MINUTES HEATH CITY COUNCIL COUNCIL REGULAR CALLED MEETING TUESDAY, MAY23, 2023 at 6:30 PM  ATTENDING: KELSON ELAM, MAYOR  PAUL: RUFFO, MAYOR: PROTEM SHARON CALDWELL JIM CHESTER RICH KRAUSE BRENT WEAVER  ABSENT: DONNA ROLATER  Mayor Kelson Elam called to order the Regular meeting at 6:30 p.m. Councilman Ruffo delivered the  Invocation and led the Pledge of Allegiance.  2. Public Comment 3. Proclamations  No one signed up tos speak ati the open forum. Mayor Elam read aloud two proclamations:  National Public Works Week - proclaiming the week of May 21-27, 2023 as National Public Works Week by recognizing the substantial contributions that these employees make to protect the citizen's health, safetya and qualityoflife. Present to receive the proclamation were. Directorof Public Works Matt Holzapfel, Randy Patton, Division Manager/Street and Larry Dunham, National Safe Boating Week - proclaiming the week of May 20-26, 2023 as National Safe Boating Week and urged all residents who boat to practice safe boating habits and wear a life jacket at all times while boating. Present to receive the proclamation were: Robert Nelson, Vice Commander and Ramiro Zamora, US Coast Guard Auxiliary Unit at Lake Ray Hubbard. 4.a Action Regarding the Minutes of the May 9, 2023 Regular Meeting and Work Session. MOTION: APPROVE CONSENT AGENDAI ITEM 4.a1 REGARDING MINUTES.  Division Manager/Utlities.  4. Consent Agenda  MOTION. MADE: SECONDED: APPROVED: ABSENT:  KRAUSE CHESTER ROLATER  PASSED UNANIMOUSLY BY THOSE PRESENT  5.b Case No. CUP-2023-01: Conduct a Public Hearing and act on an application for a zoning Conditional Use Permit to construct a guest house measuring 1,239 square feet 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 Ordinance No. 141118A. The subject property is located at 536I Lodge Hill Drive, being 1.155 acres ofland described as Lot 5, Block. A, Ridge Lakes PhaseI. Director of Planning Aaron Adel stated that this item was for a request for a Conditional Use Permit (CUP) for a guesthouse located at 536 Lodge Hill Drive and provided a background of actions that have happened SO far. The original application was presented to the Commission on April 4th and the Commission tabled it to their May 2nd meeting to allow the applicant time to coordinate with the staff to revise their application and reduce the requested square footage. There was no coordination between the applicant and the staff before the May 2 Planning and Zoning Commission meeting. Therefore, the Commission moved to deny the application without  City Council Minutes - May 23, 2023  Page 1of7    prejudice and a recommendation to waive the application fee for a new application within the next 12 months. Following the May 2 P&Z1 meeting, the applicant submitted a Request to Table to July 2023. The application does not comply with the minimum standards of the Heath Code of Ordinances, $ 159.21 (B)(14) that limits the number of accessory structures to one and the maximum size for a single accessory structure to 900 SF. Per S 159.80 (C)(3), because the P&Z denied the application, City Council approval requires the favorable vote of 3/4 of all members. Mayor Elam confirmed that if the item is denied with prejudice, the applicant cannot reapply for one year. Councilman Weaver recommended following the Commission's recommendation to deny the application without prejudice and waiving the application fee for one year. This would allow the applicant the opportunity to redesign their submittal and allow the item to go back MOTION: DENY WITHOUT PREJUDICE AND WAIVE THE APPLICATION FEE  through the P&Z approval process. Tabling is not a viable option.  WITHIN ATWELVE-MONTH PERIOD.  MOTION MADE: SECONDED: APPROVED: ABSENT:  WEAVER CALDWELL ROLATER  PASSED UNANIMOUSLY BYTHOSE: PRESENT  5.a Presentation of the Fiscal Year 2022 Financial Statements and Independent Audit Director of Finance Jay Ayers recognized Tara Plexico, Chief Financial Accountant for all work on working with the auditors and introduced Jon Watson, CPA at BW&C. Watson provided an Audit Presentation for fiscal year September 30, 2022 stating that the audit was performed in accordance with Generally Accepted Auditing Standards (GAAS). The City received an unmodified opinion rating which is the highest level of assurance. Financial highlights, City Revenues and Expenses, Statement of Revenues, expenditures and changes in fund balance (budget and actual), changes in net position and net pension liability and related ratios with TMRS. Regarding the total property taxes of $7.4 million this year and $7-5 million last year, Councilman Weaver reiterated that these numbers represent what this Council has done for the past several years in keeping property taxes flat as best they can and this Council and staff work diligently together tol keep it this way. Weaver thanked. Aretha and staff for their support in achieving this. Mayor Elam stated that these numbers look very healthy and everyone is doing a wonderful job and thank you for a great audit. 5.C Case FV-2023-03: Conduct a Public Hearing and consider approval of an Ordinance granting a Variance to $ 157.02 (C) and S 157.02 (E) ofthe Heath Code of Ordinances to allow a fence in front of the building line to be taller than four feet (4) and constructed of solid panels of metal pipe and vertical slats of treated lumber for property addressed as 5 Sandra Drive, being 5.41 acres in the (SF-43) Single Family Residential District, being Lot 1, Block A of Madebron Addition, City of Heath, Rockwall County, Texas. Section 157.02 (C) limits fences in the front yard to a maximum height of four feet (4'). Section 157.02 (E) requires fences in front of the building line to constructed ofornamental wrought iron or tubular: steel and have at Director ofl Planning Aaron Adel stated that this request is for a fence variance located at 5 Sandra Drive. Notice of Public Hearing was published in the Dallas Morning News, posted on the city website and mailed to neighboring properties on May 8, 2023. Seven responses were returned in favor of the request and none received in opposition. The applicant also provided a petition in support that was signed by neighbors. This case is for an existing five-foot fence that is a result of code violations that included: construction without a permit and fence built with unapproved material. The fence is located in front of the building line, measures five-feet in height and constructed of solid panels that are made of metal pipe and vertical wood slats that are reclaimed timber that is treated. The Heath Code of Ordinance limits fences in the front yard to four-feet and requires that the fence be made of ornamental wroughtiron or tubular steel and have at least 75% open area per lineal foot. The existing fence does not confirm to Chapter 157, Fences and  Report-Brooks Watson & Co., PLLC.  least 75% open area per linear foot. (Rockwall CAD ID No. 97705)  City Council Minutes - May 23, 2023  Page 2of7    requires a one-foot variance. Per the Heath Code of Ordinances, S 157.08 VARIANCES, the City Council may allow a variance to the provisions ofthe Fences Ordinance after a publicl hearing ifit determines that the enforcement of a provision in a particular instance meets one of these four provisions: 1. Is not in the best interests of the public; 2. Constitutes waste or inefficient use of land or other resources; 3. Creates an undue hardship on the applicant for a permit; or 4. Does  not serve: itsi intended purpose, is not effective or necessary HEARING to receive comments regarding the request. Mayor Elam opened the public hearing at 7:11 p.m.  Applicant, Jason Mueller, 5 Sandra Drive believes that his request for a variance meets all four provisions. Mueller hired a contractor to build the fence and assumed the contractor had applied for the proper permits. Removing the fence would create an undue hardship.  Mayor Elam closed thej publicl hearing at 7:16 p.m. Discussion and action regarding the request.  Councilman Weaver stated that he had multiple opposing positions on this situation. The property estate size is 5+ acres that can support fences that are outside the norm, but this Council has been consistent with not allowing tall privacy fences in the front yard, and occasionally approving taller fences built behind the buildline. The financial burden to remedy the violations would have been avoided if the permit process was done and for this reason the burden cannot be used as part of the rationale. Mayor Elam stated that approving this variance would set a precedent and that would come back to us in the: future. Further discussion between Council and Staff revealed the fence contractor had applied for, and been denied a permit due to the fence's  non-complance but built the fence anyway, without an approved permit.  MOTION: DENYTHE FENCE VARIANCE.  MOTION: MADE: SECONDED: APPROVED: ABSENT:  WEAVER MAYOR ELAM ROLATER  PASSED UNANIMOUSLY BY THOSE PRESENT  5.d Case FV-2023-04: Conduct a Public Hearing and consider approval of an Ordinance granting a Variance to S 157.02 (C) of the Heath Code of Ordinances to allow the construction of a fence in the front yard with a height of five feet (5) for property addressed as 1412 Hubbard Drive, a 1.5-acre lot in the (A) Agricultural District, being Lot 4 of Pecan Knoll Addition, City ofHeath, Rockwall County, Texas. Section 157.02 (C) limits fences in the front yard to a maximum height of four feet (4'). Director of Planning Aaron Adel stated that this item is for a fence variance regarding a proposed five-foot tall decorative wrought iron fence in the front yard located at 1412 Hubbard Drive. The Heath Code of Ordinances, S 157.02 (C) limits fences in the front yard to a maximum height of four feet. Notice of Public Hearing was published in the Dallas Morning News, posted on the city website and mailed to neighboring properties on May 8, 2023. Two responses from adjoining properties were returned in favor and none returned in opposition. Applicant/Owner, Matt Zahm was present and provided the following demonstrations for requesting ai five-foot fence: to keep his dogs inside the yard since they can jump a four-foot fence; adjoining neighbors have fences taller than four feet and would like to keep a consistent look; keep coyotes from jumping in the yard, curious traffic and a car wreck in front of property. Adel stated that the compliance summary was that the proposed fence does not conform to Chapter 157, Fences, per the Heath Code of Ordinances, S 157.08 VARIANCES, the City Council may allow a variance to the provisions of the Fences Ordinance after a public hearing ifi it determines that the enforcement of a provision in a particular instance: Is not in the best interests of the public; Constitutes waste or inefficient use of land or other resources; Creates an undue hardship on the applicant for a permit; or Does not serve  (Rockwall CADIDI No. 33909)  itsi intended purpose, is not effective or necessary.  City Council Minutes - May 23, 2023  Page. 3of7    HEARING to receive comments regarding the request. Mayor Elam opened thej public hearing at 7:31 p.m.  Applicant/owner. Matt Zahm, 1412 Hubbard Drive - stated that his neighbor's fences are all five- feet tall and his fence would be consistent with the neighbors. The taller fence would relieve the safety concern forl his small children and keeping his dogs in the yard and keeping coyotes out.  Mayor Elam closed the public hearing at 7:35] p.m. Discussion and action regarding the request.  Mayor Elam stated that this fence will fit in fine with the neighborhood, and that the property sits below the street elevation, and this is what fence variances are for. Councilman Weaver expressed his support for the request stating the fact that property falls off in elevation and the fence would be set back 10-15 feet from the road helps mitigate the fence height, and the proposed fence is consistent with the neighboring fences and is 75% open. Councilman Krause was in support of the request and stated that a similar fence was already on this lot but removed by the previous lot MOTION: APPROVE ORDINANCE NO. 230523A REGARDING A FENCE VARIANCE  owner/builder.  AT 1412 HUBBARD! DRIVE. MOTION: MADE: SECONDED: APPROVED: ABSENT:  CALDWELL KRAUSE ROLATER  PASSED UNANIMOUSLY BYTHOSE PRESENT  5.e Case SP-2023-02: Consider and act on a Site Plan for the Horizon Office Park Sandknop Health Medical Office Building, a proposed 18,000 square foot medical office building on 2.37 acres and a proposed detention pond common area lot on 1.03 acres of land described as Tract Two, W.W. Ford Survey, Abstract No. 80. The site is zoned (PD-LR) Planned Development for Local Retail Uses by Ordinance No. 170808A. The property is located at the northeast corner of Horizon Road and Jeff Director of Planning Aaron Adel stated that this request is for a Site Plan for a proposed 18,000 square-foot medical ofice building on 2.37 acres and a proposed detention pond common area with an existing lift station lot on 1.03 acres of land located at the northeast corner of Horizon Road and Jeff Boyd Road. The lift station is in a City of Heath Access Easement connected to two 15' City of Heath Utility Easements: one easement contains an 8" sanitary sewer line and one easement contains a sanitary sewer force main. The two lots are connected by a 15' drainage and utility easement. On April 27, 2023, the Architectural Review Board recommended approval as presented and the Planning & Zoning Commission recommended approval at their May 2, 2023 meeting. The 2018 Comprehensive Plan's Future Land Use Plan depicts the property as Office Use described as, "small-scale offices (one- or two-story) such as doctors', lawyers' and realtors' offices." The application conforms to the Future Land Use Plan. The subject project involves three lots within the Preliminary Plat of Horizon Professional Office Park: Lots 3 & 4 are the 2.37 acre Building Lot/Site Plan; Lot 7i is the one-acre. Detention Pond/Common Area Lot; and thei following approval of the Site Plan, a Final Plat is the next step in the development process. Adel addressed  Boyd Road. (Rockwall CAD ID: No. 330339 and' 71055)  the key elements oft the Site Plan that included: Building Lines: 50' front, 20' side and rear Total Landscaped Area = 27.4% 120. Total spaçes provided = 129. 24' Access, Fire Lane, & Utility Easement surrounding the building. Proposed 6" sewer service and 6" water service 20') Landscape and Utility Easement along Horizon Road frontage  Total Impervious Area = 72.6%, ofwhich the Total building Coverage = 17.4%  471 Parking Spaces = 129; $ 159.64 requires 1 space per 150 SF medical office use. Total required spaces=  City Council Minutes - May 23, 2023  Page 4 of7    5'sidewalk; 3' from curb  Masonry materials coverage should at least 80%, Masonry Veneers made of natural stone veneer, brick veneer, Architectural Stone veneer, 3-Step Stucco, Architectural Cast Stone and Fiber Cement Wood Plank. The building heights are all under the 40' allowed in the PD. Photometric Plan includes: Pole height and fixtures conform to the Outdoor Lighting/Dark Sky Ordinance; Max allowed FC at any point: 5.0, max proposed: 3.2; Max allowed FC atl boundary: 1.5 adjacent to non- residential property and 0.5 adjacent to ROW, max proposed 0.5; and Final Photometric Plan submitted with building permit to include a statement from the engineer confirming max 65,000 lumens per net acre & max average 1.5 FC: for site parking, pedestrian ways & fire lanes.Adel stated that in summary, the Site Plan conforms to the (PD-LR) Planned Development Ordinance No. Mayor Pro Tem Ruffo asked if this request falls under a previously approved Planned Development. Councilman Weaver asked for confirmation that the landscaping coverage was 27% as it appeared tol be much less, and commenting for the record that this PD was approved over six years ago when a different set ofi rules applied regarding impervious coverage. Applicant and Engineer Dub Douphrate, Douphrate & Associates, Inc., 2235 Ridge Road, Rockwall, was present and confirmed that measurements were taken on the impervious coverage and landscaped area and the percentage of 27.4% is correct. Architect Cameron Victor, McCalla Design Group, 5912 Ridge Road, Rockwall was also present and confirmed that the cut sheet drawings showing the wall packs were submitted to staff and comply with the City's lighting requirements, and photometric plan takes into MOTION: APPROVE A SITE PLAN FOR THE HORIZON OFFICE PARK SANDKNOP HEALTH MEDICAL OFFICE BUILDING LOCATED ATTHEI NORTHEAST CORNER OF  170808A and the 2018 Comprehensive Plan.  consideration the wall packs.  HORIZON ROAD AND JEFF BOYD ROAD.  MOTION MADE: SECONDED: APPROVED: ABSENT:  MAYOR ELAM CALDWELL ROLATER  PASSED UNANIMOUSLY BYTHOSE: PRESENT  5.f Case No. ZA-2023-04: Conduct a Public Hearing for and application to change the zoning on 2.463 acres of land from Towne Center Overlay District with a base zoning classification of Local retail (LR) District to a Planned Development (PD) for Towne Center Overlay District, with certain uses being excluded, for "bank office uses only" with a parking ratio of one parking space per 250 SF ofl building area. (A related case for a Conditional Use Permit has been submitted case. file CUP-2023-03.- A related Site Plan case has been submitted under case. file SP-2023-01.) Applicant requests Mayor Elam stated that the next three are pulled together and the applicant has asked to table all three items. We are in very open discussions with that group in what we are looking for from an architectural standpoint and they are supposed to come back to us with a true historic landmark Mayor Elam opened the public hearing at 8:12 p.m. and Mayor Elam stated that the public hearing  this item bei tabled to the next City Council meeting ofJune 13, 2023.  design.  HEARING to receive comments regarding the request.  will continue until the. June 13, 2023 meeting.  MOTION: TABLE. ITEMTOTHEJUNE 13, 2023 COUNCIL MEETING.  MOTION MADE: SECONDED: APPROVED: ABSENT:  MAYOR ELAM KRAUSE ROLATER  PASSED UNANIMOUSLY, BYTHOSE: PRESENT  City Council Minutes - May 23, 2023  Page 5of7    5-8 Case No. CUP-2023-03: Conduct aj public hearing for an application for a Conditional Use Permit (CUP) to allow a drive-through motor bank and a two-story building within the Towne Center Overlay District. The site is 2.463 acres ofland described as Tract 1, Antonio Rodriguez Survey, Abstract No. 231, zoned Towne Center Overlay District, with a base zoning classification of (LR) Local Retail District located at the intersection ofFM 740 and FM 549. (Rockwall CAD ID No. 13000) (A related Zoning Change case has been submitted under case file ZA-2023-04. A related Site Plan application has been submitted under casej file SP-2023-01.). Applicant requests this Mayor Elam opened the public hearing at 8:12 p.m. Mayor Elam stated that the public hearing will  item be tabled to the next City Council meeting ofJune. 13, 2023. HEARING to receive comments regarding the request.  continue until the. June 13, 2023 meeting.  MOTION: TABETTNTOTIEIUNE 13, 2023 COUNCIL: MEETING.  MOTION MADE: SECONDED: APPROVED: ABSENT:  MAYOR ELAM KRAUSE ROLATER  PASSED UNANIMOUSLY BYTHOSE PRESENT  5.h Case No. SP-2023-01: Consider and act on a Site Plan for the American National Bank, a proposed 19,781 square foot bank and office building in the Towne Center Overlay District with requested variances to 1.) building height, 2.) building area per tenant, 3.) tower height, 4.) tower area atl base 5.) signage height, 6.) impervious area requirement, 7.) site lighting and other variances as necessary. The site is 2.463 acres of land described as Tract 1, Antonio Rodriguez Survey, Abstract No. 231, zoned Towne Center Overlay District, with a base zoning classification of (LR) Local Retail District located at the intersection of FM 740 and FM 549. (Rockwall CAD ID No. 13000) (A related Zoning Change and Conditional Use Permit cases have been submitted under case files ZA-2023-04 and CUP-2023-03-) Applicant requests this  item be tabled to the next City Council meeting ofJune 13, 2023. MOTION: TABLE ITEM' TO1 THE. JUNE: 13, 2023 COUNCIL MEETING.  MOTION. MADE: SECONDED: APPROVED: ABSENT:  MAYOR ELAM KRAUSE ROLATER  PASSED UNANIMOUSLY BYTHOSE: PRESENT  5.i Presentation of] Mid-year Financial Update  Director of Finance Jay Ayers provided a presentation on the Mid-year Financial Report 2022- 2023 stating that the annual Mid-year Report is an essential element in maintaining financial stability. The report provides the City Council an opportunity to review the General Fund and other funds; make informed decisions to approve adjustments to budget through amendment and help shape the development of next year's budget. The presentation covered FY 2022-23 General Fund Revenues, Major General Fund Revenues by the Numbers, FY 2022-23 General Fund Expenditures Update, Revenue V Expenditures Outlook, All Other Operating Funds Review and Highlights including Solid Waste and Water & Sewer and Looking Forward. Ayers concluded the presentation by stating that overall, the Mid-year Financial Report is positive, most of General Fund Revenues are expected to meet original budget estimates, departments are doing an excellent job of controlling expenditures as much as possible, the City plans to stay the course and remain fiscally conservative and staff will continue to monitor budgetary needs as we progress through the rest of thei fiscal year. The budget amendment to cover additional expenditures willl bej presented to  the City Council ifr necessary.  City Council Minutes - May 23, 2023  Page 6of7    Mayor Pro Tem Ruffo asked to revisit item 5.e regarding the Health Medical Office Building and asked if staff would verify that everything discussed was covered in the original PD that was approved back on August 8, 2017. The Mayor asked that staff add an item to the. June 13th Council  meeting to review the original approved PD tol help to clarify these questions.  6. Council/City Manager Comments  City Manager Aretha Adams thanked Jay and Tara for the financial audit and stated that Tara's leadership has risen to thei top during the struggle in that department. Adams also thanked the staff and the City Council. Mayor Elam asked that the Council think about ideas for their participation  int the Fourth ofJuly hometown parade.  7. Executive Session  At 8:48 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 oft the State Bar of Texas clearly conflicts with this chapter, regarding: (i) zoning and platting standards, Local Government Code shot clock, and Trilogy final plat; (ii) Trilogy development in Melendon-Chisholm city limits and extraterritorial jurisdiction; (ii) dispute regarding the creation of Rockwall County MUD No. 10 involving the Trilogy development in Melendon-Chisholm city limits and extraterritorial jurisdiction; (iv) North Texas Municipal Water District easement and tree mitigation; and (v) July 4th Parade Registration Process; Section 551.071: Consultation with Attorney regarding pending or contemplated litigation or settlement offer re: (i) City of Heath VS Melendon-Chisholm, Cause No. 1-22-1204; (ii) City of Heath V. Texas Commission on Environmental Quality, TCEQ Internal Control No. D- 12302021-047, regarding the creation of Rockwall County MUD: No. 10; (iri) North Texas Municipal Water District VS. City of Heath, Cause No. 1-22-0704; (iv) MCTrilogy Texas, LLC City of Heath, et al., Cause No. 3:22-CV-02154-D; and (v) acquisition of a 4.644-acre parcel for a pump station and ground storage tank generally located on the southwest side of Hanby Lane, +/-3 3,100' southeast of Hope Drive, in Heath, Rockwall County, Texas; and Section 551.072: To deliberate the purchase, exchange, lease, or value of real property regarding: (i) acquisition ofa 4.644-acre parcel for aj pump station and ground storage tank generally located on the southwest side of Hanby Lane, +/-3 3,100' At 9:32 p.m, Mayor Elam closed Executive Session and reconvened the meeting into open session  southeast of Hope Drive, in Heath, Rockwall County, Texas. stating that no action was taken in the Executive Session. Mayor Elam adjourned the meeting at 9:32] p.m.  APPROVED: OEL KELSON ELAM MAYOR  ATTEST:  Vomdlogan NORMA! DUNCAN CITY SECRETARY  OF HE  EOF  City Council. Minutes- May. 23, 2023  Page 7of7