CITY OF SANTA FE REGULAR COUNCIL MEETING MAY 9, 2024 7:00 P.M. COUNCIL CHAMBERS 12002 HWY. 6, SANTA FE, TEXAS  MINUTES  The meeting was called to order at 7:00 p.m. by Mayor Bill Pittman.  Roll Call:  Present:  Mayor Bill Pittman Mayor Pro Tem Brandon Noto Councilmember Jason O'Brien Councilmember Ronald "Bubba" Jannett Councimember John Dickerson Councilmember Danal Marks  Absent:  None.  The Invocation was given by Tim Gregory from Family Worship Center, and the pledge to the U.S. Flag and to the  Texas Flag was led by! Mayor Bill Pittman. Mayor's and City Manager's Report:  1,Presentation ofp proclamation for Motorcycle Awareness presented by Mayor Bill Pittman to Alternative MC, Santal Fe Chapter. 2. Presentation ofp proclamation for National Small Business Month by! Mayor Bill Pittman tor representative oft the Economic! Development 3.F Presentation byt thel Mayor ofa al Mayor's spirit award tol his wife, and! bestf friend, Vickey Pittman for her unconditional support. City Manager Alun Thomas and City Secretary Natalie Arnett presented outgoing Councimember O'Brien with an award for his many years ofs service to the City. Following, City Manager Alun Thomas informed everyone that Big Horn BBQ is now open for business. Starbucks has received its permits to commence construction and the old Church's Chicken building has been demolished. Mr. Thomas informed everyone that in the month of May, 23 permits were issued for new homes. The City just conducted three elections, with election dayb being May 4, 2024. Mr. Thomas said that elections are an incredible amount of work, and thanked City Secretary Natalie Arnett for her tireless hard work and thanked all of the Galveston County Election's Division staff, judges, voters and election clerks across Galveston County. There was a misunderstanding: that some citizens had about the curing of ballots recently, and Mr. Thomas explained the process so that everyone could have a better understanding. Mr. Thomas and Police Chief Walter Braun attended training related to changing public interaction and views of police departments. Mr. Thomas said he is proud that our police department is following the various best practices suggested during the class. The Avenue P Project and CDBG-MIT Regional Mitigation Program (usually calledt the MIT-MOD) project are both inj progress. Mayi is National Walking Month. Mr. Thomas and Ms. Arnett are working on their goal to walk every citys street in Santa Fe, to better understand the city. He explained by doing so, they have observed code violations, street conditions, issues with streetlights, and have made some connections with residents. Currently, they have done about 80% of the streets and have a map in their office to keep track of the progress. Mr. Thomas said that most drivers have been considerate of walkers. Also, he commended the Streets Department for maintaining our streets sO well on a modest budget, and thanked both the Streets and Community Services Department fort their prompt attentioni in addressing thei issues that he and Ms. Arnett have relayed to them 4.F Presentation and approval of minutes: 4/11/2024 special meeting and 4/11/2024 regular meeting. The minutes were approved as  Corporation.  while on their many' walks. presented. Councilmember Noto    Minutes (cont.) 5/9/2024 Page 2of6  5. Presentation of departmental reports bys staff, specifically ar recap oft the activities performed duringt the previous month and ar report of 1) Finance- - cityf finance activities (including cash flow, financial reports, investment reports, utility audit services, PEG channel development), and Santa Fel Economicl Development Corporation project updates 2) Community Services - building permits issued, fees collected, inspections performed, development update 3) Parks and Community Center- - park maintenance activities, center rental statistics, Community Services Director Georgia Carmack let Council knowt thatt there are two! baseball teams that are renting Behringer-Tully! Field, ifa all practices are attended thet funds will totally approximately $3,900 thaty will go directly toi improvements at the field.  upcoming activities, events, andp projécts ont thel horizon  4) Municipal Court- - casesi filed, revenue collected, warrantsi issued and cleared 5) Police- - calls for service statistics, traffic crash analysis, use off forcei incidents 6) Fire! Marshal -burn permit issuance, inspection activities  7) Library- - patron and program attendance, circulation material statistics, fines and donations collected; library accreditation 8) Street- - drainage projects, street maintenance andi improvement activities, equipment maintenance 9) Resiliency Center- - counseling statistics, including new and continuing clients, for individual andf family sessions, representatives from the center were ina attendance, ands saidt theyl lookf forward to continuing to serve the community.  Citizens' Comments:  Christine Villere, 3015 Avenue F, wanted clarity on the number of units there willl be at the senior living community that willl be located on FM 1764: at Avenue F, and said she would like to see that number in historical documents.  Business: A. Old Business: Improvement Project  1. Briefing and discussion: Update on the progress of the City of Santa Fe's Avenue P Drainage City Manager Alun Thomas introduced Project Engineer Chris Doherty. Mr. Doherty explained the projecti is to divert more drainage to Highland Bayou to alleviate flooding in Castle Estates and triple Bar. Mr. Doherty gave the Council a detailed presentation on the process and construction of the construction of the project. Gulf Coast Limestone's contract end date is September 20, 2024, their intent is to be complete in mid-August. The residents that reside on Avenue P will bet the ones directly affected by the construction oft the project, as the construction traffic will only be on Avenue P. The Contractor will be installing a temporary access to Castle Drive to only to be accessed by the residents of Avenue P. The City has made extreme efforts to gain temporary access off Highway 6, which will help make the construction process much easier. The anticipation for the start of the project is about ay week, depending ont the approval oft the permits. City Manager Alun Thomas thanked Community Services Director Georgia Carmack 2. Briefing and discussion: Update on the progress of the City of Santa Fe's forthcoming projects to be financed through the Texas General Land Office's Texas Community Development Block Grant. Mitigation Streets Superintendent Billy Creppon said there are a total of 18 streets that will be milled and repaved with the funding from the Texas General Land Office's Texas Community Development Block Grant Mitigation (CDBG- MIT) Regional Method of Distribution (MOD) program. Currently, the process is being reviewed by the Project Engineer. Once staff have completed their process, the Project Engineer will go out for bids on the project. City Manager Alun Thomas explained to everyone that this is an approximately $2,700,000 grant fori the reconstruction  and Texas Department of Transportation for their prompt attention during this process.  (CDBG-MIT) Regional Method of Distribution (MOD) program  ofa approximately 5.481 miles of city streets.    Minutes (cont) 5/9/2024 Page 3of6  3. Consideration and possible action: Second and final reading of an Ordinance of the City of Santa Fe, Texas, amending Section 14, Golf Carts, of Chapter 9, Traffic Code, of the City of Santa Fe Code of Ordinances, through the inclusion of utility vehicles and recreational off-highway vehicles in the applicability of the Section; renaming Section 14 as "Golf Carts, Utility Vehicles, and Recreational Off- Highway Vehicles"; and providing a repealer clause, a severability clause, and an effective date Police Chief Walter Braun explained amending this ordinance willi include side-by-sides to the "Golf Carts" section tot the City's Code of Ordinances, as most cities have already dones SO. City Manager Alun Thomas informed Council that he had spoken with a citizen that had called him to express his strong opposition to making this amendment, as they are afraid that people will drive those vehicles irresponsibly. Mr. Thomas explained there are requirements that must be met before a driver can operate a side-by-side on the streets. However, the citizen wanted to passo on his concerns. The side-by-sides willi need to bei inspected to ensure allt the requirements are met, which will be done Motion by Councilmember O'Brien, seconded by Councimember Noto, to approve the second and final reading of an Ordinance amending Section 14, Golf Carts, of Chapter 9, Traffic Code through the inclusion of utility vehicles and recreational off-highway vehicles as presented. The motion passed the roll call vote unanimously.  att thel Police Department and there will be a $50 permit fee.  B. New Business:  1. Consideration and possible action: Selection ofa a Mayor Pro Tem  The item was postponed due to the results oft the elections not being finalized. No motion was needed. 2. Consideration and possible action: First andi final reading of an ordinance oft the City of Santa Fe, Texas, amending the Budget fori the Fiscal Year beginning October 1st, 2022, and ending September 30, 2023 Finance Director Rudy Zepeda explained this is the fourth and final amendment to the City Budget related to the closing audit of Fiscal Year beginning October 1st, 2022, and ending September 30, 2023. Mr. Zepeda gave a Motion by Councilmember O'Brien, seconded by Councimember Marks, to approve thei first andi final reading of an ordinance amending the Budget for thel Fiscal Year beginning October 1st, 2022, and ending September 30, 2023. 3. Consideration and possible action: Approving the 2023 Annual Comprehensive Financial Report fort the Finance Director Rudy Zepeda said that the auditors completed the audit for the 2023 Financial Records. Mr. Zepeda explained the outline oft the audit and said that the auditors approved the Financial Records. Ana Gallardo, an auditor from Carr, Riggs & Ingram, gave a detailed summary of the results of the audit and said there were no Motion by Councilmember Noto, seconded by Councilmember Marks, to approve the 2023 Annual Comprehensive Financial Report for the period ended September 30, 2023. The motion passed the roll call vote unanimously. 4. Consideration and possible action: Approving the execution by the Mayor of a General and No Litigation Certificate representing the approval for the issuance oft tax-exempt bonds for the acquisition and rehabilitation of Bay Terrace Apartments-Baytown. by Southeast Texas Housing Corporation (SETH) City Manager Alun Thomas said the City of Santa Fei is a member oft the Southeast Texas Housing Corporation (SETH). For SETH to proceed with the project, it must have each of its member cities execute a General and No Litigation Certificate by their respective Mayors before issuing bonds fort the acquisition and rehabilitation oft facilities for affordable housing. Bay Terrace Apartments is located in the City of Baytown. The City held aj public hearing in  summary of the increase in revenue.  The motion passed the roll call vote unanimously. period ended September 30, 2023  deficiencies that need tol be addressed.    Minutes (cont) 5/9/2024 Page 40f6  December 2023 and the City supports the issuance of the bonds and the use of some low income housing tax credits. Mr. Thomas said that City's SETHI Representative Mr. Wright explained thatt the Mayor signing must bet the Mayor at the time that the Attorney General signs off onit. Therefore, it would not be the current Mayor; it would be the Mayor-Elect once he takes office. Approval will allow for Mayor-Elect Noto to execute the certificate once he Motion by Councilmember O'Brien, seconded by Councilmember Jannett, to approve the execution by the Mayor ofa General and No Litigation Certificate representing the approval for the issuance of tax-exempt bonds for the acquisition and rehabilitation of Bay Terrace Apartments-Baytown by Southeast Texas Housing Corporation 5. Consideration and possible action: Approving the execution by the Mayor of a General and No Litigation Certificate representing the approval for the issuance of tax-exempt bonds for the acquisition and rehabilitation of Village at Baytown-Baytown by Southeast Texas Housing Corporation (SETH) Cityl Manager Alun Thomas explainedi thisi is the exact same situation as the previous item, just for a different facility, Motion by Councimember Noto, seconded by Councilmember Marks, to approve the execution by the Mayor ofa General and No Litigation Certificate representing the approval for the issuance of tax-exempt bonds for the acquisition and rehabilitation of Village at Baytown-Baytown by Southeast Texas Housing Corporation (SETH). The 6. Consideration and possible action: Approving the purchase of an extended warranty for the City of Santa Fe's recently purchased 2023 Mack MD64 Dump Truck using funds from the American Rescue Plan Act (ARPA) and authorizing the City Manager to execute an agreement for such coverage with Bruckner Truck City Manager Alun Thomas said this proposed extended warranty is for the Dump Truck that Council had approved the purchase of recently, and expended approximately $110,000 on -a 2023 Mack MD64 Dump Truck. There are two options for extended warranties. One option is a 60-month, 100,000-mile extended warranty or a 72-month, 150,000-mile extended warranty. Staff recommend the purchase oft the 72-month, 150,000-mile extended warranty for ai total combined cost of $2,438. Staff believes that the cost could also be expensed from the City's American Motion by Councilmember Noto, seconded by Councilmember Jannett, to approve the purchase of a 72-month, 150,000-mile extended warranty for the 2023 Mack MD641 Dump Truckusingf funds from the American Rescue Plan Act (ARPA) and authorizing the City Manager to execute an agreement for such coverage with Bruckner Truck & 7. Discussion and direction: Current regulations regarding the usage of shipping containers, also known Community Services Director Georgia Carmack explained that the discussion of conex boxes had been brought to the Santa Fel Planning and Zoning Commission (P&Z) in May and August of 2022. Currently, conex boxes are only allowed by City Code in Light Manufacturing zoning areas. Ms. Carmack said that a resident received a violation from Code Enforcement for having a conex box on their property. The resident then presented their concerns to staff however, due to the Zoning Ordinances, staff is restricted on the help that can be offered. The resident  becomes Mayor.  (SETH). The motion passed the roll call vote unanimously.  Village at Baytown, which is also located in Baytown.  motion passed the roll call vote unanimously.  &E Equipment  Rescue Plan Act (ARPA) funds SO that it will not negatively affect the existing budget.  Equipment. The motion passed the roll call vote unanimously. as conex boxes, within the city limits of Santa Fe  requested to speak with the Council about the situation.    Minutes (cont.) 5/9/2024 Page 5of6  Deborah Cooley, 4819 Cark Street, explained that she received av violation fort the conex! box located onH herp property. Ms. Cooley said that the conex box was purchased to protect their personal and farm property. She explained they took extreme measures to ensure the structure would sustain storms, it is painted to match the house, and is set parallel to the back of the home to look more uniform. She said the property is zoned Agricultural Residential and is agriculturally exempt, andi that she did not knowi it was a code violation to have a conex boxi in that zone until she received the violation from the City of Santa Fe. Ms. Cooley asked that the Council allow the discussion of conex boxes to go before the P&Z again, in the hopes of having conex boxes allowed in Agricultural Residential zoned properties, or to enact possible guidelines that should be met to allow for one on such properties. Council agreed that the P&Z should revisit the discussion about conex boxes and also agreed that the incoming Councilmembers should have input on this topic. Council directed staff to review other cities' regulations on conex boxes and to bring this discussion back on ai future agenda for the incoming Councilmembers to be a part oft the 8. Consideration and possible action: Appointment or reappointment of two members to the Santa Fe City Secretary Natalie Arnett said there are two positions on the Planning and Zoning Commission (P&Z) that will be expiring May 2024. Staff solicited applications on multiple occasions but did notr receive any applications for the positions. Commissioner Andrew Mills and Commissioner Wendy Wagner-McGee have both requested to be reappointed. Staff does not have a recommendation ont the appointment or reappointment tot the Commission. City Manager Alun Thomas said that Mayor-Elect Noto noted the fact that the Mayor is the one who makes the appointments to the P&Z and then his appointments are approved by the Council. Mayor Pittman would like for the new Mayor and Councilmembers to bei the one to make the appointment, sol he asked that the item be postponed. Deborah Cooley, 4819 Cark Street, asked where posts are made for vacancies on a Board, Ms. Arnett let Ms. Cooley knowt that it is announced on the City of Santa Fe's Facebook Page and ont the City's website. 9. Consideration and possible action: Adoption of a resolution of the City of Santa Fe, Texas, approvinga Chapter 380 agreement between the City of Santa Fe and NC4 Management, LLC to provide economic incentives for the construction of a 175-unit senior living community located on FM 1764 City Manager Alun Thomas said there have been many discussions over the past year between the City and NC4 Management, LLCa about this proposed development. The request fort this discussioni ist fort the approval of a Chapter 380 agreement to provide economic incentives for the construction of the senior living community located on FM 1764. The projected property value according to the Developer will be approximately $22,000,000 once the project iso completed. It will provide 301 to 401 full-time jobs and 201 to 30 part-time jobs. Over the many discussions, Council has made it clear that the development must be a senior living facility with assisted living facilities and that iti must not under any circumstances become an apartment complex. The City Attorey has been working with the Developer's attorney to ensure that thei facility will not become an apartment complex and if any changes need to be made iti must be presented to the Council to make any such changes. The proposed 380 Agreement is separate from the water and sewage expansion, the assistance will be provided by the Santa Fe Economic Development Corporation (EDC) that was approved by Council in February 2024. The approval of this resolution would approve the proposed 380 Agreement between the two entities, and it includes all the requirements and stipulations that The Developer, Corey Boyer, said the development is going to be a senior living facility thati includes independent living, and assisted living. The Agreement has been updated to reflect 174 units sO there are no concerns of the facility becoming an apartment complex. Mr. Boyer said hel has no doubt that by the time that the development is  discussion and give theiri input.  Planning and Zoning Commission to serve ai three-yeartermi to expire in May 2027  have been asked for by Council to date.    Minutes (cont.) 5/9/2024 Pagè 6of6  complete it will meeta and exceedi the estimated 22-million-dollar value. Mr. Boyer gave al brief overview oft the needs fort thei facility and thanked Council and staff fort their time and participation throughout the many discussions. Mayor Bill Pittman gave a detailed summary of discussions that were had about the ad valorem taxes that would go to the City over the two-year original agreement to the now 5-year agreement. He expressed his concerns on hows staff would manage the number ofe employees att the facility, the groundbreaking date fort the development was not met by the date of the stipulation by Council, and lastly, page 3 oft the proposed agreement states' The concept plan may be modified at any time by the Developer." Mayor Pittman also brought up the concern about the agreement stating there would be 175 units and Mr. Boyer says there will be 174 units. Mr. Thomas said it was a discussion to make the change, however, he has not received at final version oft the agreement that states there will There was much discussion between Mr. Boyer and the Council on the proposed requirements presented in the agreement and the requirements that should have been reflectedi in the agreement. However, the Council and staff have not seen the final proposed agreement that reflects the changes Mr. Boyer has discussed. Council was uncomfortable discussing and approving ani incomplete agreement. Councimember Jannett said he is not opposed tot the agreement, but before deciding he would like to see thet final proposal. Mayor Pittman asked if Council were ina agreeance with Councimember Jannett and Councilmember Noto said hei is not. Councilmember Noto explained that he is not in favor of the agreement either way. Councilmember Noto expressed his concerns in detail to the EDC Director Terri O'Connell spoke and said that wanted to make everyone aware that the Santa Fe Economic Development Corporation has awarded the Developer with $121,666, as has the Galveston County Water Control Rusty Schroeder, 112031 FM1764, pleadedi to the Council to table the item until thet final proposal has beenreceived. Motion by Councilmember Noto, seconded by Councilmember Dickerson, to not approve the resolution approving ac Chapter 380 agreement between the City of Santa Fe and NC4 Management, LLC. The motion passed 3 votes to 2, with Councilmembers Noto, Dickerson, and Marks in favor and Councilmembers O'Brien and Jannett opposed. City Manager Alun Thomas asked for direction from Council on whether staff should continue negotiating a 380 agreement for this project with the Developer. It was the consensus of Council that no such negotiations should  be at total of 174 units. Mr. Boyer addressed the concerns oft the Mayor.  Council.  &l Improvement District No. 8, for ai total amount of $243,332.  take place. Announcements:  Santa Fe Chamber of Commerce will hold its "Sunrise Santa Fe" event on May 23 at7:45 a.m., and an afterhours mixer event on May 19. The Friends of the Library is still selling tickets for a raffle for a quilt. The Lions Club is Motion by Councilmember Jannett to adjourn. The motion passpeantnemetpge agjourned 45p.m.  selling tickets for Heritage Festival.  ATTEST: Nâtallel N.A Amett, EL  BA  City/Secretary