MINUTES HEATH CITY COUNCIL REGULAR MEETING  TUESDAY, SEPTEMBER 26, 2023 at 6:30 PM  ATTENDING: KELSON ELAM, MAYOR  PAUL: RUFFO, MAYOR: PRO1 TEM SHARON CALDWELL JIM CHESTER RICH KRAUSE DONNA ROLATER BRENT WEAVER  Mayor Kelson Elam called to order the Regular meeting at 6:30 p.m. Councilman Richard Krause  delivered the Invocation and led the Pledge of Allegiance.  Public Comment Consent Agenda  No one signed up to speak at the open forum.  3.a Action Regarding the Minutes oft the September 12, 2023 Regular Meeting.  MOTION: APPROVE CONSENT AGENDA, ITEMS 3.a REGARDING MINUTES OF  SEPTEMBER 12, 2023 REGULAR MEETING.  MOTION MADE: SECONDED: APPROVED: ABSTAINED:  KRAUSE WEAVER  PASSED SIXTO ONE (one abstained) CHESTER (absent at September 12 meeting)  4.a Conduct a Public Hearing and Discussion and Action Regarding an Ordinance Adopting a Fee Schedule for the City for the Fiscal Year October 1, 2023 through Director of] FinanceJay Ayers stated thel FY2023 Fee Schedule was adopted on September 12, 2022 and set to expire on September 30, 2023. This item tonighti is an Ordinance for the adoption oft the fiscal year 2024 Fee Schedule effective October 1, 2023. The Fee Schedule is intended toj provide a central location for all of the City's charges for services, permits, fees, licenses and other charges. With staff collaboration, the fee schedule has been updated using best practices such as market rates, studies, regular routine maintenance and review, legal parameters and other best practice methods. Staff Recommends approval. Councilman Weaver confirmed that some of the adjustments to the fee schedule reflect some of the extra burden that was put upon the cities to implement a new bookkeeping methodologythat: the statel legislation ist forcing the cities to do. For  September 30, 2024.  the record, part of this impact oft thei fee schedule is effectively state mandated. HEARING to receive comments regarding the request. Mayor Elam opened thej public hearing at 6:40 p.m. Mayor Elam closed thej public hearing at 6:42 p.m. Discussion and action regarding the request.  Karen Wydra, 244 Mockingbird Lane, Heath - asked for a clarification to the increase in water  and sewer fees.  City Manager. Adams clarified that these increases to the water fees are triggered by the water rate study done two years ago and sewer rates are calculated on winter averaging. Your water usage is averaged from November to February. Every citizen has a difference usage amount based on their  usage.  City Council Minutes - September 26, 2023  Page 1of7    MOTION: APPROVE ORDINANCE NO. 230926A REGARDING FY 2024 FEE  SCHEDULE. MOTION MADE: SECONDED: APPROVED:  KRAUSE CHESTER PASSED UNANIMOUSLY  4.b Discussion and Action Regarding an Ordinance ofthe CityofHeath, Texas approving and adopting a budget for the City for the fiscal year beginning October 1, 2023 and ending September 30, 2024; and making appropriations for each fund and department; providing that expenditures for said fiscal year shall be made in accordance with said Budget; repealing conflicting ordinances; providing a savings Director of] Finance Jay Ayers stated that at the Special Meeting on Monday, September: 30, 2023, staff confirmed making changes to the General Fund and transferring funds to the Debt Service Fund to bring down the debt tax rate based on the Equivalent Tax Rate calculation. The new proposed tax rate of $0.277493 is 1.3682 cents lower that last year's tax rate. The New Debt calculated tax rate is $0.092698. Ayers addressed the highlights of the budget proposal: Established Drainage Fund to address related capital projects, Pay As You Go Program, major projects in 2024:1.AMI! Meter Phase No. 1; 2. Enterprise Resource Planning System (OpenGov); 3.1 Pump Station Upgrade; 4. Water Supply Study; and 5. Annual Street Repair. Major Infrastructure: 1. Funding for New Public Safety Facility; 2. Funding for Towne Center Park Improvements; and 3. Funding for Public Works Facility. Stabilized Tax Rate: 1. Reduction oftax rate: from 0.291175 to 0.277493. Staff recommends approval. Counciman Weaver summarized: for the record that as appraisals have gone up in Heath, we have lowered the tax rate by that same amount to cancel thei increase in appraisals for existing residents. New: revenue: iss strictly fromi new development, new development is paying for itself. We have been doing this for 5. years in a row MOTION: APPROVEORDINANCENO. 230926B REGARDING. ADOPTING. A BUDGET  and severability clause; and providing for an effective date.  and is successful and very effective.  FOR: FISCAL YEARS OCT. 1, 2023 THROUGH SEPTEMBER 30, 2024.  MOTION MADE: SECONDED:  ROLATER CHESTER CHESTER, KRAUSE. PASSED UNANIMOUSLY (7-0)  ROLL CALL VOTE: For: ROLATER, WEAVER, RUFFO, MAYOR ELAM, CALDWELL,  Against: NONE  APPROVED:  4.c Conduct al PublicHearing: and Discussion and Action Regarding an Ordinance! Levying Ad Valorem Taxes for the Year 2023 (Fiscal Year 2024) at a Rate of $0.277493 per One Hundred Dollars ($100.00) Assessed Valuation on all Taxable Property within the Corporate Limits of the City as of January 1, 2023; to Provide Revenues for the Payment of Current Expenses and to Provide an Interest and Sinking Fund on all Outstanding Debt of the City; Providing for Due and Delinquent Dates together with Director of Finance Jay Ayers stated that thisi item is to approve an ordinance! levying Ad Valorem Taxes for the Fiscal Year 2024 at a rate of $0.277493 per one hundred dollars ($100.00) assessed valuation on all taxable property within the Corporate cityl limits of Heath, Texas as ofJanuary 1, 2023, fiscal year 2024. The proposed tax rate of $0.277493 was calculated using the Equivalent Tax Rate onl M&Oand) I&S. Thisi is adrop from last year'sI rate of $0.291175. TheNo-New! Revenue Tax Rate is $0.259840, No-New Revenue. M&0 Tax Rate is $0.172330, Voter-Approval Tax Rate is $0.300736 and the DebtTax Rate is $0.092698. Mayor Elam stated that we are] pretty proud of what we have done maintaining a great fund balance and pay-as-you-go. Public notice was published on the City's website and the Rockwall Herald Banner newspaper. Through this Resolution, September 26, 2023, was the date set for the public hearing and adoption date for the  Penalties and Interest.  tax rate. Staff recommends approval. City Council Minutes September 26, 2023  Page 20f7    HEARING to receive comments regarding the request. Mayor Elam opened thej publicl hearing at 7:12 p.m.  Steve Wydra, 244 Mockingbird, Heath - stated that the water survey: is needed and this should have happened years ago. Iti is about rooftops and water consumption, we are over developed for the amount of water that we are allowed. We can't service the people that you have right  now.  Mayor Elam closed the public hearing at 7:16 p.m. Discussion and action regarding the request.  Councilman Weaver clarified that regarding the water shortage, it is not what isl happening in Heath that is the main problem, it is the fact that Texas has exploded in population and there is only a finite amount of water available from the suppliers. Texas is growing faster than the supplier's infrastructure can keep up. Iti is wrong to suggest that we. have not been preparing for this because we have. This Council immediately put a stop toi the previous council's practice of approving high- density development in our city and put additional protections in place to prevent high-density developments in our ETJ. The development that you see occurring right nowi is development that we cannot stop that was approved a decade ago and state property rights prevent us from stopping it. We cannot control water supply sources, we can only control the demand. Councilman Weaver reiterated that as appraisals have gone up, we have lowered the tax rate by that same amount to cancel the increase in appraisals for existing residents. The increase in tax rate revenue is strictly from new development, new development: is paying for itself. Wel have been doing this for 5y years MOTION REGARDING ORDINANCE NO. 230926C "I MOVE THAT THE PROPERTY TAX: RATE: BE: INCREASED BYTHE. ADOPTION OF ATAX RATE OF 27-7493 CENTS, WHICH IS EFFECTIVELY A 6.79% INCREASE IN THE TAX RATE. THE PROPOSED RATEI IS 1.3682 CENTS OR. 4.70% LOWER THANLAST YEAR'S RATE".  ina ar row and is successful and very effective.  MOTION MADE: SECONDED: APPROVED:  WEAVER MAYOR ELAM CHESTER, KRAUSE. PASSED UNANIMOUSLY (7-0)  ROLL CALL VOTE: For: ROLATER, WEAVER, RUFFO, MAYOR ELAM, CALDWELL,  Against: NONE  4.dDiscussion and Action Regarding Resolution No. 230926A1 Ratifyingt the PropertyTax Director of Finance Jay Ayers stated that this item is for approval of a Resolution to ratify the property tax increase reflected in the 2023-2034 fiscal year budget. Under Texas Local Government Code Section 102.007(c) requires that a separate Council vote take place when the budget requires raising more: revenue than the previous year. This is in addition to and separate from the votes to adopt the budget and set the tax rate. Staff recommends approving the Resolution. Councilman Krause reiterated that Texas State law mandates that if wel bring ini more revenue, particular wording that we are: raising taxes must be used. Although the new revenue is strictly from new development and not from current residents and thei rate itselfi is going down. MOTION: APPROVE RESOLUTION NO. 230926A REGARDING RATIFYING THE  Increase Reflected in the 2023-2024 City Fiscal Year Budget.  PROPERTYTAX RATE: INCREASE.  MOTIONMADE: SECONDED: APPROVED:  KRAUSE WEAVER  PASSED UNANIMOUSLY  4.e Case No. CUP-2023-01: Conduct a Public Hearing and act on an Ordinance to grant a Conditional Use Permit to construct a guest house: measuring 1,157 square feeti in lieu of the maximum area of 900 square feet allowed in the Ridge Lakes Planned Development established by (PD-SF) Planned Development for Single Family Uses  City Council. Minutes - September 26, 2023  Page3of7    Ordinance No. 141118A resulting in a variance of257 square feet. The subject property isl located at 5361 Lodge Hill Drive, being 1.16 acres ofl land described as Lot 5, Block A, Director of Planning Aaron. Adel stated that this item wasi for a Conditional Use Permit to construct as guest house of 1,157 SF in lieu of the maximum area of 900 SF allowed in the Ridge Lakes PD (Ordinance No. 141118A). Notice of Public Hearing was published in the Dallas Morning News, posted on the city website, and mailed to 33 neighboring properties on 08/24/23. One response was returned in favor and none in opposition. City Council followed the Planning and Zoning Commission's recommendation and denied without prejudice and waived the reapplication fee to encourage the applicants to coordinate with staff and reduce the requested square footage. The original application wasi for1,239 SF guesthouse plus a 720 SF cabana for a total of1,959 SF which resulted in ai 1,059 SF variance. The new application attaches the cabana to the primary residence byl breezeway converting it from an accessory structure into an addition to the home. Reduces the guesthouse to 1,157 SF resulting in a 257 SF variance. On September 5, The Planning and Zoning Commission: recommended denial for the concern abouti the precedent set by allowing an accessory building larger than the maximum size allowed in the ordinance. The commission encouraged the applicant to reduce the building to a maximum of 900 SF to remove the: need for a CUP. The Site planincludes one accessory structure: a guesthouse: measuring appronimately39xag" or1 1,157 SF. The guesthouse has not been built, 75' rear setback, 15' side setback, 21' separation from the residence to guesthouse, The Ridge Lakes PD does not vary the guesthouse regulations in the SF- 43 zoning district. The SF-43 standards in $159.21 apply to the guesthouse: $159.21(B)(14) limits the maximum size for a single accessory structure to 900 SF; The proposed guesthouse size is greater than 900 SF and does not comply with $ 159.21(B)(14); $159.21(C)(2) allows accessory buildings that don't conform to S 159.21(B)(14) to be approved with a CUP; A CUP to allow a guesthouse not to exceed 1,157 SF is necessary; and $159.42 defines guest house as an accessory building designed for the temporary occupancy of guests oft thej primary dwelling. The guest house contains a kitchen, living/dining area, sleeping room and al bath. There willl be no remuneration for the use of the guest house and it will notl be rented or otherwise used as a separate domicile.  Ridge Lakes Phase One. (Rockwall CAD IDN No. 89797).  HEARING to receive comments regarding the request. Mayor Elam opened thej public hearing at 7:42] p.m. information regarding the request. Mayor Elam closed thej public hearing at 7:50 p.m. Discussion and action regarding the request.  Applicants Yuddie and Charles Ogwudire, 536 Lodge Hill Drive were present and provided  Councilman Weaver stated that while he understood the applicant's desire to have a guest house, the proposed design which contains 2 bedrooms, 2 baths, a living room and a full kitchen, is essentially ai fully self-contained second house or apartment. Therefore, Weaver could not support this design as it could easily lead to a multi-family housing situation in the future within a neighborhood zoned for single-familyhousing only. The Council continued discussion and Mayor stated that we worked hard to] pass a Comprehensive: Plan with onel home per developable acre, and ourj job ist toj protect this. The Council consensus was that an approval oft this CUP would set al bad precedent. Council recommended the applicant work to meet compliance and solve this problem.  MOTION: DENYTHE CONDITIONAL USE: PERMIT APPLICATION.  MOTION MADE: SECONDED: APPROVED:  MAYOR ELAM CHESTER PASSED UNANIMOUSLY  4.f Case No. CUP-2023-05: Conduct al Public Hearing and act on an Ordinance to grant a Conditional Use Permit for property located at 1 Penrith Court, being 0.77 acres described as Lot 90, Block A, Stoneleigh Phase Three Addition, to construct a two- story detached garage with air-conditioned living space measuring 2,475 square feet and 29-5 feet inl height in lieu ofthe maximum area of 900 square feet and maximum height of15 feet allowed in the Heath Code of Ordinances $159.21(B)(4) resulting in  City Council Minutes - September 26, 2023  Page 4of7    asquare footage variance of 1,575 square feet and al height variance of14-5 feet. The properylsromed(Ds) Planned: Development: for Singlel Family Uses by Ordinance [Theapplicant requested to withdraw this application during the September, 5, 2023, Planning and Zoning Commission meeting. The Commission accepted the applicant's request. Council will not hold a public 4-g Discussion and. Action Regarding the Master Services Agreement with Flock Group, Chief Brandon Seery stated that this Resolution of the City Council of the City of Heath, Texas, is awardingacontract. for Automated License Platel Reader Services, including database access, tol Flock Safety. As an effort fori the Heath Department of Public Safety to use data-driven approaches in combating crime, the Flock Safety Automated License Plate Reader (ALPR) camera system is desired. The Flock Safety ALPR system records vehicle-specific data, including license plate information and vehicle descriptors, without the privacy concerns ofl biometric-based systems. This information is collected via Flock Safety's cloud-based database where iti is stored for aj period ofthirty daysl before iti is purged. Any data of evidentiary value will be downloaded for use: in judicial proceedings. The data collected by these cameras will serve as a crucial lead generator for detectives ini investigating crimes and emerging crime trends. In addition to serving as an intelligence multiplier, the system notifies officers of vehicles on the National Crime Information Center's "hotlist" as well as the' Texas Department of Public Safety statewide alert programs, such as AMBER and Silver alerts. In the north Texas area, there are. hundreds of Flock Safety. ALPR cameras deployed by law enforcement and private organizations, making the quantity of information sharing available in our region substantial. The Heath Department of Public Safety has already used leads generated from a local private entity's Flock Safety systems to recover a stolen vehicle and locate a missing. juvenile. The Heath Department of Public Safety anticipates the direct utilization oft the Flock Safety system will be a great benefit in the identification and apprehension oft those suspected of crimes in Heath. The total cost for the first year of use for two Flock Safety ALPR cameras is $9,800, which includes one-time installation, testing, and training expenses of $3,800. The recurring cost of the two Flock Safety ALPR cameras is $6,000, or $3,000 per camera, for each year forward. The Flock Safety cameras will be located inbound only and the system will be accessed only as needed. To access the information, the officer has to log in with his/her credentials and tagi it with a case number to ensure with the security ofinformation. None oft the data will ever be sold and will only be shared with other police departments as needed. We will have aj policy and conduct an annual audit to ensure that all the searches are approved for law enforcement investigations. Heath DPS is committed to keeping our community safe and the system will be al benefit and not intended to be a surveillance system or infringe on anybody's freedom of privacy. Staff recommends MOTION: APPROVE RESOLUTION NO. 230926C: REGARDING MASTER SERVICES AGREEMENTWITH FLOCK GROUP, INC. FOR ALICENSE: PLATE READER SYSTEM.  No. 050120A. (Rockwall CAD ID! No. 64705)  hearing, discuss or act on this item). Inc. for a license plate reader system.  approval.  MOTION MADE: SECONDED:  KRAUSE CALDWELL  Mayor Pro' Tem Ruffo stated that he appreciated a system like this and what it does but asked that we continue to be cognizant of collecting this information and make sure we are doing our due djligence with thej provider. Chief Seeryc confirmed that there will be an annual audit oft the: system. 4.h Consideration of and Action on a Resolution ofthe City Council ofthe City ofHeath, Texas Authorizing the City Manager to Execute a three-year contract with Vertosoft, Director ofI.T. Carter Smith stated that the implementation of a modern and efficient Enterprise Resource Planning (ERP) system is crucial for the streamlined management of our city's operations, financial processes, and data-driven decision-making. The OpenGov ERP Cloud Solution has been extensively reviewed and is recommended as a strategic investment. The City currently relies on outdated and disparate systems for various administrative functions, including  APPROVED:  PASSED UNANIMOUSLY  LLC, to purchase the OpenGov ERP Cloud Solution.  City Council Minutes - September 26, 2023  Page 5of7    finance, human resources, procurement, and budgeting. The City lacks centralized capabilities to track and manage capital improvement projects, assets, and work orders. This fragmented approach leads toi inefficiencies, datai inaccuracies, and difficulties in obtaining timelyand accurate reports for decision-making. This cloud-based system offers a comprehensive suite of modules designed to integrate and automate various city operations, resulting in increased efficiency, improved transparency, and enhanced collaboration among departments. City staff researched several potential systems, determining that OpenGov provides the software suite that best meets our needs for fostering economic growth and demonstrating excellent customer service. The software provides an end-to-end solution with financials, courts, utility billing, budgeting, asset management, permitting and code enforcement, reporting, transparency, and procurement software. OpenGovise entirelycloud-based and provides a user-friendly potalorthepauhietoviw: City data, permits, and project status and will ensure the City will not incur additional hardware costs, saving money in the long run. OpenGov provides an unlimited model and we can have unlimited users, unlimited data on the software and supply for more data storage as the system grows. Andrew Stout, Open Gov Territory Leader was present and provided a presentation "Powering More Effective and Accountable Government" that explained in more detail what the system is designed to do. Smith reiterated that' The OpenGov. ERP Cloud Solution will significantly enhance the efficiency and transparency ofour city's operations, aligning with our commitment to providing the best possible services to our residents. Legal counsel reviewed the contract and confirmed that it is legally sound after adding some amendments and clarifications to the scope of MOTION: APPROVE RESOLUTIONI NO. 230926B REGARDING VERTOSOFTLICTO  work. Staffrecommends approval.  PURCHASE OPENGOVERP CLOUD SOLUTION.  MOTION MADE: SECONDED: APPROVED:  CHESTER RUFFO  PASSED UNANIMOUSLY  4.i Discuss City Council Training for Fiscal Year 2023-2024.  City Secretary Norma Duncan stated that this year, the annual TML Conference and Exhibition is held in Dallas from Oct4t through Oct 6th and asked Council if anyone was interested in attending.  Mayor Pro Tem Ruffo confirmed that he would attend.  5. Council/City Manager Comments  City Manager. Aretha Adams announced that as of September 21St, the city is out of Stage 2 water restrictions. Adams thanked Larry Dunham, Randy Patton and the entire Public Works staff for their work and commitment of keeping us out of Stage 3 restrictions by monitoring our Scada system keeping the water levels good. They worked around the clock. Thanked Logan Petty and her team and. Ashley, Leisa Price, Javier and everyone in the front line who took the phone calls from the public. National Night Out is Tuesday, October 3rd and invited all to attend. Fall Break  camp will not take place at Heath Cityhall this year.  6. Executive Session  At 8:56 p.m., Mayor Elam recessed the meeting to Executive Session (closed meeting) stating that in accordance with' Texas Government Code Chapter 551, Subchapter. D, the City Council recessed into Executive Session (closed meeting) to discuss the following: Section 551.071: Consultation with Attorney on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter, regarding: ()zoningand; plattings standards, Local Government Code: shot clock, andT Trilogy final plat; (ii) Trilogy development in Mclendon-Chisholm city limits and extraterritorial jurisdiction; (ii) dispute regarding the creation of Rockwall County MUD No. 10 involving the Trilogy development inl Melendon-Chisholm city limits and extraterritorial jurisdiction; (iv) North Texas Municipal Water District easement and tree mitigation; and (v) moratorium on property development under Chapter 212, Subchapter E of the Texas Local Government Code; and Section 551.071: Consultation with Attorney regarding pending or contemplated litigation or settlement offer regarding: (i) Cityo of! Heath V. Mclendon-Chshom, Cause No. 1-22-1204; (ii) City of Heath V.  City Council Minutes - September 26, 2023  Page 6of7    Texas Commission on Environmental Quality, TCEQI Internal Control No. D-12302021-047 (iii) MC Trilogy Texas, LLC V. City of Heath, et al., Cause No. 3:22-CV-02154-D; and (iv) North Texas At 10:28 p.m, Mayor Elam closed Executive Session and reconvened the meeting into open session  Municipal Water District V. Cityo ofHeath, Cause No. 1-22-0704. stating that no action was taken ini the Executive Session. Mayor Elam adjourned the meeting at 10:28 p.m.  APPROVED: 5010 KELSON: ELAM MAYOR  ATTEST: Jpn NORMA! DUNCAN CITY SECRETARY  Dar  59  City Council Minutes - September 26, 2023  Page 7of7