MINUTES HEATH CITY COUNCIL REGULAR MEETING- PUBLIC HEARINGS- EXECUTIVE SESSION 200 LAURENCE DRIVE- HEATH, TEXAS TUESDAY, MARCH 27,2018-6:30 P.M.

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1 MINUTES HEATH CITY COUNCIL REGULAR MEETING- PUBLIC HEARINGS- EXECUTIVE SESSION 200 LAURENCE DRIVE- HEATH, TEXAS TUESDAY, MARCH 27,2018-6:30 P.M. ATTENDING: BRIAN BERRY, MAYOR KELSON ELAM, MAYOR PRO TEM JOE CHAMBERLAIN RICH KRAUSE FRANK NEW PAUL RUFFO BRENT WEAVER Mayor Brian Berry called the meeting to order at 6:30 p.m., delivered the invocation, and led the Pledge of Allegiance. DEPARTMENT and REPORTS - See Addendum. (Items posted on the addendum are for informational purposes. The addendum is a comprehensive list of issues and reports that are of interest to the City Council and may or may not be discussed as determined by Staff and Council.) a) Update regarding P~rk Board, HMBC-HEDC Board, Rockwall County Planning Consortium, and Emergency Services Corporation. Mayor Pro Tern Elam, Council Liaison, stated that the HMBC/HEDC board meeting was moved to April3rct. Councilman Krause, Council Liaison to the Park Board, explained that an update on the Park Board would be provided during items I 0 & 11 of the current meeting. Director of Economic Development Suzanne Brooke reminded staff, council, and citizens that the Fun & Fit in the Park event featuring the Heart of Heath SK and Family Run would be taking place on Saturday, March 31, 2018 at 8:00 am. Discussion and action regarding the Minutes of March 13, MOTION: APPROVE MINUTES OF MARCH 13, ABSTAINED: ABSENT: (Councilman Paul Ruffo arrived at 6:30p.m.) ELAM NEW PASSED UNANIMOUSLY OF THOSE PRESENT KRAUSE (not present at the March 13, 2018 meeting) RUFFO 4. Discussion and Action Regarding an Ordinance for the application of Steven L. and Carolyn Nabors for a Conditional Use Permit to construct an accessory building (garage/guest house) 4,480 sq. ft. in area, 20 ft. in height, and built of like materials and design as the residence on 7.5 acres, situated in the E. Teal Survey, Abstract No. 207, Tract 86-2, City of Heath, Rockwall County, Texas, located at 8060 S. FM 549. (Case No: CUP ) Director of Community Development Kevin Lasher explained that the applicant had requested a permit to build a workshop/barn exceeding the maximum square footage and building height allowed by the zoning code. At the request of the Planning and Zoning Commission at their January 2 meeting, the proposed building was revised to a dimension of 64' x 70'- a reduced square footage of 4,480 SF from the originally requested 6,375 SF. The proposed building would be constructed with brick masonry facades and stone columns with a 4:12 pitched metal roof. The revised design includes six (6) 12' x 14' overhead doors to maneuver personal vehicles, trailer, and lawn care equipment in and out of the building. The submitted floor plan shows one bathroom with a water closet and sink. No shower or kitchen facilities were included in the plan. The building would be located approximately 400 feet from the street, and be situated behind the main living structure. It would be screened by a large number of existing cedar trees planted along the perimeter lot lines as an City Council Minutes- March 2 7, 20 I 8 Page 1 of7

2 evergreen screen. The property contains 7.5 acres. On February 6, 2018, the Planning & Zoning Commission recommended denial of this CUP request by a vote of 5 to 1. The Commission deemed the size of the proposed structure (5,100 SF) too large. The case was then presented to the City Council on February 13, at which time the applicant requested the case be considered with a reduced building area of 4,480 SF. The Council voted to remand the case back to P&Z to consider the applicant's building area reduction. At the March 6 1 h P&Z meeting, the Commission recommended approval by a vote of 4 to 2. The vote reflected the idea that the accessory building must not exceed 4,480 square feet. While there were no new neighborhood notices received, there remained 5 in favor and 3 in opposition from previous mailed notices. Applicant Steven Nabors was present to answer questions. Mayor Berry opened the public hearing at 6:41 p.m. The following spoke regarding the request. Roy Heath, 205 James Drive- spoke in support of the request and showed appreciation for the council's concern for maintaining community standards. He encouraged council to approve the request. There being no one else to speak regarding the request, Mayor Berry closed the public hearing at 6:43 p.m. Mayor Pro Tern Elam stated that the new SF-3.0 zoning would address this type of request and recommended waiting until the new zoning is in effect for a decision. Councilman Weaver stated that the challenge with the request is that the property and neighboring properties are zoned SF-43. Because of this, neighboring property owners have standard expectations for a maximum accessory building size of 900 square feet. MOTION: APPROVE A CONDITIONAL USE PERMIT TO CONSTRUCT AN ACCESSORY BUILDING (GARAGE/GUEST HOUSE) 4,480 SQ. FT. IN AREA LOCATE AT 8060 S. FM 549. CHAMBERLAIN BERRY The motion to grant the conditional use permit was defeated (as indicated below). DEFEATED: THREE TO FOUR FOR APPROVAL: BERRY, CHAMBERLAIN, NEW AGAINST: ELAM, KRAUSE, RUFFO, WEAVER 5. Discussion and Action Regarding a Resolution for the application of Coy Cleveland for a waiver to the exterior masonry requirements for a single family detached residence located on Lot 44 of Block A, Ridge Lakes, Phase 1, said residence being addressed as 442 Sunrise Ridge Drive, City of Heath, Rockwall County, Texas (Rockwall County CAD Map ID # 89845). The property is zoned (PD) Planned Development District for single family uses. (Case No: MIS ). Director of Community Development Kevin Lasher provided background information for the application. The owner is designing a new residence containing 6,915 square feet of climate controlled area, with a total covered area of 12,202 square feet. They are seeking to use barn wood as plank siding for the exterior materials of the house to reflect a Texas Hill County/Farmhouse Modern motif. Per the zoning code, nonmasonry materials are permitted on 20% of each building far;:ade; however, the owner is proposing to use barn wood planks in the following ratios: Front Elevation- 67% Masonry and 30% Barn Wood Planks (a waiver would be required), and Right Side Elevation - 78% masonry and 22% barn wood planks. Coy Cleveland, applicant and property owner, was present to answer questions. Mayor Berry opened the public hearing at 7:09p.m. The following residents spoke regarding the request. Roy Heath, 205 James Drive- spoke in favor, and stated the design would be unique and interesting. There being no one else to speak regarding the request, Mayor Berry closed the public hearing at 7:11 p.m. Councilman New asked for clarification that the timber/wood would be fire-rated; he stated that this would be a beautiful home and an asset to the neighborhood. Page 2 of7

3 MOTION: APPROVE RESOLUTION NO A FOR A WAIVER TO THE EXTERIOR MASONRY REQUIREMENTS FOR A SINGLE FAMILY DETACHED RESIDENCE LOCATED 442 SUNRISE RIDGE DRIVE CHAMBERLAIN RUFFO PASSED UNANIMOUSLY 6. Discussion and Action Regarding an Ordinance amending Ordinance No A to amend the ad valorem tax exemption for persons 65 years of age or older or disabled persons, or an Ordinance to establish a Tax Freeze for 65 years of age m older o disabled persons, as allowed by the Texas Tax Code; and providing an effective date. City Attorney Andy Messer explained that the discussion would pertain to two alternative proposed ordinances. The first deals with a tax exemption. The City currently has an ordinance in place that establishes a fixed homestead exemption of $30,000 for persons 65 years of age or older or disabled. The second alternative is a tax freeze for the same persons- 65 years of age or older or disabled. While both are permitted by Texas Tax Code Law, one critical distinction between the two is that a tax freeze is permanent while an exemption is not. Mayor Berry stated that this item is not a public hearing, and Councilman New stated for the record that he wished there had been a public hearing on the agenda. Councilman Joe Chamberlain provided a presentation supporting the Senior Tax Freeze; he explained that the tax freeze would limit the amount of property taxes paid on a homeowner's principal residence by capping taxes at the amount paid in the year they qualified for the exemption. Seniors would also qualify for a Homestead Exemption on the first $30,000 of assessed value. The freeze would be permanent, and the first year impact would be $55, of the city's budget. Mayor Pro Tern Kelson Elam provided information supporting the tax exemption; he explained that the City first set up the Exemption in The purpose was to give seniors enough of an exemption as their homes appreciated. However, the problem was that as property values continued to rise, previous councils did not approve increases to the exemption. The exemption has remained the same since This proposal would raise the exemption by 50% bringing it to $45,000. This would create a model that could be reviewed annually. Council continued discussion on future growth rates for both options. Councilman Weaver stated that the tax freeze could potentially be dangerous, as it cannot be controlled or rescinded. Alternatively, he stated that the exemption is a responsible, measurable, controllable, and manageable way to achieve the same goal: giving relief to the seniors without inflicting an uncontrollable burden on the entire city. Councilman Chamberlain stated that his concern with the exemption is that it would not bind future councils with the decision, while the freeze would bind them. Councilman Krause stated that a permanent and irrevocable freeze should not be left up to the Council, but rather to the citizens to vote on by election. MOTION: TAKE THE TAX FREEZE TO THE PUBLIC TO VOTE AT AN ELECTION. CHAMBERLAIN City Attorney Andy Messer clarified the process for allowing a general election on the freeze. There would need to be a petition and a council vote to call the election. Councilman Chamberlain then withdrew his motion. MOTION: APPROVE ORDINANCE NO A TO AMEND THE HOMESTEAD RESIDENCE OF DISABLE PERSONS OR PERSONS 65 YEARS OF AGE OR OLDER AND INCREASE THE EXEMPTION TO $45,000. ELAM WEAVER Councilman New assured that this action would not prevent residents from putting together a petition to the voters. Rather, the action would provide immediate relief. PASSED UNANIMOUSLY EXECUTIVE SESSION At 8:07p.m., Mayor, Brian Berry recessed the meeting into Executive Session (closed meeting) in accordance with Texas Government Code Chapter 551, Subchapter D. The City Council recessed into Executive Session (closed Page 3 of7

4 meeting) to discuss the following: a) (2): 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 the Open Meetings Act regarding: City of Heath park land dedication ordinance, the proposed amount for the payment of a fee in lieu of the dedication of parkland, and a proposed park development fee. At 8:36p.m., Mayor Brian Berry closed Executive Session and reconvened the open session. He stated no action was taken in the Executive Session and no further actions were needed. 9. Discussion and Action Regarding the application of Realty Capital Management, applicant, for a zoning change from (LR) Local Retail District, Town Center Overlay District, and (A) Agricultural District, to Town Center Overlay District (as the primary base zoning district) for mixed retail and residential uses on acres of land, being part of the Antonio Rodriquez Survey, Abstract No. 231, being part of a called 48 acre tract as recorded in Volume 60, Page 506 of the Deed Records of Rockwall County, Texas, and located at the southeast corner of the intersection offm 549 and FM 550, City of Heath, Rockwall County, Texas; and, from (A) Agricultural District to a (PD) Planned Development District for single family detached land uses on acres ofland, being part of the Antonio Rodriquez Survey, Abstract No. 231, being part of a called 1.0 acre tract of land (part of acre tract) as recorded in Volume 133, Page 181 of the Deed Records of Rockwall County, Texas, all of a called 0.4 acre tract (First Tract) and all of a called acre tract (Second Tract) as recorded in Volume 75, Page 505 of the Deed Records of Rockwall County, Texas, the remainder of a called 48 acre tract as recorded in Volume 60, Page 506 of the Deed Records of Rockwall County, Texas, and the remainder of a called acre tract as recorded in Volume 165, Page 243 of the Deed Records of Rockwall County, Texas, located south and east of FM 549 and north of FM 550, City of Heath, Rockwall County, Texas. (Case No: ZA ) (Applicant requesting case be tabled to allow additional time to revise the proposed land use plan) Mayor Berry stated that the applicant has requested the item be tabled to provide additional time to revise the proposed land use plan. MOTION: APPROVE THE APPLICANT'S REQUEST TO TABLE THE ITEM AND REMAND THE REQUEST BACK TO THE PLANNING & ZONING COMMISSION. CHAMBERLAIN BERRY Councilman Weaver asked City Attorney Messer to clarify the applicant's letter of protest and stated that he would like to proceed with the application's original request as submitted to the city. The motion to grant approval to table the request was defeated (as indicated below). DEFEATED: TWO TO FIVE FOR APPROVAL: BERRY, CHAMBERLAIN, AGAINST: ELAM, KRAUSE, NEW, RUFFO, WEAVER Director of Community Development Kevin Lasher explained that P& Z recommended denial of the request by a vote of 6 to 0 at the March 6 P&Z meeting. Lasher provided a presentation and stated that the applicant requested this case be tabled to allow additional time to revise the proposed land use plan based on responses from the P&Z public hearing. The zoning change request is for two parcels of land: Zoning Parcel 1 - from (LR) Local Retail District, Town Center Overlay District, and (A) Agricultural District, to Town Center Overlay District (as the primary base zoning district) for mixed retail and residential uses on acres of land located at the southeast comer ofthe intersection offm 549 and FM 550; and Zoning Parcel2- from (A) Agricultural District to a (PO) Planned Development District for single family detached land uses on acres of land located south and east of FM 549 and north of FM 550. Neighborhood notices for this request were sent twice: originally for the March 6 1 h P&Z meeting (received 6 notices in opposition and 2 in favor) and again for the March 2ih City Council meeting (received 4 notices in opposition and 4 in favor). At the time of the meeting, the City had also received 12 s and various letters in opposition. Dylan Leonoudakis, Development Team at Realty Capital, was present on behalf of the McCutcheon family. He stated that the goal is to take citizen feedback given at the P&Z meeting into account, change the plan to decrease the density as citizens requested, and to reintroduce a new plan based on the community feedback. Leonoudakis assured Page 4 of7

5 Council that if given the opportunity to amend the plan and present the changes to P&Z, Realty Capital would do what is right for Heath. Mayor Berry opened the public hearing at 8:55p.m. The following spoke regarding the request: Doyle Sherman, 702 Laurence Drive - spoke in opposition and showed concern for the closeness between the townhomes. He stated that Heath needs larger lots. Tom Kirkland, 613 Willow Springs - showed concern for the lumping of the town homes in with the multifamily. He suggested that the location would be a great place for a town center with a city hall. Chuck Dale, 804 Smirl Drive- identified that he has lived in Heath for 45 years and served on the last master planning committee. While he expressed that he does support retail, he clarified that this particular plan was never presented to the master planning committee. Roy Heath, 205 James Drive - spoke in opposition to the large amount of retail developing too rapidly. He also showed concern for the plan's use of non-developed area as an adjustment for the density. He particularly objected to the villa houses. Tiki Sherman, 702 Laurence Drive - spoke in opposition to the plan's high density and lack of parking. Sharon Caldwell, 501 Willow Springs - stated that there would be too much retail developing too quickly and spoke in opposition to the high density. She also opposed the use of swamp as part of the land used in the calculations for the 1-acre standard. Brooks Nolan, 505 Lorna Vista - spoke in opposition to the "town center boundary creep." He opposed the high density and doubling ofthe commercial land area. Phyllis Salverson, 626 Sorita Circle - as a resident of Heath for 24 years, she opposed the development because of the high density. The development would not align with Heath's low density goals. There being no one else to speak regarding the request, Mayor Berry closed the public hearing at 9:11 p.m. Dylan Leonoudakis addressed citizen concerns, reiterating that they would be reducing the overall density of the plan and would like the opportunity to go back to P&Z. Council discussed whether or not the application was in compliance with the current comprehensive plan. Councilman Weaver read aloud from the Planned Development ordinance, stating that the intent and goal of the ordinance enforces the one acre density standard. He stated that the district is not intended allow clusters of dense residential development. Weaver also expressed concern for the commercial expansion and stated the applicant is requesting too many variances. Leonoudakis answered other questions from the Council. MOTION: TO DENY WITH PREJUDICE THE APPLICATION AS PRESENTED. DENIAL FOR: AGAINST: WEAVER NEW FIVE TO TWO ELAM, KRAUSE, NEW, RUFFO, WEAVER BERRY, CHAMBERLAIN 10. Presentation, Discussion and Action Regarding the City of Heath Park and Recreation Master Plan. - presented by Brad Moulton, ALSA, RLA, Principal, La Terra Studio, Inc. Director of Economic Development Suzanne Brooke explained that at the May 23, 2017 City Council meeting, the City Council authorized the mayor to execute a Professional Services Agreement with Ia terra studio, inc. for the development of the City of Heath Park and Recreation Master Plan. The citywide master plan includes a comprehensive assessment of the existing parks, facilities, and trail system- including its ability to respond to the recreational needs of the community, and recommendations and priorities related to future parks, trails, and open space needs. On March 1, 2018, the Park Board voted unanimously to approve the updated Park and Recreation Master Plan and send to Heath City Council for review. Once City Council has approved a final draft of the Park and Recreation Master Plan, it would be placed online for citizen review. A public Hearing Page 5 of7

6 would be held at a Park Board or City Council meeting, as determined by City Council. Park Board Chairman Mark King was present and stated that the plan is an academic study, a planning effort, an inventory of our existing system, and a collection of empirical data from citizen surveys. The plan sets a vision at to where the city wants to be relative to parks, trails, and open space. Brad Moulton, Ia terra studio, inc. provided a presentation on the "City of Heath Parks and Recreation Master Plan" and clarified that the plan is currently a draft. The following steps would be required for implementation of the plan: provide a draft of the plan to the Park Board, City Staff, and Council for review; post the plan for review by the public; conduct a Public Hearing at a city council meeting; and present to Council for adoption. Mary Berry commended the presentation and thanked Mark King, Suzanne Brooke, Brad Moulton, and the Park Board for their work on the plan. MOTION: PUBLISH THE MASTER PLAN AND MOVE FORWARD TOWARDS A PUBLIC HEARING AT A FUTURE CITY COUNCIL MEETING. NEW RUFFO Councilman Weaver asked for clarification on the location of parks in a neighborhood and the ratio of parks to population. UNANIMOUSLY 11. Presentation, Discussion and Action Regarding the City of Heath Subdivision Regulations and Park Land Dedication Ordinance - presented by Abra Nusser, AICP, President & CEO, Ideation Planning, LLC. Director of Economic Development Suzanne Brooke stated that in conjunction with overseeing the development of a new City-wide Parks and Recreation Master Plan, the City of Heath Park Board also addressed the City's Parkland Dedication Ordinance to ensure the Ordinance incorporated modem-day best practices with relevant parkland dedication and development fees. These would be based on target levels of service identified by the Parks and Recreation Master Plan. On March 19, 2018, the Park Board voted unanimously to approve the updated Parkland Dedication Ordinance, including the proposed park development fee and proposed amount for the payment of a feein-lieu of dedication of parkland. Abra Nusser - President & CEO of Ideation Planning LLC - provided a presentation on the Parkland Ordinance Update which covered the methodology, fees, proposed ordinance highlights, and next steps for approval. The existing fee-in-lieu of dedication is $1,000 per dwelling unit. There is currently no park development fee and land dedication is one acre for every 60 dwelling units (min. five acres). The proposed fees are fee in lieu of dedication is $ per dwelling unit, the park development fee is $1, per dwelling unit, and the land dedication is one acre per 102 dwelling units (min 2 acres). The process for consideration and would be to first go to staff, second to the Park Board for recommendation, and finally to City Council for formal approval. Mayor Berry opened the public hearing at 11 :00 p.m. The following spoke regarding the request. Becky Burkett, 277 Terry Lane- as a former Park Board member, she commended the plan. She expressed that the city should now focus on money, park land, and in increased budget in order for the plan to succeed. Tiki Sherman, 702 Laurence Drive - stated that two acre parks would be too small for trails and recommended a fitness park. Roy Heath, 205 James Drive - applauded everyone involved. He encouraged council to specifically require developers to craft a park, think about the park early in their design process, and possibly combine assets with adjacent developments for a joining park. He also expressed concern for areas that are already developed. There being no one else to speak on the request, Mayor Berry closed the public hearing at 11 :05 p.m. Abra Nusser addressed citizen questions and concerns. The following would be conditions necessary for inclusion in the motion for approval. First, the official name of the plan is "Parks, Recreation, and Trails Master Plan." All references to the plan would need to be updated to this title. Second, reference to the Page 6 of7

7 Pathways Implementation Plan would need to be removed, as it is now included in the Parks, Recreation, and Trails Master Plan. Third, Section b referencing approval of the plan should read that as planning efforts near completion, staff should be given authority to make minor text amendments once the plan is adopted. Fourth, there would need to be a typo correction from Parkland to Park Land. Finally, corrections would be needed for a numbering error in the Private Parkland section. MOTION: APPROVE ORDINANCE NO B REGARDING THE CITY OF HEATH SUBDIVISION REGULATIONS AND PARK LAND DEDICATION ORDINANCE WITH CONDITIONS. ELAM CHAMBERLAIN PASSED UNANIMOUSLY 12. Discussion concerning FM 740 median replanting and maintenance from White Road to FM Welcome sign replanting and improvement. Landscaping at City Hall after FM 740 construction. City Manager Ed Thatcher stated that this item pertains to landscaping and landscape maintenance for the properties at City Hall, the Welcome Sign location, and the median from White Road to the CVS at the corner of Smirl Drive and Ridge Road. He explained that the landscaping at these locations has not been kept up and needs replanting. Once landscaping is in place, regular maintenance would be required. Mayor Berry stated that the primary reason this maintenance has not been included in the last few budgets was the ongoing construction in phase 2. With the project construction complete, now would be a good time to take advantage of the spring season. Council directed staff to come back with a proposal or estimate for the cost of the project and an estimate for the annual upkeep. 13. Discussion and Update on Haciendas Del Lago Paving Water Lines and Sewer Project. City Manager Ed Thatcher provided an update on the Haciendas Del Lago project. He outlined the order of events that have already occurred and the city's current place in the project. First, the petition was submitted, followed by a survey to find the easements. Now, staff is meeting with the Bond Counsel and financial advisors to create the Public Improvement District (PID) to put in a water line, sewer line, and street. Council is required to create a petition to create the PID, followed by two public hearings. This adds approximately 60 days to the. process. Once necessary signatures are obtained, the city will file the plat to take over the right of way and will have ownership of the street. Director of Finance Laurie Mays clarified that 50% signatures of the assessed value will be needed. Council directed staff to keep them updated on the project. 14. Open Forum- citizens' comments. Mayor Brian Berry opened the Citizens' Forum and the following spoke. Becky Burkett, 277 Terry Lane- stated she has lived in Heath for close to 20 years and has attended Council meetings for many years. She addressed two issues; first, she expressed frustration as a citizen with how the council talks to each other. Second, she stated she was disappointed with the council's thinking through development plans and expressed frustration with the amount of constraint put on developments with different lot sizes. Tiki Sherman, 702 Laurence Drive- expressed concerns about hearing that the construction on the FM 740 project has not been managed with landscaping. She recommended native plants. Mayor Brian Berry adjourned the meeting at 11 :42 p.m. ATT~ No ~MADUNCAN CITY SECRETARY Page 7 of7