MINUTES REGULAR CALLED MEETING HEATH CITY COUNCIL TUESDAY, SEPTEMBER 24, 2024 at 6:30 PM  ATTENDING: JEREMIAH MCCLURE, MAYOR  RICH KRAUSE, MAYOR PROTEM SHARON CALDWELL SCOTTI DODSON RYAN MOORMAN PAUL: RUFFO BRENT WEAVER  Mayor. Jeremiah McClure called to order the Regular meeting at 6:30 p.m. Councilman Weaver delivered  the Invocation and led the Pledge of Allegiance.  2. Public Comment  Roy Richardson, 13720 Stirrup Court, Forney, TX - stated that the City of Heath did an Annexation Plan several years agoand created a 212 Development Agreement: fora all the residents in Saddle Club because the City had a vision to protect its home values which was fantastic. Last week, ai neighbor moved in a single-wide mobile home and we are afraid that before tool long, we will have al mobile-home park. Richardson asked the City Council to take a look at this] problem. Deeanne Dockins, 149 Country Club was present at the September 10th Council Meeting and many residents were left waiting for over three hours while the City Council met in Executive Session. Dockins expressed her frustration and stated that she felt that this was a way for the Council to minimize the number of people who were present to speak at the public hearing Steve Geisman, 12551 Saddle Club - spoke in opposition to the mobile home that has moved into Saddle Club: and stated that per the 212 Development. Agreement, all residents of Saddle Club who signed the agreement agreed to uphold the City's vision of rural and upscale community. There are several members of Saddle Club present tonight and we ask that the City communicate with Mayor McClure stated that City Staff would address the mobile home issue and also stated that the Cityi isi in a wholel lotoflitigation: right now and spent a lot oft time in executive session at the Sept: 10th meetingpartlyduetocoordinating Zoom-time withi the attorneysande ensured the citizens thati moving forward, he would do a better jobi in transitioning from open session to executive session and would  regarding the Perry Property.  the residents regarding this eye-sour.  communicate more effectively with the residents.  3. Recognition  Marine Corps Reserve Toys to Toys Program - Mayor McClure read aloud a proclamation dedicating October 1, 2024, as Toys for Tots 2024 Campaign Kick-Off: Day to raise awareness for those in need and ensure that "No Child Goes Without' on Christmas Day. Present to: receive the Proclamation were. Jeff Skinner and Evan Stokes of Stoked Out Construction, Title Sponsor of the FBI-LEEDA. Agency Trilogy Award - Greg Hamilton, retired' Travis County Sheriff and President of FBI-LEEDA presented the award to the Heath Department of Public Safety stating that the FEEDA award is a distinguished accomplishment awarded to the entire HDPS command staff for completing the FBI Law Enforcement Executive Development Association series that consists of three flagship courses: Supervisor Leadership, Command Leadership and Executive Leadership. Heath is only the 15th agency in Texas to receive this award. Present to accept the award were: Blake Mokiao, Fire Marshal Brandon Peterson, Kenny Griffith, Captain Michael Morgan, Chief Brandon Seery, Captain Keven Rowan, Sgt. Dallas Talley, Justin Smith and Billy' Termin.  December, 5th "Santa at Standard" event.  Cily Council Minutes September 24, 2024  Pagelof13    4. Council/City Manager Comments  City Manager Lasher announced that Tuesday, October 1st is National Night Out in the Heath Fire Bay and behind City Hall from 6p-8p. Also, on October 1st, the intersection at Hubbard Drive and Rush Creek will open and thanked Director of Public Works Bryan Creek and Assistant Director of Public Works Mike Shook for their work on this project. Construction will close-down fort two weeks from Oct 7-19th to accommodate the 2024 International Sunfish Class Association World  Championships at Rush Creek (Oct12-19).  5. Consent. Agenda  5.a Action Regarding the Minutes oft the September 10, 2024 Regular Meeting,  5.b Action Regarding an Ordinance. Approving an Annual Update to the Service and Assessment Plani fort the Haciendas Del Lago Publicl Improvement District; Providinga a Severability Clause; Providing an Effective Date; and Ordaining Other Provisions Relating tot the Subject. 5.C Action Regarding Resolution No. 240924A of the City Council of the City of Heath, Texas, Authorizing the Execution of a Cyber Liability and Data Breach Interlocal Agreement with the Texas Municipal League Intergovernmental Risk Pool for the 2024-2025 fiscal year; and Mayor McClure asked to remove item 5d from Consent. Agenda for Individual Consideration. MOTION: APPROVE CONSENT AGENDA, ITEM 5-a REGARDING SEPTEMBER 10, 2024 REGULAR MEETING MINUTES; ITEM 5.b ORDINANCE NO. 240924A REGARDING SERVICE. AND ASSESSMENT PLAN FOR HACIENDAS DEL LAGOI PID; AND ITEM 5.C REGARDING RESOLUTION NO. 240924A CYBER LIABILITY AND DATABREACHINTELOCALAGREEMEMENTWITHTMLINTERGOVERNMENTALRISK  providing an Effective Date.  5.d Action Regarding 900 Heathland Crossing Oncor Easement.  POOL. MOTION MADE: SECONDED: APPROVED:  WEAVER CALDWELL  Councilman Krause thanked Jay for answering his questions  PASSED UNANIMOUSLY  5.d Action Regarding 900 Heathland Crossing Oncor Easement. MOTION: TABLE ITEM' TO OCTOBER 8, 2024 COUNCIL MEETING.  MOTION. MADE: SECONDED: APPROVED:  WEAVER KRAUSE  PASSED UNANIMOUSLY  6.a Discussion and Action Regarding a Resolution for a Final Construction Budget for City Manager Kevin Lasher welcomed members of the Park Board who were attending tonight, Chairman Katie Dyer and Anthony Berg, and thanked Suzanne Brooke for her work on this item. The firm of Hill & Wilkinson received the initial bids for the renovations and improvements to Towne Center Park on August 15, 2024. The initial prices came in over budget by approximately 2 million dollars. Most of these overages were the result of inflated unit pricing resulting from the recent surge of construction costs caused by demand, a 14% inflation rate for labor and material costs, and supply chain disruptions. The Parks Board has vetted the proposed deductions for a recommendation of acceptance of a Guaranteed Maximum Price (GMP) of $12,835,902. Representatives from Kimley-Horn and Hill & Wilkinson will attend the meeting toreview thel bids, and scope substitutions considered to achieve cost savings. The proposed GMP would be funded mainly by $12,250,000 of proceeds from the Certificate of Obligations, Series 2023 bonds. The Parks Board has authorized an additional $1.2 million contribution from the Park Capital Improvement Plan (CIP) Fund, which is fully funded by the Heath Municipal Benefits Corporation (HMBC) and the Heath Economic Development Corporation (HEDC). This contribution will  Renovations and Improvements to' Towne Center Park.  City Council Minutes September. 24, 2024  Page 2of13    supplement the existing project budget and cover additional expenses.. At their regular meeting on September 16, 2024, the Parks Board, by a unanimous vote, recommended approval of the GMP and authorized a contribution of $1.2 million from the Park CIP Fund to cover expenses related to the Towne Center Park project. The Notice Resolution was adopted at the September 12, 2023 meeting. Thej presentation contains a' "proposed capitalimprovement: program" tob be financed with proceeds of the Series 2023 CO's, which includes a proposed allocation of proceeds to certain projects. The City's Fiscal Year 2023-2024 Annual Budget and information made available to the public with respect toi the budget, which was adopted by the City Council around the time that the Notice: resolution was adopted, contemplated the issuance of the Series 2023 CO's for certain oft the listed projects, including the Public Safety Project, Public Works Facility and Towne Center Park. According tot the City's Bond Attorney, Greg Schaecher, "Ifthe City Council took action tos specify or during its deliberations made statements or presented information that was in effect incorporated intoi its actions relating to the authorization oft the Series 2023 COs that had the effect of specifying the amount of proceeds of the COs that would be used for a particular purpose or to the effect that acertain project would be undertaken or completed in aj particular manner, it isl likely that the City Council would be bound by such action." The original budget was based on the estimate received from Kimley-Horn of $12,250,000. This figure was then entered into the Notice Resolution for the Series 2023 Certificates of Obligation. The initial estimate from Hill & Wilkinson came in at $14,035,101, then after several internal meetings with Kimley-Horn and Hill, scope deductions in the amount of $1,199,199 were identified. This knocked the estimate down to $12,835,902. Staff then determined that $954,900 in design fees for Kimley would be deducted from the estimated amount. Out of these fees, $758,650 has been paid to date, leaving a remainder of $196,250. Since these fees have already been paid, the budget increased by $758,650 to $13,594,552, then as a part of the joint agreement between the Parks Board and City Council, the Parks Board will designate $1.2 million from the Park CIP Fund to cover overage expenses related tot the project. The Parks CIP funds, along with some gifted funds, would be used ini the following manner: $196,2soofremaining design fees willl be retained to reduce project costs. [$13,398,302); $200,000 as a gift contribution will be applied to cover the Pickle Ball courts. [$13,198,302); and oft the $1,200,000 from the Park CIP fund, $948,302 will be applied to reduce project costs to the original bonded level of $12,250,000. The remaining $251,698 of the Parks CIP contribution will be retained until the project is completed. Unused funds will bei transferred back to the Parks CIP. Mayor McClure opened a public forum and asked for additional citizen comments: Paulette Bessel,113 Falcon Point Drive spoke regarding the Bristol Valley Development, stating that the original plan was 64 homes, and now it's over 100 homes. Her concern is that a lotof this land is wetland. Additional concerns are drainage and traffic, especially the blind curve on McDonald Road. What is Bristol Valley doing about McDonald Road? Citizens like myself who Katie Dyer, 3 Camden Court, Park Board Chairman-Encourage the Council to approve the budget and the improvements for Towne Center Park SO we can complete this project by Christmas 2025. Thanks for the bond and the support of the council and MBC/EDC. We are finally getting premier amenities with this park. She thanked Rich Krause: for his leadership for Anthony Berg, 4 Camden Court, Park Board Vice-Chairman - spoke in support of the new park and thanked the Council for their support and commitment to ensure we remain a vibrant Emily Drake, Planner, Landscape Architect at Kimley-Horn, provided a presentation. The park planning began in 2020 and is expected to be completed by the end of 2025. The presentation provided visuals of all the amenities that the citizens asked for in the survey. This park will be a showcase and a special place for the city. Lasher stated that the schedule oft the Park will start with the City of Heath officially closing the park toi thej public on September. 27th; CMAR Contract will go before the City Council on October 8th. Hill & Wilkinson will be mobilizing on site on October 14th, pending final contract execution. Temporary fencing and erosion control will start the week of October14th. Lashercommended Hill & Wilkinson, Director ofPublic Works Bryan Creed, and Amy Sparks, APHE Principal, for working together on this project. The Council continued discussion and Council consensus was in strong support to: move: forward with the approval oft the resolution.  live in Falcon Point have not heard from thei new developers.  many years on the Park Board.  community.  City Council Minutes September 24, 2024  Page3of13    MOTION TO APPROVE RESOLUTION NUMBER 240924B REGARDING A FINAL CONSTRUCTION BUDGET FOR RENOVATIONS AND IMPROVEMENTS TO TOWNE  CENTER PARK. MOTION: MADE: SECONDED: APPROVED:  RUFFO CALDWELL PASSED UNANIMOUSLY  6.b Discussion and Action Regarding Resolution No. 240924C of the City Council of the City of Heath, Texas, Authorizing a $1.2 milllion contribution from the Park Capital Improvement Plan (CIP) Fund to support the completion of the Towne Center Park project and approving the execution of aj project agreement with the Parks Board. Finance DirectorJay. Ayers stated that thisi item wasi for the approval ofal Resolution regarding a $1.2 million contribution from the Park CIP Fund for Towne Center Park and authorizing the project agreement with thel Parks Board. The' Towne Centerl Park] projectiscurrentlyi fundedb by $12.25million from Certificate of Obligations, Series 2023. This additional contribution of $1.2 million from the Park CIP Fund will bei fully funded by HMBC: and HEDC: and the purpose is to cover additional costs related to architectural services, construction, landscaping, and project enhancements. The total budget will increase from $12.25 million to $13.45million. And there will be no additional burden on the City's general fund or tax rate. The use of funds will allow flexibility to handle unforeseen costs and ensure project completion. Staff recommends approval of the Resolution that will authorize the Mayor to execute the project agreement with the Parks Board to ensure successful completion. MOTION: APPROVE RESOLUTION NO. 240924CTO $1.2 MILLION CONTRIBUTION FROM THE PARK CAPITAL IMPROVEMENT PLAN TO SUPPORTTHE COMPLETION  OF' THETOWNE CENTER PARK PROJECT.  MOTION MADE: SECONDED: APPROVED:  DODSON KRAUSE  PASSED UNANIMOUSLY  6.g Case No. FP-2024-08: Consider and act on a Facilities Agreement between the City of Heath and the Estates of Bristol Valley, LLC concerning the development of the Final Director of Community Development David Gonzales stated that per $158.18 of the Heath Code of Ordinances, the owner/developer enters into an agreement with the city which will govern the subdivision and will provide the city with specificauthorityto: complete the improvements required in the agreement: in the event of failure by the developer and to recover the fulll legal cost of these measures. These: agreements aret typicalyimplemented in conjunction withi the reviewand: approval of a final plat. Public improvements addressed by this agreement would include the following elements: Improvement of McDonald Road is included in the 10-year Capital Improvement Program of the City of Heath Roadway Thoroughfare Impact Fee Assessment, 2019-2029. The planned McDonald Road improvements will extend from Rabbit Ridge to Stevens Road. Improvement ofl McDonald Road will bei funded in whole ori in part byi impact fees and is not subject to developer funding based on rough proportionality. The City of Heath will schedule the improvement of McDonald Road based on funding availabilitya and City Council priorities from the aforementioned impact fees. An 18" waterline will be extended along the frontage of McDonald Road ROW toi the end oft the Developer Property per the request oft the City as this upsizing project isi included ini the City's Water Capital Improvement Program. The City agrees toj participate in the cost of the Oversize waterline between the cost of a 12" waterline and the 18" waterline including valves, fittings, casing pipes, and air release valves as per the agreement. The Developer agrees to construct the appropriate on-site infrastructure necessary to serve the Developer Property per the City ofHeath design requirementsand: ass shown on theapproved construction plans. Thel Developer will meet the Fee-In-Lieu ofLand Dedication," and the "Park Development Fees" requirements of $3,540.13 per dwelling unit as required by Section 158.59 of the Code of Ordinances as each home is final platted. The Developer agrees to provide a ten-(10) foot trail within the development and adjacent to McDonald Road within the Pedestrian Access Easement wherei indicated as Open! Space on the Final Plat and as approved via the Lakewood Meadows Preliminary Plat and in accordance  Plat ofthe Estates of Bristol Valley Addition.  City Council Minutes September 24, 2024  Page4of13    with the City's Master Parks, Recreation and Trails Plan. This agreement was submitted to the City MOTION: APPROVE FACILITIES AGREEMENT OF BRISTOLVALLEYLLC.  Attorney for final legal review. MOTION. MADE: SECONDED: APPROVED:  WEAVER DODSON  PASSED UNANIMOUSLY  6.h Case No. FP-2024-08: Consider and act on a Final Plat for the Estates of Bristol Valley Addition containing 24 Single-Family lots and two common areas, being a 42.903-acre tract of land, and zoned (PD-SF) Planned Development District for Single-Family Residential uses, by Ordinance No. 191008A, located west ofMcDonald Road and south of Falcon Point Drive and being described as A0231 Antonio Rodriquez Survey, Tract No.'s11-02 and 51-01, CityofHeath, Rockwall Co, TX. RechwalCADNosiagis and 13004. Director of Community Development David Gonzales stated that this request was for a Final Plat of thel Estates ofthe Bristol Valley fort the purpose ofconstructing 24 single-family residentiall home sites zoned (PD-SF) Planned Development District for Single-Family Residential Uses by Ord. No. 191008A. The Preliminary Plat was under Lakewood Meadows. Access is from McDonald Road and south of Falcon Point Dr. The' Treescape Plan has been completed with the preliminary plat and will be reviewed at the time of each building permit. The property is served by the City of Heath sewer facilities and will access sewer from an 8" line located at the Falcon Point Subdivision. The propertyi is served by the City of Heath water system and will access water from an 8" water line located at the Falcon Point Subdivision. The city will participate in the upsizing of the water line from a 12" line to an18" water line and is funded through the collection ofi impact fees. Grading and drainage plans will be reviewed with thel building permit. Total Parki fees are $84,963.12 prior to signing or filing thei final plat. The Development. Agreement tot the City Council with thel Final Plati toi include the design, layout, and specifications for the trail system for the property and the upsizing of the waterline from 12" to 18". The final plat conforms to the Future Land Use Plan designation of Rural Estates and to the Preliminary PlatofLakewood: Meadows. Perstatel law, a plati reviewisar ministerial: function.. Applicant Michael R. Joyce with Michael Joyce Properties was present to answer any questions and confirmed that there are: no deviations from the 2019 Lakewood! Meadows Preliminary Plat. Councilman Weaver clarified that in 2004, aj phase of Falcon Point was approved by aj previous council that resulted inl lots that were smaller than anything that we would have ever approved, however per state law we cannot un-approve this 2004 development. In 2019, we approved Lakewood Meadows with a minimum of one-acre lots excluding floodplain. The two developments from 2004 and 2019 are now being combined and re-split into two plats. Staff recommends approval with a condition that the Development. Agreement with the Final Platincludes the design, layout, and specifications fori thet trail system for thej property (Lakewood Meadows Preliminary Plat) and the upsizing of the waterline from MOTION: APPROVE THE FINAL PLAT OF ESTATES OF BRISTOL VALLEY. ADDITION LOCATED WESTOFMCDONALD ROAD AND: SOUTHOFFALCON POINTDRIVEWITE  12"to18".  STAFF RECOMMENDATION. MOTION MADE: SECONDED: APPROVED:  DODSON CALDWELL PASSED UNANIMOUSLY  6.i Case No. FP-2024-09: Consider and act on a Facilities Agreement between the City of Heath and the TM Bristol Valley, LLC concerning the development of the Final Plat of Director of Community Development David Gonzales stated that as explained in the previous item, this Facility. Agreement shall provide the city with specific authority to complete the improvements required in the agreement, the two differences: 1. the tree mitigation in the amount of $653,731.20 and due at the time of filling of the final plat; and 2. the applicant will provide a City-approved emergency siren at a location within the property mutually agreed upon by the Developer and the City, with a preference, given tol locations near schools, parks, or other public places. The emergency  the Bristol Valley, Phase One. Addition.  City Council Minutes September 24, 2024  Page 5of13    siren shall be of quality comparable to those approved by the City within twelve (12) months preceding the effective date. Councilman Weaver asked for clarification on thet tree mitigation, and Gonzales stated that there are over: 12,000 caliper inches oft trees to mitigate, and the developer is providing 4" trees fore each property, and the final mitigation balance of 4,082 inches will be paid at $162/in. Staff recommends approval with the condition provided by the City Engineer to amend Section B, DRAINAGE, to state, The Developer requests the use oflot-to-lot drainage to decrease the impact on trees and preserve the natural character of the property. The Developer has placed drainage easements on the plat at all locations where lot-to-lot drainage is needed, and a note will be added to the final plat requiring that all drainage easements remain in place and not be blocked to divert water out of the easements. The Mayor thanked the developer for offering up this siren MOTION: APPROVEFACILITIESAGREEMENTOFTMBRISTOLVALLEYILC.WITH  system and for working with staff on trying to connect trails.  STAFF RECOMMENDATION. MOTION MADE: SECONDED: APPROVED:  CALDWELL DODSON  PASSED UNANIMOUSLY  6.j Casel No. FP-2024-09: Considerandact: on al Final Plat for thel BristolValley, Phase One Addition containing 103 Single-Family lots and seven common areas, beingai 184.428- acre tract ofland, and zoned (PD-SF) Planned Development District for Single-Family Residential uses, by Ordinance No. 040715A and Ordinance No. 191008A, generally located west of] McDonald Road and south ofl Falcon Point Drive, and being described as A0231 Antonio Rodriquez: Survey, Tract No.'s31and. 51-01, City of Heath, Rockwall Director of Community Development David Gonzales stated that this item is for a Final Plat to construct103 single-family residential home sites, zoned (PD-SF) Planned Development District for Single-Family Residential Uses by Ord. No. 140715A and Ord. No. 191008A. Preliminary Plats: Lakewood Meadows and Falcon Point Phase Three. Access is from McDonald Road and south of Falcon Point Drive. The final plat conformst tot the Zoning Ordinance: and the Subdivision Regulations and to the Future Land Use Plan. Staff recommends approval with the condition that the Final Plat includes the design, layout, and specifications for the trail system for the property (Lakewood Preliminary Plat) and the upsizing of the waterline from 12" to 18". Councilman Weaver clarified that partofthis] plati ist the 2019 approval for net one acre lots, and another parti is the 2004 approval that are the smaller lots. We cannot un-approve a zoning that was approved 20 years ago and it becomes a ministerial approval as long as it complies with the zoning at the time. And please be MOTION: APPROVE THE FINAL PLAT FOR BRISTOL VALLEY, PHASE ONE LOCATED WEST OFMCDONALDS ROAD AND FALCON POINTDRIVE.  County, Texas. Rockwall CADNO.s12965: and 13004.  aware, this isj just a piece ofthe 2004 approval and there is more coming.  MOTION MADE: SECONDED: APPROVED:  RUFFO CALDWELL  Councilman Weaver clarified that there have been no changes in this Final Plat from the 2019  Preliminary Plat, and the developer confirmed that there are no changes.  PASSED UNANIMOUSLY  6.n Casel No. ZA-2024-02R: Conduct a Public Hearing and act on an application to change the zoning classification from (A) Agricultural District to (PD-SF) Planned Development for (SF-43)S Single Family Residential Uses for] propertyaddressed 6717 SFM 549 and further described as Tract 15, A. Rodriguez Survey, Abstract 231, City of Heath, Rockwall County, Texas. (Rockwall CAD No. 12922.) The zoning change aims to facilitate the creation ofai residential subdivision to contain no moret than ten Assistant City Manager. Aaron Adel stated that this item is a zoning request from (A). Agricultural District to (PD-SF) Planned Development for SF-43 Single Family Residential Uses. Notice of  (10) residential lots measuring at least one developable acre.  City Council Minutes September 24, 2024  Page6of13    Public Hearing was mailed out on August 16th, At their. July 2nd meeting, the Commission denied the original application. At the City Council meeting of. July 23rd, the application was withdrawn and on September 3rd, the Commission approved the application. The original Concept Plan included 121 lots wthaissoftcn-de-sac' with intermediate turnaround: and one common detention pond. The Commission feedback was fori the applicant toi focus on reducing thel lot count, increasing some lots to more than 1 acre, to push the set back to 50 feet and to make the layout more unique. The revised application is a new concept plan that reduced the lot count from 12 lots to 10 lots, including 2 lots at approximately 1.5 acres, and includes a second detention pond, more landscaping, 10-foot trail, two landscape medians and a 50-foot setback. As opposed to four variances, the newa application has only one variance thati is related tot the cul-de-sacl length. Density and Dimension requirements conform to SF-43, 100% masonry (max 20% stucco); garages are. J- swing or setback 75 feet; detached garages offset per SF-43, fencing is all ornamental wroughtiron, streets conform to EDS; cul-de-sac variance forl length, sidewalks are. 41 foot width and 4 ft to curb and street lighting conforms to the Outdoor Lighting Ordinance. Drainage standards confirm to EDS and City Engineer approval HOA. Cul-de-sac standards conform to EDS and Fire Code with the exception of the cul-de-saclength variance requested. The proposed zoning change compliance with the Zoning Ordinanceisad discretionary decision and should be made in conformance withi the Comprehensive Plan. Future Land Use Plan is designated as Rural Estates. Rural Estates accommodate large-lot, SF development with lot sizes of1.0+ developable acres (net of floodplains, ROW, and bodies of water.) The PD-SF43 Concept Plan is in conformance with one of the Rural Estates designations. The current Ag District designation and the SFE-3.0 District would also conform toi the Rural Estates designation. The proposed zoning change substantially complies with the Heath Code ofOrdinances with thee exception oft the Cul-de-sacl LengthV Variance. Sanitary sewer isa available to the site: from a 10" line at Dennis Bailey and 549. Water is available to the site. There are: multiple water service linesi ini the vicinity: 12" and 8" lines at the intersection of Dennis Bailey and 549 and a 12" line along the opposite side of549.' The applicant's engineer will propose thel best solution for the site to be reviewed by the City Engineer in the construction plans submitted with thei final plat.. Jim Knight, Engineer KFM: Engineering & Design was present and stated that his] plan ist to work with the community, add value and deliver a quality product for the community. (at 9:301 p.m., the council paused the meetingforas-minute break andi reconvened at 9:35p.m.) HEARING to receive comments regarding thei request. Mayor McClure opened the public hearing at 9:40 p.m. Mayor McClure closed the public hearing at 9:42 p.m.  Allen Dowell, 1677 FM 549 - stated that he and his family havel been trying to sell this property for Councilman Weaver commended the applicant for working through this process and making the MOTION: PER THE ADVICE OF OURIEGALCOUNSEL IMAKEA A MOTION TOTABLE THIS ITEM TO' THE OCTOBER 8, 2024 CITY COUNCIL MEETING AND KEEP PUBLIC  over two, years and thanked everyone involved in making this happen.  lots as large as possible. HEARING OPEN. MOTION MADE: SECONDED: APPROVED:  WEAVER CALDWELL PASSED UNANIMOUSLY  6.k Case No. ZTA-2024-03: Conduct a. Publicl Hearing and act on an Ordinance of the City Council of the City of Heath, Texas, amending Title XV, "Land Usage", Chapter 153, "Codes. Adopted", ofthe City of] Heath Code ofOrdinances; Providing for the adoption oft the 2021 International Building Code, the 2023 National Electrical Code, the 2021 International Energy Conservation Code, the 2021 International Fire Code, the 2021 International Fuel Gas Code, the 2021 International Residential Code, the 2021 International Mechanical Code, the 2021 International Plumbing Code, the 2021 International Property Maintenance Code, the 2021 International Swimming Pool and Spa Code, and the 2021 International Existing Building Code; with the 2021 North Central  City Council Minutes September 24, 2024  Page 7of13    Texas Council of Government Local Amendments, City Amendments, and Appendices thereto; and! Providing fori thei repeal and replacementofthe 2018 Building Codes, the 2017 National Electric Code and the North Central Texas Council of Government Local Amendments; and said provisions being also extended to the City of Heath's Extra Territorial Jurisdiction (ETJ); Providing for the incorporation of premises; Providing for amendments related to conflicts; Providing for a penalty not to exceed the sum of $2000.00 for each violation upon conviction; Providing a severability clause; Providing a repealer clause; Providing a savings clause; Providing an effective date. Assistant City Manager. Aaron Adel thanked Building Official Leisa Price and Fire Marshal Brandon Peterson for their work on this item. The City of Heath is currently operating under the 2018 International Building Code (IBC). This agenda item will replace most of the 2018 codes with the 2021 International Building Code and adopt the associated NCTCOG amendments, local  amendments, and appendices. The updated codes tol be adopted would include: From the 2018 International Building Codet tot the 2021 International Building Code From the 2017 National Electric Code tot the: 2023 National Electric Code From the 2018 International Energy Conservation Code to the 2021 International Energy From the 2018 International Fire Codet tot the 2021 International Fire Code From the 2018 International Fuel Gas Code tot the 2021 International Fuel Gas Code From the 2018 International Residential Code to the: 2021 International Residential Code From the 2018 International Mechanical Codet toi the 2021 International Mechanical Code From the 2018 International Plumbing Code tot the 2021 International Plumbing Code From the 2018 International Property Maintenance Code to the 2021 International Property From the 20181 International Swimming Pool and Spa Codet tot the: 2021 International Swimming Pool Fromi the: 2018 International Existing Building Codet tot the 2021 International Existing Building Code These new codes are: necessary to ensure that the city keeps pace with statel law, changingt technology, and construction industry practices. State law requires the adoption of the International Building Codes but allows for local amendments. The International Code Council (ICC) updates the model codes every three years. Typically, there is a one or two-year delay in a city's code adoption process because NCTCOG assembles building officials from participating North Texas cities to discuss the updated changes and consider recommended local amendments. A major benefit in updating the building codes is to maintain or improve the city'sI Insurance Service Office (ISO) rating. The City of Heath currently has an ISO rating of2. The ISO collects valuable information in many aspects of insurance underwriting. That information includes evaluations of public fire protection, flood risk, and the adoption and enforcement of building codes in individual communities. Information on municipal services helps the communities with their efforts to manage and mitigate their risk. The ISO performs the evaluations as a service to the insurance industry as numerous insurance companies use the ISO ratings to calculate individual property insurance premiums. Notice was published in the Dallas Morning News on September 7,2024. The staff requests the council conduct al Public Hearing  Conservation Code  Maintenance Code and Spa Code  and move to approve these building code amendments. HEARING to receive comments regarding the request. hearing. Mayor McClure closed the publicl hearing at 10:09 p.m.  Mayor McClure opened the public hearing at 10:08 p.m. No one signed up to speak at the public MOTIONTO. APPROVEORDINANCE NUMBER 4092ETOINCORPORATETHE2023 NEC, 2021: IBC, IECC, IFC, IFGC, IRC, IMC, IPC, IMPC, ISPSP AND IEBC WITHCITY AMENDMENTS AND NCTCOG AMENDMENTS EXCEPT SECTION 903.2.11.09 AMENDMENT TO BUILDINGS OVER 6,000 SQUARE FEET WHICH WILL BE  ADDRESSED ATALATERTIME.  MOTION MADE: SECONDED: APPROVED:  KRAUSE WEAVER  PASSED UNANIMOUSLY  Cily Council Minutes September 24, 2024  Page 8of13    6.cConduct: al PublicHearing: and Discussion and Action Regarding Ordinance! No. 240924B Adoptingt thel FY2025 Fee Schedule: fort the City fort the Fiscal Year Beginning on October Finance Director. Jay Ayers stated thati this item was: for the discussion and approval of Ordinance No. 240924B, adopting the FY2025 Fee Schedule that will cover October 1, 2024, to September 30, 2025. Theupdates arel based onl best practices, market rates, legal parameters, andi routine maintenance and provide a central location for city charges, permits, fees, licenses, and other services. This will re- establish the Master Fee Schedule and adjustments reflect the cost of services. The fees are updated based on market studies and best practices. The key changes of the Water Service Base Rates per the Willdan Rate Study, are on the 3/4" Meter, from $33-39 to $32.97 and the 1" Meter, from $51.71 to $50.94. The Residential Sewer Service is the Winter Averaging Base Rate, from $60.09 to $56.16. This ordinance repeals and replaces all conflicting fee schedules from previous city ordinances or resolutions. Ayers also confirmed that the city will conduct a new impact study in FY 2025 that will include the future water capacity and at the October gth Council Meeting, Jason Gray Willdan will Mayor McClure opened the public hearing at 10:33 p.m. No one signed up to speak at the Public MOTION: APPROVE ORDINANCE NO. 240924B ADOPTING THE FY2025 FEE  1, 2024, and ending on September, 30, 2025.  present an update toi the Utility Base Rate Study. HEARING to receive comments regarding the request. Hearing. Mayor McClure closed the public hearing at: 10:34 p.m. Discussion and action regarding the request.  SCHEDULE FOR OCTOBER: 1, 2024 THROUGH SEPTEMBER 30, 2025.  MOTION MADE: SECONDED: APPROVED:  WEAVER RUFFO  PASSED UNANIMOUSLY  6.d Conduct a Public Hearing, Discussion and Action Regarding Ordinance No. 240924Cof the City ofHeath, Texas approving and adopting al budget for the City for thei fiscal year beginning October 1, 2024 and ending September: 30, 2025; and makingappropriations 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 Finance DirectorJay. Ayers presented the FY2024-2025 budget and addressed the process, beginning with an introduction, recent accomplishments, City Council budget priorities, budget challenges, budget overview, major capital projects, and next steps. The budget challenges are inflation, supply chain pressures on prices, statutory limitations on the growth of revenue, currently capped at 3-5%, additional exemptions granted by the Texas Legislature in the last session, increased homestead exemptions, appraisal caps (10% annual cap on homestead properties), senior freeze exemptions, aging infrastructure and legal disputes. The budget overview the budget preserves an adequate fund balance as required by the city's financial policy of 35%, city revenues continue to improve, budget appropriations reflect the needs, improving existing service levels and investing in Cityinfrastructure and technology. The budget highlights incorporate a Cost of Living adjustment for all staff, a market adjustment for Public Safety staff, CIP funding for maintaining and improving the City's infrastructure, add: new classificationint the Department tofPublic-Safety,; newj positionsin Community Development, City Secretary's Office, and Public Works, added technology improvements to modernize and streamline operations and more focus on parks, trails, and green spaces. The General Capital projects include City Hall Improvements, Towne Center Park to Terry Park' Trail, Stoneleigh to Amy Parks Connection along FM 550, SwagIT Meeting Management System and a Push Notification System. The Utility Capital Projects include Advanced Meter Infrastructure Implementation Phase No. 2, Water Well #1 Towne Center Park, design of 3-MG Ground Storage Tank #2, design of Elevated Storage Tank #3, Fire Flow Improvements No. 1 at Darr Estates and design of Fire Flow Improvements No. 2 at Candlelite Park. The next steps include a Public Hearing and a Final Roll Call Vote on the budget adoption and implementation of the FY 2025 Budget on  savings and severability clause; and providing for an effective date.  October1, 2024. City Council Minutes September 24, 2024  Page 9of13    HEARING to receive comments regarding the request. hearing, Mayor McClure closed the public hearing at 10:45 p.m. OCTOBER 1, 2024 THROUGH SEPTEMBER 30, 2025.  Mayor McClure opened the public hearing at 10:44 p.m. No one signed up to speak at the public MOTION: APPROVE ORDINANCE NO. 240924C4 ADOPT BUDGET FOR FISCAL YEAR  MOTION MADE: SECONDED:  MOORMAN DODSON  Councilman Ruffo stated that he supports a rate that supports a defensible budget that gives our citizens what wei need. However, he would liket toi take al look ats strategic criteria, prioritize those, and identify projects ofs service in our community, and these projects should bet tied to strategic criteria.  ROLLCALLVOTE: Mayor Pro Tem Krause - AYE Councilman Dodson - AYE Councilman Weaver - AYE Mayor McClure - AYE Councilman Moorman - AYE Councilman Ruffo - AYE Councilwoman Caldwell - AYE APPROVED:  PASSED UNANIMOUSLY (AYES-7iNAYS-0)  6.e Conduct a Public Hearing and Discussion and Action Regarding Ordinance No. 240924DLevying: Ad Valorem Taxes for the Year 2024 (Fiscal Year 2025) at a Rate of $0.290311 per One Hundred Dollars ($100.00) Assessed Valuation on all Taxable Property within the Corporate Limits of the City as of January 1, 2024; to Provide Revenues forthel Payment ofCurrent: Expenses and to Provide an Interest and Sinking Fund on all Outstanding Debt of the City; Providing for Due and Delinquent Dates Finance Director Jay Ayers stated that the proposed tax rate for fiscal year 2025 is $0.290311 per $1000 ofassessed valuation. The Maintenance & Operations (M80)is:so.191975and the Debt Service (I&S) is $0.098936. The Tax Revenue Projections are: Total revenue increase: $557,291 (6.72% increase over last year). New property contribution: $98,405. Total Assessed Valuation: $3-37 billion. Revenue for General Fund (M&O): $6.091 million and Revenue for Debt Service: $2.749 million. The: first Public Hearing was held on Sept: 10, 2024 and the Final Hearing on Sept 24, 2024. City staff recommends adopting the ordinance to: set the taxi rate at $0.290311 per $100 ofvaluation Mayor McClure opened the public hearing at 10:52 p.m. and no one signed up to speak at the Open Mayor stated that these are hard decisions and thanked the Council and City staff for the countless hours put forth on thel budget process. The Cityhas an aging infrastructure, road repair needs, current inl litigation and we are trying toj protect the city and at the same time negotiate a settlement. MOTION: APPROVE ORDINANCE NO. 240924DLEVYING, ADVALOREM TAXES FOR  together with Penalties and Interest.  and a record vote is required from the City Council: for final approval. HEARING to receive comments regarding the request. Hearing and Mayor McClure closed the publicl hearing at 10:52 p.m. Discussion and action regarding the request.  FISCAL YEAR 2025. MOTION MADE: SECONDED:  WEAVER CALDWELL  Mayor Pro Tem Krause stated that he does not like increasing taxes but we have had some crucial items come up, the water issue being top. It is crucially important that we show the citizens that we are taking these issues very seriously and part oft thati is providing the funds to get there.  City Council Minutes September 24, 2024  Page 10of13    AMENDED MOTION: MOTIONTO. APPROVE ORDINANCE NO. 240924D ADOPTINGTHE TAX RATE OF $0.290311 PER $100 OF ASSESSED VALUATION FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2024 AND ENDING SEPTEMBER 30, 2025 WITH $0.191375 ALLOCATED FOR MAINTENANCE AND OPERATIONS AND $0.098936 ALLOCATED FOR  DEBT SERVICE. MOTION MADE: SECONDED: ROLLCALLVOTE: Mayor Pro Tem Krause - AYE Councilman Dodson - AYE Councilman Weaver - AYE Mayor McClure - AYE Councilman Moorman - AYE Councilman Ruffo -A AYE Councilwoman Caldwell - AYE APPROVED:  WEAVER CALDWELL  PASSED UNANIMOUSLY (AYES-7;NAYS-0)  6.f Discussion and. Action Regarding al Resolution No. 240924DRatifyingi thel Property' Tax Finance Director Jay Ayers stated that the purpose of this Resolution is to ratify the property tax increase reflected ini the 2024-2025 budget as required under Section 102.007(c)ofthe' Texas Local Government Code. The budget raises more revenue from property taxes than the previous year by $557,291. $94,805 of the increased revenue comes from new properties added to the tax roll. A separate vote by the City Council is required to ratify the property taxi increase per compliance with Texas Local Government Code Section 102001e-Approalothe. resolution will ratifyt thej property MOTION: APPROVE RESOLUTION NO. 240924D: RATIFYING THE PROPERTYTAX INCREASE REFLECTED IN 2024-2025 CITYFISCALYEAR BUDGET.  Increase Reflected in the 2024-2025 City Fiscal Year Budget.  taxi increase of 6.72% compared tot the previous fiscal year.  MOTION MADE: SECONDED: ROLLG CALLVOTE: Mayor Pro' Tem Krause - AYE Councilman Dodson - AYE Councilman Weaver - AYE Mayor McClure  AYE Councilman Moorman - AYE Councilman Ruffo - AYE Councilwoman Caldwell - AYE APPROVED:  MOORMAN DODSON  PASSED UNANIMOUSLY (AYES-7;NAYS-0,  6.1 Case No. ZTA-2024-05: Conduct a Public Hearing and act on an Ordinance oft the City Council of the City of Heath, Texas, amending Title XV, "Land Usage," Chapter 154, "Buildings," and amending Title XI, "Business Regulations," Chapter 115, "Contractors," of the City of Heath Code of Ordinances; Providing application requirements; Providing good standing; Providing consequences for building construction without a building permit; Providing for the incorporation of premises; Providing for amendments related to conflicts; Providing for a penalty not to exceed the sum of $2000.00 for each violation upon conviction; Providing a severability clause; Providing a repealer clause; Providing a savings clause; Providing an effective date. Assistant City Manager. Aaron Adel recommended tabling item ZTA-2024-05 to October 22, 2024 and leave the Public Hearing open. Notice of Public Hearing was published in the Dallas Morning  News on September 7, 2024 and we: must open a public hearing tonight. HEARING to receive comments regarding the request.  City Council Minutes September. 24,2024.  Page 11of13    Mayor McClure opened the public hearing at 11:00 p.m. and no one present to speak regarding this MOTION: TABLE ITEM TO OCTOBER 22, 2024 CITY COUNCIL MEETING AND  request, Mayor McClure continued the public hearing. LEAVETHE, PUBLIC. HEARING OPEN.  MOTION MADE: SECONDED: APPROVED:  KRAUSE RUFFO  PASSED UNANIMOUSLY  6.m Case No. ZTA-2024-04: Conduct a Public Hearing and act on an Ordinance ofthe City Council of the City of Heath, Texas, amending Title XV, "Land Usage," Chapter 157, Fences," of the City of Heath Code of Ordinances; Providing definitions; Providing height exceptions; Providing gate regulations; Providing for the incorporation of premises; Providing for amendments related to conflicts; Providing for aj penaltynotto exceed the sum ofs $2000.00 for each violation upon conviction; Providingas severability clause; Providing a repealer clause; Providing a savings clause; Providing an effective date. Assistant City Manager. Aaron Adel recommended tabling item ZTA-2024-04 to October 22, 2024 and leave the Public Hearing open. Notice of Public Hearing was published in the Dallas Morning Mayor McClure opened the public hearing at 11:02 p.m. and no one present to speak regarding this MOTION: TABLETOTHE OCTOBER 22, 2024 CITY COUNCIL MEETING. ANDLEAVE  News on September 7, 2024 and we must open a public hearing tonight. HEARING to receive comments regarding the request. request, Mayor McClure continued the public hearing.  PUBLICHEARING OPEN. MOTION MADE: SECONDED: APPROVED: 7. Executive Session  WEAVER KRAUSE  PASSED UNANIMOUSLY  At11:05] p.m., Mayor McClure recessed the meeting tol Executive Session (closed meeting) stating that ina accordance with' Texas Government Code Chapter 551, Subchapter D, the City Council recessedi 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 ofl Professional Conduct oft the State Bar ofTexas clearly conflicts with this chapter, regarding: (i): zoning and plattingstandards, Local Government Code shot clock, and' Trilogyfinal plat; (ii)" Trilogy development inl Mclendon-Chisholm cityl limits and extraterritorial, jurisdiction, (iri) Case No. ZA-2024-02R, and (iv) water restrictions enforcement actions; Section 551.071: Consultation with Attorney regarding pending or contemplated litigation or settlement offer regarding: (i), MCTrilogy Texas, LLC V. City of Heath, et al., Cause No. 3:22-CV-02154-D; (ii) City of Heath V. McLendon- Chisholm, Cause No. 1-22-1204; and (iii) North' Texas Municipal Water Districtv. City of Heath, Cause No. 1-22-0704; and Section 551.074: Deliberation regarding the appointment, evaluation, reassignment, duties, discipline, or dismissal ofa a public officer or employee, regarding: (i) City Manager. In accordance with Texas Government Code, Chapter 551, Mayor McClure closed Executive Session and reconvened the meeting into open session at 1:15 a.m. stating that no action was taken in the MOTION: APPROVE A COMPREHENSIVE SETTLEMENT AGREEMENT PER THE SEITLEMENTI DEALE POINTS AGREEMENT WITH MCTRILOGYTEXAS, LLC.  Executive Session.  MOTION MADE: SECONDED: For: Against: APPROVED:  MOORMAN DODSON  DODSON, KRAUSE, MCCLURE, MOORMAN CALDWELL, RUFFO, WEAVER PASSED FOURTO' THREE  City Council Minutes September 24, 2024  Page 12of13    Mayor McClure adjourned the meeting at 1:17 a.m.  r  APPRQVED:  ATTEST:  Vanalnen NORMA. DUNCAN CITY SECRETARY  MKYOR  ALL  ATEC OF  City Council Minutes September 24, 2024  Page 73of13