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01-27-2009 AgendaCITY COUNCIL AND PLANNING AND ZONING JOINT WORKSESSION ?MUNICIPAL COMPLEX COUNCIL CONFERENCE ROOM? 5:30 P.M. MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 SCHERTZ CITY COUNCIL REGULAR SESSION MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 JOINT WORKSESSION AND REGULAR AGENDA TUESDAY, JANUARY 27, 2009 Worksession 5:30 p.m. -Regular Session 6:30 p.m. CALL TO ORDER JOINT WORKSESSION City Council, Planning and Zoning Commission call to order the Joint Worksession. • Presentation and discussion by Mitchell Planning Group the Planning & Zoning Commission and the City Council regarding the draft Unified Development Code – A copy of the draft UDC is on the city’s website www.schertz.com – front page. ADJOURNMENT City Council, Planning and Zoning Commission adjourn the Joint Worksession. 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. 1-27-09 Council Agenda Discussion and/or Action Items 1. Minutes – Discussion and/or action regarding the approval of the minutes of the Regular Meeting of January 20, 2009. 2. Ordinance No. 09-T-02 -Discussion and/or action approving Ordinance No. 09-T-02 adopting the revised City of Schertz Economic Development Incentives Policy. Final Reading (J. Jewell) 3. Ordinance No. 09-H-03 – Discussion and/or action amending Chapter 54 of the Code of Ordinances Nuisances and replacing Ordinance No. 08-H-16. Final Reading (S. O’Brien) 4 Resolution No. 09-R-04 – Discussion and/or action approving a resolution for an Antenna Tower Lease Agreement with AT&T. (J. French) 5. Ordinance No. 09-D-04 -Discussion and/or action approving Ordinance No. 09-D-04 – Temporary speed limit reduction on FM 3009, North and Southbound directions between mile point 4.679 and mile point 4.527 between mile point 23.663 and mile point 23.012. First Reading (L. Dublin) 6. Ordinance No. 09-D-05 – Discussion and/or action approving Ordinance No. 09-D-05 amending Section 86-89 Traffic Light Locations on Schertz Parkway. First Reading (L. Dublin) 7. Ordinance No. 09-S-06 – Conduct a public hearing and discussion on approving Ordinance No. 09-S-06 regarding the revised Unified Development Code (UDC) comprised of zoning, subdivision and other related land use regulations by superseding Ordinance No. 96-S-28. (K. Mitchell) BOARDS/COMMISSIONS 8. Resignations and /or Appointment/Reappointment to Boards and Commissions/Committees – Consideration and/or action regarding resignation appointments/reappointments to Boards and Commission/Committees. • Resignation Richard Coon – Parks & Recreation • Appointment – Harriett Higgs – Parks & Recreation Requests and Announcements 9. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. 10. Requests by Mayor and Councilmembers to City Manager and Staff for information 11. Announcements by Mayor and Councilmembers • City and community events attended and to be attended • City Council Committee and Liaison Assignments (see assignments below) 1-27-09 City Council Agenda Page -2 - • Continuing education events attended and to be attended • Recognition of actions by City employees • Recognition of actions by community volunteers 12. Announcements by City Manager • Recognition of City employee actions • New Departmental initiatives • Upcoming City Council agenda items Adjournment CERTIFICATION 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 22ND DAY OF JANUARY, 2009 AT 1:30 P.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 _______________, 2009. ____________________________Title:____________ _____________ This facility is accessible in accordance with the Americans 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. 1-27-09 City Council Agenda Page -3 - 1-27-09 City Council Agenda Page -4 -COUNCIL COMMITTEE AND LIAISON 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 Councilmember Wilenchik Investment Advisory Committee Liaison -Schertz Chamber of Commerce Liaison -Board of Adjustment Audit Committee Interview Board for Boards and Commissions Liaison – 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 Boards and Commissions Mayor Pro-Tem 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 Court Councilmember Trayhan Liaison -Schertz Housing Authority Audit Committee Agenda No. 1 CITY COUNCIL MEMORANDUM City Council Meeting: January 27, 2009 Department: Administration Subject: Minutes BACKGROUND On January 20, 2009 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 January 20, 2009 minutes. ATTACHMENT Minutes 01-20-09 City Council Regular Meeting January 20, 2009 326 MINUTES REGULAR MEETING January 20, 2009 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on January 13, 2009 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 Michael Carpenter Councilmember Jim Fowler Councilmember David Scagliola Councilmember John Trayhan Councilmember Tony Wilenchik Staff Present: Assistant City Manager John Bierschwale Assistant City Manager David Harris City Secretary Brenda Dennis 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. Councilmember Fowler gave the Invocation followed by the Pledges of Allegiance to the Flags of the United States and State of Texas. HEARING OF RESIDENTS Mayor Baldwin recognized the following citizens who spoke regarding regarding the RV Parking issue: • Basil McDaris 600 River Road • Bob Stetson, 106 Pentonville Drive • Rosemary Grayson, 5213 Cabana Drive • Lonnie Ray, 608 Pecan Drive Mayor Baldwin recognized Schertz Chamber of Commerce President Frances Rushing who announced the following: • Ribbon Cutting on Thursday, January 22, 2009 at 10:30 am for the Tangled Web Group, 215 FM 78, Suite 200. • Chamber Luncheon Friday, January 29, 2009 Senator Wentworth will be the speaker. Mayor Baldwin recognized Robert Brockman, 1000 Elbel, who addressed the council regarding the three traffic signals on Elbel Road. Mayor Baldwin recognized EDC Chair Steve White who thanked the Mayor, Councilmember Fowler and Assistant City Manager David Harris for attending their recent EDC retreat. He discussed this was an excellent meeting to regain focus on the priorities of the Economic Development Corporation. City Council Regular Meeting January 20, 2009 327 INTRODUCTIONS • Introductions of new employees: (Public Works) Mayor Baldwin recognized Doug Ledbetter, Street Supervisor, who introduced Marshall Phillips and Dillon Rowell who have joined the Street Department. Discussion and/or Action Items 1. Minutes – Discussion and/or action regarding the approval of the minutes of the Regular Meeting of January 13, 2009. Mayor Baldwin recognized Councilmember Trayhan who moved, seconded by Councilmember Scagliola to approve the minutes of January 13, 2009. Vote was unanimous. Motion Carried 2. Presentation and Bid Award for Phase II and III Recreation Center – Presentation/discussion and/or action regarding the approval of awarding bid for Phase II and Phase II Recreation Center. (G. Logan/K. Lewinski) Mayor Baldwin recognized Parks Director George Logan, Purchasing Manager Kim Lewinski and David Dorrough, Construction Consultant, who introduced this item answering questions from Council. It was stated that the City of Schertz Recreational Center Development “Team” is comprised of Kell Munoz Architects and Associates, Everyday Construction, The YMCA of Greater San Antonio, Leonard Truitt, Kim Lewinski and George Logan. This “Team” has been reviewing each phase of the work regarding bidding, construction and development of the Recreation Center Complex. The City of Schertz received bids from 32 local subcontractors for the Recreational Center Project Phase II and III. The “Team” reviewed bids for the following scope of work. These bids were reviewed and are recommended by the “Team” for approval in the amount of $890,331.33. Staff recommends bid awards for the following: Division 2 Maldonado Nursery & Landscaping Inc. $146,946.00 Division 4 Tarrillion Masonry $ 90,800.00 Division 7 BrinkMann Roofing Company $245,591.00 Division 9 Allegience Floors $118,635.52 Division 9 F.A. McComas, Inc. $ 99,950.00 Division 10 Klinger Specialties Direct $ 35,311.00 Division 10 Alamo Blinds, Shades & Shutters $ 35,333.81 Division 10 Texas Lock & Door Closer, Inc. $ 16,328.00 Division 11 Key Group Co $ 28,436.00 Division 11 Outdoor Excape $ 73,000.00 $890,331.33 City Council Regular Meeting January 20, 2009 328 The “Team” further recommended that City Council reject the Division 3, Division 5, Division 7, Division 8 and Division 9. These bids were reviewed and are not recommended by the “Team” for approval in the amount of $1,151,017.00 due to falling local market pricing (labor and materials) and shipping of the above materials. The “Team” anticipates a 20% to 30% decrease in the cost of these materials. Mayor Baldwin recognized Councilmember Carpenter who moved, seconded by Councilmember Trayhan to accept the bids in the amount of $890,331.33 as defined and outlined by staff in their presentation and reject bids in the amount of $1,151,017.00 again as defined and outlined by staff in their presentation. Vote was unanimous. Motion Carried Mayor Baldwin moved to Agenda Item 7. 7. Ordinance No. 09-H-03 – Discussion and/or action amending Chapter 54 of the Code of Ordinances Nuisances and replacing Ordinance No. 08-H-16. First Reading (S. O’Brien) Mayor Baldwin recognized City Marshal Beverly Todd and Health & Code Inspector Shanna O’Brien, who introduced this item stating the existing Nuisance Ordinance needed revisions to meet with current State requirements, clarify the language in the current City Ordinance and to transition duties to the Marshal’s Office. Ms. O’Brien went over the proposed changes. Council discussed the following changes that would need to be made for final reading: • Section 54-2 (a) to add “The Code Official is a member of the City Marshal’s Department, which shall have overall enforcement authority as to this Chapter.” • Section 54-6 (d) to add “Final Notice -In the notice, the City may inform the owner by certified mail, return receipt requested, that if the owner commits another violation of the same kind or nature on or before the first anniversary of the date of the notice, the City, without further notice, may issue a citation, correct the violation at the owner’s expense, and assess the expense against the property. If the violation covered by a notice under this Chapter occurs within the one-year period following issuance of the notice, and the City has not been informed in writing by the owner of an ownership change, then the City without notice may take any action permitted by Sec. 54-8 and assess its expense as provided in Sec. 54-9 and 54-10 or Sec. 54-12. • Section 54-14 (a) reword to include “tape recorder, cassette player, compact disk player, DVD player, MP3 player, or any similar device” • Section 54-14, (h) to add “unoccupied structures” to working on Sundays by Contractors. • Add Section 54-17 “Section 54-17. International Building Code Adopted. The International Building Code, 2006 edition, as amended. Revised and corrected, including all future editions, revisions, amendments and corrections, published by the International Code Council (ICC), one copy of which is on file with the City Secretary, is hereby adopted and incorporated by reference as the Building Code of the City, subject to and including by reference such amendments amendments as herein shall appear. • City Council Regular Meeting January 20, 2009 329 • Section 54-20, (d) (1) to read… “two members from Planning and Zoning and one member from Board of Adjustments”. • Section 54-24, (2) to include a “Grandfather Clause” and register RV with Marshal’s Office. • Section 54-28, (c) remove word “stored” and add “outside of structure”. Mayor Baldwin recognized Councilmember Carpenter who moved, seconded by Councilmember Scagliola to approve Ordinance No. 09-H-03 first reading with changes noted by staff. Vote was unanimous. Motion Carried 3. Micro chipping Animals – Discussion and/or regarding the cost and process for micro chipping animals in the City of Schertz. (G. Logan/C. Lewis) Mayor Baldwin recognized Parks & Recreation Director George Logan who introduced Animal Control Supervisor Chris Lewis who gave a brief Power Point presentation answering questions from Council. Mr. Lewis stated that the City of Schertz Department of Parks Recreation and Community Services have recently undertaken and reviewed the mandatory microchipping of all animals within the City of Schertz. Microchipping is not new for animals within the City of Schertz. The City has been microchipping on a voluntary basis since 2005 and since that time, only 3,094 animals have been microchipped at the shelter. Industry standards of microchipping apply throughout the United States. Cities, towns and municipalities that have mandatory microchipping see return to owner redemption rates go up considerably, thus easing owner stress due to lost pets. About ninety percent of animals found with microchips are returned the same day. Costs for shelters that have mandatory microchipping decrease due to the lower cost of labor for boarding and cleaning after the animal. Cost for boarding a dog and/or cat at the City of Schertz Animal Shelter are as follows: DOG: CAT: 1-3 Day Stay = $221.19 1-3 Day Stay = $232.71 1 Month Stay = $701.25 1 Month Stay = $712.77 Mandatory microchipping of all animals will save labor, food, supplies, medications, and other inventory items and decrease the time of return of the animals to their owners. Fiscal impact would be an approximate $30,000 savings over a year in reduced labor, supplies and boarding. The Animal Services recommends that mandatory microchipping be placed on a future City Council agenda for review and approval. Mr. Lewis and staff recommend approval and stated they will be bringing an action item back to Council on a future agenda to address Council’s budget concerns, Council concurred. No action taken. 4. Dog Park Survey – Discussion and/or action regarding the survey results on a Dog Park. (G. Logan/C. Lewis) City Council Regular Meeting January 20, 2009 330 Mayor Baldwin recognized Parks & Recreation Director George Logan, who introduced Animal Control Supervisor Chris Lewis who gave a brief Power Point presentation answering questions from Council. He stated that the City of Schertz Department of Parks Recreation and Community Services have recently completed with the assistance of the Media Relations Department and the Director of Emergency Services, a six month survey on our City Webpage. This survey asked for input regarding the possible development of a Dog Park for the citizens of the City of Schertz. The Survey results, from those who completed the survey, pointed overwhelmingly to the affirmative that the City of Schertz should fund, plan, design, develop, construct and maintain a dog park for the citizens of Schertz. The survey results and the possible development of the Dog Park have been reviewed by the Parks and Recreation Advisory Board. The Parks and Recreation and Advisory Board recommended unanimously in favor of the funding and development of the proposed Dog Park to the City Council. Staff will bring back an item later in the year to discuss further, Council concurred. No action taken. Mayor Baldwin moved to Agenda Item 6 6. Resolution No. 09-R-02 -Discussion and/or action approving a resolution for a Infrastructure Development Agreement between Eye Care Centers of America Inc., and the City of Schertz Economic Development Corporation in the amount of $60,000. (J. Jewell) Mayor Baldwin recognized Economic Development Director George Antuna who introduced this item stating Eye Care Centers of America (ECCA) operates or manages over 400 optical retail stores in 37 states and the District of Columbia through 11 store names that are leaders in eye care service in each of their respective markets. They are the operators of stores such as EyeMasters and Visionworks. The company has operated a 40,000 sq. ft. production lab and distribution center in the City of Schertz since 1998. In July 2008, ECCA approached the City of Schertz about the possibility of expanding its operation into a 108,000 square foot facility in the City of Schertz. The expansion would require ECCA to invest an additional $11,500,000 million in fully-automated machinery and equipment and expand its employment of full-time associates to nearly 360 people. When completed, the new facility will be a state of the art, fully-automated facility capable of producing over 1.5 million pairs of eyewear per year. It will be equipped with a state of the art “clean room” that will allow ECCA to produce quality non-glare coatings. The lab will be populated with robotic equipment and a total capital investment over $11 million. Starting in 2009, the company will install $8.330 million worth of fixed machinery and equipment. In 2010, it will make an additional $3.2 million installation of machinery. This particular building has been 80% unoccupied since it was built 2 years ago. It is technically in Comal (80%) and Guadalupe (20%) counties and has a 53.3% abatement on the Guadalupe County portion (in effect, a 10% abatement on the property because only Guadalupe County honors the tax abatement). The EDC Board of Directors voted to pay a portion ($60,000) of the infrastructure costs at the site and recommended a Chapter 380 agreement between the City of Schertz and ECCA to abate 50% of the business personal property tax for five years. Once an agreement was City Council Regular Meeting January 20, 2009 331 struck in principle, ECCA began its move and expansion into the new building at 6601 Guada Coma Drive. ECCA has completed the move of its distribution operation, but a substantial amount of tenant upgrades and finish out is required to move its production operation into the new building. The $60,000 will be delivered to ECCA to assist with a portion of the estimated $5 million tenant upgrades to the building. This agreement is the first of two that were negotiated and agreed upon between the EDC and ECCA. The other agreement is still being finalized, but will include a Chapter 380 agreement to abate 50% of the business personal property taxes on the new equipment. The fiscal impact would be $60,000 to be paid by the City of Schertz Economic Development Corporation. Mr. Antuna stated that staff and the Economic Development Corporation recommend approval of Resolution 09-R-02 approving an Infrastructure Development Agreement between the EDC and ECCA. Mayor Baldwin recognized Councilmember Scagliola who moved, seconded by Councilmember Wilenchik to approve Resolution No. 09-R-02 Infrastructure development Agreement between Eye Care Centers of America Inc., and the City of Schertz Economic Development Corporation in the amount of $60.000. Vote was unanimous. Motion Carried 5. Ordinance No. 09-T-02 -Discussion and/or action approving Ordinance No. 09-T-02 and adopting the revised City of Schertz Economic Development Incentives Policy. First Reading (J. Jewell) Mayor Baldwin recognized Economic Development Specialist Jeff Jewell who introduced this item answering questions from Council. Mr. Jewell stated that in September 2006, the City adopted a “380 Program” to assist in economic development in the City. City staff recommends repeal of the 380 Program and implementation of a new City of Schertz Economic Development Incentives Policy. The attached economic development incentives policy and matrices are the result of the work of the incentives subcommittee. The purpose of offering economic development incentives is two fold: 1) to increase private investment; and 2) to provide quality jobs in the community. The policy attempts to do this by providing a formal framework staff can utilize to analyze, discuss and negotiate incentives with business prospects. The policy reflects the City’s priorities as determined by the Incentives Policy Committee. The Committee met through the months of August and September and involved representatives from City Council, the EDC Board, City Management, and Economic Development Staff. The policy combines guidelines and criteria for Chapter 380 agreements (exclusively the City’s domain) and for incentives as governed by the Development Corporation Act of 1979 (EDC incentives). The goals of the policy were to: ?? Define economic development in Schertz ?? Guide decision-making regarding how public investments are made ?? Generate private investment in Schertz that benefits all residents City Council Regular Meeting January 20, 2009 332 The policy states that the amount of local incentives offered to developers and/or companies should ultimately be based on the projected increases in the value and size of the local workforce, real property, business and personal property and other forms of revenue that inure to the local taxing entities. Perhaps the greatest change the policy makes is to explicitly state eligibility and evaluation criteria. Principally, the company contracting with the EDC or City of Schertz must: ?? Have a profitable operating history; and ?? Propose to create and maintain jobs that are at or above the Alamo Area regional average wage rate for the industry sector according to Labor Market and Career Information from the Texas Workforce Commission; and ?? Conform to community character, zoning ordinances, building codes and other applicable City ordinances. The application for incentives is requires the much of the same information banks require when businesses or individuals request financing. The idea behind the more robust application was that if businesses or individuals request that the City of Schertz make an investment in a project, they should be subject to the same kinds of scrutiny typically done by banks when lending money. When a company’s project will likely increase the average household income in the City of Schertz, increase the number of jobs offered at these income levels, result in real property valuation increases, or serve a particular niche for the City’s residents, incentives will be considered. The level of incentives offered is determined on a case-by-case basis only. This provides for the most flexibility in structuring deals and can provide the best solution for the private and public partners. The scoring rubrics for new and existing businesses are designed to help staff determine worthwhile projects by attaching a quantitative value to the attributes deemed most important by the committee. It is a scoring template that attempts to quantify the quality of a company’s proposed jobs (40% of total score), investment (30%), business activities or sector (20%), and public improvements (10%). Staff ran a series of tests on the rubric by completing it with the information collected from BRE visits and previous incentive applications. The tested projects received the following out of 1000 possible points, with 50 bonus points offered for a LEED-certified building. Mr. Jewell stated that staff and the Economic Development Corporation recommend approval of first reading. Mayor Baldwin recognized Councilmember Fowler who moved, seconded by Councilmember Trayhan to approve Ordinance No. 09-T-02 first reading. Vote was unanimous. Motion Carried BOARDS/COMMISSIONS 8. Appointment/Reappointment to Boards and Commissions/Committees – Consideration and/or action regarding appointments/reappointments to Boards and Commission/Committees. City Council Regular Meeting January 20, 2009 333 • Michael Goos – Alternate TSAC Mayor Baldwin recognized Councilmember Scagliola who moved, seconded by Councilmember Trayhan to approve the appointment of Michael Goos as alternate member to the Transportation Safety Advisory Commission (TSAC). Vote was unanimous. Motion Carried Requests and Announcements 9. Requests by Mayor and Councilmembers that items be placed on a future City Council agenda. Mayor Baldwin recognized Councilmember Wilenchik who stated he received a call from Mr. Mark Roberts owner of Schertz Auto Service and wanted to know if he could come to the Council and report on the success of his electronic sign and what it has done for his business. Mayor and Council concurred. Councilmember Wilenchik also asked if someone from staff could contact Mr. Roberts regarding the availability to come before Council. 10. Requests by Mayor and Councilmembers to City Manager and Staff for information Mayor Baldwin recognized Councilmember Scagliola who asked if staff could replace the Festival of Angles banners on Schertz Parkway. Staff stated that new signs had been ordered and would be replaced accordingly. 11. Announcements by Mayor and Councilmembers • City and community events attended and to be attended • City Council Committee and Liaison Assignments (see assignments below) • Continuing education events attended and to be attended • Recognition of actions by City employees • Recognition of actions by community volunteers Mayor Baldwin recognized Councilmember Fowler who stated that he and the Mayor attended the EDC training workshop this past weekend and it was very informative. Mayor Baldwin recognized Councilmember Scagliola who stated that he is the point of contact for the Council and Tony McFalls is the staff point of contact. He stated they recently attended the Census 2010 kickoff meeting in San Antonio. Councilmember Scagliola stated there are several jobs available with the bureau as well. Mayor Baldwin recognized Councilmember Wilenchik who who announced he recently attended the Alamo Area Council of Governments meeting regarding economic development recovery and recommended approval of a park for Kendall County, but more important talked about money coming available through the Stimulus Act for both economic development program and community development block grants. There was a conversation recently with Congressman Cuellar regarding this and the City Manager will be briefing the Council under their reports. City Council Regular Meeting January 20, 2009 334 Mayor Baldwin stated that he also attended the recent EDC retreat and expressed how timely this retreat was especially in regards to the comments given this evening regarding retention of business in the city, i.e. the Eye Care Center expansion. Mayor Baldwin also stated tomorrow in Seguin at the County Commissioners Office is another Guadalupe County census meeting. Mayor also announced that tomorrow at 2:00 p.m. in Seguin is the ground breaking of the Caterpillar Corporation and he will be in attendance and encouraged other staff members to be present as well. 12. Announcements by City Manager • Recognition of City employee actions • New Departmental initiatives • Upcoming City Council agenda items Mayor Baldwin recognized Assistant City Manager John Bierschwale who announced last week they had a conversation with Congressman Cuellar office along with several other counties in his district regarding coming up with a list of ready to move dirt projects to submit for the American Recovery and Reinvestment Bill of 2009. Mr. Bierschwale recognized Assistant City Manager David Harris who provided a list of Water, Sewer, Roads, Highway, Parks projects in the amount of $710,000,000 to Council which will be submitted to Cuellar’s office this week. ADJOURNMENT As there was no further action, Mayor Baldwin adjourned the meeting at 9:15 p.m. __________________________________ Hal Baldwin, Mayor ATTEST: ______________________________________________________ Brenda Dennis, TRMC, CMC City Secretary Agenda No. 2 CITY COUNCIL MEMORANDUM City Council Meeting: January 27, 2009 Department: Economic Development Subject: Ordinance No. 09-T-02 – Repealing Ordinance 06-T-44 City of Schertz 380 Program, and adopting a new Economic Development Incentives Policy (Final Reading) BACKGROUND In September 2006, the City adopted a “380 Program” to assist in economic development in the City. City Staff recommends repeal of the 380 Program and implementation of a new City of Schertz Economic Development Incentives Policy. The attached economic development incentives policy and matrices are the result of the work of the incentives subcommittee. The purpose of offering economic development incentives is twofold: 1) to increase private investment; and 2) to provide quality jobs in the community. The policy attempts to do this by providing a formal framework staff can utilize to analyze, discuss and negotiate incentives with business prospects. The policy reflects the City’s priorities as determined by the Incentives Policy Policy Committee. The Committee met through the months of August and September and involved representatives from City Council, the EDC Board, City Management, and Economic Development Staff. City Council passed this on first reading at their meeting of January 20, 2008. ANALYSIS & DISCUSSION: The policy combines guidelines and criteria for Chapter 380 agreements (exclusively the City’s domain) and for incentives as governed by the Development Corporation Act of 1979 (EDC incentives). The goals of the policy were to: ?? Define economic development in Schertz ?? Guide decision-making regarding how public investments are made ?? Generate private investment in Schertz that benefits all residents The policy states that the amount of local incentives offered to developers and/or companies should ultimately be based on the projected increases in the value and size of the local workforce, real property, business and personal property and other forms of revenue that inure to the local taxing entities. Perhaps the greatest change the policy makes is to explicitly state eligibility and evaluation criteria. Principally, the company contracting with the EDC or City of Schertz must: ?? Have a profitable operating history; and ?? Propose to create and maintain jobs that are at or above the Alamo Area regional average wage rate for the industry sector according to Labor Market and Career Information from the Texas Workforce Commission; and ?? Conform to community character, zoning ordinances, building codes and other applicable City ordinances. Board Memorandum Page 2 The application for incentives is requires the much of the same information banks require when businesses or individuals request financing. The idea behind the more robust application was that if businesses or individuals request that the City of Schertz make an investment in a project, they should be subject to the same kinds of scrutiny typically done by banks when lending money. When a company’s project will likely increase the average household income in the City of Schertz, increase the number of jobs offered at these income levels, result in real property valuation increases, or serve a particular niche for the City’s residents, incentives will be considered. The level of incentives offered is determined on a case-by-case basis only. This provides for the most flexibility in structuring deals and can provide the best solution for the private and public partners. Scoring Rubrics The rubrics for new and existing businesses are designed to help staff determine worthwhile projects by attaching a quantitative value to the attributes deemed most important by the committee. It is a scoring template that attempts to quantify the quality of a company’s proposed jobs (40% of total score), investment (30%), business activities or sector (20%), and public improvements (10%). Staff ran a series of tests on the rubric by completing it with the information collected from BRE visits and previous incentive applications. The tested projects received the following out of 1000 possible points, with 50 bonus points offered for a LEED-certified building: City Council approved this on first reading at their meeting of January 20, 2009. FISCAL IMPACT: NONE RECOMMENDATION Final Reading of Ordinance No. 09-T-02 ATTACHMENT Ordinance No. 09-T-02, with the City of Schertz Economic Development Incentives Policy attached as Exhibit A. ORDINANCE NO. 09-T-02 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS REPEALING ORDINANCE 06-T-44 AND THE CITY OF SCHERTZ 380 PROGRAM ESTABLISHED THEREIN; ADOPTING A NEW ECONOMIC DEVELOPMENT INCENTIVES POLICY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Chapter 380, Texas Local Government Code, as amended, allows the governing body of a municipality to establish and provide for the administration of one or more programs to promote state and local economic development and to stimulate business and commercial activity in the municipality; and WHEREAS, on September 19, 2006, the City Council of the City of Schertz, Texas (the “City”) adopted Ordinance 06-T-44, adopting the City of Schertz 380 Program (the “380 Program”) for the purpose of promoting state and local economic development and stimulating business and commercial activity in the City; and WHEREAS, the City Council now desires to repeal the 380 Program and Ordinance 06-T-44 which adopted that Program; and WHEREAS, the City Council desires to adopt and implement a new Economic Development Incentives Policy for the City; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: Section 1. The City Council hereby repeals Ordinance No. 06-T-44 and the 380 Program established therein Section 2. The City Council hereby adopts the City of Schertz Economic Development Incentives Policy attached hereto as Exhibit A. Section 3. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 4. All ordinances, resolutions, and codes, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance or the City of Schertz Economic Development Incentives Policy established herein are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters described herein; provided, however, the repeal of the 380 Program shall not affect any contract previously entered into, or action previously taken, in furtherance of the 380 Program. Section 5. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Ordn 09-T-02.doc -1- Ordn 09-T-02.doc -2-Section 6. 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 hereby declares that this Ordinance would have been enacted without such invalid provision. Section 7. 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 public business to be considered at such meeting, including this Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. Section 8. This Ordinance shall be in force and effect from and after its final passage and any publication required by law, and the City of Schertz Economic Development Incentives Policy authorized herein shall have an effective date on the date this Ordinance is adopted on second and final reading, and it is so ordained. PASSED ON FIRST READING, the 20th day of January, 2009. PASSED, APPROVED, AND ADOPTED ON SECOND READING the 27th day of January, 2009. Mayor, City of Schertz, Texas ATTEST: City Secretary, City of Schertz, Texas (Seal of City) EXHIBIT A City of Schertz Economic Development Incentives Policy Ordn 09-T-02.doc A-1 CITY OF SCHERTZ ECONOMIC DEVELOPMENT INCENTIVES POLICY I. Purpose of Policy The City of Schertz (the “City”) and the City of Schertz Economic Development Corporation (“SEDC”), pursuant to state law, are authorized to offer a variety of incentives to industries and commercial enterprises for the purpose of local economic development. The City is committed to the promotion and retention of high quality development and jobs in all areas of the City and to an ongoing improvement in the quality of life for its citizens. Insofar as new or expanded business enterprises fulfill these objectives, the City and the SEDC will, on a case-by-case basis, give consideration to a company requesting incentives as stimulation for economic development. The City will consider providing any type of economic development incentives not prohibited by state or federal law including, but not limited to, tax phase-ins, Freeport exemptions, revenue bonds, sales tax grants, cost participation in the construction of infrastructure and the waiver of certain development fees. All economic development incentives will be provided by contract with the applicant, and shall be subject to procedural and other requirements set forth in such contract as well as applicable federal, state and local laws. The purpose of this policy is to establish guidelines for making local incentives available for projects that promote the City’s economic development objectives. Nothing herein shall imply or suggest that the City or the SEDC is under any obligation to provide any business incentive to any applicant. II. Premises 1. The City should, in appropriate instances, offer incentives to stimulate certain types of new and existing business development. 2. The City’s priority is to offer incentives to projects that will create new primary jobs (i.e. jobs that form the economic base of the community, created by enterprises that import new wealth into the local economy). What constitutes a “primary job” is described in greater detail below. 3. Our community believes that a new primary job created by an existing employer is as valuable as a new primary job created by a new company. Therefore, the City will consider appropriate incentives to qualifying existing businesses as well as those recruited from outside the City. 4. It is the policy of the City to provide economic development incentives on a case-by-case basis. This individualized design of a total incentive package is intended to allow maximum flexibility in addressing the unique aspects of each applicant and its proposed project while enabling the City to better respond to the changing demands and needs of the community. 5. If developers and/or companies seek financial assistance from the public sector in order to start up or expand their operations, they must be prepared to: 50152161.2 Page 1 of 10 • Invest in the community through job creation and capital investment • Make a long-term commitment to the community • Treat local governments as they would any other contracting party • Expect consequences for breaching their agreement 6. Although nearly every economic development project has unique requirements, the City has an existing set of guidelines that can be explained to a prospect in advance. These guidelines may be modified over time as appropriate. In addition, the City has flexibility to accommodate different types of economic development opportunities or special situations. 7. The amount or level of local incentives offered to prospective developers and/or companies should ultimately be based on the projected increases in the value and size of the local workforce (both in number of jobs and the level of wages), real property, business machinery, personal property, and other forms of revenue that inure to the local taxing entities. 8. Incentives will only be used when they will make a difference in a project's likelihood of success and/or the City’s competitive advantage in securing the project. Incentives may also be provided to a company when the City is convinced that the incentives are needed to retain existing primary jobs which would otherwise be lost. III. Scope The City is authorized to offer economic development incentives under various sections of the Texas Local Government Code (the "Code") including Chapter 380 and the Texas Development Corporation Act of 1979 (the “4B Act”). Chapter 380 provides that Texas municipalities may create programs to promote local economic development. This legislation permits, on a case by case basis, the City to evaluate and, where appropriate, to offer certain economic development incentives under the Code. Incentives may include loans and/or grants of public money, as well as other City services, to businesses and entities that the City determines will promote local economic development and stimulate business and commercial activity in the City in return for specific and verifiable commitments and results from such businesses or entities to cause specific infrastructure and other public benefits and amenities to be made and/or invested in the City. The 4B Act allows municipalities to create nonprofit development corporations, which are funded by a special sales tax. The SEDC is such a corporation. These corporations promote the creation of new and expanded industry and manufacturing activity within the municipality and its vicinity. The sales tax proceeds are distributed to the SEDC by the City, which then uses the money for economic development projects as outlined in Sections 2(11) and 4B(a) of the 4B Act. Any activities of a development corporation must always be in furtherance of and attributable to a “project.” The SEDC is responsible for managing economic development projects in the City. Except in certain specific instances, SEDC projects must result in the “creation or retention of primary jobs.” The term primary job means: 50152161.2 Page 2 of 10 1. A job that is available at a company for which a majority of the products or services of that company are ultimately exported to regional, statewide, national or international markets infusing new dollars into the local economy; and 2. Is included in one of nearly nine (9) North American Industry Classification System (NAICS) sector code. The enumerated sector numbers are: NAICS Sector Number Description 221 Utilities 331-339 Manufacturing 42 Wholesale Trade 48-49 Transportation and Warehousing 51 (excluding 512131 and 512132) Information(excluding movie theaters and drive-in theaters) 523-525 Securities, Commodity Contracts, and Other Financial Investments and Related Activities; Insurance Carriers and Related Activities; Funds, Trusts, and Other Financial Vehicles 5413, 5415, 5416, 5417, 5419 Scientific Research and Development Services 551 Management of Companies and Enterprises 56142 Telephone Call Centers Eligible Section 4B Projects The SEDC will consider spending sales tax proceeds on land, buildings, equipment, facilities, targeted infrastructure, and improvements that create or retain primary jobs and are found by the SEDC’s board of directors to be required or suitable for the development, retention, or expansion of: • manufacturing and industrial facilities • research and development facilities • transportation facilities (including but not limited to airports, ports, mass commuting facilities and parking facilities) • distribution centers • sewage or solid waste disposal facilities • recycling facilities • air or water pollution control facilities • small warehouse facilities • primary job training facilities for use by institutions of higher education • regional or national corporate headquarters facilities; and • projects which promote or develop new or expanded business enterprises including projects that provide public safety facilities, streets and roads, drainage 50152161.2 Page 3 of 10 and related improvements, demolition of existing structures, or generally municipally owned improvements Additionally, the SEDC may fund the acquisition of land, buildings, equipment, facilities, and improvements found by the board of directors to promote or develop new or expanded business enterprises that create or retain primary jobs, including projects that provide: • Public safety facilities • Streets and roads • Drainage and related improvements • Demolition of existing substandard or inefficient structures • General municipally-owned improvements The SEDC will consider any improvements or facilities that are related to any of those projects and any other projects that the board, in its discretion, determines promotes or develops new or expanded business enterprises and creates or retains primary jobs. Eligible Projects Which Are Not Required to Create or Retain Primary Jobs The SEDC will consider funding projects that do not create or retain primary jobs if the project is related to: • Job training classes-Certain job training required or suitable for the promotion or development and expansion of business enterprises; • Certain targeted infrastructure improvements which promote or develop new or expanded business enterprises; o Limited to streets and roads, rail spurs, water and sewer utilities and electric utilities, gas utilities, drainage, site improvements and related improvements, and telecommunications and internet improvements; • Land, buildings, equipment facilities, improvements and expenditures required or suitable for a career center, provided the area benefited is not located in the taxing jurisdiction of a junior college district; • Professional and amateur sports and athletic facilities; entertainment, tourist, convention facilities; public parks and related open space improvements; and related store, restaurant, concession, automobile parking facilities, roads, streets, and water and sewer facilities; • Affordable housing; • Water supply facility or water conservation program (this use must be approved by a majority of the City’s voters in an election held for that purpose); • Development, improvement, expansion or maintenance of facilities relating to the operation of commuter rail, light rail or motor buses; and • Certain airport facilities 50152161.2 Page 4 of 10 IV. Eligibility and Evaluation Criteria for Development Incentives 1. Eligibility Criteria The following criteria must be met for an applicant to be considered eligible to contract for an economic development incentive: • The company must have a profitable operating history and be well-managed; • The proposed development and/or redevelopment must create and maintain jobs that are at or above the Alamo region average wage rate for the industry sector according to Labor Market and Career Information from the Texas Workforce Commission; • The project must conform to community character and economic development goals; and • The project must conform to the requirements of the City’s zoning ordinance, building codes and other applicable City ordinances. 2. Evaluation Criteria In addition to the minimum requirements stated above, the following criteria will be considered to determine what level of incentives will be provided to the applicant. The City will consider various factors to determine the viability, extent and size of the development incentive. Eligibility for incentives will be considered on the basis of the initial eligibility criteria listed in part 1 of this Section IV. After such eligibility has been determined, the SEDC will evaluate the following factors to determine whether any public subsidy is warranted: A. Employment Impact • Wage levels of jobs to be created or retained, as well as benefits offered to fulltime employees; and • Number of jobs brought to the City. B. Investment • Type and value of proposed private and/or public improvements; • Amount of any local taxes or revenues (sales, ad valorem, utilities) to be generated directly; and • The costs, if any, to be incurred by the City to provide facilities or services directly resulting from the improvements. C. Other Factors Considered • Likelihood of a development incentive being a determining factor in a business’ decision to locate or expand its operations; • The financial capacity of the applicant to undertake, complete and sustain the proposed project; 50152161.2 Page 5 of 10 • Other incentive programs and matching grants relating to the project for which the applicant has applied or is qualified; and • Other, unanticipated factors deemed relevant by the board at its discretion; D. Community Impact • Appropriate type of activity (e.g. office, retail, etc.); • The positive or negative impact on the opportunities of existing businesses; • The impact on the opportunities of attracting additional business or residents to the community; • The market conditions and growth potential for the business activity. • The productive life of proposed improvements; • Whether high quality architecture and site design including landscaping and public amenities beyond the minimum required by the City will be provided; and • Whether the project is environmentally compatible with no appreciable negative impact on quality of life perceptions. V. Application Procedure After review of the application for the economic development incentive, the SEDC will make a recommendation to the City Council. The City Council will then determine whether it is in the best interests of the City to provide the economic development incentive to the applicant. The City Council may consider criteria other than those set forth in this policy, including but not limited to, such matters as the relative degree to which the project/applicant furthers the goals and objectives of the community or meets or compliments a special need identified by the City Council. Any person or company requesting that the City and/or the SEDC provide an economic development incentive shall comply with the following procedure: • The applicant shall submit a completed application form for the requested incentive on a form provided by the City and/or the SEDC. • The applicant shall provide a plat, map or survey showing the location of the property and the proposed project, all streets, land uses, and zoning within 500 feet of the project site. • The applicant shall describe in detail the proposed project and the type of economic development incentives requested. • The applicant shall provide all other documentation required in the Economic Development Incentives Application. • The application will be reviewed initially by the SEDC, which, if favorably approved, shall make a recommendation to the City Council, as described above, prior to the City Council’s review of the proposed incentives, the application will be distributed to the applicable departments of the City for review and comment. Additional information related to the application and the project may be requested by the SEDC and/or the City. Failure to timely submit and additionally requested information will cause the application to be rejected 50152161.2 Page 6 of 10 and will be deemed withdrawn by the applicant without further action by the SEDC and/or the City. • The City Council will consider the SEDC recommendation and the requested incentive pursuant to this policy. • The City Council will call and conduct public hearings when required by law. • When appropriate under this policy, the City Council will, at a regular meeting and when allowed by law at a special meeting, consider the approval of an economic development incentive agreement. • Information submitted by the applicant regarding the requested incentive is confidential to the extent allowed by law. VI. Expiration and Modification This Economic Development Incentive Policy is effective upon the date of its adoption and will remain in force for two years, at which time, all project incentives provided pursuant to its provision will be reviewed by the SEDC board and City Council to determine whether the goals of the program have been achieved. Based upon that review, the Economic Development Incentive Policy may be modified, renewed or eliminated. Prior to the date for review, as defined above, the Economic Development Incentive Policy may be modified by a supermajority 4/5th vote of the City Council. 50152161.2 Page 7 of 10 Index of Available Economic Development Incentives Abatement of municipal ad valorem property taxes Sec. 312.204 of the Texas Tax Code The City and Comal, Guadalupe, and Bexar Counties may grant up to 100% abatement of property taxes on buildings, fixed machinery and other business property for up to ten years. Tax abatements do not apply to the value of land but to the value of improvements constructed as a result of a particular economic development project. Minimum qualifications for tax abatements are the creation of new primary jobs. Tax abatements are sometimes structured as tax phase-ins. Freeport property tax exemption Texas Constitution Art. VIII, §1-j The freeport exemption exempts personal property consisting of inventory, goods or ores, other than oil, natural gas and petroleum. Eligible property must be transported out of the State of Texas within 175 days of acquisition but may first be assembled, stored, manufactured, processed or fabricated locally. The goods must be in Texas only for a limited purpose. Freeport property, by definition, includes goods, wares, merchandise, ores, and certain aircraft and aircraft parts as defined under Article VIII, Section 1-j of the Texas Constitution. The City, Comal, Guadalupe, and Bexar Counties, as well as four local independent school districts in the city (Schertz/Cibolo/Universal City ISD, East Central ISD, Judson ISD, and Comal ISD) allow personal property tax exemptions for companies that deal with goods-in-transit or inventories used in the manufacturing process. The tax exemption applies to items classified as “freeport property.” Municipal grants Chapter 380 of the Texas Local Government Code The City may provide loans and grants of City funds as well as City employees and equipment to promote economic development projects within the city. Owners of eligible projects involving significant investment may contract with the City to receive sales tax grants, franchise fee grants, water or sewer line extensions, building permit fee waivers and grants for for capital recovery fees. Foreign Trade Zone The Tri-County Industrial Park in the City is one of ten General Purpose sites eligible for incentives arising from operating in a Foreign Trade Zone (FTZs). Businesses locating in FTZs can take advantage of the incentives offered including 1) relief from inverted tariffs; 2) duty exemption on re-exports; 3) duty elimination on waste, scrap, and yield loss; and 4) duty deferral until merchandise is imported from the FTZ into the FTZ. The purpose of an FTZ is the creation of jobs realized from the cost savings from delayed or forgiven tariffs. The City 50152161.2 Page 8 of 10 currently has an FTZ located at the Tri-County Industrial Park and will have potential for an FTZ in the new Enterprise Industrial Park. More information can be found at http://www.saftz.com/. Tax Increment Financing Chapter 311 of the Texas Tax Code The City may create a Tax Increment Reinvestment Zone where construction of public improvements using tax increment funds is likely to result in significant commercial investment. The cost of improvements within the Zone is repaid by the contribution of future tax revenues by each taxing unit that agrees to participate, but in all events excluding school districts that levy taxes on the affected properties. Once the City initiates tax increment financing, counties and school districts may also participate in the tax increment financing program. The costs of selected public improvements are paid by additional tax dollars generated by the growth of real property value in the designated area. Creation of Industrial District in ETJ and Agreement to not Annex Section 42.044 of the Texas Local Government Code To attract a business into an area, the City may choose to encourage the business to locate in the City’s extraterritorial jurisdiction (“ETJ”). If the business locates in the City’s ETJ, the City may enter into an agreement not to annex the business property for a set period of time (maximum of 15 years). The agreement may call for the business to pay the City an annual fee in lieu of taxes for the use of City facilities. The City may also provide certain contractual services (i.e. firefighting services) to the business during the non-annexation period. Community Infrastructure and Economic Development (CIED) Fund The City, in partnership with CPS Energy, offers a unique incentive to qualifying companies to help fund electric and other site-specific capital improvements from CPS’ CIED Fund. Potential funding from the CIED Fund will vary based upon the level of positive impact the project has on the CPS energy system. Qualifying companies may be eligible for CIED fund grants to offset the cost of public improvements Municipal programs used to help finance business development projects. Industrial Development Bonds (Issued by the City for construction of leased facilities) Chapter 1509 of the Texas Government Code The City may issue industrial development bonds to finance the construction or purchase of a manufacturing facility for lease to a private entity. Bonds are payable from the project revenues unless approved by the voters to be payable from property taxes. 50152161.2 Page 9 of 10 Industrial Development Revenue Bonds (Issued by SEDC) Article 5190.6, Sec. 21 of the Texas Revised Civil Statutes The SEDC may issue bonds for economic development projects. Generally all debt services on the bonds is paid by the business under the terms of a lease, sale or loan agreement. This does not constitute a debt of obligation by the City or the SEDC. Public Improvement Districts Chapter 372 of the Texas Local Government Code A Public Improvement District (“PID”) enables a commercial area to make improvements benefiting the area and spread the cost equally among all properties in the designated area. Property owners are assessed based on uniform benefit criteria. These assessments may be used to pay the debt service on bonds or they may be used to pay for services directly if no bonds are issued. PID funds may be used to purchase real property in connection with improvements. Improvements include a wide variety of enhancements such as water and wastewater, streets, drainage, parking, landscaping, etc. Municipal Management Districts Chapter 375 of the Texas Local Government Code Municipal Management Districts allow commercial property owners to enhance a defined business area by financing facilities, infrastructure and services beyond those already provided by the City. The improvements may be paid for by a combination of self imposed property taxes, special assessments and impact fees. A District is created to supplement not supplant the City services available to the area. Empowerment Zone The City has the ability to create Empowerment Zones within the City limits. The purpose of creating the Zone is to encourage investment in certain areas lacking adequate water and sewer lines and paved streets. Small Business Administration Loan Guaranty Program The City’s Economic Development Department can direct businesses to lenders and special funds designed for small businesses. The SBA provides a guaranty on loans made by private lenders and Community Development Corporations (CDCs). 50152161.2 Page 10 of 10 10 50152167.2 Economic Development Incentives Policy & Application for Economic Development Incentives Page 1 of 12 City of Schertz Application for Development Incentives I. Statement The City of Schertz will consider providing economic development incentives in accordance with the procedures and criteria outlined in this Application and the City of Schertz Economic Development Incentives Policy (the “Policy”). Incentive agreements will be considered for both new facilities and expansions of existing facilities and for the expansion or modernization of existing facilities and structures. Nothing in this Application or the Policy shall imply or suggest that the City of Schertz is under any obligation to provide any business incentive to any applicant. Applications shall be filed with the City’s Economic Development Department, which will provide copies to the City Manager, appropriate City Departments, and the City of Schertz Economic Development Corporation (the “SEDC”) Board of Directors within ten working working days. All applicants shall be considered on a case-by-case basis. II. Applicability The Policy establishes that all business incentive options, programs, and agreements shall be governed by applicable State statutes and adopted City policies relating to economic development. III. Eligibility Criteria Any request for a business incentive shall first be reviewed by the SEDC Board. If the request is accepted by the Board, the Board will recommend approval to the City Council. Acceptance and approval by the SEDC Board shall be based upon an evaluation of the narrative responses provided in the Application for Business Development Incentives (attached herein) and all accompanying support documents. IV. Evaluation Criteria The following criteria will be considered in determining what level of incentives may be provided to the applicant: 1. Creation of permanent full time employment opportunities. The number and types of jobs to be created or retained (full time vs. part time) and to what extent benefits (health or otherwise) for all full time employees will be provided. 2. Total capital investment in the project including site improvement, building cost, business personal property and other equipment. 3. Expansion of the local tax base. 4. Location of the proposed facility or operation. 5. Whether an incentive is likely to influence the decision to locate the project in the City. 6. Whether type of activity is appropriate to the proposed area (e.g. office, retail, etc.) 7. The types and value of public improvements which will be made by the applicant. 8. Whether high quality architecture and site design including landscaping and public amenities beyond the minimum required by the City will be provided. 9. Whether the proposed structures will pursue Leadership in Energy and Environmental Design (LEED) certification. 10. To what extent City utilities will be used. 11. The types and cost of public improvements (e.g. streets, water, wastewater, drainage) and services (e.g. fire, police) which will be required of of the City. 12. The market conditions and growth potential for the business activity. 13. The amount of time necessary to complete the project and create the jobs which are to be provided by the applicant. 50152167.2 Economic Development Incentives Policy & Application for Economic Development Incentives Page 2 of 12 14. The extent to which the proposed project carries out the goals and objectives of the City’s Economic Development Strategic Plan. 15. An analysis of the costs of the incentives requested versus the benefits by the applicant’s expansion or relocation. 16. Other incentive programs and matching grants relating to the project for which the applicant has applied or is qualified. 17. Other factors set forth in the Policy. 18. Any other factors the SEDC Board or the City Council finds helpful and relevant to accomplishing the city’s economic development objectives. 19. Other, unanticipated factors deemed relevant by the Board in its discretion. 50152167.2 Economic Development Incentives Policy & Application for Economic Development Incentives Page 3 of 12 City of Schertz Application for Economic Development Incentives Please submit the original and three (3) copies of this application and all supporting documentation to the City of Schertz, Attention: Economic Development, 1400 Schertz Parkway, Schertz, TX. 78154, Phone: 210-619-1073, or fax: 210-619-1079 1. APPLICANT INFORMATION (Responsible Person): Application Date: _______/____/_____ Applicant Name: ________________________________ Title: ________________________________ Applicant Address: Physical _________________________________Box________________________ Applicant City, State Zip Code: ______________________________________ __________________ Applicant Area Code/Phone: ________________________ Fax: _______________________________ Applicant Area Code/Cell: __________________________ Email: _____________________________ Company Name (if different from Applicant): ______________________________________________ Company Address: Physical _____________________________Box ___________________________ Company City, State, Zip Code: _________________________________________________________ Company Area Code/Phone: ___________________ Area Code/Fax: __________________________ Company Web Page: _________________________ Company NAICS Code: ___________________ Email: __________________________ Previous Co. Mailing Address: Physical _______________________ P.O.B. _____________________ Previous Co. City, State Zip Code: ______________________________________________________ Business is a (please check one): (a.) Corporation -Texas or Foreign; (b.) Partnership; (c.) Sole Proprietorship; (d.) Other (Please Explain) ___________________________________ ___________________________________________________________________________________ Date Company Established:_____________ Federal Taxpayer ID Number:_______________________ Please List Business References: 1. Bank Name_____________________________ Address: __________________________________ Contact Name: __________________ Phone #:_______________ Email: _____________________ 2. Accounting Firm _________________________ Address: __________________________________ Contact Name: __________________ Phone #:_______________ Email: _____________________ 3. Law Firm _____________________________ Address: ___________________________________ Attorney Name: __________________ Phone #: ______________ Email: _____________________ 4. Other _________________________________ Address: ___________________________________ Contact Name: __________________ Phone #: ______________ Email: ______________________ 50152167.2 Economic Development Incentives Policy & Application for Economic Development Incentives Page 4 of 12 2 . PROPERTY OWNER INFORMATION: Current Property Owner’s Name: _______________________ ________________________________ Mailing Address: Physical ________________________________Box__________________________ Area Code/Phone: _______________________ Area/Code Fax: ______________________ ________ Area Code/Cell: ________________ Email: _________________Web Page: _____________________ 3 . CURRENT PROPERTY OWNER’S REPRESENTATIVE: Current Property Owner’s Representative’s Name: __________________________________________ Mailing Address: Physical ________________________________Box__________________________ Area Code/Phone: _______________________ Area/Code Fax: _______________________________ Area Code/Cell: ________________ Email: _________________Web Page: _____________________ 4. PROPERTY INFORMATION: Own Leasing Have a Contract to Purchase $____________ Property Location (including school district district jurisdiction): _____________________________________ _____________________________________________________________________ _____________ Property Address: ____________________________________________________________________ Property Legal Description /Total Acreage (Provide survey if by metes and bounds): ________________________________________________________________________________ ________________________________________________________________________________ Most Current County Tax Appraisal District Assessed Valuation (Please attach copy of Statement) on real property and improvements: Real Property: ___________________________ Improvements __________________________ 5 . PROPOSED PROJECT DESCRIPTION: Please describe the following aspects of the project. Intended Use: (e.g. hotel, retail, industrial, manufacturing, medical, wholesale, call center, corporate office, professional office, research/development, etc.) ____________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ This project is: Existing Expanding New Relocating (from another state -_________) Relocating (from another Texas City/County ___________)? Give location of current facilities: _______________________________________ ___________________________________________ ___________________________________________________________________________________ 50152167.2 Economic Development Incentives Policy & Application for Economic Development Incentives Page 5 of 12 PROJECT DESCRIPTION Will the occupancy be Owner/Occupied or Landlord/Tenant? If leasing, what is the length of the lease ______________________________________ Is the project compatible with the City’s Comprehensive Plan? Yes No Will a zoning change be necessary to accommodate the project? Yes No Is there adequate infrastructure available to the site? If not, please detail required improvements. _______________________________________________________________ ________________________ ________________________________________________________________________________________ _____________________________________________________________________________________ __ ________________________________________________________________________________________ ____________________________________ 6 . DEVELOPMENT CONCEPT: Please describe the development concept for the project. Building Type: (# of stories, architectural style, materials, etc.) _____________________________________ ____________________________________________________________________ ___________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ Development Concept: (single building or campus setting, open space, surface or structured parking, acreage, vehicular access, etc.) ______________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ _____________________ __________________________________________________________________ ________________________________________________________________________________________ ___________________________________________ ____________________________________________ General Description of business activities at the project site: _______________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ _____________________ __________________________________________________________________ ________________________________________________________________________________________ ___________________________________________ ____________________________________________ ________________________________________________________________________________________ _________________________________________________________________ ______________________ 50152167.2 Economic Development Incentives Policy & Application for Economic Development Incentives Page 6 of 12 7. TIMING QUESTIONS: Please provide an estimation of the following timing questions. Month/Year Item First development application (zoning, site plan, plat, etc.) Ground breaking Phase I occupancy Phase II occupancy (if necessary) 8. PROJECT DETAILS: Approximate Dates by Phase Ref. # Category Phase I Date:________ Phase II Date:________ Phase III Date:________ INVESTMENT a. Building in square feet s.f. f s.f. f b. Construction value $_______________ $_______________ $ _____________ c. Personal property value $_______________ $_______________ $_____________ d. Total Improvement Value $ $ $ TAXES e. Direct Sales Tax Paid due to Company Purchases $ $ $ f. Annual product sales in Schertz subject to sales tax $ $ $ CURRENT EMPLOYEES F-T P-T F-T P-T F-T P-T g. Current # Employees h. Current # Employees RELOCATING i. Type Jobs of Current Employees j. Payroll for Current Emps $ $ $ $ $ $ k. # of Emp w/annual salary of $34,609 or greater l. % of Employees residing in Guadalupe, Comal or Bexar Counties % % % % % % m. Median Annual Salary Per Employee $ $ $ $ $ $ NEW EMPLOYEES F-T P-T F-T P-T F-T P-T n. # of New Jobs to be Created o. Type New Jobs to be Created p. Payroll for New Jobs/Employees $ $ $ $ $ $ q. # of New Emps w/annual salary of $34,609 or greater r. % of New Emps residing in City of Schertz % % % % % % s. Average Annual Salary Per New Employee $ $ $ $ $ $ t. Total Current & New Annual Payroll $ $ $ $ $ $ 50152167.2 Economic Development Incentives Policy & Application for Economic Development Incentives Page 7 of 12 Reference: Provide any additional notes here regarding any of the items above ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ _____________________ __________________________________________________________________ 9 . COMMUNITY IMPACTS Describe the pros & cons of how this project will affect existing businesses in the development area? ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ What effect will the project have on the local housing market? _____________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ _____________________ __________________________________________________________________ What effect will the project have on the local school districts? ______________________________________ ____________________________ ___________________________________________________________ ________________________________________________________________________________________ __________________________________________________ _____________________________________ Will the project create any environmental quality impacts on Air Water Visual Other? ____________________________________________________________________________ ___________ ________________________________________________________________________________________ ________________________________________________________________________________________ Will the project have a high demand for Water, Wastewater, Electricity, or Gas? ________________________________________________________________________________________ ______________________________ _________________________________________________________ ________________________________________________________________________________________ Is the property currently properly zoned for your project? Yes No Will there be any Rezoning and/or Platting and/or Re-platting? 50152167.2 Economic Development Incentives Policy & Application for Economic Development Incentives Page 8 of 12 10. INCENTIVE REQUEST: Please outline the incentive(s) you are requesting and the necessity of such incentive(s) for this project. _______________________________________________________________ _ ____________________________________________________________________________ ___________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ _____________________ __________________________________________________________________ ________________________________________________________________________________________ Please summarize the overall economic impact this project will have on the City of Schertz. ________________________________________________________________________________________ _______________________________________________ ________________________________________ ________________________________________________________________________________________ _____________________________________________________________________ __________________ ________________________________________________________________________________________ 11. PROJECT PARTNERS: Please list any other financial partners or investors involved in this project. Name: ___________________ Title: __________________ Project Relationship_______________________ Address: Physical _________________________________ Box______________________ _____________ City, State Zip Code: ______________________________________________________________________ Area Code/Phone: __________________________________ Fax: __________________________________ Area Code/Cell: _________________________________ Email: ___________________________________ Name: ___________________ Title: __________________ Project Relationship_______________________ Address: Physical _________________________________ Box____________________________________ City, State Zip Code: ______________________________________________________________________ Area Code/Phone: _________________________________ Fax: ___________________________________ Area Code/Cell: _________________________________ Email: ___________________________________ 12. OTHER INFORMATION: Have you or any of your principals had any legal judgments against a current or prior business? No Yes (Explain) _______________________________________________________________ ________________________ ________________________________________________________________________________________ _____________________________________________________________________________________ __ ________________________________________________________________________________________ _________________________________________________________________________ _______________ 50152167.2 Economic Development Incentives Policy & Application for Economic Development Incentives Page 9 of 12 Have you or any of your principals declared bankruptcy in the last 5 years? No Yes (Explain) _________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ 13. SUPPORTING INFORMATION: In addition to the information provided in this Application, please enclose the following documents as indicated below with your application. Requested Attached Item EXISTING BUSINESSES Audited financial statements for the past 3 full fiscal years preceding this Application Profit/Loss Statement Cash Flow Statement Annual Reports for the past 3 full fiscal years preceding this application Business Plan Market Analysis Title Report Most recent County Tax Appraisal District Assessed Valuation Statement (if purchasing the project property or already own the project property) Tax Returns for the past 3 years Drawings/specifications Survey of property in metes and bounds Other: ____________________________________________________ Other: ____________________________________________________ PROPOSED NEW BUSINESS START-UP OR IMPROVEMENTS Proposal Cover Letter Business Plan Market Analysis Credit Report Title Report Pro Forma Income Statements Most recent County Tax Appraisal District Assessed Valuation Statement Personal income tax returns for the past 3 years (If this is a new business start-up, provide personal income tax returns) Drawings/specifications and/or conceptual development layout Survey of Property in metes and bounds Other: ____________________________________________________ Other: ____________________________________________________ 14. UNDOCUMENTED WORKER CERTIFICATION-Chapter 2264, Subchapter A, Texas Government Code requires that any any public agency or economic development corporation shall require a business that submits an application to receive a public subsidy to include a statement certifying that the business does not and will not knowingly employ an undocumented worker. The Applicant/Company certifies that its operation within the City of Schertz does not and will not knowingly employ an undocumented worker, as defined in Chapter 2264, Subchapter A, Texas Government Code, as amended (the “Act”); 50152167.2 Economic Development Incentives Policy & Application for Economic Development Incentives Page 10 of 12 Pursuant to the Act, if the Applicant/Company is convicted of a violation under 8 U.S.C. Section 1324a(f), after receiving any public subsidy, the Applicant/Company shall promptly give the SEDC written notice of such violation and the Applicant/Company shall repay the amount of the payment with interest, at a rate of 6.75 % per annum not later than the 120th day after the date the Applicant/Company notifies the SEDC of the violation. In reference to the SEDC Economic Development Incentives application for the Applicant/Company, my relationship to the Applicant in the foregoing application is ______________________________. I am authorized to make this application on behalf of the Applicant. I hereby certify that the information set forth in and enclosed with this application is true and correct. _______________________ ______________ Company Name ______________________________________ Signature ______________________________________ Type or Print Name ______________________________________ Title ___________________ _________________ Date Before me ______________________ on this day personally appeared ______________________ known to me (or proved to me on the oath of ______________________ or through __________________________ (description of identity card or other document) to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. Given under my hand and seal of office this _____ day of ________________, 20__. (SEAL) __________________________________ Notary Public in and for the State of Texas My Commission Expires: ______________ Type or Print Notary’s Name: _________________________________ 50152167.2 Economic Development Incentives Policy & Application for Economic Development Incentives Page 11 of 12 CONFIDENTIALITY AGREEMENT THIS CONFIDENTIALITY AGREEMENT (this “Agreement”) dated _____________ is between the City of Schertz, Texas (the “City”) and _____________________ (the “Company”). WHEREAS, the City and the Company have discussed certain economic development matters relating to proposed operations of the Company in the City (the “Project”); and WHEREAS, the City and the Company have agreed that maintaining the confidentiality of certain matters relating to the Project would be advantageous. 1. Confidentiality. (a) Subject to sub-paragraphs (c) and (d) below, each party and its employees, representatives, attorneys, and other consultants (collectively, the “representatives”) shall keep strictly confidential all information which the other party, its affiliates, or its representatives furnish to it in connection with the evaluation of the Project, whether furnished before or after the date of this Agreement, whether furnished orally or in writing or gathered by inspection, and regardless of whether specifically identified as “confidential”, and all notes, analyses, compilations, studies, or other documents which contain or otherwise reflect such information (collectively, the “Confidential Information”); however, each party may disclose the Confidential Information to its representatives who (i) need to know such information for the purpose of evaluating the Project, (ii) have been informed of the confidential nature of the Confidential Information, and (iii) have agreed in writing to treat the Confidential Information confidentially, to use it only for the purpose described in sub-paragraph (b) below. The term “Confidential Information” shall not include information about a party which (i) becomes generally available to the public other than as a result of an improper disclosure by the other party, its affiliates, or its representatives, (ii) was available to the other party on a non-confidential basis prior to its disclosure hereunder, or (iii) was or becomes available to the other party on a non-confidential basis from a source other than a party to which it relates, provided that such source is not bound by a confidentiality agreement in which such party or its representatives and is otherwise not prohibited from transmitting the information to the recipient. (b) Each party and its representatives shall use the Confidential Information solely for the purpose of evaluating the Project and for no other purpose and shall not use the Confidential Information in any manner that is to the competitive disadvantage of or otherwise adverse or detrimental to the party furnishing such Confidential Information. (c) Except as more specifically set forth in sub-paragraph (d) below, if either party or its representatives are requested or required (by oral questions, written interrogatories, requests for information, or documents, subpoena, civil investigatory demand, or similar process) to disclose any of of the Confidential Information, it shall provide the other party with immediate notice of such request or requirement so that the other party may seek an appropriate protective order or selectively waive compliance with the provisions of this Agreement. Further, if, in the absence of a protective order or the receipt of a waiver hereunder, either party or any of its representatives is nonetheless, in the opinion of its legal counsel, compelled to disclose any of the Confidential Information to any tribunal or agency, or else stand liable in contempt or suffer other censure or penalty, that party or representative may disclose such information to such tribunal or agency without liability hereunder unless such disclosure to such tribunal or agency was caused by or resulted from a previous disclosure by it or any of its representatives in breach of this Agreement. (d) Upon the receipt of a written request for any information or materials related to the Company or the Project, the City will notify the Company within 72 hours and provide the Company with a copy of the request. As a matter of policy, the City does not provide public records to any person except in response to written request. If the City is not otherwise seeking an Open Records Opinion by the Texas Attorney General in response to the request but reasonably believes that seeking such an Opinion is permissible under the Texas Public Information 50152167.2 Economic Development Incentives Policy & Application for Economic Development Incentives Page 12 of 12 Act, the City will also provide the Company with an estimate of the anticipated costs associated with making a request for an Open Records Opinion by the Texas Attorney General. If the Company pays the City the quoted sum within 48 hours of receiving the estimate, the City will seek a Texas Attorney General Opinion protecting the materials from disclosure on the basis that the information requested is excepted from disclosure pursuant to applicable Texas statute, rule, and or common law. During the pendency of such Opinion request, the City will not disclose the information as to which the Opinion is sought except pursuant to subparagraph (c). If the City Attorney concludes that there is no legal basis to pursue such an Open Records Opinion as of the date of the request and that the City must disclose the requested information, the City shall notify the Company of the request and will include a statement that the City Attorney has concluded that there is no legal basis to pursue a request for an Open Records Opinion and that the City must disclose the requested information and the grounds supporting such conclusion. 2. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, and, if any provision hereof is found to be invalid or ineffective, such provision shall be invalid or ineffective only to the extent necessary, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 3. Term. This Agreement shall continue in force and effect until terminated by either party upon thirty (30) days prior written notice to the other party to such effect. 4. Counterparts. This Agreement may be executed in counterparts, and both counterparts, together, shall be considered to be one document. CITY OF SCHERTZ, TEXAS __________________________________ By __________________________ By: _____________________________ City Manager Title: _______________________ _____ NEW BUSINESS APPLICATION SCORING Category Maximum Points Maximum in Category Points Criteria to achieve maximum points JOBS (40%) 400 100 One half (50%) of FTEs with compensation 5-10% above regional average 150 75% of FTEs 11-20% above regional average Average Salary 200 200 75% of FTEs 21+% above regional average Create jobs (within 24 months of start) 25 2-20 50 21-40 75 41-70 Number of jobs 100 100 71+ Provide FTEs medical, life & retirement 25 Employer pays 50% 75 Employer pays 75% Benefits 100 100 Full Coverage; no cost to employee Total Points _________ out of 400 INVESTMENT (30%) 300 Invest Dollars per FTE created/retained Bldg/Equip/Inv 125 Points awarded based on 000s of dollars invested per FTE, up to 125 0 $0-$999 10 $1,000 -$4,000 generated annually 25 $4,001-$9,999 50 $10,000-$24,999 75 $25,000-$49,999 100 $50,000-$74,999 125 $75,000-$99,999 Sales Tax 150 150 $100,000+ Be located in one of the following areas of the City: Downtown/FM 78 Location 25 25 Town Center Total Points _______ out of 300 NEW BUSINESS APPLICATION SCORING Category Maximum Points Maximum in Category Points Criteria to achieve maximum points SECTOR (20%) 200 Citizen-oriented Total Points __________ out of 1000 100 • 62 (healthcare) • 71 (arts, entertainment & recreation) • 7221 (full-service restaurants) • 485 (Transit & ground passenger transportation) Target Industry Majority of company’s products or services is classified under the following NAICS codes: • 331-339 • 42 • 51 • 523-525 200 • 5413,5415,5416,5417, 5419 • 551 Total Points out of 200 INFRASTRUCTURE (10%) If a project requires significant improvements to the public infrastructure, and it is determined the improvements will benefit the public beyond the boundaries of the development, consideration will be given to these types of infrastructure improvements: • Drainage 100 • Water • Sewer • Roads (public) • Electrical 50 $100,000-$299,999 75 $300,000-$499,999 100 $500,000 + Total Points out of 100 LEED CERTIFICATION 50 additional points EXISTING BUSINESS APPLICATION SCORING Category Maximum Points Maximum in Category Points Criteria to achieve maximum points JOBS (40%) 400 100 All FTEs with compensation 90% of, or equal to, regional average 150 50% of FTEs paid 1-15% above regional average Average Salary 200 200 75%+ of FTEs paid 16% above regional average Create new jobs (within 24 months of project completion) 25 1-5 50 6-15 75 16-25 Number of jobs 100 100 25+ Provide FTEs medical, life & retirement 25 Employer pays 50% 75 Employer pays 75% Benefits 100 100 Full Coverage; no cost to employee Total Points _________ out of 400 INVESTMENT (30%) 300 Invest Dollars per FTE created/retained Building & Business Personal Property Values (inventory, fixtures, M&E) 125 Points awarded based on 000s of dollars invested per FTE, up to 125 points 10 $0-$500 generated annually 25 $501-$1,000 50 $1,001-$5,000 75 $5,001-$10,000 100 $10,001-$25,000 125 $25,001-$50,000 150 $50,001+ Sales Tax 150 25 Be located in one of the following areas of the City: Downtown/FM 78 Location 25 Town Center EXISTING BUSINESS APPLICATION SCORING Maximum in Category Points Maximum Points Category Criteria to achieve maximum points SECTOR (20%) 200 Citizen-oriented Total Points for Application __________ out of 1000 100 • 62 (healthcare) • 71 (arts, entertainment & recreation) CERTAIN CATEGORIES ELIGIBLE FOR 4B • 7221 (full-service restaurants) • 485 (Transit & ground passenger transportation) Target Industry Majority of company’s products or services is classified under the following NAICS codes: • 331-339 • 51 200 • 523-525 • 5413,5415,5416,5417,5 419 • 551 Total Points out of 200 INFRASTRUCTURE (10%) 100 If a project requires significant improvements to the public infrastructure, and it is determined the improvements will benefit the public beyond the boundaries of the development, consideration will be given to these types of infrastructure improvements: • Drainage • Water • Sewer • Roads (public) • Electrical 50 Value of improvements $10,000-$29,999 75 $30,000-$49,999 100 $50,000 + Total Points out of 100 LEED CERTIFICATION 50 additional points Agenda No. 3 CITY COUNCIL MEMORANDUM City Council Meeting: January 27, 2009 Department: Marshal’s Office Subject: Ordinance No. 09-H-03 – Consideration and/or action regarding approval of final reading of the Revised Nuisance Ordinance. Final Reading. BACKGROUND The existing Nuisance Ordinance needed revisions to meet with current State requirements, clarify the language in the current City ordinance and to transition duties to the Marshal’s Office. As per discussion by Council on January 20, 2009 the following language was changed: Section 54-14, (h) to add “unoccupied structures” to working on Sundays by Contractors. Section 54-20, (d) (1) to read… “two members from Planning and Zoning and one member from Board of Adjustments”. Section 54-24, (b) to include a “Grandfather Clause” and register RV with Marshal’s Office. Section 54-28, (c) remove word “stored” and add “outside of structure”. City Council passed this on first reading with the above corrections on January 20, 2009. FISCAL IMPACT None RECOMMENDATION Staff recommends Council approve Ordinance No. 09-H-03 final reading. ATTACHMENT Ordinance No. 09-H-03 -the changes from the first reading are on pages 9, 12, 15, 16, and 29. ORDINANCE NO. 09-H-03 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS PROVIDING THAT THE CODE OF ORDINANCES, CITY OF SCHERTZ, TEXAS, CHAPTER 54, NUISANCES, BE AMENDED BY DELETING CHAPTER 54, NUISANCES AND REPLACING SAME WITH A REVISED CHAPTER 54, NUISANCES; PROVIDING A PENALTY CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALING CLAUSE; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: SECTION 1. AMENDMENT. Chapter 54, Nuisances, shall be amended to read as follows: “CHAPTER 54, NUISANCES TABLE OF CONTENTS ARTICLE I. IN GENERAL Section 54-1. Scope Section 54-2. Duties and Powers of the Code Official Section 54-3. Severability Section 54-4. Requirements not Covered by this Chapter Section 54-5. Abatement of Violation Section 54-6. General Notices and Orders Section 54-7. Reserved Section 54-8. Removal or Correction by the City Section 54-9. Restrictions Imposed on Property until Lien is Cleared Section 54-10. Statement of Expenses: Lien for and Interest on Expenses; Suit to Collect Expenses Section 54-11. Transfer of Ownership Section 54-12. Violations ARTICLE II. DEFINITIONS Section 54-13. Definitions ARTICLE III. NOISE Section 54-14. Certain Acts Declared to be Noise Nuisances Nuisance Ordinance.doc -1- ARTICLE IV. ABANDONED HOUSEHOLD APPLIANCES Section 54-15. Abandoned Large Household Appliances Section 54-16. Responsibility of Owner or Person in Control ARTICLE V. PROPERTY MAINTENANCE REQUIREMENTS Section 54-17. International Building Code Adopted Section 54-18. Unsafe Structures and Equipment Section 54-19. Emergency Measures Section 54-20. Demolition Section 54-21. General Responsibilities Section 54-22. Exterior Property Areas; Nuisance Upon Premises Section 54-23. Swimming Pools, Spas and Hot tubs Section 54-24. Parking Prohibited on Front and Side Yards Section 54-25. Exterior Structure Section 54-26. Interior Structure Section 54-27. Handrails and Guardrails Section 54-28. Rubbish and Garbage Section 54-29. Texas Litter Abatement Act Adopted Section 54-30. Extermination Section 54-31. Light, Ventilation and Occupancy Limitations Section 54-32. Plumbing Facilities and Fixture Requirements Section 54-33. Mechanical and Electrical Requirements ARTICLE VI. JUNK VEHICLES Section 54-34. Declaration of Junk Vehicle as Public Nuisance Section 54-35. Junk Vehicle Notice Section 54-36. Exemptions Section 54-37 Abatement of Junk Vehicles Declared a Public Nuisance Section 54-38. Disposal of Junk Vehicle Section 54-39. Right to an Appeal Section 54-40. Conflict of Law ARTICLE I. IN GENERAL. Section 54-1. Scope. The provisions of this Chapter shall apply to all residential and nonresidential structures and all premises, structures, equipment and facilities for light, ventilation, space, heating, sanitation, protection from the elements, life safety, safety from fire and other hazards, and for Nuisance Ordinance.doc -2- safe and sanitary maintenance, whether now existing or existing in the future; the responsibility of owners, operators and occupants; the occupancy of structures and premises, and for administration, enforcement and penalties within the jurisdiction of the City and property within 5,000 feet outside the limits of the City, whether or not within the extraterritorial jurisdiction of the City. Section 54-2. Duties and Powers of the Code Official. a) Generally – The City Health Official, hereinafter referred to in this Chapter as the Code Official, is hereby authorized and directed to enforce the provisions of this Chapter and other related ordinances and regulations of the City. The Code Official shall have the authority to render interpretations of this Chapter and to adopt policies and procedures in order to clarify the application of its provisions. Such interpretations, policies and procedures shall be in compliance with the intent and purpose of this Chapter and shall not have the effect of waiving requirements specifically provided for in this Chapter. The Code Official is a member of the City Marshal’s Department, which shall have overall enforcement authority as to this Chapter. b) Appeals – The City Manager or his/her designated representative shall hear and decide on all appeals or orders, decisions, or determinations made by the Code Official relative to the application and interpretation of this Chapter. c) Reports – The Code Official shall give attention to the health and sanitary conditions of the City and report to the City Council once each month, making recommendations as necessary conducive to the cleanliness of the City and the general health of the citizens. d) Right of Entry – It shall be unlawful for any person to interfere, hinder, or delay the Code Official or other City deputies, inspectors, or officers in the discharge of any duties under this Chapter or to refuse to comply with the orders of the Code Official. The Code Official shall issue all necessary notices or orders to ensure compliance with this Chapter. e) Inspections – The Code Official shall respond to all complaints and make all inspections necessary to ensure compliance with all state and local requirements governing general property maintenance. f) Department Records – Official records shall be kept of all complaints, reports, citations, notices and orders issued. Such records shall be retained in the official records of the City pursuant to the City’s document retention policy. g) No Liability – The Code Official or employees charged with the enforcement of this Chapter while acting for the jurisdiction in good faith and without malice in the discharge of the duties required by this Chapter or other pertinent laws or ordinances, shall not thereby be rendered liable personally and are hereby relieved from personal liability for any damage accruing to persons or property as a result of any act or omission in the discharge of official duties. Any suit instituted Nuisance Ordinance.doc -3- against an officer or employee because of an act performed by the officer or employee in the lawful discharge of duties and under the provisions of this Chapter shall be defended by legal representative of the City until the final termination of the proceedings. The Code Official or any subordinate shall not be liable for cost in any action, suit or proceeding that is instituted in pursuance of the provisions of this Chapter. Section 54-3. Severability. If a section, subsection, sentence, clause or phrase of this Chapter is, for any reason, held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this Chapter. Section 54-4. Requirements not Covered by this Chapter. Requirements necessary for the strength, stability or proper operation of an existing fixture, structure, or equipment, or for the public safety, health and general welfare, not specifically covered by this Chapter, shall be determined by the Code Official or by other applicable departments of the City. Section 54-5. Abatement of Violation. The imposition of the penalties herein prescribed shall not preclude the Code Official from instituting appropriate action to restrain, correct, or abate a violation, or to prevent illegal occupancy of a building, structure or premises, or to stop an illegal act, conduct business, or utilization of the building, structure or premises. Section 54-6. General Notices and Orders. a) Notice to Person Responsible – Whenever the Code Official determines that there has been a violation of this Chapter or has grounds to believe that a violation has occurred, notice shall be given in a manner prescribed below to the person responsible for the violation. b) Form – Notices shall be in accordance with all the following: 1) Be in writing; 2) Include a description of the real estate sufficient for identification; 3) Include a statement of the violation or violations and why the notice is being issued; 4) Include a correction order allowing seven (7) days after the date of the notice to make the repairs and improvements required to bring the property or structure into compliance; 5) Inform the property owner of the right to appeal; Nuisance Ordinance.doc -4- 6) Include a statement regarding the City’s right to file a lien. c) Method of Service – Such notice shall be deemed to be properly served if a copy thereof is: 1) Delivered personally; 2) Sent by certified or first-class mail addressed to the last known address of the property owner; or 3) By posting the notice on a placard attached to a stake driven into the ground on the property to which the violation relates. d) Final Notice -In the notice, the City may inform the owner by certified mail, return receipt requested, that if the owner commits another violation of the same kind or nature on or before the first anniversary of the date of the notice, the City, without further notice, may issue a citation, correct the violation at the owner’s expense, and assess the expense against the property. If the violation covered by a notice under this Chapter occurs within the one-year period following issuance of the notice, and the City has not been informed in writing by the owner of an ownership change, then the City without notice may take any action permitted by Sec. 54-8 and assess its expense as provided in Sec. 54-9 and 54-10 or Sec. 54-12. e) Refused or Unclaimed – If the Code Official mails a notice to a person responsible for a violation and the United States Postal Service returns the notice as “refused” or “unclaimed”, the validity of the notice is not affected, and the notice is considered as delivered. Section 54-7. Reserved. Section 54-8. Removal or Correction by the City. In the event the owner, tenant, lessee, agent or occupant of any lot, parcel or premises fails to remove or remedy any condition described in this Chapter within seven (7) days after notice has been given, the City may do whatever is deemed necessary to remove or remedy the condition, or cause the same to be done, and charge the expense incurred thereby to the owner, tenant, agent, lessee or occupant of the lot, parcel or premises, and such expense shall be assessed as a lien against the real estate upon which the work is done. A statement of expense incurred will be certified by the City Secretary and sent to the violator of this Chapter. That person will be given a period of fifteen (15) days for total reimbursement to the City. Upon the expiration of this 15-day period, the amount of such unpaid expenses shall bear ten percent (10%) per annum interest from the date certified by the City Secretary. Section 54-9. Restrictions Imposed on Property until Lien is Cleared. In the event no collection can be made by the City of expenses incurred in removing or remedying any of the conditions and before and after a lien is filed against such property, the Nuisance Ordinance.doc -5- City shall have the right to impose the following restrictions on such property until such lien is cleared: a) No building permit of any type will be issued by the City with respect to the property involved, including building improvement, remodeling or modification permits. b) A fee of $200.00 will be levied against the violator as an administrative fee to cover the costs of filing a lien against the property. Section 54-10. Statement of Expenses: Lien for and Interest on Expenses; Suit to Collect Expenses. The City Manager or his/her designated representative shall file a statement of expenses incurred under section 54-8 stating the amount of such expenses and the date of which costs of filing the lien with the municipal court clerk and the County Clerk of the county in which the lot or real estate is located, and the City shall have a privileged lien on such lot or real estate upon which the work is done or improvement made to secure the expenditures and interest, suit may be instituted for recovery, and and forfeiture of such lien may be had in the name of the City; and the statement of expenses so made, or certified copy thereof; shall be prima facie proof of the amount expended for such work or improvements. Section 54-11. Transfer of Ownership. It shall be unlawful for the owner of any dwelling unit or structure who has received a compliance order or upon whom a notice of violation has been served to sell, transfer, mortgage, lease, or otherwise dispose of such dwelling unit or structure to another until the provisions of the compliance order or notice of violation have been complied with, or until such owner shall first furnish the grantee, transferee, mortgagee or lessee a true copy of any compliance order or notice of violation used by the Code Official and shall furnish to the Code Official a signed and notarized statement from the grantee, transferee, mortgagee or lessee, acknowledging the receipt of such compliance order or notice of violation and fully accepting the responsibility without condition for making the corrections or repairs required by such compliance order or notice of violation. Section 54-12. Violations. a) Unlawful Acts – It shall be unlawful for a person, firm or corporation to be in conflict with or in violation of any of the provisions of this Chapter. b) Penalties – Any violation by any person, firm or corporation of this Chapter is declared to be unlawful and a misdemeanor and any violation thereof shall be punished by a fine of not less than $40.00 or more than $2,000.00. Any person in violation of this Chapter and having paid a fine assessed for such violation shall not be relieved of the expense incurred by the City in removing or remedying the condition prescribed in this Chapter. Each day that a violation continues after due notice has been served shall be deemed a separate offense. Nuisance Ordinance.doc -6- ARTICLE II. DEFINITIONS. Section 54-13. Definitions. The following words, terms and phrases, when used in this Chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicated a different meaning: Antique Vehicle – is a passenger car or truck that is at least twenty-five (25) years old. Code Official – the City Health Official who is charged with the administration and enforcement of this Chapter, or any duly authorized representative of such person. General nuisance – means any condition or use of a building, structure, lot, parcel, or premises which is in an unsanitary, objectionable, or unsightly condition or injurious to public health, which is detrimental to the property of others, or which causes, or tends to cause diminution in the value of other property in the neighborhood in which such premises is located. Junk Vehicle – is a vehicle that is self-propelled and; a) Does not have lawfully attached to it an unexpired license plate and a valid motor vehicle vehicle inspection certificate; and b) Is wrecked, dismantled or partially dismantled, or discarded; or c) Is inoperable and has remained inoperable for more than seventy-two (72) consecutive hours if the vehicle is on public property or thirty (30) consecutive days if the vehicle is on private property. Lot or parcel – is defined and considered as having ordinary meaning but shall include, in addition to the land within a lot or parcel boundary, all land adjacent to and extending beyond the property line to the curb line of adjacent streets and, where no curb exists, to the existing street surface. The word “lot” or “parcel” shall also include all land lying between the property line of any lot or parcel and the center of adjacent easements. Motor vehicle – means a vehicle that is subject to registration under Chapter 501 of the Texas Transportation Code, as amended from time to time. Motor vehicle collector – means a person who: a) Owns one or more Antique Vehicle or Special Interest Vehicle; and b) Acquires, collects, or disposes of an Antique Vehicle or Special Interest Vehicle for personal use to restore and preserve an Antique Vehicle or Special Interest Vehicle for historic interest. Nuisance Ordinance.doc -7- Noise nuisance – means any unreasonably loud, disturbing noise which causes material distress, discomfort or injury to persons of ordinary sensibilities in the immediate vicinity thereof and is hereby declared to be a nuisance. Owner – any person, agent, operator, firm or corporation having a legal or equitable interest in the property in question; or recorded in the official records of the state, county or municipality as holding title to such property; or otherwise having control of such property, including the guardian of the estate of any such person, and the executor or administrator of the estate of such person if ordered to take possession of real property by a court. Person – as used in this Chapter shall be construed to impart the singular and plural as the case demands, and shall include corporations, companies, societies and associations. Special Interest Vehicle – is a motor vehicle of any age which has not been altered or modified from the original manufacturer’s specifications and, because of its historic interest, is being preserved by a hobbyist. Structure – means that which is built or constructed on any property within the City. Tenant – a person, corporation, partnership or group, whether or not the legal owner of record, occupying a building or portion thereof as a unit. ARTICLE III. NOISE. Section 54-14. Certain Acts Declared to be Noise Nuisances. The following acts, among others, are declared to be nuisances in violation of this Article, but said enumerations shall not be deemed to be exclusive: a) The playing of any radio, tape recorder, cassette player, compact disk player, DVD player, MP3 player, or any similar device phonograph or any musical instrument in such a manner or with such volume, particularly during the hours between 10:00 pm and 7:00 am, as to disturb the quiet, comfort or repose of persons of ordinary sensibilities in any dwelling, hotel or other type of residence. b) The use of any stationary loudspeaker or amplifier to such intensity that disturbs persons of ordinary sensibilities in the immediate vicinity thereof; the use of any stationary loudspeaker or amplifier operated on any day between the hours of 10:00 pm and 7:00 am. c) The keeping of any animal or bird which by causing frequent or long-continued noise shall disturb the comfort and repose of any person of ordinary sensibilities in the immediate vicinity. d) The continued or frequent sounding of any horn or signal device on any automobile, motorcycle, bus, or other vehicle except as a danger or warning signal; the creation by means of any such said device of any unreasonable loud or harsh noise for any unreasonable period of time. Nuisance Ordinance.doc -8- e) The running of any automobile, motorcycle, or vehicle so out of repair, so loud or in such manner as to create loud or grating, grinding, jarring, or rattling noise or vibration. f) The discharge into the open air of the exhaust of any steam engine, stationary internal combustion engine, motor vehicle or boat engine except through a muffler or other device which will effectively prevent loud or explosive noises therefrom. g) The use of any mechanical device operated by compressed air, unless the noise to be created is effectively muffled and reduced. h) Commercial contractors are prohibited from the erection, including excavation, demolition, alteration or repair work on any building or structure other than between the hours of 7:00 am and 6:00 pm, on weekdays and 9:00 am to 5:00 pm on Saturdays. Commercial contractors are prohibited from working on unoccupied structures on Sundays. An exception can be made in case of urgent necessity in the interest of public safety and convenience, and then only by written permit from the City Manager or his/her designee, which permit may be renewed by the City Manager or his/her designee, during the time the emergency exists. All special requests must be submitted in writing. i) The creation of any excessive noise on any street adjacent to any school or institution of learning while in session or adjacent to any hospital which interferes with the working of such institutions, providing conspicuous signs are displayed in such manner indicating that the same is a school or hospital street. j) The creation of any loud and excessive noise in connection with the loading or unloading of any vehicle or the opening and destruction of bales, boxes, crates and containers. k) The raucous shouting and crying of peddlers, hawkers and vendors, which disturb the peace and quiet of the neighborhood. l) The use of any drum, loudspeaker or other instrument or device for the purpose of attracting attention by the creation of noise to any performance, show or sale of merchandise. ARTICLE IV. ABANDONED HOUSEHOLD APPLIANCES. Section 54-15. Abandoned Large Household Appliances. It shall be unlawful for any person to cause or permit to be or remain upon any premises under his control in a public or semi-public area that might be accessible to children, any large appliance (freezer, refrigerator, stove, dishwasher, clothes washer, clothes dryer and other similar appliances). Nuisance Ordinance.doc -9- Section 54-16. Responsibility of Owner or Person in Control. a) The owner or person in control of any large home appliance on any such property as described in section 54-15 shall not permit same to be discarded, abandoned, or stored as to create a public nuisance of safety hazards. b) It shall be the responsibility of any such owner or person in control to remove or have removed any self-closing or self–locking mechanism or door from the appliance to be discarded, abandoned, or stored in public or semi-public areas which might be accessible to children. ARTICLE V. PROPERTY MAINTENANCE REQUIREMENTS Section 54-17. International Building Code Adopted. The International Building Code, 2006 edition, as amended. Revised and corrected, including all future editions, revisions, amendments and corrections, published by the International Code Council (ICC), one copy of which is on file with the City Secretary, is hereby adopted and incorporated by reference as the Building Code of the City, subject to and including by reference such amendments as herein shall appear. Section 54-18. Unsafe Structures and Equipment. a) Unsafe Structure – An unsafe structure is one that is found to be dangerous to the life, health, property or safety of the public or the occupants of the structure by not providing minimum safeguards to protect or warn occupants in the event of fire, or because such structure contains unsafe equipment or is so damaged, decayed, dilapidated, structurally unsafe or of such faulty construction or unstable foundation, that partial or complete collapse is possible. b) Unsafe Equipment – Unsafe equipment includes any boiler, heating equipment, elevator, moving stairway, electrical wiring or device, flammable liquid containers or other equipment on the premises or within the structure which is in such disrepair or condition that such equipment is a hazard to life, health, property or safety of the public or occupants of the premises or structure. c) Structure Unfit for Human Occupancy – A structure is unfit for human occupancy whenever the Code Official finds that such structure is unsafe, unlawful or because of the degree to which the structure is in disrepair or lacks maintenance, is unsanitary, vermin or rat infested, contains filth or other contamination, or lacks ventilation, illumination, sanitary or heating facilities or other essential equipment required by this Article, or because the location of this structure constitutes a hazard to the occupants of the structure or to the public. d) Unlawful Structure – An unlawful structure is one found in whole or in part to be occupied by more persons than permitted under this Article, or which was erected, altered or occupied contrary to law. Nuisance Ordinance.doc -10- e) Closing of Vacant Structure – If the structure is vacant and unfit for human habitation and occupancy, and is not in danger of structural collapse, the Code Official is authorized to post a placard of condemnation on the premises and order the structure closed up so as not to be an attractive nuisance. Upon failure of the owner to close up the premises within the time specified in the order, the Code Official shall cause the premises to be closed and secured through any available public agency or by contract or arrangement by private persons, and the cost thereof shall be charged against the real estate upon which the structure is located and shall be a lien upon such real estate and may be collected by any legal resources. Section 54-19. Emergency Measures. When, in the opinion of the Code Official, there is imminent danger of failure or collapse of a building or structure which endangers life, or when any structure or part of a structure has fallen and life is endangered by the occupation of the structure, or when there is actual or potential danger to the building occupants or those in the proximity of any structure because of explosives, explosive fumes or vapors or the presence of toxic fumes, gases, or materials, or operation of defective or dangerous equipment, the Code Official is authorized and empowered to order and require the occupants to vacate the premises forthwith. The Code Official shall cause to be posted at each entrance to such structure a notice reading as follows: “This structure is unsafe, and its occupancy has been prohibited by the City of Schertz Code Official”. It shall be unlawful for any person to enter such structure except for the purpose of securing the structure, making the required repairs, removing the hazardous condition or of demolishing the same. Section 54-20. Demolition. a) General – The Code Official shall order the owner of any premises upon which is located any structure, which in the Code Official’s judgment is so old, dilapidated, or has become so out of repair as to be dangerous, unsafe, unsanitary or otherwise unfit for human habitation or occupancy, such that it is unreasonable to repair the structure, and to demolish and remove such structure; or if such structure is capable of being made safe by repairs, to repair and make safe and sanitary or to demolish and remove at the owner’s option; or where there has been a cessation of normal construction of any structure for a period of more than two years, to demolish and remove such structure. b) Failure to Comply – If the owner of a premises fails to comply with a demolition order within the time prescribed, the Code Official shall cause the structure to be demolished and removed, either through an available public agency or by contract or arrangement with private persons, and the cost of such demolition and removal shall be charged against the real estate upon which the structure is located and shall be a lien upon such real estate. c) Salvage Material – When any structure has been ordered demolished and removed, the City or other designated officer under said contract or arrangement Nuisance Ordinance.doc -11- aforesaid shall have the right to sell the salvage and valuable materials at the highest price reasonably obtainable. The net proceeds of such sale, after deducting the expenses of such demolition and removal, shall be promptly remitted with a report of such sale or transaction, including the items of expense and the amounts deducted, to the person who is entitled thereto, subject to any order of a court. If such a surplus does not remain to be turned over, the report shall so state. d) Means of Appeal – Any person directly affected by a decision of the Code Official or a notice or order issued under this Chapter shall have the right to appeal to a Board of Appeals, provided that a written application for appeal is filed within 20 days after the day the decision, notice or order was served by the Code Official. An application for appeal shall be based on a claim that the true intent of this Chapter or the rules legally adopted thereunder have been incorrectly interpreted, the provisions of this Chapter do not fully apply, or the requirements of this Chapter are adequately satisfied by other means, or that the strict application of any requirement of this Chapter would cause an undue hardship. 1) The City Manager will select a Board of Appeals that shall consist of three members. Two members will be selected from the Board of Adjustment and one member from the Planning and Zoning Commission. The Code Official shall be an ex-officio member but shall have no vote on any matter before the Board. 2) All hearings before the Board shall be open to the public. The appellant, the appellant’s representative, the Code Official and any person whose interests are affected shall be given an opportunity to be heard. 3) The Board shall modify or reverse the decision of the Code Official only by a concurring vote of a majority of the total number of appointed Board members. 4) Any appeal from a ruling by the Board shall be to the City Council, provided that a written application for appeal is received by the City Manager within 10 days after the Board’s ruling. 5) The Code Official shall take immediate action in accordance with the decision of the Board, or the City Council, as applicable. Section 54-21. General Responsibilities. a) Scope – The provisions of this Article V shall govern the minimum conditions and the responsibilities of persons for maintenance of structures, equipment, and exterior property. b) Responsibility – The owner of the premises shall maintain the structures and exterior property in compliance with these requirements, except as otherwise provided for in this Article V. A person shall not occupy as owner-occupant or permit another person to occupy premises which are not in a sanitary and safe Nuisance Ordinance.doc -12- condition and which do not comply with the requirements of this Article V. Occupants of a dwelling unit, rooming unit or housekeeping unit are responsible for keeping in a clean, sanitary and safe condition that part of the dwelling unit, rooming unit, housekeeping unit or premises which they occupy and control. c) Maintenance – All vacant structures and premises thereof or vacant land shall be maintained in a clean, safe, secure and sanitary condition as provided herein so as not to cause a blighting problem or adversely affect the public health and safety. Section 54-22. Exterior Property Areas; Nuisance Upon Premises. a) No person owning, leasing, occupying or having charge of any premises shall maintain or keep any nuisance thereon, nor shall any such person keep or maintain such premises in a manner causing diminution in the value of the other property in the neighborhood in which such premises are located. b) It shall be unlawful for any person to permit or allow the keeping or the depositing on, or the scattering over the premises of any of the following: 1) Lumber, junk, trash, debris, brush, garbage or animal, vegetable or mineral matter and/or any composition of residue thereof; 2) Abandoned, discarded or unused objects or equipment such as furniture, stoves, refrigerators, freezers or other appliances and including empty and discarded cans or containers, inoperable motor vehicles, car parts, tires and structurally unsound fences. 3) Any sign, notice, pole, post, basketball goal, and any other obstruction placed or painted upon any sidewalk, street or in any public right-of-way within the corporate limits of the City. 4) Excessive growth of weeds or other vegetation that exceeds eight inches (8”) in height or is allowed to remain upon premises so as to become a breeding place for flies, or insects or become offensive so as to emit foul or noxious odors; excluding trees, fruits, vegetables, farm crops, bushes, garden beds, flowers or other ornamental plants. 5) The accumulation of stagnant water permitted to remain thereon. Watering beyond an individual’s property, or in a manner or amount which encroaches on a neighbor’s property resulting in standing or stagnant water is prohibited. 6) Inadequate or unsanitary sewage or plumbing facilities, contrary to public health, safety or welfare. c) In other areas of the City, that portion of any lot or parcel of land within fifty feet (50’) of any open street or road or which is within seventy-five feet (75’) of any building shall be kept completely free and clear of excessive growth of weeds and Nuisance Ordinance.doc -13- vegetation that exceed eight inches (8”) in height. Abandoned and discarded equipment and rubbish and stagnant water are also prohibited. d) It shall be unlawful for any person owning, leasing, occupying or having charge of any premises to permit the overhanging or protrusions of trees, brush and shrubs over streets, sidewalk, alleys and easements. 1) Minimum clearance from street surface shall be fifteen feet (15’). 2) Minimum clearance in easements and alleys shall be fifteen feet (15’) in height from entire width of easement. 3) Minimum clearance over sidewalks shall be eight feet (8’). e) All sidewalks, walkways, stairs, driveways, parking spaces and similar areas shall be kept in a proper state of repair, and maintained free from hazardous conditions. f) All structures and exterior property shall be kept free from rodent harborage and infestation. Where rodents are found, they shall be promptly exterminated by approved processes, which will not be injurious to human health. After extermination, proper precautions shall be taken to eliminate rodent harborage and prevent re-infestation. g) All accessory structures, including detached garages, fences and walls, shall be maintained structurally sound and in good repair. h) No person shall willingly or wantonly damage, mutilate or deface any exterior surface of any structure or building on any private or public property by placing thereon any marking, carving or graffiti. It shall be the responsibility of the owner to restore said surface to an approved state of maintenance and repair. Section 54-23. Swimming Pools, Spas and Hot Tubs. a) Swimming pools, spas and hot tubs shall be maintained in a clean and sanitary condition, and in good repair. b) Private swimming pools, spas and hot tubs containing water more than twentyfour inches (24”) in depth shall be completely surrounded by a fence or barrier at least forty-eight inches (48”) in height above the finished ground level measured on the side of the barrier away from the pool. Gates and doors in such barriers shall be self-closing and self-latching. Where the self-latching device is less than fifty-four inches (54”) above the bottom of the gate, the release mechanism shall be located on the poolside of the gate. Self-closing and self-latching gates shall be maintained such that the gate will positively close and latch when released from an open position of six inches (6”) from the gatepost. No existing pool enclosure shall be removed, replaced or changed in a manner that reduces its effectiveness as a safety barrier. Nuisance Ordinance.doc -14- c) Swimming pools, spas and hot tubs may be drained only and after the water has been effectively dechlorinated (pH is between 6.5-8.5). This can be accomplished by allowing the sun to dissipate the chlorine or by utilization of chemical dechlorination additives. Discharging of water can be accomplished by draining onto a pervious surface that will not flow or pond on neighboring properties. Allow sufficient area to prevent ponding and to prevent nuisance conditions such as mosquito breeding. Section 54-24. Parking Prohibited on Front and Side Yards. a) It shall be unlawful for a person to park or allow to remain parked a motor vehicle, construction vehicle, boat, personal water craft or trailer of any kind (except those defined in subparagraph b) at any time in the side or front yard in any single-family residential zoned district, unless parked on a well maintained parking area extending from the curb, street or alley in a contiguous course and constructed of concrete or asphalt; and b) Subject to subparagraph c), it shall be unlawful for a person to park or allow to remain parked a recreational vehicle (as defined below) for more than 72 hours (i) on a vacant lot or (ii) on any other lot in any location in the portion of such lot between the street and the closest portion of a building structure. on such lot to such street. For purposes of this section 54-23b), “recreational vehicle” means a bus conversion, Class A camper, Class C camper, travel trailer, fifth wheel trailer, or pop-up camper. c) Subparagraph b) shall not apply to any recreational vehicle that, as of January 1, 2009, had been regularly parked on a well maintained concrete or asphalt parking area in a manner that is otherwise prohibited by subparagraph b) if, no later than March 1, 2009, the owner of the recreational vehicle applies to the City Marshal’s Department for a permit hereunder. The application for such permit shall require the applicant to provide information acceptable to the Code Official that establishes that the recreational vehicle and its parking area qualify under the first sentence of this subsection; that confirms that the applicant is the owner of the recreational vehicle; that identifies the recreational vehicle by vehicle identification number; and that clearly describes the location of the recreational vehicle parking area. There shall be no charge for such permit. Any permit issued hereunder shall be clearly displayed in the windshield of the recreational vehicle when the recreational vehicle is parked on the property. Such permit shall expire on the earliest to occur of the following: 1) the recreational vehicle is sold, otherwise disposed of, or destroyed or substantially damaged; 2) the owner of the property (if the owner of the recreational vehicle) sells or otherwise disposes of the property; 3) if the property is leased, the lease terminates; or Nuisance Ordinance.doc -15- 4) the recreational vehicle parking area is not well maintained (as determined by the Code Official) or the parking area is removed by the property owner or tenant. The provisions of this subparagraph shall not exempt the recreational vehicle, its owner, or the property on which it is parked from any law or other regulation other than subparagraph b) above. Section 57-25. Exterior Structure. a) General – The exterior of a structure shall be maintained in good repair, structurally sound and sanitary so as not to pose a threat to public, health, safety or welfare. b) Protective Treatment – All exterior surfaces, including but not limited to, doors, door and window frames, cornices, porches, trim, balconies, decks, and fences shall be maintained in good condition. Exterior wood surfaces, other than decay resistant woods, shall be protected from the elements and decay by painting or other protective covering or treatment. Peeling, flaking and chipped paint shall be eliminated and surfaces repainted. All siding and masonry joints as well as those between the building envelope and the perimeter of windows, doors, and skylights shall be maintained weather resistant and water tight. All metal surfaces subject to rust or corrosion shall be coated to inhibit such rust and corrosion and all surfaces with rust or corrosion shall be stabilized and coated to inhibit future rust and corrosion. Oxidation stains shall be removed from exterior surfaces. Surfaces designed for stabilization by oxidation are exempt from this requirement. c) Premises Identification – Buildings shall have approved address numbers placed in a position to be plainly legible and visible from the street or road fronting the property. These numbers shall contrast with their background. Address numbers shall be Arabic numerals or alphabet letters. Numbers shall be a minimum of four inches (4”) high with a minimum stroke width of one-half inch (1/2”). d) Structural Members – All structural members shall be maintained free from deterioration, and shall be capable of safely supporting the imposed dead and live loads. e) Foundation Walls – All foundation walls shall be maintained plumb and free from open cracks and breaks and shall be kept in such condition so as to prevent the entry of rodents and other pests. f) Exterior Walls – All exterior walls shall be free from holes, breaks, and loose or rotting materials and shall be maintained weatherproof and properly surface coated where required to prevent deterioration. g) Roofs and Drainage – The roof and flashing shall be sound, tight and not have defects that admit rain. Roof drainage shall be adequate to prevent dampness or deterioration in the walls or interior portion of the structure. Roof drains, gutters Nuisance Ordinance.doc -16- and downspouts shall be maintained in good repair and free from obstructions. Roof water shall not be discharged in a manner that creates a public nuisance. h) Decorative Features – All cornices, belt courses, corbels, terra cotta trim, wall facings and similar decorative features shall be maintained in good repair with proper anchorage and in a safe condition. i) Overhang Extensions – All overhang extensions including, but not limited to canopies, marquees, signs, metal awnings, fire escapes, standpipes and exhaust ducts shall be maintained in good repair and be properly anchored so as to be kept in a sound condition. When required, all exposed surfaces of metal or wood shall be protected from the elements and against decay or rust by periodic application of weather-coating materials, such as paint or similar surface treatment. j) Stairways, Decks, Porches and Balconies – Every exterior stairway, deck, porch, and balcony, and all appurtenances attached thereto, shall be maintained structurally sound, in good repair, with proper anchorage and capable of supporting the imposed loads. k) Chimneys and Towers – All chimneys, cooling towers, smoke stacks, and similar appurtenances shall be maintained structurally safe and sound, and in good repair. All exposed surfaces of metal or wood shall be protected from the elements and against decay or rust by periodic application of weather-coating materials, such as paint or similar surface treatment. l) Handrails and Guards – Every handrail and guard shall be firmly fastened and capable of supporting normally imposed loads and shall be maintained in good condition. m) Window, Skylight and Door Frames – Every window, skylight, door and frame shall be kept in sound condition, good repair and weather tight. All glazing (glass) materials shall be maintained free from cracks and holes. Every window, other than a fixed window, shall be easily operable and capable of being held in position by window hardware. n) Insect Screens – Every door, window and other outside opening required for ventilation of habitable rooms, food preparation areas, food service areas or any areas where products to be included or utilized in food for human consumption are processed, manufactured, packaged or stored shall be supplied with approved tightly fitting screens of not less than 16 mesh per inch and every screen door used for insect control shall have a self-closing device in good working condition. o) Doors – Doors providing access to a dwelling unit, rooming unit or housekeeping unit that is rented, leased or let shall be equipped with a deadbolt lock designed to be readily operable from the side from which egress is to be made without the need for keys, special knowledge or effort and shall have a lock throw of not less than one inch (1”). Such deadbolt locks shall be installed according to manufacturer’s specifications and maintained in good working order. For the Nuisance Ordinance.doc -17- purpose of this section, a sliding bolt shall not be considered an acceptable deadbolt lock. p) Windows – Operable windows located in whole or in part within six feet (6’) above ground level or a walking surface below that provide access to a dwelling unit, rooming unit, or housekeeping unit that is rented, leased, or let shall be equipped with a window sash locking device. q) Garage Doors – Shall be capable of being closed reasonably plumb, properly attached and the exterior surface maintained weatherproof as required to prevent deterioration. Section 54-26. Interior Structure. a) Maintenance – The interior of a structure and equipment therein shall be maintained in good repair, structurally sound and in a sanitary condition. Occupants shall keep that part of the structure, which they occupy or control, in a clean and sanitary condition. Every owner of a structure containing a rooming house, housekeeping units, a hotel, a dormitory, two or more dwelling units or two or more nonresidential occupancies, shall maintain, in a clean and sanitary condition, the shared or public areas of the structure and exterior property. b) Structural Members – All structural members shall be maintained structurally sound, and be capable of supporting the imposed loads. c) Interior Surfaces – All interior surfaces, including windows and doors, shall be maintained in good, clean and sanitary condition. Peeling, chipping, flaking or abraded paint shall be repaired, removed or covered. Cracked or loose plaster, decayed wood and other defective surface conditions shall be corrected. d) Stairs and Walking Surfaces – Every stair, ramp, landing, balcony, porch, deck or other walking surface shall be maintained in sound condition and good repair. e) Handrails and Guards – Every handrail and guard shall be firmly fastened and capable of supporting normally imposed loads and shall be maintained in good condition. f) Interior Doors – Every interior door shall fit reasonably well within its frame and shall be capable of being opened and closed by being properly and securely attached to jambs, headers or tracks as intended by the manufacturer of the attachment hardware. Section 54-27. Handrails and Guardrails. Every exterior and interior flight of stairs having more than three (3) risers shall have a handrail on one side of the stair and every open portion of a stair, landing, balcony, porch deck, ramp, or other walking surface, which is more than thirty inches (30”) above the floor or grade below, shall have a guards. Handrails shall not be less than thirty inches (30”) high or more than Nuisance Ordinance.doc -18- forty-two inches (42”) high measured vertically above the nosing of the tread or above the finished floor of the landing or walking surface. Guards shall not be less than thirty inches (30”) high above the floor of the landing, balcony, porch, deck, or ramp or other walking surface. Section 54-28. Rubbish and Garbage. a) Accumulation of Rubbish or Garbage – All exterior property and premises, and the interior of every structure, shall be free from any accumulation of rubbish or garbage. b) Disposal of Rubbish – Every occupant of a structure shall dispose of all rubbish in a clean and sanitary manner by placing such rubbish in approved containers. The owner of every occupied premise shall supply approved covered containers for rubbish, and the owner of the premises shall be responsible for the removal of rubbish. Dumping, pushing, sweeping or blowing of yard waste into City streets or right-of-ways is also prohibited. c) Refrigerators – Storing refrigerators and similar equipment not in operation on the exterior areas of the property is prohibited. The only exceptions shall be if the doors or any self-latching devices are removed and the equipment is going to be discarded during the City fall and spring cleanup or immediately taken to an approved dumpsite. d) Disposal of Garbage – Every occupant of a structure shall dispose of garbage in a clean and sanitary manner by placing such garbage in an approved garbage disposal facility or approved garbage containers. e) Containers – The operator of every establishment producing garbage shall provide, and at all times cause to be utilized, approved leak proof containers provided with close-fitting covers for the storage of such materials until removed from the premises for disposal. f) Time of Disposal – No trash or garbage containers will be placed on the curb line earlier than twenty-four (24) hours prior to the time of the collection or left no later than twenty-four (24) hours after the time of collection. Section 54-29. Texas Litter Abatement Act Adopted. To prevent illegal dumping within the City, and to eliminate and abate the health and safety hazards associated with and attributable to such illegal dumping, the City of Schertz hereby adopts Chapter 365, the Texas Litter Abatement Act, of the Texas Health and Safety Code, as amended from time to time, in its entirety herein, and it shall serve as the City’s ordinance for illegal dumping. Section 54-30. Extermination. a) Infestation – All structures shall be kept free from insect and rodent infestation. All structures in which insects or rodents are found shall be promptly Nuisance Ordinance.doc -19- exterminated by approved processes that will not be injurious to human health. After extermination, proper precautions shall be taken to prevent re-infestation. Where the infestations are caused by defects in the structure, the owner shall be responsible for extermination. b) Owner – The owner of any structure shall be responsible for extermination within the structure prior to renting or leasing the structure. c) Single Occupancy Structures – The occupant of a one-family dwelling or of a single tenant nonresidential structure shall be responsible for extermination on the premises. d) Multiple Occupancy Structures – The owner of a structure containing two or more dwelling units, a multiple occupancy, a rooming house or a nonresidential structure shall be responsible for extermination in the public or shared areas of the structure and exterior property. If infestation is caused by failure of an occupant to prevent such infestation in the area occupied, the occupant shall be responsible for extermination. e) Occupant – The occupant of any structure shall be responsible for the continued rodent and pest-free condition of the structure. Section 54-31. Light, Ventilation and Occupancy Limitations. a) Responsibility – The owner of the structure shall provide and maintain light, ventilation and space conditions in compliance with this Article V. A person shall not occupy as owner-occupant, or permit another person to occupy, any premises that do not comply with the requirements of this Article V. b) Habitable Spaces – Every habitable space shall have at least one window of approved size facing directly to the outdoors or to a court. The minimum total glazed area for every habitable space shall be 8 percent of the floor area of such room. Wherever walls or other portions of the structure face a window of any room and such obstructions are located less than three feet (3’) from the window and extend to a level above that of the ceiling of the room, such window shall not be deemed to face directly to the outdoors nor to to a court and shall not be included as contributing to the required minimum total window area for the room. Exception: Where natural light for rooms or spaces without exterior glazing areas is provided through an adjoining room, the unobstructed opening to the adjoining room shall be at least 8 percent of the floor area of the interior room or space, but not less than 25 square feet. The exterior glazing area shall be based on the total floor area being served. c) Common Halls and Stairways – Every common hall and stairway in residential occupancies, other than in one-and-two family dwellings, shall be lighted at all times with at least a 60 watt standard incandescent light bulb for each 200 square feet of floor area or equivalent illumination, provided that the spacing between lights shall not be greater than thirty feet (30’). In other than residential Nuisance Ordinance.doc -20- occupancies, means of egress, including exterior means of egress, stairways shall be illuminated at all times the building space served by the means of egress is occupied with a minimum of 1 foot-candle at floors, landings and treads. d) Other Spaces – All other spaces shall be provided with natural or artificial light sufficient to permit the maintenance of sanitary conditions, and the safe occupancy of the space and utilization of the appliances, equipment and fixtures. e) Habitable Spaces – Every habitable space shall have at least one openable window. The total openable area of the window in every room shall be equal to at least forty-five percent (45%) of the minimum glazed area required in section 54-29b). Exception: Where rooms and spaces without openings to the outdoors are ventilated through an adjoining room, the unobstructed opening to the adjoining room shall be at least eight percent (8%) of the floor area of the interior room or space, but not less than twenty-five (25) square feet. The ventilation openings to the outdoors shall be based on the total floor area being ventilated. f) Bathrooms and Toilet Rooms – Every bathroom and toilet room shall comply with the ventilation requirements for habitable spaces in section 54-29e), except that a window shall not be required in such spaces equipped with a mechanical ventilation system. Air exhausted by a mechanical ventilation system from a bathroom or toilet room shall discharge to the outdoors and shall not be recalculated. g) Cooking Facilities – Unless approved through the certificate of occupancy, cooking shall not be permitted in rooming unit or dormitory unit, and a cooking facility or appliance shall not be permitted to be present in the rooming unit or dormitory unit. Exceptions: 1) Where specifically approved in writing by the Code Official. 2) Devices such as coffee pots and microwave ovens shall not be considered cooking appliances. h) Process Ventilation – Where injurious, toxic, irritating or noxious fumes, gases, dusts, or mists are generated, a local exhaust ventilation system shall be provided to remove the contaminating agent at the source. Air shall be exhausted to the exterior and not be recalculated to any space. i) Clothes Dryer Exhaust – Clothes dryer exhaust systems shall be independent of all other systems and shall be exhausted in accordance with the manufacturer’s instructions. j) Privacy – Dwelling units, hotel units, housekeeping units, rooming units and dormitory units shall be arranged to provide privacy and be separate from other adjoining spaces. Nuisance Ordinance.doc -21- k) Minimum Room Widths – A habitable room, other than a kitchen, shall be not less than seven feet (7’) in any plan dimension. Kitchens shall have a clear passageway of not less than three feet (3’) between counter fronts and appliances or counter fronts and walls. l) Minimum Ceiling Heights – Habitable spaces, hallways, corridors, laundry areas, bathrooms, toilet rooms and habitable basement areas shall have a clear ceiling height of not less than seven feet (7’). Exceptions: 1) In one-and-two family dwellings, beams and girders spaced not less than four feet (4’) on center and projecting not more than six inches (6”) below the required ceiling height. 2) Basement rooms in one-and-two family dwellings occupied exclusively for laundry, study or recreation purposes, having a ceiling height of not less than six feet eight inches (6’8”) with not less than six feet four inches (6’4”) of clear height under beams, girders, ducts, and similar obstructions. 3) Rooms occupied exclusively for sleeping, study or similar purposes and having a sloped ceiling over all or part of the room, with a clear ceiling height of at least seven feet (7’) over not less than one-third of the required minimum floor area. In calculating the floor area of such rooms, only those portions of the floor area with a clear ceiling height of five feet (5’) or more shall be included. m) Living and Bedroom Area – Every living room shall contain at least 120 square feet and every bedroom shall contain at least seventy (70) square feet. n) Access from Bedrooms – Bedrooms shall not constitute the only means of access to other bedrooms or habitable spaces and shall not serve as the only means of egress from other habitable spaces. o) Water Closet Accessibility – Every bedroom shall have access to at least one water closet and one lavatory without passing through another bedroom. Every bedroom in a dwelling unit shall have access to at least one water closet and lavatory located in the same story as the bedroom. p) Prohibited Occupancy – Kitchens and non-habitable spaces shall not be used for sleeping purposes. q) Efficiency Unit – Nothing in this Article V shall prohibit an efficiency living unit from meeting the following requirements: 1) A unit occupied by not more than two occupants shall have a clear floor area of not less than 220 square feet. A unit occupied by three occupants shall have a clear floor area of not less than 320 square feet. These Nuisance Ordinance.doc -22- required areas shall be exclusive of the areas required by items 2) and 3) below. 2) The unit shall be provided with a kitchen sink, cooking appliances and refrigeration facilities, each having a clear working space of not less than thirty inches (30”) in front. Light and ventilation conforming to this Article V shall be provided. 3) The unit shall be provided with a separate bathroom containing a water closet, lavatory and bathtub or shower. 4) The maximum number of occupants shall be three. r) Food Preparation – All spaces to be occupied for food preparation purposes shall contain suitable space and equipment to store, prepare and serve foods in a sanitary manner. There shall be adequate facilities and service for the sanitary disposal of food wastes and refuses, including facilities for temporary storage. Section 54-32. Plumbing Facilities and Fixture Requirements. a) Responsibility – The owner of the structure shall provide and maintain such plumbing facilities and plumbing fixtures in compliance with these requirements. A person shall not occupy as owner-occupant or permit another person to occupy any structure premises, which does not comply with the requirements of this Article V. b) Dwelling Unit – Every dwelling unit shall contain its own bathtub or shower, lavatory, water closet and kitchen sink which shall be maintained in a sanitary, safe working condition. The lavatory shall be placed in the same room as the water closet or located in close proximity to the door leading directly into the room in which such water closet is located. A kitchen sink shall not be used as a substitute for the required lavatory. c) Rooming Houses -At least one water closet, lavatory and bathtub or shower shall be supplied for each four rooming units. d) Hotels – Where private water closets, lavatories and baths are not provided, one water closet, one lavatory and one bathtub or shower having access from a public hallway shall be provided for each four occupants. e) Employees’ Facilities – A minimum of one water closet, one lavatory and one drinking facility shall be available to employees. Drinking facilities shall be a drinking fountain, water cooler, bottled water cooler or disposable cups next to a sink or water dispenser. Drinking facilities shall not be located in toilet rooms or bathrooms. f) Toilet Room Privacy – Toilet rooms and bathrooms shall provide privacy and shall not constitute the only passageway to a hall or other space, or to the exterior. Nuisance Ordinance.doc -23- A door and interior locking device shall be provided for all common or shared bathrooms and toilet rooms in a multiple dwelling. g) Location – Toilet rooms and bathrooms serving hotel units, rooming units or dormitory units or housekeeping units, shall have access by traversing not more than one flight of stairs and shall have access from a common hall or passageway. h) Location of Employee Toilet Facilities – Toilet facilities shall have access from within the employees’ working area. The required toilet facilities shall be located not more than one story above or below the employees’ working area and the path of travel to such facilities shall not exceed a distance of 500 feet. Employee’s facilities shall either be separate facilities or combined employee and public facilities. Exception: Facilities that are required for employees in storage structures or kiosk, which are located in adjacent structures under the same ownership, lease or control, shall not exceed a travel distance of 500 feet from the employees’ regular working area to the facilities. i) Plumbing Systems and Fixtures – All plumbing fixtures shall be properly installed and maintained in working order, and shall be kept free from obstructions, leaks and defects and be capable of performing the function for which such plumbing fixture are designed. All plumbing fixtures shall be maintained in a safe, sanitary and functional condition. j) Plumbing System Hazards – Where it is found that a plumbing system in a structure constitutes a hazard to the occupants or the structure by reason of inadequate service, inadequate venting, cross connection, backsiphonage, improper installation, deterioration or damage or for similar reasons, the Code Official shall require the defects to be corrected to eliminate the hazard. k) Water System in General – Every sink, lavatory, bathtub or shower, drinking fountain, water closet or other plumbing fixture shall be properly connected to either a public water system or to an approved private water system. All kitchen sinks, lavatories, laundry facilities, bathtubs and showers shall be supplied with hot or tempered and cold running water in accordance with the International Plumbing Code. l) Contamination – The water system shall be maintained free from contamination, and all water inlets from plumbing fixtures shall be located above the flood level rim of the fixture. Shampoo basin faucets, janitor sink faucets and other hose bibs or faucets to which hoses are attached and left in place shall be protected by an approved atmospheric type vacuum breaker or an approved permanently attached hose connection vacuum breaker. m) Supply – The water supply system shall be installed and maintained to provide a supply of water to plumbing fixtures, devices and appurtenances in sufficient volume and to pressures adequate to enable the fixtures to function properly, safely and free from defects and leaks. Nuisance Ordinance.doc -24- n) Water Heating Facilities – Water heating facilities shall be properly installed, maintained and capable of providing an adequate amount of water to be drawn at every required sink, lavatory, bathtub, shower and laundry facility at a temperature of not less than 110ºF. A gas-burning water heater shall not be located in any bathroom, toilet room, bedroom or other occupied room normally kept closed, unless adequate combustion air is provided. An approved combination temperature and pressure relief valve and relief valve discharge pipe shall be properly installed and maintained on water heaters. o) Sanitary Drainage System – All plumbing fixtures shall be properly connected to either a public sewer system or to an approved private sewage disposal system. p) Maintenance – every plumbing stack, vent, waste and sewer line shall function properly and be kept free from obstructions, leaks, and defects. q) Storm Drainage – Drainage of roofs and paved areas, yards and courts and other open areas on the premises shall not be discharged in a manner that creates a public nuisance. Section 54-33. Mechanical and Electrical Requirements. a) Responsibility – The owner of the structure shall provide and maintain mechanical and electrical facilities and equipment in compliance with these requirements. A person shall not occupy as owner-occupant or permit another person to occupy any premises, which do not comply with the requirements of this Article V. b) Residential Occupancies – Dwellings shall be provided with heating facilities capable of maintaining a room temperature of 68ºF in all habitable rooms, bathrooms, and toilet rooms. c) Occupiable Workspaces – Indoor Occupiable workspaces shall be supplied with heat facilities capable of maintaining a room temperature of not less than 65ºF during the time the space is occupied. Exceptions: 1) Processing, storage and operation areas that require cooling or special temperature conditions. 2) Areas in which persons are primarily engaged in vigorous physical activities. d) Mechanical Equipment – All mechanical appliances, fireplaces, solid fuel-burning appliances, cooking appliances and water heating appliances shall be properly installed and maintained in a safe working condition and shall be capable of performing the intended function. e) Service – The size and usage of appliances and equipment shall serve as a basis for determining the need for additional electrical supply in accordance with the Nuisance Ordinance.doc -25- National Electric Code. Dwelling units shall be served by a three-wire, 120/240-volt, single-phase electrical service having a rating of not less than 60 amperes. f) Electrical Hazards – Where it is found that the electrical system in a structure constitutes a hazard to the occupants or the structure by reason of inadequate service, improper fusing, insufficient receptacle and lighting outlets, improper wiring or installation, deterioration or damage, or for similar reasons, the Code Official shall require the defects to be corrected to eliminate the hazard. g) Receptacles – Every habitable space in a dwelling shall contain at least two separate and remote receptacle outlets. Every laundry area shall contain at least one grounded-type receptacle or a receptacle with a ground fault circuit interrupter. Every bathroom shall contain at least one receptacle. Any new bathroom receptacle outlet shall have ground fault circuit interrupter protection. h) Elevators, Escalators and Dumbwaiters – Shall be maintained in compliance with ASME A17.1. The most current certification of inspection shall be on display at all times within the elevator or attached to the escalator or dumbwaiter, or the certificate shall be available for public inspection and tests shall be performed at not less than the periodical intervals listed in ASME A17.1, Appendix N. i) Operation – In buildings equipped with passenger elevators, at least one elevator shall be maintained in operation at all times when the building is occupied. Exception: Buildings equipped with only one elevator shall be permitted to have the elevator temporarily out of service for testing or servicing. ARTICLE VI. JUNK VEHICLES. Section 54-34. Declaration of Junk Vehicles as Public Nuisance. Junk Vehicles or parts thereof, that are located in a place where they are visible from a public place or public right-of-way are detrimental to the safety and welfare of the general public, tend to reduce the value of private property, invite vandalism, create a fire hazard, constitute constitute an attractive nuisance creating a hazard to the health and safety of minors, and are detrimental to the economic welfare of the City by producing urban blight adverse to the maintenance and continuing development of the City, and as such are declared to be a public nuisance. Section 54-35. Junk Vehicle Notice. a) A notice of a Junk Vehicle violation must be personally delivered, or delivered by certified mail with a five (5) day return requested, or delivered by the United States Postal Service with signature confirmation service to: 1) The last known registered owner of the nuisance; 2) Each lien holder of record of the nuisance; and Nuisance Ordinance.doc -26- 3) (i) the owner or occupant of the property on which the nuisance is located; or (ii) if the nuisance is located on a public right-of-way, the owner of the property adjacent to the right-of-way. b) If the post office address of the last known registered owner of the Junk Vehicle is unknown, a notice may be placed on the Junk Vehicle, or if the owner is located, it may be personally delivered. c) If the notice is returned undelivered, action to abate the nuisance shall be continued to a date not earlier than the tenth (10th) day after the date of the return. d) This notice shall include: 1) A description of the vehicle or parts thereof; 2) The vehicle identification number if available; and 3) The license plate number if available. e) The notice must state that: 1) The nuisance must be abated and removed no later than the tenth (10th) day after the date on which the notice was personally delivered or mailed; and 2) Any request for a hearing must be made before the ten (10) day period expires. Section 54-36. 36. Exemptions. The following shall not be abated under this Article VI: f) A vehicle or vehicle parts that are completely enclosed within a building in a lawful manner where are not visible from a right-of-way or other public or private property. g) A vehicle or vehicle parts that are stored or parked in a lawful manner on property that is zoned and approved for automotive vehicle repair, if the vehicle or vehicle parts and the outdoor storage area are maintained in a manner so that they do not constitute a health or safety hazard. h) A vehicle or vehicle parts covered by this Article stored by an owner on the owner’s property, if the motor vehicle or parts and the outdoor storage area are maintained in a manner so that they do not constitute a health hazard and are screened from ordinary public view by means of a fence. Any variations from this section must have the approval of City Council. Nuisance Ordinance.doc -27- Nuisance Ordinance.doc -28-Section 54-36. Antique or Special Interest Vehicles Located in a Residentially Zoned Neighborhood. It shall be unlawful to maintain or store more than one Antique Vehicle or Special Interest Vehicle on a property zoned for residential use outlined within the Unified Development Code or Zoning Maps adopted by the City. Section 54-37. Abatement of Junk Vehicles Declared a Public Nuisance. Junk Vehicles, or parts thereof, are subject to being abated by the Code Official in compliance with the notice requirements established in section 54-33. Section 54-38. Disposal of Junk Vehicle. Junk Vehicles and parts thereof may be disposed of by the Code Official by removal to a scrap yard, a motor vehicle demolisher, or any suitable site to be processed as scrape or salvage in the manner provided under Texas Transportation Code §683.078, as amended. Section 54-39. Right to an Appeal. Any person directly affected by a decision of the Code Official or a notice or order issued under this section shall have the right to appeal to the City Manager or designated representative provided that a written application for appeal is filed within ten (10) days after the day the decision, notice or order was served. Section 54-40. Conflict of Law. The authority to take possession of Junk Vehicles and procedures relating thereto, as adopted by the City under this Article VI, are to be construed in a manner consistent with the general laws of the State of Texas. If the provisions or procedures adopted by the City should conflict with the general laws of the State of Texas at any time, Texas general law shall prevail.” * * * SECTION 2. SEVERABILITY. If any provision of this Ordinance is illegal, invalid, or unenforceable under present or future laws, then and in that event, the remainder of this Ordinance shall not be affected thereby. SECTION 3. REPEALING CLAUSE All ordinances and codes, including Chapter 54 of the Code of Ordinances in effect prior to the effective date of this Ordinance, in conflict with the provisions of this Ordinance are hereby repealed. SECTION 4. EFFECTIVE DATE. This Ordinance shall be in force and effect from and after its final passage and any publication required by law. PASSED AND APPROVED on first reading the 20th day of January, 2009. PASSED AND FINALLY APPROVED on second and final reading the 27th day of January, 2008. Mayor ATTEST: City Secretary [CITY SEAL] Nuisance Ordinance.doc S-1 Agenda No. 4 CITY COUNCIL MEMORANDUM City Council Meeting: January 27, 2009 Department: City Manager Subject: Resolution No. 09-R-04 -Antenna Tower Lease Agreement BACKGROUND The City’s designated representative, Charmain Sanchez, has negotiated a five-year telecommunications antennas lease (with three possible five-year extensions) with AT&T Mobility Texas, LLC at the City’s water tank site at 1057 Live Oak Road. FISCAL IMPACT Annual rental to be paid to the City in the amount of $36,297 in the first year, with annual increases (see Section 2(a) and 4 on Exhibit A to the Tower Lease Agreement), plus a one-time capital recovery payment to the City of $6,000. RECOMMENDATION Approve Resolution No. 09-R-04 ATTACHMENT Resolution No. 09-R-04, with City of Schertz Tower Lease Agreement attached as Exhibit A CCM Resol 09-R-04.doc RESOLUTION NO. 09-R-04 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A CITY OF SCHERTZ TOWER LEASE AGREEMENT WITH AT&T MOBILITY TEXAS, LLC, 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 a City of Schertz Tower Lease Agreement with AT&T Mobility Texas, LLC, relating to telecommunications antennas to be placed on the City’s water tank of 1057 Live Oak Road; 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 a City of Schertz Tower Lease Agreement with AT&T Mobility Texas, LLC 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 27th day of January, 2009. CITY OF SCHERTZ, TEXAS Mayor ATTEST: City Secretary (CITY SEAL) Resol 09-R-04.doc EXHIBIT A CITY OF SCHERTZ TOWER LEASE AGREEMENT See attached Resol 09-R-04.doc A-1 CITY OF SCHERTZ TOWER LEASE AGREEMENT This Tower Lease Agreement (this “Agreement”) is made this 27th day of January, 2009 between the City of Schertz, Texas, having a principal address of 1400 Schertz Parkway, Schertz, Texas 78154, hereinafter called LESSOR, and AT&T Mobility Texas, LLC, having its principal offices at 12555 Cingular Way, Suite 1300, Alpharetta, Georgia 30004, hereinafter called LESSEE. WHEREAS, LESSOR is the owner of certain real property located at 1057 Live Oak Road in the City of Schertz, Texas, Guadalupe County, Texas (the “Tower Site”), on which there is located a tower owned by LESSOR (the “Tower”), and LESSEE desires to lease a portion of such real property containing approximately 476 square feet (the “Leased Parcel”), together with certain positions on the Tower more fully described below and a right-of-way thereto as hereinafter described (the Leased Parcel, such positions on the Tower and such right of way being hereinafter called the “Leased Property”). The Tower Site is more particularly described on Exhibit “A” attached hereto. The Leased Property is more specifically described in, and substantially shown on, Exhibit “B” attached hereto and made a part hereof, as the same may be hereafter supplemented and amended by a survey of the Leased Property obtained by LESSEE. LEASE AGREEMENT 1. Leased Property. LESSOR hereby leases to LESSEE the Leased Property, which includes (without limitation) (i) the Leased Parcel described above, (ii) certain positions on the Tower as described below, and (iii) the grant of a non-exclusive right and easement during the term of this Agreement for ingress and egress, twenty-four (24) hours a day, three hundred sixty-five (365) days per year on foot or by motor vehicle, including trucks, and for the installation and maintenance of utility wires, cables, conduits, and pipes over, under, or along the right of way extending from the nearest public right of way, which is known as 1057 Live Oak Road to the Leased Parcel, as such right-of-way is shown on Exhibit “B” hereto. Such access to the Leased Property shall be granted if the following procedures set forth by LESSOR are adhered to: (a) LESSEE shall provide to LESSOR the combination or key(s) to LESSEE’s lock(s) at the Leased Property, (b) LESSEE shall designate a technician who will be responsible for and shall have access to the Leased Property. The technician shall be subject to a background check and the findings shall be made available to LESSOR, and (c) LESSEE shall contact LESSOR’s Director of Public Works prior to entering the Leased Property at any time. LESSEE’s technician name, arrival time and location of the Leased Property shall be provided to LESSOR’s designated representative at the Control Center. LESSEE shall have the right to install utilities, at LESSEE's expense, and to improve then existing utilities on the Leased Property (including but not limited to the installation of emergency power generators). LESSOR shall cooperate with LESSEE in its effort to obtain utility services along the aforementioned right of way by signing such documents or easements as may be required by said utility companies. In the event any public utility is unable or unwilling to use the aforementioned right of way LESSOR hereby agrees to grant an additional reasonable right-of-way either to LESSEE or to the public utility. Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 1 Notwithstanding the previous paragraph, LESSOR shall have the right, at LESSOR’s sole discretion, to develop, impose and enforce a comprehensive security plan for the LESSOR’s Tower Site that will restrict LESSEE’s access to LESSOR’s Tower Site and to the Leased Property with reasonable notice to LESSEE’s specifically designated and LESSOR’s personnel and/or access only with LESSOR escorts. Such comprehensive security plan shall be provided to LESSEE in writing within forty-eight (48) hours after its effective date. 2. Initial Term and Rental; Capital Recovery Charge. (a) This Agreement shall be for an initial term of five (5) years beginning on the date on which LESSEE commences construction of its hereinafter defined Communications Facility at the Leased Property, or ninety (90) days after execution of this Agreement by Lessor whichever occurs first (the “Commencement Date”), at an annual rental of Thirty Six Thousand Two Hundred Ninety Seven and No/100 Dollars ($36,297.00), adjusted as set forth below, to be paid on the Commencement Date and thereafter annually on or before the anniversary of the Commencement Date during the term hereof, in advance, to LESSOR and made payable to the “City of Schertz, Texas” or to such other person, firm or place as LESSOR may, from time to time, designate in writing at least sixty (60) days in advance of any rental payment due date. Rent shall increase annually on the anniversary of the Commencement Date by three percent (3%) over the Rent payable during the immediately preceding year. Annual Base Rent – 3% annual increases Year 1 $36,297.00 Year 2 $37,385.91 Year 3 $38,507.49 Year 4 $39,662.71 Year 5 $40,852.59 (b) In addition to the annual rental, LESSEE shall pay LESSOR a one-time non-recurring capital recovery charge of Six Thousand and No/100 Dollars ($6,000) to reimburse LESSOR for a portion of the cost of the power bank, coax entry ports, and antenna mounting ring installed by the tank manufacturer at LESSOR’s request for the purpose of accommodating telecommunications equipment. 3. Extension of Term. LESSEE shall have the option to extend the term of this Agreement for three (3) additional consecutive five (5) year periods. Each option for an extended term shall be deemed automatically exercised without notice by LESSEE to LESSOR unless LESSEE gives LESSOR written notice of its intention not to exercise any such extension option at least six (6) months prior to the end of the then current term. If LESSEE gives LESSOR written notice of its intention not to exercise any such option, the term of this Agreement shall expire at the end of the then current five year term. All references herein to the term of this Agreement shall include the term as it is extended from time to time as provided in this Agreement. Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 2 4. Extended Term Rental. The annual rental for the extended terms shall be as follows and shall increase annually on the first day of each calendar year according to the following rent schedule: 1st Extended Term Annual Base Rent -4% annual increases Year 6 $42,486.70 Year 7 $44,186.16 Year 8 $45,953.61 Year 9 $47,791.76 Year 10 $49,703.43 2nd Extended Term Annual Base Rent -5% annual increases Year 11 $52,188.60 Year 12 $54,798.03 Year 13 $57,537.93 Year 14 $60,414.83 Year 15 $63,435.57 3rd Extended Term Annual Base Rent -5% annual increases Year 16 $63,607.34 Year 17 $69,937.71 Year 18 $73,434.60 Year 19 $77,106.33 Year 20 $80,961.64 The annual rental for the extended terms shall be payable in the same manner as the annual rental for the Initial Term. 5. Use. (a) LESSEE shall use the Leased Property for the purpose of constructing, maintaining, and operating a communications facility (as described in Section 5(b) (i), (ii), and (iii) below) and any and all uses incidental thereto, which may also include a a security fence of chain link or comparable construction that may, at the option of LESSEE, be placed Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 3 (b) The Leased Parcel and positions on the Tower shall be used for, and LESSOR agrees that LESSEE is authorized to perform, the construction, installation, maintenance and operation, all at LESSEE’s sole expense, of the following improvements, radio or microwave equipment, antennas and other associated transmission lines and equipment: (i) Wireless antenna systems and associated equipment to be mounted on the Tower and in the 120’ foot range on the Tower, such type of systems, equipment, and range as stipulated in the attached Exhibit “C” of this Agreement. LESSOR additionally grants LESSEE the option for the future location of additional antenna or microwave on the Tower at an annual rental rate as stipulated in Exhibit “D” for each antenna or microwave; (ii) A prefabricated equipment shelter or concrete pad not to exceed twenty eight feet by twelve feet (28’ x 12’) to be located on the Leased Parcel; and (iii) Flexible coaxial transmission line between the Tower and the radio equipment located in the equipment shelter or outdoor equipment cabinet. (c) LESSEE must complete all construction within six (6) months after execution of this Agreement, and LESSEE’s failure to complete all construction in the time prescribed in this section shall be grounds for LESSOR to terminate this Agreement. 6. Governmental Approvals. LESSEE’s ability to use the Leased Property is contingent upon its obtaining and maintaining in effect all certificates, permits, licenses and other approvals that may be required by any governmental authorities. LESSOR shall cooperate reasonably with LESSEE in its effort to obtain and maintain in effect such certificates, permits, licenses, and other approvals. In furtherance thereof, LESSOR agrees to sign such papers as are required to file applications with the appropriate zoning authority and other governmental authorities for the proper zoning of the Leased Property and for other certificates, permits, licenses and approvals as are required for the use of the Leased Property as intended by LESSEE. LESSEE will perform all other acts and bear all expenses associated with any zoning or other procedure necessary to obtain any certificate, permit, license, or approval for the Leased Property deemed necessary by LESSEE. LESSOR agrees not to register any written or verbal opposition to any such procedures. If at any time during the term of this Agreement, LESSEE is unable to use the Leased Property for LESSEE’s Communications Facility due to imposed zoning conditions or requirements, or in the event that any necessary certificate, permit, license, or approval is finally rejected or any previously issued certificate, permit, license, or approval is canceled, expires, lapses, or is otherwise withdrawn or terminated by the applicable governmental authority, or any structural analyses, subsurface boring tests, environmental inspections, radio frequency tests, or other investigations are found to be unsatisfactory so that LESSEE will be unable to use the Leased Property for LESSEE’s Communications Facility, LESSEE shall have the right to terminate this Agreement by written notice to LESSOR. In such case, LESSOR shall retain all rentals paid to LESSOR prior to the termination date. Upon such termination, LESSOR and LESSEE shall have no other further obligations to each other, other than LESSEE’s obligation to remove its property as hereinafter provided. Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 4 7. Interference. (a) LESSOR acknowledges and agrees that it will not permit the installation of any additional antennas or equipment on the Tower or at the Tower Site, or the relocation of any existing antennas or equipment installed on the Tower or at the Tower Site, if such installation or relocation would adversely affect LESSEE’s space on the Tower or LESSEE’s operation, use, or enjoyment of its Communications Facility, taking into account customary and commercially reasonable practices for multi-LESSEE wireless communication sites and towers thereon. (b) LESSOR shall not, and shall not permit any licensee, lessee, sub-lessee or other user of the Tower (collectively, other than LESSEE, “Other Lessees”), to (i) install or change, alter or improve the frequency, power, or type of any communications equipment that interferes with the operation of LESSEE’s Communications Facility or is not authorized by, or violates, applicable Laws (hereinafter defined) or is not made or installed in accordance with good engineering practices, or (ii) implement a configuration which interferes with the operation of LESSEE’s Communications Facility. (c) In the event of any interference occurring at the Tower Site as a result of any actions of LESSOR or any Other Lessees described in Section 7(b) above, LESSOR shall use commercially reasonable efforts to resolve any such interference problems, including, without limitation, using its best efforts to correct and eliminate the interference within fortyeight (48) hours of receipt by LESSOR of notification from LESSEE and, if requested by LESSOR, LESSEE shall perform at its expense an interference study in accordance with industry-standard procedures and practices. If interference is confirmed and the interference cannot be corrected or eliminated within such 48-hour period, LESSOR shall cause any of LESSOR’s or its Other Lessees’ communications equipment that interferes with the operation of LESSEE’s Communications Facility or LESSEE’s authorized frequency spectrum or signal strength, to be immediately powered down or turned off, with the right to turn such interfering equipment back up or on only during off-peak hours specified by LESSEE in order to determine whether such interference continues or has been eliminated; provided, however, that if any interference continues at the time the interfering equipment is powered down, the communications equipment that interferes with the operation of LESSEE’s Communications Facility shall be turned off. If LESSOR or any such Other Lessee cannot correct or eliminate, to the reasonable satisfaction of LESSEE, such interference within twenty (20) days of receipt by LESSOR of written notice from LESSEE, LESSOR shall or shall cause such Other Lessee to cease the operations of the objectionable communications equipment and to stop providing services from the Tower Site until the interference problems are resolved; provided, however, that if LESSOR does not timely cease or cause such Other Lessee to cease such operations, LESSEE may elect to terminate this Agreement by written notice to LESSOR, and LESSOR shall reimburse LESSEE for the pro-rata portion of prepaid rent for the remainder of such year. (d) LESSEE shall not (i) install or change, alter or improve the frequency, power, or type of any communications equipment that interferes with the operation of LESSOR’s or any existing Other Lessee’s existing communications equipment installed at the Tower Site or is not authorized by, or violates, applicable Laws or is not made or installed in accordance Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 5 with good engineering practices, or (ii) implement a configuration which interferes with the operation of LESSOR’s or any existing Other Lessee’s existing communications equipment installed at the Tower Site. (e) In the event of any interference occurring at the Tower Site as a result of any actions of LESSEE described in Section 8(d) above, LESSEE shall be responsible for coordinating and resolving any such interference problems caused by LESSEE, including, without limitation, using its best efforts to correct and eliminate the interference within fortyeight (48) hours of receipt of notification from LESSOR. If the interference cannot be corrected or eliminated within such 48-hour period, LESSEE shall cause any of LESSEE’s communications equipment that interferes with the operation of LESSOR’s or any Other Lessee’s communications equipment or their authorized frequency spectrum or signal strength, to be immediately powered down or turned off, with the right to turn such interfering equipment back up or on only during off-peak hours specified by LESSOR in order to determine whether such interference continues or has been eliminated; provided, however, that if any interference continues at the time the interfering equipment is powered down, the communications equipment that interferes with the operation of LESSOR’s or any Other Lessee’s communications equipment shall be turned off. If LESSEE cannot correct or eliminate, to the satisfaction of LESSOR, such interference within twenty (20) days of receipt of written notice from LESSOR, LESSEE shall cease the operations of the objectionable communications equipment and stop providing services from its Communications Facility until the interference problems are resolved. If LESSEE determines that such interference cannot be corrected or eliminated by commercially reasonable measures, then either LESSOR or LESSEE may elect to terminate this Agreement by written notice to the other. (f) As used herein, “Laws” means all federal, state, county, municipal and other governmental constitutions, statutes, ordinances, codes, regulations, resolutions, rules, requirements and directives and all decisions, judgments, writs, injunctions, orders, decrees or demands of courts, administrative bodies and other authorities (including, without limitation, the Federal Communications Commission) construing any of the foregoing. 8. Maintenance and Repair. (a) LESSOR represents and warrants that its operation of the Tower and the Tower Site (exclusive of LESSEE’s Communications Facility), including the lighting systems, meets and will be maintained in accordance with all applicable laws, rules and regulations, including, without limitation, rules and regulations of the Federal Communications Commission (“FCC”), Federal Aviation Administration (“FAA”) and all applicable local codes and regulations. Specifically, LESSOR has complied with all tower registration, marking, and lighting requirements of the FCC and FAA. LESSOR shall maintain the Tower and Tower Site, including the lighting systems and LESSOR’s antennas, transmission lines, equipment and buildings, in good operating condition. LESSEE is solely responsible for the licensing, operation, and maintenance of LESSEE’s Communication Facility, including, without limitation, compliance with any terms of its FCC license. Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 6 (b) The costs of maintaining the Tower and the Tower Site (exclusive of LESSEE’s Communication Facility) shall be borne by LESSOR or a party other than LESSEE. 9. Taxes. LESSEE shall be responsible for making any necessary returns for and paying any and all personal property taxes separately levied or assessed against LESSOR or LESSEE relating to LESSEE’s interest in the Leased Property or LESSEE’s facilities or the improvements constructed or installed by LESSEE on the Leased Property. Taxes are not to be considered as additional rent, but rather as reimbursement to LESSOR and to be separately billed. LESSEE shall pay for any documented increase in ad valorem real estate taxes levied against the Leased Property which are directly attributable to the improvements constructed by LESSEE on the Leased Property and are not separately levied or assessed by the taxing authorities against LESSEE or the improvements of LESSEE. LESSOR shall pay all other ad valorem real property taxes levied against the Leased Property on or before the date such taxes become delinquent. LESSOR hereby agrees that if the taxes which are levied against LESSOR and LESSEE’s improvements on LESSOR’s property are incorrectly assessed, LESSEE maintains the right to appeal the tax assessment to the appropriate governmental authority, which appeal shall be paid for by LESSEE. 10. Insurance. (a) LESSEE agrees to secure, at its sole cost and expense, prior to commencing any activities under this Agreement, and to maintain, with respect to the Leased Property from the execution date of this Agreement and for the duration of this Agreement and any extensions thereof, a policy or policies of insurance, with companies admitted to do business in the State of Texas, in the following types and amounts to cover the indemnity provision as described in Section 12 below: (i) covering its personal property located on the Leased Property and LESSEE’s improvements to the Leased Property, providing protection against any peril included under insurance industry practices within the classification “fire and extended coverage,” providing protection as deemed desirable by LESSEE with respect to its personal property and to the full insurable value of LESSEE’s improvements; (ii) commercial general liability insurance with minimum limits of $1,000,000 for injury to or death of one or more persons in any one occurrence and $2,000,000 for damage to or destruction of properties in any one occurrence; and (iii) Worker’s Compensation and Employer’s Liability insurance with minimum limits of $500,000 in any one occurrence. (b) LESSEE further agrees that with respect to the above required insurances, the LESSOR shall be named as an additional insured as its interest may appear in regards to the aforementioned general liability insurance policy and shall furnish LESSOR with a certificate of insurance prior to the commencement of this Agreement and thereafter, with certificates evidencing renewals or replacements of said policies of insurance at least thirty (30) days prior to the expiration or cancellation of such policy. Said notices and Certificates of Insurance shall be provided to the LESSOR. (c) LESSOR shall be provided with a Waiver of Subrogation, but only as it pertains to Workers Compensation and Employers Liability. Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 7 The LESSOR is hereby authorized to, but shall have no obligation to, reduce or increase the requirements set forth above in the event it determines that such reduction or increase is commercially reasonable for a similarly-situated lessee in a comparable market. 11. Self-Insurance. LESSEE shall have the right to self-insure with respect to any of the above insurance requirements. LESSEE shall provide LESSOR with evidence satisfactory to LESSOR in its sole discretion of the adequacy of such self-insurance. 12. Indemnification. (a) NOTHING HEREIN CONTAINED SHALL BE CONSTRUED AS LIMITING IN ANY WAY THE EXTENT TO WHICH LESSEE MAY BE HELD RESPONSIBLE FOR PAYMENTS OF DAMAGES TO PERSONS OR PROPERTY RESULTING FROM LESSEE’S ACTIVITIES OR THE ACTIVITIES OF LESSEE’S EMPLOYEES, REPRESENTATIVES, SUB-LESSEES, ASSIGNEES, AGENTS, VOLUNTEERS, OR INVITEES UNDER THIS AGREEMENT. (b) ALL PERSONAL PROPERTY PLACED IN THE LEASED PROPERTY SHALL BE AT THE SOLE RISK OF LESSEE. LESSOR SHALL NOT BE LIABLE AND LESSEE WAIVES ALL CLAIMS FOR ANY DAMAGE EITHER TO THE PERSON OR PROPERTY OF LESSEE OR TO OTHER PERSONS DUE TO THE LEASED PROPERTY OR ANY PART OR APPURTENANCES THEREOF BECOMING OUT OF REPAIR OR ARISING FROM BURSTING OR LEAKING OF WATER, GAS, WASTE PIPES, OR DEFECTIVE WIRING OR EXCESSIVE OR DEFICIENT ELECTRICAL CURRENT; OR FROM ANY ACT OR OMISSION OF LESSEE’S EMPLOYEES, CO-LESSEES, OR OTHER OCCUPANTS OF THE LEASED PROPERTY OR ANY OTHER PERSONS, DUE TO THE HAPPENING OF ANY ACCIDENT IN OR ABOUT SAID PROPERTY UNLESS SUCH DAMAGE IS PROVEN BY FINAL ORDER OF A COURT OF COMPETENT JURISDICTION TO HAVE BEEN CAUSED BY THE LESSOR’S SOLE ACTIVE NEGLIGENCE. LESSEE SHALL SAVE AND HOLD HARMLESS LESSOR FROM ANY CLAIM ARISING OUT OF DAMAGE TO LESSEE’S PROPERTY OR DAMAGE TO LESSEE’S BUSINESS, INCLUDING SUBROGATION CLAIMS BY LESSEE’S INSURERS, UNLESS SUCH DAMAGE IS PROVEN TO HAVE BEEN CAUSED BY THE LESSOR’S SOLE ACTIVE NEGLIGENCE. (c) DURING THE PERIOD OF ANY CONSTRUCTION, REPAIRS, ALTERATION, ADDITIONS, OR RECONSTRUCTION IN, ON, OR ABOUT THE LEASED PROPERTY BY LESSEE, ITS CONTRACTORS, OR SUBCONTRACTORS, LESSEE AGREES, AT LESSEE’S SOLE COST AND EXPENSE, TO OBTAIN AND MAINTAIN BUILDER’S RISK INSURANCE AND WORKERS’ COMPENSATION INSURANCE ADEQUATE TO FULLY PROTECT LESSOR AS WELL AS LESSEE, FROM AND AGAINST ANY AND ALL LIABILITY FOR DEATH OF OR INJURY TO PERSONS OR DAMAGE TO PROPERTY CAUSED IN OR ABOUT OR BY REASON OF SUCH CONSTRUCTION REFERENCED HEREIN AND IN SECTION 5, UNLESS CAUSED BY THE LESSOR’S SOLE ACTIVE NEGLIGENCE. Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 8 (d) LESSEE COVENANTS AND AGREES TO INDEMNIFY AND SAVE HARMLESS THE LESSOR, ITS AGENTS, SERVANTS, OFFICERS, EMPLOYEES, AND CONTRACTORS, THEIR SUCCESSORS AND ASSIGNS, INDIVIDUALLY OR COLLECTIVELY, FROM AND AGAINST ALL LIABILITY FOR ANY AND ALL FINES, CLAIMS, LIENS, DAMAGES, EXPENSES, FEES, PENALTIES, PROCEEDINGS, SUITS, DEMANDS, ACTIONS OR CAUSES OF ACTION OF ANY KIND AND NATURE INCLUDING, BUT NOT LIMITED TO, PERSONAL INJURY OR DEATH AND PROPERTY DAMAGE, IN ANY WAY ARISING OUT OF OR RESULTING FROM ANY PERFORMANCE OR NON-PERFORMANCE OF ANY ACTIVITY OR OPERATION OF LESSEE IN, ON OR ABOUT THE LEASED PROPERTY OR IN CONNECTION WITH LESSEE’S USE OF THE LEASED PROPERTY, OR FROM ANY CONDITION OF SAID LEASED PROPERTY CAUSED BY LESSEE, ITS EMPLOYEES, AGENTS, REPRESENTATIVES, CONTRACTORS, SUBCONTRACTORS, EMPLOYEES OF ITS CONTRACTORS OR ITS SUBCONTRACTORS ASSIGNEES, SUBLESSEES, OR BY REASON OF ANY BREACH, VIOLATION OF NON-PERFORMANCE OF ANY COVENANT OR CONDITION HEREOF ON THE PART OF LESSEE, ITS EMPLOYEES, AGENTS, REPRESENTATIVES, CONTRACTORS, SUBCONTRACTORS, EMPLOYEES OF ITS CONTRACTORS OR SUBCONTRACTORS, ASSIGNEES, SUBLESSEES UNDER THIS AGREEMENT, UNLESS CAUSED BY THE LESSOR’S SOLE ACTIVE NEGLIGENCE; AND SUCH INDEMNITY SHALL APPLY TO THE EXTENT OF LESSEE’S CONTRIBUTORY NEGLIGENCE OR FAULT, EVEN WHERE ANY SUCH FINES, CLAIMS, LIENS, DAMAGES, EXPENSES, FEES, PENALTIES, PROCEEDINGS, SUITS, DEMANDS, ACTIONS, CAUSES OF ACTIONS, OR LIABILITY ARISE IN ANY PART FROM THE NEGLIGENCE OF LESSOR, AS LESSOR, UNDER THIS AGREEMENT. IT IS THE EXPRESS INTENTION OF LESSOR AND LESSEE THAT THE INDEMNITY PROVIDED FOR IN THIS SECTION IS INDEMNITY BY LESSEE TO INDEMNIFY AND PROTECT LESSOR FROM LESSEE’S NEGLIGENCE OR FAULT, CONTINGENT OR OTHERWISE, RELATED TO OR ARISING OUT OF LESSEE’S ACTIVITIES UNDER THIS AGREEMENT; AND LESSEE SHALL SEE TO THE INVESTIGATION OF AND DEFENSE OF ANY SUCH CLAIM OR DEMAND, INCLUDING, BUT NOT LIMITED TO, THE PAYMENT OF ATTORNEY’S FEES AND COURT COSTS. FURTHER, LESSEE HEREBY INDEMNIFIES AND AGREES TO HOLD LESSOR HARMLESS FROM ANY CLAIM AGAINST LESSOR BY REASON OF THE INSTALLATION, OPERATION, MAINTENANCE, OR REMOVAL OF LESSEE’S EQUIPMENT AS SET FORTH UNDER THE TERMS OF THIS AGREEMENT, UNLESS CAUSED BY LESSOR’S SOLE ACTIVE NEGLIGENCE. (e) AS USED HEREIN, LESSOR SHALL INCLUDE ITS EMPLOYEES, AGENTS, SERVANTS, OFFICIALS OR CONTRACTORS. 13. Sale of Leased Property. If LESSOR, at any time during the initial or any extended term of this Agreement, decides to sell, subdivide or rezone any of the Leased Property, the Tower or any part of LESSOR’s Surrounding Property utilized by LESSEE pursuant to this Agreement, to a purchaser other than LESSEE, LESSOR shall promptly notify LESSEE in writing, and such sale, subdivision or rezoning shall be subject to this Agreement Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 9 and LESSEE’s rights hereunder. LESSOR shall not initiate or consent to any change in the zoning of the Leased Property or LESSOR’s Surrounding Property utilized by LESSEE pursuant to this Agreement or impose or consent to any other restriction that would prevent or limit LESSEE from using the Leased Property as set forth in this Agreement. LESSOR agrees not to sell, lease or use any areas of LESSOR’s Surrounding Property for the installation, operation or maintenance of other wireless communications facilities if such installation, operation or maintenance will interfere with LESSEE’s facilities or communications equipment as determined by radio propagation tests performed by LESSEE in its reasonable discretion. LESSEE and LESSOR (or LESSOR’s prospective purchaser) shall share the cost of such testing equally. If the radio frequency propagation tests demonstrate levels of interference unacceptable, in accordance with accepted industry standards, LESSOR shall be prohibited from selling, leasing or using any areas of LESSOR’s Surrounding Property for purposes of any installation, operation or maintenance of any other wireless communications facility or equipment. LESSOR shall not be prohibited from the selling, leasing or use of any of LESSOR’s Surrounding Property for nonwireless communication use. The provisions of this Section 13 shall in no way limit or impair the obligations of LESSOR under Section 7 above. 14. Assignment; Sublease. (a) LESSEE shall not transfer or assign this Agreement or LESSEE’S interest in or to the Leased Property or any part thereof without having first obtained the prior written consent of LESSOR, provided, however, that the foregoing shall not apply to and shall not prevent the assignment of this Agreement to an affiliate of LESSEE or to any entity with which LESSEE may merge or consolidate or which may succeed to a controlling interest in the business of LESSEE. LESSEE shall provide LESSOR with prior written notice of any such proposed assignment and shall provide LESSOR with evidence satisfactory to LESSOR that such assignment satisfies the requirements of the preceding sentence. Notwithstanding the foregoing and for so long as any pledge or collateral assignment of LESSEE'S interest in the Agreement shall be by instrument substantially in such form as shall have previously been approved by LESSOR, the consent of LESSOR to such pledge or collateral assignment may be given by LESSOR. (b) LESSEE shall not sublet the Leased Property herein leased or any part thereof without having first obtained the written consent of LESSOR. In the event LESSEE requests permission to sublease, the request shall be submitted to LESSOR at least thirty (30) days prior to the proposed effective date of the sublease requested and shall be accompanied by a copy of the proposed sublease agreements and of all agreements collateral thereto. The identity of the sublessee, the area or space to be subleased, the rental to be charged, the type of business to be conducted, reasonable financial history, and all other other information requested by LESSOR shall be specified. LESSEE shall not sublease an aggregate total of more than 50% of the Leased Property. If such limit is exceeded, LESSOR shall have the right, upon thirty (30) days written notice, to recapture the space described in the sublease, and terminate the entire Agreement on the expiration of such thirty (30) day period. (c) In the event of a sublease where the rental value established in the sublease exceeds the rental value established in the Agreement, LESSEE shall pay to LESSOR Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 10 as additional rent the excess of the rental received from the sublessee over that specified to be paid by LESSEE herein, provided that LESSEE may charge a reasonable fee for administrative costs in addition to the sublease rental not to exceed 15% of the specified sublease rental. Such 15% shall not be considered as excess rental. Nothing herein shall prevent LESSEE from charging a reasonable fee to others for the use of capital equipment and facilities on the subleased premises and charging for use of utilities and other services being paid for by LESSEE. The provisions of this paragraph will apply if the rental received for the proportionate area of the Leased Property by LESSEE exceeds the rental paid to LESSOR for said proportionate area of the Leased Property. (d) Each transfer, assignment or subletting to which there has been consent by LESSOR shall be by instrument in writing, in form satisfactory to LESSOR, and shall be executed by the transferee, assignee, or sublessee who shall agree in writing for the benefit of LESSOR to be bound by and to perform the terms, covenants, and conditions of this Agreement. Three (3) executed copies of such written instrument shall be delivered to LESSOR. Failure to first obtain in writing LESSOR’s consent or failure to comply with the provisions herein contained shall operate to prevent any such transfer, assignment, or subletting from becoming effective. (e) Should there be an assignment of this Agreement pursuant to the terms of Section 14 (a) of this Agreement, and to the extent that such assignee assumes LESSEE's obligations hereunder, LESSEE shall by virtue of such assignment be released from such obligation. Should the subletting of the Leased Property be approved by LESSOR, however, LESSEE agrees and acknowledges that LESSEE shall remain fully and primarily liable under this Agreement, notwithstanding any such sublease and that any such sublessee shall be required to attorn to LESSOR under the terms of this Agreement. (f) The receipt by LESSOR of rent from an assignee, sublessee, or occupant of the Leased Property shall not be deemed a waiver of the covenant in this Agreement against assignment and subletting or an acceptance of the assignee, sublessee, or occupant as a LESSEE or a release of LESSEE from further observance or performance by LESSEE of the covenants contained in this Agreement. No provision of this Agreement shall be deemed to have been waived by LESSOR unless such waiver is in writing, signed by LESSOR. 15. Casualty. (a) If LESSEE’s Communications Facility or improvements are damaged or destroyed, in whole or in part, by fire or other casualty, LESSEE shall not be required to repair or replace the Communications Facility or any of LESSEE’s improvements made by LESSEE, and LESSEE may terminate this Agreement by giving written notice to LESSOR. Termination shall be effective immediately after such notice is given. Upon such termination, this Agreement shall become null and void, and LESSOR and LESSEE shall have no other further obligations to each other hereunder, other than LESSEE’s obligation to remove its property as hereinafter provided. (b) In the event the Tower (excluding any damage the repair of which is Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 11 required to be completed by LESSEE’s of the Tower) is damaged to the extent of twenty-five percent (25%) or more of the cost of replacement thereof (whether or not the Leased Property is damaged) and such damage (i) occurs during the last two years of the Term (taking into account any extensions of the Term by LESSEE in accordance with the terms of this Agreement), or (ii) in the reasonable judgment of LESSOR, cannot reasonably be repaired or restored within a period of one hundred and eighty (180) days following commencement of such repair or restoration using standard working methods and procedures, or (iii) is not, or would not have been, covered by a standard fire and extended coverage insurance policy, or (iv) is compensable with insurance proceeds all or a significant portion of which is required to be paid to LESSOR’s mortgagee in reduction of the indebtedness secured by any Mortgage encumbering the Tower or Tower Site, LESSOR shall have the right and option, in its sole discretion, to terminate this this Agreement upon the delivery of notice thereof to LESSEE within ninety (90) days after the occurrence of such damage or destruction. If such notice is given, LESSOR agrees to use its reasonable efforts to permit LESSEE to place temporary transmission facilities at an alternative location acceptable to LESSEE until such time as LESSEE is able to secure a replacement transmission location for the Leased Property. If LESSOR elects to rebuild the Tower, LESSOR agrees to use its reasonable efforts to permit LESSEE to place temporary transmission facilities at an alternative location acceptable to LESSEE until such time as the rebuilding is completed. In any case, LESSEE agrees that it will use its reasonable efforts to avoid interfering with LESSOR’s efforts to rebuild the Tower. If, for any reason, LESSOR does not complete the rebuilding within two hundred and seventy (270) days after the occurrence of such damage or destruction, LESSEE shall have the right and option, in its sole discretion, to terminate this Agreement upon the delivery of written notice thereof to LESSOR. 16. Hazardous Substances. LESSOR warrants, represents and agrees that (i) to the best of LESSOR’s knowledge, no third party has used, generated, stored, or disposed of any Hazardous Materials in, on or under the Leased Property, and (ii) LESSOR will use commercially reasonable efforts not to permit any third party to use, generate, store, or dispose of any Hazardous Materials in, on, or under the Tower Site in violation of any law or regulation. “Hazardous Materials” shall mean petroleum or any petroleum product, asbestos, and any other substance, chemical, or waste that is identified as hazardous, toxic, or dangerous in any applicable Federal, State, or Local law, rule, regulation, order, or ordinance. LESSEE acknowledges and agrees that LESSOR and LESSOR’s predecessors have used and maintained, and LESSOR shall continue to use and maintain on LESSOR’s Property, the chemicals and substances, specifically Chlorine, a known Hazardous Material, that LESSOR uses to treat water and maintain its water production, treatment, and storage facilities thereon. LESSEE agrees that it will not use, generate, store, or dispose of any Hazardous Materials in, on, or under the Leased Property in violation of any law or regulation. LESSEE SHALL INDEMNIFY, DEFEND AND HOLD LESSOR HARMLESS FROM ANY AND ALL CLAIMS, DAMAGES, FINES, JUDGMENTS, PENALTIES, COSTS, LIABILITIES OR LOSSES (INCLUDING, WITHOUT LIMITATION, ANY AND ALL SUMS PAID FOR SETTLEMENT OF CLAIMS, ATTORNEY’S FEES AND CONSULTANT’S AND EXPERT’S FEES) RESULTING FROM THE PRESENCE OR RELEASE OF ANY HAZARDOUS MATERIALS ON THE LEASED PROPERTY IF CAUSED BY LESSEE OR PERSONS ACTING UNDER LESSEE. TO THE EXTENT PERMITTED BY LAW, LESSOR SHALL INDEMNIFY AND DEFEND ANY BREACH OF LESSOR’S REPRESENTATIONS AND WARRANTY SET FORTH ABOVE, AND HOLD LESSEE HARMLESS FROM ANY AND ALL CLAIMS, DAMAGES, FINES, JUDGMENTS, PENALTIES, COSTS, Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 12 LIABILITIES OR LOSSES (INCLUDING, WITHOUT LIMITATION, ANY AND ALL SUMS PAID FOR SETTLEMENT OF CLAIMS, ATTORNEY’S FEES AND CONSULTANT’S AND EXPERT’S FEES) RESULTING FROM (I) THE PRESENCE OR RELEASE OF ANY HAZARDOUS MATERIALS ON THE LEASED PROPERTY OR LESSOR’S SURROUNDING PROPERTY UNLESS CAUSED BY LESSEE OR PERSONS ACTING UNDER LESSEE, OR (II) ANY BREACH OF ANY REPRESENTATION OR WARRANTY OF LESSOR CONTAINED IN THIS SECTION 16. This Agreement shall, in addition to any other right or remedy available hereunder or at law or equity, at the option of LESSEE, terminate and be of no further force or effect if Hazardous Materials are discovered to exist on the Leased Property or LESSOR’s Surrounding Property through no fault of LESSEE after LESSEE takes possession of the Leased Property, and LESSEE shall be entitled to a refund of all the consideration paid in advance to LESSOR under this Agreement. 17. Default and Opportunity to Cure. (a) If LESSEE should fail to pay any rental or other amounts payable under this Agreement when due, prior to exercising any rights or remedies against LESSEE on account thereof, LESSOR shall first provide LESSEE with written notice specifying the nature of the failure and provide LESSEE with a five (5) day period following LESSEE’s receipt of such notice to cure such failure. If LESSEE should fail to perform any other of the covenants, terms, or conditions of this Agreement, prior to exercising any rights or remedies against LESSEE on account thereof, LESSOR shall first provide LESSEE with written notice specifying the nature of the failure and provide LESSEE with a thirty (30) day period following LESSEE’s receipt of such notice to cure such failure. If the failure is not a failure to pay rental or any other sum of money hereunder and is not capable of being cured within such thirty (30) day period, LESSEE shall be afforded a reasonable period of time following LESSEE’s receipt of notice to cure the failure, provided that LESSEE promptly commences curing the failure after receipt of the notice and prosecutes the cure to completion with due diligence. (b) In the event that LESSEE is in default of its obligations described in the first sentence in paragraph (a) above and such default continues for five (5) days after receipt of written notice from LESSOR, LESSOR may, at its option and in any addition to any other right or remedy available hereunder, or at law or equity, terminate this Agreement pursuant to Section 20(c)(i). (c) In the event that LESSEE is in default of its obligations described in the second sentence in paragraph (a) above and such default continues for thirty (30) days after receipt of written notice from LESSOR, LESSOR may, at its option and in any addition to any other right or remedy available hereunder, or at law or equity, incur reasonable expenses necessary to perform the obligation of LESSEE specified in such notice, and any amount paid by LESSOR in so doing shall be deemed paid for the account of LESSEE, and LESSEE hereby agrees to reimburse LESSOR therefore on request by LESSOR. (d) In the event that LESSOR is in default of its obligations hereunder and such default continues for thirty (30) days after receipt of written notice from LESSEE, LESSEE may, at its option and in any addition to any other right or remedy available hereunder, or at law or equity, incur reasonable expenses necessary to perform the obligation of LESSOR specified in Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 13 such notice, and any amount paid by LESSEE in so doing shall be deemed paid for the account of LESSOR, and LESSOR hereby agrees to reimburse LESSEE therefore, and LESSEE may set off from rent or other amounts due hereunder any reasonable amount expended by LESSEE as a result of such default. 18. Waiver of Incidental and Consequential Damages. Except as set forth in Section 12, in no event will the parties to this Agreement be liable to each other, or to any third party claiming through or on behalf of LESSOR or LESSEE, for any indirect, special, incidental or consequential damages, including without limitation, lost profits or revenues arising from breach of this Agreement or otherwise. 19. Notices. Except as otherwise provided herein, any notices or demands which are required by law or provided under the terms of this Agreement shall be given or made by LESSOR or LESSEE in writing and shall be given by hand delivery, or sent via certified or registered mail, with postage prepaid and return receipt requested, or by a national overnight receipted delivery service which provides signed acknowledgments of receipt (including Federal Express, UPS, Emery, Purolator, DHL, Airborne and other similar couriers delivery services), and addressed to the respective parties set forth below. Such notices shall be deemed to have been given when delivered. Every notice, demand, or request hereunder shall be sent to the addresses listed below: If to LESSOR: City of Schertz, Texas 1400 Schertz Parkway Schertz, TX 78154 Attention: City Manager With a contemporaneous copy to: Michael Spain Fulbright & Jaworski L.L.P. 300 Convent Street, Suite 2200 San Antonio, TX 78205 If to LESSEE: AT&T Mobility Texas, LLC Attention: Network Real Estate Administration Re: Cell Site #SX5701; Cell Site Name: Elm Rock Fixed Asset No. 10130552 12555 Cingular Way, Suite 1300 Alpharetta, Georgia 30004 Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 14 With a required copy of the notice sent to either of the addresses above to the AT&T Legal at: AT&T Mobility Texas, LLC Attention: AT&T Legal Department Re: Cell Site #SX5701; Cell Site Name: Elm Rock Fixed Asset No: 10130552 15 East Midland Avenue Paramus, NJ 07652 Rejection or refusal to accept delivery of any notice, or the inability to deliver any notice because of a changed address of which no notice was given, shall be deemed to be receipt of any such notice. 20. Termination. (a) Notwithstanding any other termination rights available to LESSEE under this Agreement, LESSEE, at its sole and absolute discretion, shall have the right to terminate this Agreement with ninety (90) days prior written notice to LESSOR and a lump sum payment to LESSOR in an amount equal to twelve (12) months’ rent at the rental rate(s) applicable to the twelve (12) months after the effective date of such termination. At termination, LESSEE shall execute upon the request of LESSOR a written cancellation of this Agreement vacating the Leased Property in recordable form and LESSEE shall have no other further obligations, other than LESSEE’s obligation to remove its property as hereinafter provided. (b) In addition to and in not limitation of any other provisions of this Agreement, LESSEE shall have the right, exercisable by at least ten (10) days prior written notice thereof to LESSOR, to terminate this Agreement upon occurrence of one or more of the following events: (i) if LESSOR shall violate or breach, or shall fail fully and completely to observe, keep, satisfy, perform and comply with, any agreement, term, representation, warranty, covenant, and shall not cure such violation, breach or failure within thirty (30) days after LESSEE gives LESSOR written notice thereof, or, if such failure shall be incapable of cure within thirty (30) days, if LESSOR shall not commence to cure such failure within such thirty (30) day period and continuously prosecute the performance of the same to completion with due diligence; or (ii) the commencement by LESSOR of a voluntary case under the federal bankruptcy laws, as now constituted or hereafter amended, or the consent by LESSOR to or acquiescence in the appointment of a receiver, liquidator, assignee, trustee, custodian, (or other similar official) of any substantial part of the property of LESSOR, or to the taking of possession of any such property by any such functionary or the making of an any assignment for the benefit of creditors by LESSOR; or (iii) as otherwise provided in this Agreement. Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 15 (c) In addition to and in not limitation of any other provisions of this Agreement, LESSOR shall have the right, exercisable by at least ten (10) days prior written notice thereof to LESSEE, to terminate this Agreement upon occurrence of one or more of the following events: (i) if LESSEE shall fail to pay any rental or other amounts payable hereunder within five (5) days after LESSOR gives LESSEE written notice thereof; or (ii) if LESSEE shall violate or breach, or shall fail fully and completely to observe, keep, satisfy, perform and comply with, any other agreement, term, representation, warranty, covenant contained in this Agreement, and shall not cure such violation, breach, or failure within thirty (30) days after LESSOR gives LESSEE written notice thereof, or, if such failure shall be incapable of cure within thirty (30) days, if LESSEE shall not commence to cure such failure within such thirty (30) day period and continuously prosecute the performance of the same to completion with due diligence; or ((iii) the commencement by LESSEE of a voluntary case under the federal bankruptcy laws, as now constituted or hereafter amended, or the consent by LESSEE to or acquiescence in the appointment of a receiver, liquidator, assignee, trustee, custodian, (or other similar official) of any substantial part of the property of LESSEE, or to the taking of possession of any such property by any such functionary or the making of an any assignment for the benefit of creditors by LESSEE; or (iv) as otherwise provided in this Agreement. 21. Removal of Improvements. Title to all improvements constructed or installed by LESSEE on the Leased Property shall remain with LESSEE, and all improvements constructed or installed by LESSEE shall at all times be and remain the property of LESSEE, regardless of whether such improvements are attached or affixed to the Leased Property. Furthermore, all improvements constructed or installed by LESSEE shall be removable and shall be removed by LESSEE at the expiration or earlier termination of this Agreement, provided LESSEE shall not at such time be in default under any covenant or agreement contained in this Agreement. LESSEE, upon termination of this Agreement, shall, within ninety (90) days, remove all improvements, fixtures and personal property constructed or installed on the Leased Property by LESSEE and restore the Leased Property to substantially the same condition as when received, reasonable wear and tear and damage by insured casualty excepted. LESSEE shall not be required to remove any foundations, driveways, or underground cables or wires. If such removal causes LESSEE to remain on the Leased Property after termination of this Agreement, LESSEE shall pay rent at the then existing monthly rate, or on the existing monthly pro rata basis if based upon a longer payment term, until such time as the removal is completed. 22. Entire Agreement/Amendment. This Agreement cannot be modified except by a written modification executed by LESSOR and LESSEE in the same manner as this Agreement is executed. The headings, captions and numbers in this Agreement are solely for convenience and shall not be considered in construing or interpreting any provision in this Agreement. Wherever appropriate in this Agreement, personal pronouns shall be deemed to Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 16 include other genders and the singular to include the plural, if applicable. This Agreement contains all agreements, promises and understandings between LESSOR and LESSEE, and no verbal or oral agreements, promises, statements, assertions or representations by LESSOR or LESSEE or any employees, agents, contractors or other representatives of either, shall be binding upon LESSOR or LESSEE. 23. Contractual Limitations Period. No action or proceeding may be maintained or brought against any party to this Agreement unless such action or proceeding is commenced within twenty-four (24) months after the cause of action accrued unless such cause of action could not have reasonably been discovered by such party. 24. RF Emissions. (a) LESSEE shall have the right to place electromagnetic energy warning signs on or about the Leased Property and proximate to its Communications Facility and equipment and to restrict access to its Communications Facility so long as LESSOR’s and Other Lessees’ designated representatives are not prohibited from access to the Tower Site and the Surrounding Property and such warning signs are in compliance with applicable law. (b) LESSOR shall and shall require each Other Lessee to operate their respective equipment, if applicable, in compliance with all laws and regulations governing radio frequency energy emissions (the “RF Emissions Regulations”). LESSOR agrees that it shall, and shall require all potential or actual Other Lessee’s that locate and operate transmitting equipment at the Tower Site to agree that if the Tower Site fails to meet the RF Emissions Regulations, or would fail by the addition or modification of the equipment at the Tower Site, to comply with the RF Emissions Regulations at any time during the term of this Agreement, then the existing or prospective Other Lessee at the Tower Site causing or who would cause such failure, shall promptly take commercially reasonable steps to bring the Tower Site into compliance, including preparation and filing of any required environmental assessments and modifications of its equipment. 25. Security Interest. It is the express intent of the parties to this Agreement that LESSOR has no lien or security interest whatsoever in any personal property of LESSEE, and, to the extent that any applicable statute, code, or law grants LESSOR any lien or security interest, LESSOR hereby expressly waives any rights thereto. 26. Governing Law. This Agreement shall be construed under and in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Guadalupe County, Texas. 27. Attorney’s Fees. Other than with respect to alleged non-payment of rent by LESSEE, LESSOR and LESSEE agree that they shall first submit any and all unsettled claims, counterclaims, disputes and other matters in question between them arising out of or relating to this Agreement or the breach thereof (“disputes”) to an alternate dispute resolution process before filing a suit concerning this Agreement. In any proceeding which either party may prosecute to enforce its rights hereunder, the unsuccessful party shall pay all costs incurred by Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 17 the prevailing party, including reasonable attorneys’ fees. 28. Surveys. LESSOR hereby grants to LESSEE the right to survey the Leased Property and LESSOR’s Surrounding Property, and the legal description of the Leased Property on the survey obtained by LESSEE shall then be added to and incorporated into Exhibit “B” of this Agreement, and shall control in the event of discrepancies between it and any preliminary description of the Leased Property shown on Exhibit “B”. 29. Confidentiality. To the extent permitted by law, LESSOR agrees not to discuss publicly, advertise, nor publish in any newspaper, journal, periodical, magazine or other form of mass media, the terms or conditions of this Agreement. Doing so shall constitute a default under this Agreement. It is agreed that the parties to this Agreement will not discuss the terms and conditions contained herein with any unrelated third parties, other than the real estate brokers or agents involved in this transaction and the parties’ respective accountants and legal counsel (who shall be bound by the same confidentiality requirements). 30. Binding Effect. The covenants and agreements herein contained shall inure to the benefit of and be binding upon the parties hereto, their respective legal representatives, successors, and assigns, and if there shall be more than one party designated as the LESSEE in this Agreement, they shall each be bound jointly and severally hereunder. 31. Counterparts. This Agreement may be executed in several counterparts, each of which shall constitute an original and all of which shall constitute the same agreement. 32. Authority. The signer of this Agreement for the LESSEE hereby represents and warrants that he or she has full authority to execute this Agreement on behalf of the LESSEE. [SIGNATURES ON FOLLOWING PAGE] Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 18 IN WITNESS WHEREOF, the parties have executed this Tower Lease Agreement as of the day and year first above written. LESSOR: CITY OF SCHERTZ, TEXAS By: Print Name: Don Taylor Its: City Manager Date January 27, 2009 LESSEE: AT&T MOBILITY TEXAS, LLC a Delaware limited liability company, By: AT&T Mobility Corporation, its manager By: Printed Name: Its: Date: January 27, 2009 Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 19 Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 20 EXHIBIT “A” Description of Tower Site 3.00 acres, more or less, out of and a part of the T. Herrara No. 68, A-153, Guadalupe County, Texas, being more particularly described in that certain General Warranty Deed dated February 24, 2006, from Elmer L. Woodruff and spouse, Patricia Woodruff to the City of Schertz, recorded in Volume 2279, Page 951 of the Official Public Records of Guadalupe County, Texas. EXHIBIT “B” Description of Leased Property An approximately twenty eight feet (28’) x seventeen feet (17’) portion out of a tract of land, together with easements for ingress, egress and utilities legally described as follows and depicted on the site sketch attached hereto: Notes: 1. This Exhibit may be supplemented by a land survey of the Leased Property once it is received by Lessee. 2. Width of access road shall be the width required by the applicable governmental authorities and utility providers, including police and fire departments. Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 21 EXHIBIT “C” Description of LESSEE’s Communications Equipment Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 22 Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 23 Tower Lease Agmt (AT&T).doc Lessor Site Name: Live Oak WT 2 Lessee Site Name: Elm Rock Lessee Site ID: SX5701 24 EXHIBIT “D” Rental Rates for Additional Communications Equipment The following rates shall apply for additional equipment installation that exceeds the Standard Configuration shown below and as identified on Exhibit “C”: Standard Configuration -$1,500.00 per month 6 antennas & 6 feedlines 250 sq. ft. lease area Monthly Fees for Additional Equipment Additional feedline(s) $75.00 each feedline Additional antennas $175.00 each antenna (max. two (2) lines per antenna) Tower mount amplifiers $50.00 each TMA GPS antenna $175.00 each Microwave Dish 2' dia. $325.00 each Microwave Dish 3'-4' dia. $450.00 each Microwave Dish 6'-8' dia. $625.00 each Monthly Fee Additional Ground Space $2.25 per square foot Agenda No. 5 CITY COUNCIL MEMORANDUM City Council Meeting: January 27, 2009 Department: Engineering Subject: Ordinance No. 09-D-04 – Temporary construction speed zone on FM 3009 North and Southbound Directions Between Mile Point 4.679 and Mile Point 4.527 and Between Mile Point 23.663 and Mile Point 23.012. First Reading BACKGROUND As you recall in May 2008 the City received a request from TxDot requesting a temporary speed limit reduction for a one-half mile section of FM 3009 in order to increase safety for their project. The project consisted of constructing two roadway bridges over the two U.P.R.R. tracks located between IH 35 and FM 2252. The City complied by passing an Ordinance. Then on January 12, 2009 the City of Schertz received another letter from the Texas Department of Transportation TxDot) requesting a temporary speed limit reduction for a 1.2 mile section of FM 3009 in order to increase safety for an upcoming roadway construction project. This is an extension of the project. The project consists of constructing the roadway between IH 35 and 0.9 miles West of IH 35. TxDot is requesting the speed limit to be reduced from 55 mph to 45 mph, in both Northbound and Southbound directions, between Mile Point 4.679 and Mile Point 4.527 and between Mile Point 23.663 and Mile Point 23.012, basically from the railroad to IH 35. The project is scheduled to start April 2009 and construction should end around June 2012. The speed limit reduction would be needed for the entire duration of construction, approximately 30 months. FISCAL IMPACT None RECOMMENDATION Staff recommends Council approve first reading of Ordinance No. 09-D-04. ATTACHMENT Ordinance No. 09-D-04 Letter from TxDOT 1 ORDINANCE NO. 09-D-04 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS PROVIDING THAT THE CODE OF ORDINANCES OF THE CITY OF SCHERTZ, TEXAS BE AMENDED BY REVISING SECTION 18-76, MAXIMUM LIMITS ON SPECIFIC STREETS; AND PROVIDING A REPEALING CLAUSE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: SECTION I THAT, Section 18-76 of the Code of Ordinances, City of Schertz, Texas be amended to add the following: “Establish temporary construction speed zone reduction and posted speed will be for the duration of construction only at the following: Street Extent Speed Limit FM 3009 North and Southbound Directions 45 MPH” Between Mile Point 4.679 and Mile Point 4.527 and Between Mile Point 23.663 and Mile Point 23.012. SECTION II THAT, all Ordinances or parts of Ordinances in conflict with this Ordinance are hereby repealed. PASSED AND APPROVED ON FIRST READING THIS THE 27th DAY OF JANUARY, 2008. PASSED AND APPROVED ON FINAL READING THIS THE 2nd DAY OF FEBRUARY, 2008. ______________________________ Hal Baldwin, Mayor ATTEST: _____________________________ Brenda Dennis, City Secretary Agenda No. 6 CITY COUNCIL MEMORANDUM City Council Meeting: January 27, 2009 Department: Engineering Subject: Ordinance No. 09-D-05 – amending Section 86-89 Traffic Light Locations on Schertz Parkway. First Reading BACKGROUND These intersections were regulated with stop signs, which have been upgraded to traffic signals as a part of the Schertz Parkway Reconstruction project. FISCAL IMPACT None RECOMMENDATION Staff recommends Council approve first reading of Ordinance No. 09-D-05. ATTACHMENT Ordinance No. 09-D-05 1 ORDINANCE NO. 09-D-05 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS PROVIDING THAT THE CODE OF ORDINANCES OF THE CITY OF SCHERTZ, TEXAS BE AMENDED BY REVISING SECTION 86-89, TRAFFIC LIGHT LOCATIONS; AND PROVIDING A REPEALING CLAUSE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: SECTION I THAT, Section 86-89 of the Code of Ordinances, City of Schertz, Texas be amended to add the following: “SECTION 86-89, Traffic Light Locations 10. Intersection of Schertz Parkway at Live Oak. 11. Intersection of Schertz Parkway at Elbel. 12. Intersection of Schertz Parkway at Aero. SECTION II THAT, all Ordinances or parts of Ordinances in conflict with this Ordinance are hereby repealed. PASSED AND APPROVED ON FIRST READING THIS THE 27th DAY OF JANUARY, 2009. PASSED AND APPROVED ON FINAL READING THIS THE 3rd DAY OF FEBRUARY, 2009. ______________________________ Hal Baldwin, Mayor ATTEST: __________________ __________ Brenda Dennis, City Secretary Agenda No. 7 CITY COUNCIL MEMORANDUM City Council Meeting: January 27, 2009 Department: Planning & Zoning Subject: Ordinance No. 09-S-06 – Revising the Unified Development Code (UDC) First Reading BACKGROUND In July, 2007, Mitchell Planning Group, LLC began review of the current UDC and presented a Diagnostic Report to the City Council on August 15, 2007. Input was received by elected and appointed officials as well as citizens, City staff, and outside engineering firms that utilize the City’s UDC. In September of 2008, the Planning and Zoning Commission completed its review of the document and made its recommendation to the Council; however, before this document was presented to the Council, it was determined more work was required. On January 10, 2009, the Planning and Zoning Commission conducted a public hearing on the completed UDC and held a “Special Called” meeting on January 21, 2009 to vote on recommending approval of the document to the City Council. Input received at the January 10, 2009 meeting by the Commission and Citizens has been incorporated into the completed version before the Council this evening. SIGNIFICANT CHANGES TO UDC: The revised UDC has been reviewed by City Attorney, Michael Spain, as well as Consulting Land Use Attorney, Ruben Barrera of Bracewell & Guiliani. Below is a list of the significant changes made to the UDC: • Reformatted to a user-friendly document • In compliance with state and federal laws • Removal of contradictory language • Added provision for Consistency with Comprehensive Plan • Incorporated language on Traffic Safety Advisory Commission • Eliminated Overlay Districts and incorporated all standards into text • Changed R-5, Residential District to GH, Garden Home Residential District • Created Table with Design Criteria for all Zoning Districts • Added Impervious Surface maximum requirements • Created new regulations for Planned Development Districts • Added requirement for Tax Certificates to be submitted with applications • Separated Manufactured Home Subdivisions and Manufactured Home Parks • Added provisions for Carports and Porte Cocheres • Added requirement for Traffic Impact Analysis for certain developments • Added validation provision for certain developments that do not meet code City Council Memorandum Page 2 • Added Lighting and Glare standards • Added provision for dumpster enclosures • Added Telecommunications regulations • Added Exterior Construction Standards • Changed DBH to Caliper inches for new plantings in the Tree Preservation/Mitigation • Added requirement for garages for single family residential homes • Added stacking requirement for drive-thru facilities • Added drainage plan requirement to check list on certain plats • Added provision requiring City Engineer approval on all public infrastructure construction plans prior to Final Plat application • Added Community Facilities Agreement for all public infrastructure improvements • Added expiration period for plats approved but not filed with County • Added administrative approval for minor/amending plats • Added criteria for Master Plans • Added criteria for site plans • Added approval box for site plans • Added drainage criteria section • Added Storm Water Management Plan section • Added criteria of a mandatory HOA for gated subdivisions • Added provisions for Hike and Bike Trails/Sidewalks • Added provision for Hike and Bike Trails on private property adjacent to State Highways • Added requirement for utility easements for all utilities, including natural gas • Added definition of HOA • Made minor revisions to certain definitions as they pertain to sign regulations FISCAL IMPACT None RECOMMENDATION Staff recommends Council approval of first reading of Ordinance No. 09-S-06 ATTACHMENT Ordinance No. 09-S-06 UDC ORDINANCE NO. 09-S-06 AMENDING THE UNIFIED DEVELOPMENT CODE OF THE CITY OF SCHERTZ, TEXAS; REPEALING ALL ORDINANCES AND CODES OR PARTS OF ORDINANCES AND CODES IN CONFLICT WITH THIS ORDINANCE AND THE CODE AUTHORIZED HEREIN; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Schertz, Texas (the “City) established a Unified Development Code on September 3, 1996, which has been amended from time to time (as amended, the “Current UDC”); and WHEREAS, City Staff, the Planning and Zoning Commission, and other appropriate boards and commissions of the City have reviewed the Current UDC and have recommended certain revisions and updates to, and reorganization of, the Current UDC; and WHEREAS, the City Council has been presented with a proposed Amended and Restated Unified Development Code (the “Amended UDC”) and finds that implementation of the Amended UDC will assist property owners in pursuing orderly and appropriate development in the City and will assist the City Staff, the Planning and Zoning Commission, and other appropriate boards and commissions of the City in implementing the development goals of the City Council; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS: Section 1. The Amended and Restated Unified Development Code in the form attached hereto as Exhibit A is hereby approved as the official Unified Development Code of the City. 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 Ordinance for all purposes and are adopted as a part of the judgment and findings of the Council. Section 3. All ordinances and codes, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance or the Amended and Restated Unified Development Code authorized herein 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 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 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 hereby declares that this Ordinance would have been enacted without such invalid provision. Section 6. 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 SCHERTZ Ordinance (Uniform Development Code).doc -1- SCHERTZ Ordinance (Uniform Development Code).doc -2-matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. Section 7. This Ordinance shall be in force and effect from and after its final passage and any publication required by law, and the Amended and Restated Unified Development Code authorized herein shall have an effective date of the date this Ordinance is adopted on second and final reading, and it is so ordained. PASSED ON FIRST READING, the 27th day of January, 2009. PASSED, APPROVED, AND ADOPTED ON SECOND READING the ____ day of February, 2009. Mayor, City of Schertz, Texas ATTEST: City Secretary, City of Schertz, Texas (Seal of City) EXHIBIT A Amended and Restated Unified Development Code See Attached SCHERTZ Ordinance (Uniform Development Code).doc A-1 Agenda No. 8 CITY COUNCIL MEMORANDUM City Council Meeting: January 27, 2009 Department: City Council Subject: Boards and Commissions Resignation/Appointments/reappointments (Parks & Recreation) BACKGROUND The City Council will consider action regarding the appointment/reappointment of boards and commission members. Mr. Richard Coon has submitted his resignation from the Parks & Recreation Board. His resignation leaves a vacancy. It is recommended by the Parks & Recreation Board to move up Mr. Mark Davis as a regular member and appoint Ms. Harriett Higgs as an alternate member. FISCAL IMPACT None RECOMMENDATION It is recommended that the City Council accept the resignation of Richard Coon, appoint Mark Davis as a regular member and Ms. Harriett Higgs as an alternate member. ATTACHMENTS Resignation: Mr. Richard Coon Applications: Ms. Harriett Higgs