserves the right, pursuant to the Act, to amend the boundaries of the
Zone and to add projects to the Zone through the purchase or condemnation of land to be added to the Zone for a connecting road from the proposed arterial road south of Woman Hollering
Creek to the existing Ware Seguin Road. Section 15. Boundaries The Zone is located in the southern portion of the City, adjacent to FM 1518. The Zone is roughly bounded by Lower Seguin
Road to the north, FM 1518 to the east, Ware Seguin Road to the south, and the Air Installation Compatible Use Zone (AICUZ) relating to Randolph Air Force Base to the west. The Zone
is located entirely within the Schertz-Cibolo-Universal City Independent School District. The location and boundaries of the Zone are shown on the Land Use Plan at Exhibit C. A legal
description of the Zone is attached hereto as Exhibit A. Section 16. Land Use and Existing Conditions (a) Area Land Use The Zone currently contains only vacant agricultural land with
associated structures. Attached as Exhibit B is a description of existing conditions and an aerial photograph showing the predevelopment use of the property. (b) Current Site Conditions
The land within the Zone has remained undeveloped due to drainage problems and the lack of sufficient utilities. As a result, the property has not been utilized for residential or commercial
development. Section 17. Project Plan Objective The objective of this Project Plan is to develop an 825-acre tract into approximately 425 acres containing up to 2,200 residential units
and approximately 400 acres of other uses including, but not limited to, public parks and commercial, industrial, recreational, utility and other public facilities, and landscape open
spaces. The Zone funds will provide for a reduction in costs necessary to price lots in a range that reflects what the Developer believes residential builders are willing to pay. Section
18. Relocation The Project Plan does not call for the relocation or displacement of any residents. 60132537.2 3 Sedona Project and Financing Plan
Section 19. Municipal Ordinances (a) Compliance In addition to compliance with laws and procedures directly associated with the development of the Zone pursuant to Chapter 311, Texas
Tax Code, as amended, the Project will comply with all local codes and ordinances. (b) Planned Unit Development Pursuant to Ordinance No. 05-S-50 adopted on December 6, 2005, the City
amended its Unified Development Code by amending Article VII (Special Districts), Section 7 (Planned Unit Development), which enables the development of this Project. The PUD for the
Project was amended in May 2006. No further zoning change, change to the Master Plan, building codes or other municipal ordinances is necessary for the proposed development. Section
20. Competitive Bidding; Warranties All Project elements subject to Chapter 252, Texas Local Government Code, as amended, will be constructed pursuant to competitively bid contracts.
The Developer will provide the City a warranty on all public improvements constructed under the Plan for one year from the date of the City’s acceptance of the particular improvement.
Section 21. Non-Project Costs The City and the Developer anticipate incurring legal, financial advisory and administrative costs in regard to creation of the Zone and annually thereafter,
including the cost of reports and amendments to the Plan as needed. A list of non-project costs is included in the Development Budget at Exhibit E. Section 22. Completed Infrastructure
Since the time that the City designated the Zone, the Developer has made or caused to be made infrastructure improvements within the Zone to support 171 residential lots. The cost of
these improvements is included at Exhibit E. 60132537.2 4 Sedona Project and Financing Plan
ARTICLE IVREINVESTMENT ZONE FINANCING PLAN. Section 23. Introduction This Reinvestment Zone Financing Plan (this “Financing Plan”) addresses funding for identified public improvements
in the Project. The Project is located in the southern area of the City and encompasses approximately 825 acres. The approximate boundaries of the Project are Lower Seguin Road to the
north, FM 1518 to the east, Ware Seguin Road to the south and the Air Installation Compatible Use Zone (AICUZ) relating to Randolph Air Force Base to the west. The Project will include
up to 2,200 residential units, approximately 130 acres of open space, and 50 acres of commercial (retail and service) facilities. Reinvestment Zone Number Two, City of Schertz, Texas
(“the Zone”) will provide a source of funding for the public improvements and enhanced infrastructure. The duration of the Zone is 21 years with the Zone being in existence through calendar
year 2027. The development of the Project will be performed by the Developer, the principals of which have experience in development and construction of such projects. Section 24. Public
Infrastructure The public infrastructure improvements include the construction of streets, sidewalks, drainage, sewer and water utilities, a fire station/EMS facility, public parks and
other public improvements throughout the Zone. The Project will also include a new wastewater treatment plant, lift station and force main facility, and upgrades to FM 1518. The total
public infrastructure capital cost (exclusive of financing costs or interest) is estimated at $41,195,225. The total project costs including administrative costs are estimated at $41,801,420.
A description and depiction of the public improvements is provided at Exhibit D. The list of estimated project costs is attached with the Development Schedule as Exhibit E. The Estimated
Expenditure Schedule for the Project is attached as Exhibit F. City fees to be reimbursed as Project costs will not include water, sewer, or other impact fees. Section 25. Plan of Finance
(a) Appraised Value The base value of the real property within the Zone is $3,127,500. The appraised value captured from the improvements to real property within the Zone is anticipated
to grow from $0.00 in Tax Year 2007 to $434,885,503 in Tax Year 2027 as shown in Exhibit G. (b) Taxing Units The taxing jurisdictions and 2007 tax rate per $100 valuation utilized in
the analysis include the City at 100% of its rate of $0.4090, the County at 58% of the maintenance and operation (“M&O”) portion of its rate being $0.265594, and SARA at 55% of its rate
of $0.015951. (The City, County, and SARA are referred to collectively as the “Taxing Units”). County participation is limited to a maximum of $12,123,000. Based upon these assumptions,
projected annual tax increment revenues are as shown on Exhibit H. No growth in tax rates is assumed, and the following taxing jurisdictions are not expected to participate: Schertz-Cibolo-Universal
City Independent School District, Bexar County Flood District (Code 8), Alamo Community College District, and Bexar County Hospital District d/b/a University Health System. 60132537.2
5 Sedona Project and Financing Plan
(c) TIF Bonds No bonded indebtedness is anticipated by the City in association with this Zone. However, the City reserves the right from time to time during the duration of the Zone
to issue tax-exempt bonds (“Bonds”) payable from tax increment revenue, subject to the participating taxing jurisdictions’ consent to utilization of their tax increment revenue for such
purpose. Subject to the foregoing proviso, the future issuance of Bonds is at the City’s sole and absolute discretion and would be preceded by an amendment to this Plan. All proceeds
from
Bonds, if any, would be used to reimburse Developer for project costs under this Plan. (d) Reimbursement The cost of the public infrastructure improvements will be incurred by the Developer
and reimbursed to it over time from a City-managed TIF account funded by the tax increment revenue generated within the Zone. In addition to the capital costs, other costs to be reimbursed
from Zone revenue include engineering fees and the cost of the City’s legal counsel and and financial advisors involved in creating the Zone. (e) Cost and Revenue The total development
costs for the public infrastructure improvements (exclusive of financing costs or interest) are provided by type of expense in Exhibit E and by year expended in Exhibit F. Revenue generated
from the Zone will be used to repay this amount over the life of the Zone. Projected tax increment revenue for each year of the Zone is shown in Exhibit H. (f) Priorities Notwithstanding
the above, tax increment revenue collected from the Zone shall be used first to reimburse the City for its costs in creating the Zone and to pay the costs of the City’s legal counsel
and financial advisors involved in creating the Zone. Section 26. Limited Obligation of the Taxing Units The City, County and SARA will have an obligation to impose and collect taxes
and deposit the agreed amount of tax receipts into a TIF fund for the Zone, up to a collective maximum of $45,000,000 (with the County’s contribution capped at $12,123,000) to repay
Project Costs incurred by the Developer (including accrued interest and Developer financing costs) to the extent that construction of improvements under the Project (commenced within
the time constraints of the TIF Act) produces adequate taxable value. Notwithstanding the above, the Zone collections for the Project shall not extend beyond December 31, 2027, and may
be terminated prior to December 31, 2027, upon payment of the Project costs incurred by the Developer, as provided herein up to a maximum of $45,000,000, or for material default by the
Developer under any development agreement on this Project entered into with the City and the Zone Board. 60132537.2 6 Sedona Project and Financing Plan
Section 27. Developer’s Risk and Obligations (a) Developer’s Risk All financing, developmental costs, construction costs, improvements, damages or other costs incurred with respect to
this Project are at the sole risk of the Developer. Neither the City, the County nor SARA shall incur any risk whatsoever associated with the development, construction, completion, or
failure of the Project. In the event that the Project fails, is abandoned by the Developer, or for any reason is not completed, the City shall have the right to terminate the Zone and
receive reimbursement for its costs in creating the Zone and to pay the costs of legal counsel and financial advisors involved in creating the Zone. Any funds remaining in the Zone account
after reimbursement shall be distributed to the City, the County and SARA on a pro rata basis in accordance with each Taxing Unit’s participation level. (b) Compliance The Developer
shall comply with all federal, state and local laws, rules and regulations. (c) Reporting The Developer shall submit a project status report and financial report on each March 1 and
August 1, commencing on the first of such dates after the approval of this Financing Plan, to the City, the Taxing Units, and the Zone Board (defined below). The Developer shall also
submit a project status report, financial report or any other report as reasonably requested by the City, the County, SARA, or the Zone Board within thirty (30) days of such request.
Section 28. Inspection The Taxing Units shall have the right to inspect the Project site upon 24 hours advance notice to the Developer. Section 29. Economic Feasibility An economic feasibility
study for the Project is attached as Exhibit I. Section 30. Zone Board A Board of Directors for the Zone (the “Zone Board”) has been established pursuant to the TIF Act. The total number
of members for the Zone Board is eleven (11). A list of initial members of the Zone Board is provided in Part IV. Section 31. Recommendation from Zone Board The Zone Board met on October
27, 2008 and adopted this final Project and Financing Plan. The Zone Board recommends that the City proceed with the Project, approve this final Project and Financing Plan, create the
mechanisms required to tax and collect TIF revenue, deposit such revenue into a TIF fund for the Zone, and use such funds to reimburse project costs under this Plan. Such recommendation
is conditioned on the acceptance of the Financing Plan by the Taxing Units at the participation levels described herein. 60132537.2 7 Sedona Project and Financing Plan
60132537.2 8 Sedona Project and Financing Plan ARTICLE VZONE BOARD MEMBERS. Name: George Antuna Appointed by City Name: John Bierschwale Appointed by City Name: Bob Cantu Appointed by
City Name: Michael Carpenter Appointed by City Name: Chris Price Appointed by City Name: Tony Wilenchik Appointed by City Name: Dan Pucket Appointed by County Name: Steve White Appointed
by County Name: Sharon McCoy-Huber Appointed by SARA Name: Larry Aiken State Senator (Delegate) Name: Clifton Walker State Representative (Delegate)
60132537.2 A -1 Sedona Project and Financing Plan EXHIBIT A Legal Description of Zone See Metes and Bounds Description of 784.482 Acres of Land at Exhibit A-1 and 69.196 Acres of Land
at Exhibit A-2 Note: The Zone includes approximately twenty-nine (29) acres that are not part of the Project as of the time of submittal of this final Project and Financing Plan, the
majority of such acreage lying in the Woman Hollering Creek floodplain just south of FM 1518 as shown on depiction at Exhibit C, and the rest being depicted as “Out Parcels” on Exhibit
C.
60132537.2 B -1 Sedona Project and Financing Plan EXHIBIT B Existing Uses and Conditions Topography The Sedona topography is gently sloping, predominately from the southwest to the north
toward Woman Hollering Creek. On the north corner of the tract, it slopes from the north to the south, again toward Woman Hollering Creek. Wetlands/Floodplain The Sedona land area contains
a 100-year floodplain area that is centered on Woman Hollering Creek. This development project does not intend to disturb the majority of the floodplain area or streambed with any construction
other than necessary drainage, utilities, and road crossings. Site Vegetation The existing site vegetation characteristics are improved pasture and grasses for livestock, agricultural
uses and scattered clusters of live oaks. No substantial hardwood trees will be destroyed in connection with the development of the Sedona project.
EXHIBIT C Land Use Plan (Showing Proposed Improvements) [See Attached “Sedona PUD Preliminary Lot Layout” by Vincent Gerard & Associates] 60132537.2 C -1 Sedona Project and Financing
Plan
EXHIBIT D Description of Public Improvements1 Development-Wide Public Improvements There will be several major elements of public infrastructure created or upgraded to provide access
and services to the Sedona subdivision. These items will be designed and constructed by the developers and dedicated to the City of Schertz or, as to the FM 1518 Roadway Improvements,
to the Texas Department of Transportation (“TxDOT”). Items included in these improvements are as follows: • Sanitary Sewer Services: A package treatment plant will be installed at the
upstream area of Woman Hollering Creek. The permit for this plant will be secured by the Developer and finalized with the State of Texas for a maximum of 960,000 gallons per day. This
is greater than will be required for the Sedona subdivision and will be transferred to the City for expansion as needed. The Sedona development will be served by package treatment plants
installed in phases. The first phase will be a 160,000 gallon per day plant. Currently it is anticipated that the subsequent phases will total approximately 425,000 gallons per day plant,
which will provide adequate capacity for Sedona. In addition to the upstream sewer treatment plant, a lift station will be installed at the downstream limits of Woman Hollering Creek,
near FM 1518. This station will be the common gathering point for the sewer collection system, and will pump the sewage back to the plant for treatment and discharge into Woman Hollering
Creek at its western limits within the subject property. These facilities operated in concert will provide adequate sanitary sewer treatment capacity for the entire Sedona subdivision.
• Highway FM 1518: The primary access to the Sedona subdivision will be provided via FM 1518. This highway is adequate to provide access for the early phases of development. TxDOT has
jurisdiction over this road. The current capacity of the road is adequate with the exception of the crossing at Woman Hollering Creek. A detailed drainage study was prepared which shows
that this this part of the roadway is flooded and that a 100 year storm results in water flowing over the roadway approximately five feet deep. During such occurrences, the road must
be closed. After discussing this situation with TxDOT, the Developer determined that upgrading the drainage system is much more advantageous than creating on-site detention facilities.
Therefore a much larger drainage structure will be constructed by the Developer, to accommodate, at a minimum, a 100 year flood. The improvement is expected to consist of a bridge structure
which will 1 Description prepared by the Developer. 60132537.2 D -1 Sedona Project and Financing Plan
result in eliminating the flooding of this section of FM 1518. This project will be sponsored by the City, approved by TxDOT, and constructed by the Developer. • Fire Fighting/EMS Service:
These services can be provided by existing City facilities for the initial phases of home construction. As the number of homes increases, however, the requirement for upgraded fire and
EMS protection will require construction of an additional fire station/EMS facility. It is expected that the need for this station will occur at completion of approximately 400 to 500
units. This new station will be located along West Seguin Road at the south easterly corner of the subject property. The details of the design of the station have not yet been developed,
but the design will be subject to City approval prior to obtaining any construction bids. Residential Area “A” Public Improvements Drainage – Piping: 1200 lf. 36”, 250 lf.48”, 5390 lf.60”,
36 curb inlets, 1 headwall, 70 square yards rip rap, 16000 cy. Channel excavation Streets – 164,450 sy. 8” base, 30,200 sy. 12” base, 111,475 sy. 1 ½” asphalt, 25,150 sy. 2” asphalt,
79,500 lf. Curb and sidewalk. Water – 27,700 lf. 8” main, 1000 lf. 12” main, 41 valves, 69 fire hydrants. Wastewater – 27,700 lf. 6” lateral, 29,500 lf. 8” main, 5000 lf. 12” main, 106
manholes. Silt Fence/Constructions, Ent./ROW Prep/Mobilization – 10,000 lf. Silt fence, 10 rock gabions, 4 construction entrances, 52 acre R.O.W. preparation. CPS Construction (Electric)
Residential Area “B” Public Improvements Drainage – 600 lf. 36” pipe, 1400 lf. 48” pipe, 7000 cy. Channel excavation Streets – 127,375 sy. 8” base, 15,400 sy. 12” base, 85,900 sy. 1
½” asphalt, 12,450 sy. 2” asphalt, 59,920 lf. Curb and sidewalks. Water – 22,500 lf. 8” main, 29 valves, 55 fire hydrants Wastewater – 22,500 lf. 6” laterals, 23,950 lf. 8” main, 200
lf. 12” main, 86 manholes, 26,700 lf. Trench protection Silt Fence/Construction. Ent./ROW – 6700 lf. Silt fence, 8 rock gabions, 4 construction entrances, 37 acres of R.O.W. clearing.
Residential Area “C” Public Improvements Drainage – 2000 cy. Channel excavation Streets – 58,190 sy. 8” inch base, 40,255 sy. 1 ½” asphalt, 26,500 cy. Excavation, 2311 lf. Curb and sidewalk
Water – 7500 lf. 8” main, 11 valves, 20 fire hydrants 60132537.2 D -2 Sedona Project and Financing Plan
60132537.2 D -3 Sedona Project and Financing Plan Wastewater – 7500 lf. 6” lateral, 8000 lf. 8” main, 29 manholes, 8900 lf. Trench protection Silt Fence/Constructions. Ent/ROW – 2500
lf. Silt fence, 2 rock gabions, 1 construction entrance, 14 acre R.O.W. clearing CPS Construction (Electric) Public Improvements Common to all Three Residential Areas Lower Seguin Turn
Lanes – 800 sy. Pavement, 600 lf. Curb (pro rata share) FM 1518 Turn Lanes – 800 sy. Pavement, 600 lf. Curb (pro rata share) Wastewater – lift station, 3200 lf. 6” force main, Treatment
Plant (pro rata share) Gas Pipeline Crossing – 1 crossing Drainage – Detention Pond (pro rata share)
EXHIBIT E DEVELOPMENT SCHEDULE, BUDGET AND ASSUMPTIONS Acreage/Development Schedule Site Area Residential 579.68 +/-Acres Commercial Development 51.11 +/-Acres Cemetery 44.79 +/-Acres
School 14.02 +/-Acres Fire Station/EMS Facility 1.55 +/-Acres Park/Open Space/Flood plain 133.46 +/-Acres Total 824.61 Acres Project Time Frame Lot Development Home Sales Schedule:*
Annual Cumulative Annual Cumulative 2007 170 170 0 0 2008 0 170 27 27 2009 0 170 108 135 2010 298 468 258 393 2011 332 800 377 770 2012 499 1,299 412 1,182 2013 187 1,486 274 1,456 2014
74 1,560 121 1,577 2015 90 1,650 73 1,650 Totals 1,650 1,650 Development-Wide Public Improvements* Lift Station and Force Main 2009 FM 1518 Drainage Upgrade 2011 Fire Station/EMS Facility
400 units All Parks 2015 Sewer Plant (all phases) 2016 *All dates are best estimates only and are subject to change. 60132537.2 E -1 Sedona Project and Financing Plan
Development Budget Public Improvements in Residential Areas On Site Costs Land Prep/Earthmoving & Lot Grading $1,060,950 Streets $5,956,751 Water $5,185,889 Wastewater $2,754,186 Prep/Mobilization
$1,000,378 CPS Construction (Electric) $674,020 Gas Improvements $234,358 Inflation $600,363 Contingency $ 1,560,945 $19,027,840 Soft Cost: Engineering $2,011.350 Geotech $240,900 City
Platting & PUD Fees $140,250 Park Fees $371,250 Street Lights $353,100 Project Management $1,402,500 Inflation $160,286 Contingency $ 416,744 $5,096,380 Common Costs in Residential Areas
Turn lanes, utilities, drainage, landscaping $9,830,135 Development-Wide Public Improvements Sewer Plant Lift Station & Force Main Fire Station/EMS Facility FM 1518 Drainage Upgrade
Park Land Engineering & Contingency $2,365,378 $728,949 $1,200,000 $1,078,565 $524,755 $1,343,223 $7,240,870 Total Development Costs $41,195,225 Administrative Costs Legal Fees City
Administrative County Administrative $331,000 $144,000 $131,195 $606,195 TOTAL PROJECT COSTS $41,801,420 60132537.2 E -2 Sedona Project and Financing Plan
60132537.2 E -3 Sedona Project and Financing Plan Assumptions Zone Duration (2006 to 2027) 21 Years Base Value of Site Area (2006) $3,127,500 Value at End of TIF (2027) $438,013,003
Captured Value $434,885,503 Captured Rate 80% City of Schertz Tax Rate (100% of 0.4090) $0.409000 per $100 Bexar County Tax Rate (58% of 0.265594) $0.154045 per $100 SARA Tax Rate (55%
of 0.015951) $0.008773 per $100 Collection Rate 99% Tax Rate Growth 0% Appreciation Growth 2% Estimated Total TIF Revenues $33,701,032 Estimated Total TIF Collections $33,364,022 Total
Project Costs $41,801,420 Developer’s Contribution ($8,437,398)
EXHIBIT F Estimated Project Cost Schedule2 Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Subtotal at Buildout Residential Development Costs 3,284,445 0 0 6,271,096 7,054,173
10,437,858 3,684,213 1,622,246 1,600,324 0 33,954,355 Developmentwide Infrastructure 0 1,333,136 123,600 1,681,956 1,459,611 1,686,955 82,500 708,111 82,500 82,500 7,240,869 Total Development
Costs 3,284,445 1,333,136 123,600 7,953,052 8,513,784 12,124,813 3,766,713 2,330,357 1,682,824 82,500 41,195,225 Administrative Costs 140,000 88,323 19,888 19,888 19,888 19,888 19,888
19,888 19,888 19,888 387,427 Total Project Costs 3,424,445 1,421,459 143,488 7,972,940 8,533,672 12,144,701 3,786,601 2,350,245 1,702,712 102,388 41,582,652 Note: 2016 is the last projected
year of construction for public improvements. No further construction project costs are incurred from 2017-2027. Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Administrative
Costs 19,888 19,888 19,888 19,888 19,888 19,888 19,888 19,888 19,888 19,888 19,888 Total Project Costs (cumulative) 41,602,539 41,622,427 41,642,315 41,662,203 41,682,091 41,701,979
41,721,867 41,741,755 41,761,643 41,781,531 41,801,420 Note: After startup costs of $24,000 for the City in 2007 and $28,824 for the County in 2008, the annual administrative costs are
$6,000 for the City, $5,388 for the County, and $8,500 for legal expenses, all pursuant to Section IV.D.2 of the Interlocal Agreement between the taxing units. 2 Data provided by Developer,
City and Bexar County. 60132537.2 F -1 Sedona Project and Financing Plan
EXHIBIT G Projected Captured Appraisal Value3 Year Appraised Value of Improvements 2007 $0 2008 $4,022,000 2009 $12,184,000 2010 $34,510,204 2011 $90,115,456 2012 $170,117,027 2013 $250,301,285
2014 $305,728,108 2015 $335,642,421 2016 $349,762,337 2017 $356,757,584 2018 $363,892,735 2019 $371,170,590 2020 $378,594,002 2021 $386,165,882 2022 $393,889,199 2023 $401,766,983 2024
$409,802,322 2025 $417,998,369 2026 $426,358,337 2027 $434,885,503 3 Data provided by Developer. 60132537.2 G -1 Sedona Project and Financing Plan
EXHIBIT H Projected Tax Increment Revenue4 Year Taxable City of Schertz Bexar County SARA Increment Value per $100 Participation Rate TIF Revenue Participation Rate TIF Revenue Participation
Rate TIF Revenue Total TIF Revenue 2007 $0 0.4090 $0 0.154045 $0 0.008773 $0 $0 2008 40,220 0.4090 16,450 0.154045 6,196 0.008773 353 22,999 2009 121,840 0.4090 49,833 0.154045 18,769
0.008773 1,069 69,670 2010 345,102 0.4090 141,147 0.154045 53,161 0.008773 3,028 197,336 2011 901,155 0.4090 368,572 0.154045 138,818 0.008773 7,906 515,297 2012 1,701,170 0.4090 695,779
0.154045 262,057 0.008773 14,924 972,760 2013 2,503,013 0.4090 1,023,732 0.154045 385,577 0.008773 21,959 1,431,268 2014 3,057,281 0.4090 1,250,428 0.154045 470,959 0.008773 26,822 1,748,208
2015 3,356,424 0.4090 1,372,777 0.154045 517,040 0.008773 29,446 1,919,264 2016 3,497,623 0.4090 1,430,528 0.154045 538,791 0.008773 30,685 2,000,004 2017 3,567,576 0.4090 1,459,139
0.154045 549,567 0.008773 31,298 2,040,004 2018 3,638,927 0.4090 1,488,321 0.154045 560,559 0.008773 31,924 2,080,804 2019 3,711,706 0.4090 1,518,088 0.154045 571,770 0.008773 32,563
2,122,420 2020 3,785,940 0.4090 1,548,449 0.154045 583,205 0.008773 33,214 2,164,869 2021 3,861,659 0.4090 1,579,419 0.154045 594,869 0.008773 33,878 2,208,166 2022 3,938,892 0.4090
1,611,007 0.154045 606,767 0.008773 34,556 2,252,329 2023 4,017,669 0.4090 1,643,227 0.154045 618,902 0.008773 35,247 2,297,375 2024 4,098,023 0.4090 1,676,091 0.154045 631,280 0.008773
35,952 2,343,323 2025 4,179,984 0.4090 1,709,613 0.154045 643,906 0.008773 36,671 2,390,190 2026 4,263,583 0.4090 1,743,805 0.154045 656,784 0.008773 37,404 2,437,994 2027 4,348,855
0.4090 1,778,682 0.154045 669,919 0.008773 38,153 2,486,754 TOTAL $24,105,087 $9,078,895 $517,052 $33,701,032 99% Collection $23,864,036 $8,988,106 $511,881 $33,364,022 4 Valuation data
provided by Developer. Rate data provided by Bexar County. Bexar County participation capped at $12,123,000. 60132537.2 H -1 Sedona Project and Financing Plan
EXHIBIT I Economic Feasibility Study* Tax Increment Reinvestment Zone No. 2, City of Schertz, Texas The Developer of the Sedona residential and commercial development project petitioned
the establishment of Tax Increment Reinvestment Zone No. 2, City of Schertz, Texas (the “Zone”) to reimburse it for up to $45 million in infrastructure improvements needed to make the
project financially feasible. It is anticipated that the project will include up to 2,200 new residential units and 110,000 square feet of commercial real estate. The total build out
value of the project is approximately $360,000,000. The funds generated from the tax revenue on the captured appraised value and used for repayment of those infrastructure costs that
will become publicly-owned improvements is imperative for this project’s success. The Sedona development project will positively impact the community by providing taxable value for each
of the taxing districts that levy real property taxes in the Zone. The following illustrates the potential tax revenues the Sedona project will generate for those districts during the
term of the TIRZ, and the economic impact of the project on the community. Area Overview: The Sedona project is located in the City of Schertz in the northeast portion of Bexar County,
Texas. For the year 2005, the population count for the City was 23,969 residents in 8,082 households. The racial composition is 80.2% White, 6.7% Black, 0.6% American Indian, 1.8% Asian,
0.1% Pacific Islander and 10.6% Other /Multiracial. Those of Hispanic origin make up 21.3% of the City’s population. The average age is 36 years and the average household size is 3 persons.
Total housing units are 8,739 with 74% owner occupied, 19% renter occupied and 7% vacant. Family households represent 80% of the area. Married couples with children comprise 43% of those
family households and married couples without children make up 41%. Median income is $60,291 with 61% of the households earning $50,000 plus. In 2010, the annual median household income
is forecasted to grow to $67,067. Median disposable income in 2005 was $49,855 and is anticipated to grow to $54,965 by 2010. Employment for the area for males age 16+ is 8,793 and is
projected to grow by 2010 to 10,129. 70% are employed in commercial activities, 8% are employed in the armed forces, 2.6% are unemployed and 20% are not in the labor force. This is a
highly educated market with less than 10% having no high school diploma and 26% with only a high school diploma. Those with some college, associate degrees, college degrees and graduate
/professional degrees represent 64% of the population. * This study prepared by a market consultant under contract in preparing the preliminary financing plan. This study uses earlier
projections for housing construction in Sedona. 60132537.2 A-1
Annual consumer expenditures are $444,372,000 and per household is $54,983. The following are total consumer expenditures by category: Expenditures By Category Aggregate Expenditures
(000) Market Index Food $55,862.8 108 Alcoholic Beverages $4,622.9 106 Tobacco Products $2,675.1 103 Apparel & Services $17,764.2 107 Entertainment $22,710.4 108 Cash Contributions $14,854.7
100 Health Care $23,793.4 105 Transportation $85,329.8 112 Personal Insurance & Pensions $56,420.4 114 Personal Care Products & Services $5,730.1 108 Reading Materials $1,341.6 108 Educational
Expenses $5,730.1 102 Miscellaneous Services $6,740.4 108 The market index is important to any commercial development. A market index over 100 means that the category is above average
and the market can support additional businesses. Most retail expenditure analysis look for any market index above 90 to illustrate an area of potential strength. Therefore the commercial
component of this project is very feasible based on these levels of expenditures. The northeast portion of Bexar County and part of Guadalupe County is undergoing incredible growth.
The Forum shopping center with over 1.0 million square feet of retail space has maximized its development. Other developers are planning new commercial shopping areas adjacent to and
across from the Forum along Interstate 35. The City of Schertz has frontage on I-35 and will receive the benefits of both new commercial taxable values as well as housing. The main reason
commercial development is planned for this area is the significant residential development with home values from $140,000 to $250,000+. The houses programmed for the Sedona project fit
within this range. The projected growth of the area less the Sedona project is estimated at 11% by 2010. Households are projected to grow 7.5% in that same five-year period. Total housing
units are projected to grow to 8% by the year 2010 according to the US Census data with SCAN US forecasted projection for 2005 to 2010. In the immediate area of Schertz there are 20,000
lots platted for new housing. This number is not reflected by the SCAN US forecasts and therefore will increase the household growth in the area to more than double the forecast. 60132537.2
A-2
Economic Impact: Data from the US Government’s Bureau of Economic Analysis were used to determine economic impact. The data provides multipliers to determine the impact of investment
/sales, earnings and indirect jobs. The following chart illustrates the real estate value of the Sedona project to the San Antonio Metropolitan Statistical Area (in San Antonio) based
on annual investment by the developers and an initial, notional projection for the sale of homes: Year # Homes Online Residential Investment Infrastructure Investment Total 2007 0 0
$7,763,092 $7,763.092 2008 140 $23,927,500 $2,637,555 $26,565,055 2009 170 $27,408,900 $13,185,239 $40,594,139 2010 230 $36,462,540 $5,458,852 $41,921,392 2011 250 $39,107,772 $4,879,781
$43,987,553 2012 260 $40,360,796 $618,654 $40,979,450 2013 253 $38,676,650 $6,405,657 $45,082,307 2014 230 $34,507,772 $0 $34,507,772 2015 194 $27,591,449 $0 $27,591,449 TOTALS 1,727
$268,043,379 $40,948,830 $308,992,209 The annual economic impact of the residential value added to the San Antonio MSA is shown in the following chart: Year Investment Output Earnings
Jobs 2007 $7,763,092 $13,031,126 $2,280,796 20 2008 $26,565,055 $44,592,101 $7,804,813 70 2009 $40,594,139 $68,141,322 $11,926,558 106 2010 $41,921,392 $70,369,249 $12,316,505 110 2011
$43,987,553 $73,837,506 $12,923,543 115 2012 $40,979,450 $68,788,105 $12,039,762 107 2013 $45,082,307 $75,675,161 $13,245,182 118 2014 $34,507,772 $57,924,746 $10,138,383 90 2015 $27,591,449
$46,315,006 $8,106,368 72 TOTAL: $308,929,209 $518,674,322 $95,074,133 808 The economic impact of the $16,500,000 commercial value added to the San Antonio MSA by the year 2009 results
in an additional 43 jobs and $4,847,700 in earnings on $27,696,900 in output. 60132537.2 A-3
The impact on annual consumer expenditures is as follows: Year # Homes Cumulative Average Household. Expenditure Consumer Expenditure Potential 2007 0 $54,938 $0 2008 140 $56,036 $7,845,040
2009 310 $57,156 $17,718,360 2010 540 $58,299 $31,481,460 2011 790 $59,464 $46,976,560 2012 1050 $60,653 $63,685,650 2013 1303 $61,866 $80,611,398 2014 1533 $63,103 $96,736,899 2015
1727 $64,365 $111,158,355 Based on the year 2005 annual household expenditure from the Consumer Expenditure Report, we anticipate that expenditures will grow at 2% annually. The expenditure
potential reflects the cumulative number of homes on line each year until total build out. The project at its notional build out of 1,727 new homes will add $108,654,060 in annual consumer
expenditures. The captured tax revenue from the Zone is based on contributions from the City of Schertz, Bexar County, and the San Antonio River Authority. The following tables reflect
the project’s property tax impact to the taxing authorities that are not participating: Taxing Authority 2008 2009 2010 2011 Flood District $3,060 $6,697 $13,176 $20,000 Community College
District $25,614 $56,055 $110,282 $167,397 Hospital District $58,352 $127,697 $251,231 $381,345 Bexar County (30% Retained) $15,189 $33,239 $65,395 $99,263 School District $412,079 $901,797
$1,774,191 $2,693,052 Total $514,295 $1,125,486 $2,214,275 $3,361,057 60132537.2 A-4
Taxing Authority 2012 2013 2014 2015 Flood District $26,988 $33,755 $39,979 $45,301 Community College District $225,881 $282,525 $334,618 $379,158 Hospital District $514,576 $643,617
$762,288 $863,755 Bexar County (30% Retained) $133,942 $167,531 $198,421 $224,832 School District $3,633,926 $4,545,213 $5,383,270 $6,099,829 Total $4,535,312 $5,672,641 $6,718,576 $7,612,876
If by the year 2015, the project is fully built out and sold, the taxes will stabilize except for annual growth. In the year 2027, the TIRZ will have reimbursed the developer in full
and at that time the City of Schertz, Bexar County, and San Antonio River Authority will begin receiving all of the taxes on the increased value. The consumer expenditures provided by
this project will also increase the sales tax on taxable goods and services. In summary, the Sedona development, brings a total amount of $361,272,012 at 2% average value growth per
year. The contribution of sales tax revenues commences in 2007 with $514,295 and rises rapidly until by 2015 bringing in $7,765,134 annually in additional tax revenues for the said entities
not
participating in the TIRZ. 60132537.2 A-5
60132537.2 A-6 Source of Data: Innovative Economic Development Resources, Inc. the market analyst consultant, purchases demographic data from a nationally based research company known
as SCAN-US. SCAN-US trends, forecasts and projects information based on historical changes in the US Census. For example, to determine a percentage of growth, the 1990 census is compared
to the 2000 census and the growth rate is averaged on an annual basis. This is the methodology used to project the trends until the next census in 2010. In areas where dramatic growth
is being experienced, rates which and far exceeds the forecasted census data is to be expected. Since those actual growths cannot be accounted for until the next census, a projected
growth rate is taken into consideration on a separate basis. Retail expenditures are based no how a certain demographic profile spends money within a geographic area. Therefore actual
retail expenditures for a city or county may be different than SCANUS projected expenditures. Though SCAN-US is a nationally recognized research data company, discrepancies in data can
be found when trying to match a population of a city with the populations of the zip codes that make up the same area as the City. Those discrepancies are minimal and appropriate adjustments
are made if and when they happen. Projections for output, earnings and job creation are based on the US Department of Commerce, Bureau of Economic and Statistical Analysis (BEA). Multipliers
are used for specific categories of business. Data can be obtained either by city, county or Metropolitan Statistical Area. The Sedona project in Schertz used Bexar County RIMS II data.
This data revealed the onetime impact of the Sedona residential and commercial development on Bexar County. While the results of the analysis are on an area larger than the City, the
majority of goods and services most Sedona residents will use will be within a ten to twenty-minute drive time. Therefore the City is expected to receive a significant benefit from the
Sedona project.
Agenda No. 5 CITY COUNCIL MEMORANDUM City Council Meeting: November 4, 2008 Department: Public Works -TSAC Subject: Ordinance No. 08-M-51 – Amending and revising Ordinance 05-M-02 revising
number of members and Revising TSAC By-Laws & Board Member Appointments (First reading) BACKGROUND The Transportation Safety Advisory Commission (TSAC) reviews their by-laws periodically
and makes revisions as needed. This revision proposes the addition of an alternate member to help meet the quorum requirements. On October 14, 2008 this item was brought to Council.
At the request of Council this item is being brought back to revise the ordinance that established the TSAC Commission Members. FISCAL IMPACT None RECOMMENDATION Staff recommends Council
approve Ordinance No. 08-M-51, approve the TSAC Revised Bylaws and appoint Doreen Bowers as alternate member. ATTACHMENT Ordinance No. 08-M-51 Revised TSAC By-Laws Application from Doreen
Bowers
ORDINANCE NO. 08-M-51 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AMENDING ORDINANCE NO. 05-M-02 RELATING TO CHAPTER 2, ARTICLE V, “ADMINISTRATION—TRANSPORTATION SAFETY
ADVISORY COMMISSION” OF THE CODE OF ORDINANCES OF THE CITY OF SCHERTZ, TEXAS, AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: I. Ordinance
No. 05-M-02 amended Chapter 2, Article V of the Code of Ordinances of the City of Schertz, Texas to add Sections 2-73 through 2-83 relating to the Transportation Safety Advisory Commission,
and Section 2-76 of such Article V is hereby amended to read as follows: “Sec. 2-76 Composition of Commission; Terms of Members; Alternate Members The Commission shall be composed of
nine (9) regular members who are residents or employees of the City and who shall be appointed by the City Council. Each regular member of the Commission shall be appointed by the City
Council for a two-year term commencing on the expiration of the prior term of a regular member. In addition, the City Council may from time to time appoint up to three (3) additional
persons as alternate members of the Commission. Such persons shall also be residents or employees of the City and may be appointed for terms not exceeding two (2) years. Such persons
shall be designated by the City Council as Alternate No. 1, No. 2, or No. 3. Alternate members shall be entitled to receive notice of all Commission meetings. Alternate members may comment
on matters coming before the Commission in the same manner that regular members may comment but, except as provided below, shall have no authority to vote and, unless serving in place
of an absent regular member as provided below, shall not be considered in determining the presence of a quorum. In the absence from a meeting of the Commission of one or more regular
members, alternate members shall, for such meeting, be counted toward a quorum, vote, and have all other rights of regular members (except any absent regular member’s office on the Commission).
Alternate No. 1 may so act in the absence of one regular member, Alternate Nos. 1 and 2 may so act in the absence of two regular members, and Alternate Nos. 1, 2, and 3 may so act in
the absence of three regular members. The City Council may remove a regular member or alternate member of the Commission at any time, with or without cause. In the event of the death,
resignation, or removal of a regular member, the City Council shall appoint a replacement regular member to serve for the remainder of such member’s term. There shall be no limit on
the number of terms an individual may serve on the Commission.” 50109551.1 1
50109551.1 2 To the extent deemed necessary by the City Attorney, the Bylaws of the Commission shall be modified to reflect the terms of the above amendment. II. Except as set forth
above, the provisions of Chapter 2, Article V, Sections 2-73 through 2-75 and 2-77 through 2-83 remain in full force and effect. All ordinances or parts of ordinances in conflict with
this Ordinance are hereby repealed. Should any portion or part of this Ordinance be held for any reason invalid, unconstitutional, or unenforceable, the same shall not be construed to
affect any other valid portion hereof, but all valid portions hereof shall remain in full force and effect. III. This Ordinance shall be effective from and after its final passage and
any publication required by the City Charter. APPROVED on first reading the 4th day of November, 2008. PASSED, APPROVED AND ADOPTED this the ____ day of November, 2008. Mayor, City of
Schertz, Texas ATTEST: City Secretary, City of Schertz (Seal of City)
Agenda No.6 CITY COUNCIL MEMORANDUM City Council Meeting: November 4, 2008 Department: Planning & Zoning Subject: Ordinance No. 08-S-49 Consider and act upon a request for a Specific
Use Permit and associated Site Plan of 2.82+ acres of land being Lot 6, Block 1 of the Hubertus Retail Subdivision to allow the use of a Self-Storage Service Facility in the General
Business District (GB) located at the southwest intersection of IH-35 North and FM-1103. First Reading BACKGROUND: This Council accepted the request from the applicant’s representative
to postpone this item to the November 4, 2008 meeting as they were unable to update their exhibits in time. The applicant has now submitted a site plan that has incorporated all the
Planning and Zoning Commission conditions from their October 8, 2008 meeting. ADJACENT ZONING /LAND USE: North: Zoned GB/undeveloped East: Zoned GB/Walgreens Pharmacy South: Zoned GB/Manufactured
Home Park West: Zoned GB/undeveloped STAFF REVIEW AND ANALYSIS: This is a request to allow a Self Storage facility and office/warehouse in the General Business District (GB). Article
IV Permissible Uses, Section 5 Land Use Chart of the Unified Development Code requires a Specific Use Permit for the use of a Self Storage facility in the General Business District (GB).
UDC Article 5, Section 1 The purpose of the Specific Use Permit process is to identify those uses which might be appropriate within a zoning district, but due to their location, functional
or operational nature, could have a potentially negative impact upon surrounding properties; and to provide for a procedure whereby such uses might be permitted by further restricting
or conditioning them so as to eliminate such probable negative impacts. UDC Article 5, Section 2.2 The City Council may impose additional reasonable restrictions or conditions to carry
out the spirit and intent of the UDC and to mitigate adverse effects of the proposed use. These requirements may include, but are not limited to, increased open space loading and parking
Item 6 Arrington Self Storage-[11-4-08].doc
City Council Memorandum Page 2 Item 6 Arrington Self Storage-[11-4-08].doc requirements, suitable landscaping and additional improvements such as curbing and sidewalks. The applicant
is proposing to construct a 3-story climate controlled structure which also contains an 1800 square foot office; 1,125 square feet for three (3) rentable offices with associated storage/warehouse
space and 359 climate controlled storage units in the 3-story structure. Additionally, on site they are proposing 148 outdoor storage units; 16 spaces for storage of RV’s, boats, vehicles,
comprising a total of seven (7) additional structures. Landscaping: • Tree mitigation will be accessed at $4416 and will be due prior to release of building permit. • The applicant has
provided an assortment of Texas Sage and Eleagnus as a non-invasive alternative to the previously proposed Waxleaf Ligustrum. Parking: The required number of parking spaces for the self
storage facility calculated at 2,925 square foot of office and 78,559 square foot of self storage use is 37 spaces. The site plan delineates 37 spaces with a combination of regular,
compact and handicap spaces. CONSIDERATION: The City Council must determine whether the applicant has provided proper measures in which to mitigate potential adverse impacts to surrounding
properties and uses. FISCAL IMPACT None Public Hearing Notice: The public hearing notice was published in “The Daily Commercial Recorder” on August 20, 2008 and in the “Herald” on September
26, 2008. Five (5) notices were mailed to surrounding property owners on September 29, 2008. Reply notices are as followed: Favor: None Opposed: None Undecided: None Return to Sender:
None City Council schedule is as follows: DATE ITEM ACTION Tuesday, November 4, 2008 Zoning Public Hearing and First Reading of Ordinance. Tuesday, November 18, 2008 Zoning Final Reading
of Ordinance. Attachments: Documentation back up Exhibit A and B Proposed ordinance
ORDINANCE NO. 08-S-49 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AMENDING THE UNIFIED DEVELOPMENT CODE (UDC) ORDINANCE NO. 96-S-28 BY GRANTING A SPECIFIC USE PERMIT
AND ASSOCIATED SITE PLAN FOR 2.820± ACRES OF LAND BEING ALL OF LOT 6, BLOCK 1, HUBERTUS RETAIL SUBDIVISION COMAL COUNTY, SCHERTZ, TEXAS TO ALLOW A SELF STORAGE FACILITY IN THE GENERAL
BUSINESS DISTRICT (GB); PROVIDING AN EFFECTIVE DATE; PROVIDING A REPEALING CLAUSE;PROVIDING A SERVABILITY CLAUSE; AND PROVIDING A PENALTY CLAUSE. WHEREAS, Arrington Self Storage of Schertz,
has applied for a Specific Use Permit for approximately 2.820 acres of land described in Exhibit “A”, attached hereto and incorporated herein by reference (hereinafter, the “Property”)
for a Self Storage Facility. WHEREAS, on October 8, 2008 the Planning and Zoning Commission conducted a public hearing and determined that this request was in the interest of the public
safety health, and welfare and recommended approval of the requested Specific Use Permit with conditions; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SCHERTZ HEREBY ORDAINS: SECTION
I “Granting a Specific Use Permit for 2.820± acres of land being all of Lot 6 Block 1, Hubertus Retail Subdivision, Comal County, Schertz, Texas to allow a Self Storage Facility in the
General Business District (GB) more particularly described in the Field Notes and Map, attached hereto as Exhibit “A”-Specific Use Permit and Exhibit “B” -Site Plan”. SECTION II The
Official Zoning Map of the City of Schertz described and referred to in Article III, of the UDC, Ordinance No. 96-S-28 shall be changed to reflect the above amendments. SECTION III SUP2008-031A
ORD. # 08-S-49
This Ordinance shall include the following Conditions for the Arrington Self Storage Facility as recommended by the Planning and Zoning Commission and approved by the City Council as
reflected on Exhibit “B”, attached hereto; 1. Provide wrought iron fencing where no building abuts property line. 2. Provide living landscape screen and/or berm in areas that abut outside
perimeter to provide concealment. 3. To restrict hours of operation from 6AM to 10PM 4. No rotating sign will be allowed. Provide a note to site plan that states, “Signage will comply
with current UDC at time of application of a sign building permit.” 5. Provide a note on the site plan that states “an emergency exit will be provided (by property owner) when the future
right-of-way is constructed at the south of the property”. 6. Remove the 13 parking spaces as identified in the “Future Right-of-Way Reservation” and add landscaping in this area. 7.
Any vehicle storage will be restricted to Building E. SECTION IV This Ordinance shall be effective immediately from and after its final passage and any publication in accordance with
the requirements of the City of Schertz and the laws of the State of Texas SECTION V This ordinance shall be cumulative of all other ordinances of the City of Schertz, and this ordinance
shall not operate to repeal or affect any other ordinances of the City of Schertz except insofar as the provisions thereof might be inconsistent or in conflict with the provisions of
this ordinance, in which event such conflicting provisions, if any, are hereby repealed. SECTION VI The sections, paragraphs, sentences, clauses, and phrases of this ordinance are severable,
and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional, such unconstitutionality or invalidity shall not affect any of the remaining
phrases, clauses, sentences, paragraphs or sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such
unconstitutional or invalid phrase, clause, sentence, paragraph or section. SECTION VII SUP2008-031A ORD. # 08-S-49
SUP2008-031A ORD. # 08-S-49 Any person, firm, association of persons, corporation or other organization violating the provisions of this ordinance shall be deemed to be guilty of a misdemeanor
and, upon conviction, shall be fined an amount not to exceed $2,000.00. Each day that a violation continues shall be deemed as a separate offence. Approved on first reading the 4th day
of November, 2008. PASSED, APPROVED AND ADOPTED the ___ day of November, 2008. ____________________________________ Mayor, City of Schertz, Texas ATTEST: ________________________________
City Secretary, City of Schertz, Texas (SEAL OF THE CITY)
Agenda No. 7 CITY COUNCIL MEMORANDUM City Council Meeting: November 4, 2008 Department: City Council Subject: Boards and Commissions Appointments/reappointments/Resignations BACKGROUND
The City Council will consider action regarding the appointment of Mr. Tim Brown to the Schertz Economic Development Corporation. FISCAL IMPACT None RECOMMENDATION It is recommended
that the City Council appoint Mr. Tim Brown to the Economic Development Corporation. ATTACHMENTS Application: Tim Brown
Agenda No. 8 CITY COUNCIL MEMORANDUM City Council Meeting: November 4, 2008 Department: City Attorney Subject: FEMA NFIP “Grandfathered” Rates BACKGROUND The City Attorney hopes to have
a briefing ready on FEMA NFIP grandfathered rates as discussed at the Council’s meeting on October 28. FISCAL IMPACT None RECOMMENDATION None ATTACHMENT None CCM Item 8.doc