Minutes of the Public Meeting of December 20, 2005

CITY COUNCIL PUBLIC MEETING

Special Meeting

April 27, 2006

The Council of the City of Horseshoe Bay held a Special Meeting at City Hall, located at #1 Community Drive, Horseshoe Bay, Llano County, Texas, April 27, 2006, in accordance with duly posted notice of said meeting. Mayor Lambert called the meeting to order at 9:00 a.m. with a quorum of Council Members present as follows:

Robert W. Lambert, Mayor

James E. Babcock, Mayor Pro Tem

Don Wood, Alderman

Karen Wines, Alderwoman

Vernon E. Schrader, Alderman

The posted agenda for this meeting is made a part of these minutes by attachment and the minutes are herewith recorded in the order the agenda items were considered with the agenda subject and item number shown preceding the applicable paragraph.

1. Call to Order and Establish a Quorum: Mayor Lambert called the Special Meeting to order at 9:00 a.m. with a quorum present.

2. Comments from Mayor: Mayor Lambert welcomed the guests and asked that anyone wishing to speak on a specific Agenda Item to please sign in. He then asked Fire Chief Danny Wooten to report on the recent fire at 211 Lasso. Chief Wooten reported that the call was received at 6:51 a.m. The first truck arrived on the scene at 6:57 a.m. with 1,000 gallons of water and two men and requested assistance from Marble Falls. The second HSB truck arrived from West and called Cottonwood Shores to assist. Chief Wooten arrived at 7:08 a.m. After an hour and a half, the flames were extinguished and the Cottonwood Shores and Marble Falls Fire Department trucks were released at that time. The Horseshoe Bay Fire Department personnel stayed on the scene until 2:00 p.m. General Manager Mike Thuss added that the house was on fire for an undetermined amount of time before the 911 call was placed. When the homeowners realized that the house was actually on fire, they attempted to call 911 and the phones were out. They had to go next door to call. Mayor Lambert noted the neighbors were appreciative that the Fire Department was able to contain the fire to the one house. Approximately one third of the house was saved. Alderwoman Wines asked if there were sufficient fire hydrants in the City. Chief Wooten confirmed that there are an adequate number of hydrants and that they are all checked annually and have sufficient pressure. Mayor Lambert commended the Fire Department for a job well done.

3. Comments from Aldermen: There were no comments from the Aldermen.

4. Public Comments: Bill Sweet stated his concerns were probably isolated to The Cape. He reported that construction and delivery trucks from the Club and from the Waters Development are using his driveway to turn around and he would like something done to prevent this. He also noted the drain the Club uses had water standing a foot deep which prevents passage to The Cape. The club also parks vehicles on the side of The Cape and he expressed concern this could cause an accident. General Manager Thuss stated he would discuss these issues with Craig Alter, the project manager for the Waters Development, at a meeting today. Ron Mitchell suggested that the Waters move the fence and create a turnaround space.

5. Public Hearing Regarding Adoption of Moratorium on New Construction in Zone 13, CapRock and Zone 14, HSB Boulevard Corridor Zone: At 9:18, Mayor Lambert convened the Public Hearing on the adoption of a temporary moratorium on new construction in zones 13 and 14. He asked for public comments. There were none and the public hearing was adjourned.

6. Adopt Moratorium on New Construction in Zone 13, CapRock Zone, and Zone 14, HSB Boulevard Corridor Zone: Mayor Lambert stated the City is starting a process of zoning. It must be comprehensive, covering all of Horseshoe Bay. The moratorium on Zone 13 and 14 may continue until December 31, 2006, in order to develop a plan with the Resort that is satisfactory to the community and to the Resort. The temporary moratorium that was adopted on April 18^th was in effect for fourteen days. If the proposal is adopted today, it will be in effect for an additional 120 days and can be renewed for an additional period of time upon action by the Council. The moratorium exempts remodeling projects that the Resort has planned. Ron Mitchell gave a report on the remodeling projects in zone 14 that are exempt from the moratorium, which include the Yacht Club and Executive Office Building. Mr. Mitchell presented artist’s rendering of the new plans. One of the major changes will be to create a one-way in and one-way out of the Yacht Club, a covered area for valet services, and a walkway over to where the Inn is now which in the future may become a large courtyard area to access the marina. The other major renovation is the addition of seven to eight thousand square feet added consisting primarily of an outdoor decking area. Elevator systems will be added and the area where the towers are will be opened up into private dining rooms with elevator access to the area above the bar that was the executive offices that will now become a private dining room. There are two other private dining rooms and a members’ library with a fireplace. The lower level will convert mainly to food and beverage storage and offices for that function, the freight delivery area, and the IT operations. There will be some new restrooms and some rooms added to accommodate weddings. The pool area will also get a major renovation. There will be some change to the exterior elevation and appearance of the stonework and lighting. The tentative timeline requires that the club will close in November, December and January to complete the remodeling. The Executive Office Building was remodeled recently and the major change there will be a 3,000 square foot addition. He presented site plans and artist’s renderings. There will also be a new parking lot and a new entrance. This project will start in June and the executive offices will relocate to the Marriott during construction. This project will be the location of the real estate office, the executive offices, the accounting operations, the main conference room, the development company, and membership. The total project will be about 13,000 square feet. These plans are final and ready to move forward. Mayor Lambert then read Section 4.3.2.(c) of the Temporary Moratorium. After some discussion and suggested changes, Alderman Babcock made a motion to adopt the Temporary Moratorium with the following revisions: 1) change language on page 1, fifth paragraph and in Section 4.3.2.(c)i referencing “substantial development is planned for Zone 13, Cap Rock Zone, and 14, HSB Boulevard Corridor Zone, of the City” to “development is being planned for Zone 13, Cap Rock Zone, and 14, HSB Boulevard Corridor Zone, of the City”; 2) change the definition of “Addition” to “an added feature to a building, structure or tract that enhances or compliments the existing buildings or structures on the tract but does not increase the interior square footage of any existing building; 3) change the definition of “Building” to “an improvement or change to the property created to shelter human activity and which substantially reduces the permeability of the natural ground underneath the building or structure to absorb rainfall. This term includes a dwelling, house, barn, church, hotel, or similar structure created to shelter human activity. The term includes the installation of manufactured buildings”; 4) change the definition of “Repair or Renovation” to “the maintenance of or the return to a state of utility of a building, site or structure. Renovation also includes remodeling an existing building or structure, whether exterior or interior”; 5) change Section 5.1.(b) to “Grandfathered Development Projects: Land use or development endeavors that qualify and continue to remain qualified for vested project status under Texas Local Government Code Chapter 245”; and 6) change Section 5.1.(d) to “Renovations or Additions that do not add square footage: Renovation or addition projects that do not add additional interior square footage to existing buildings”. Alderman Wood seconded the motion. The motion passed by unanimous vote (4-0).

7. Subdivision Ordinance: Mayor Lambert stated Alderman Bird is absent today and he is taking the lead discussing this ordinance. He noted that Utility Manager Glenn Jones, City Attorney Monte Akers and Alderman Bird have completed a draft Subdivision Ordinance which has been provided to each Councilmember along with a list of questions to be addressed. He added the Council may discuss the Zoning and Subdivision ordinances at the same time. Alderman Babcock stated that he has begun the process of reading through all of the subdivision deed restrictions and will schedule meetings with all of the POA’s to discuss if they have any revisions they would like to incorporate into the Zoning Ordinance. Mayor Lambert asked that each Councilmember read the draft Subdivision Ordinance and the list of issues and send any additional issues to Monte Akers to add to the list. Alderwoman Wines recommended creating a Planning and Zoning Commission. However, Alderman Babcock noted that it would put a lot of burden on staff to accommodate a Commission and the City does not have the manpower with the additional work load that has already been added to the staff with the creation of the developmental services division. It would also create an added expense. Alderman Wood also discussed the work load of the current staff.

8. Fire Code: No action was taken on this item.

9. Krumm Ranch Developments: Alderman Babcock stated that there is a possibility that the Krum Ranch Development will form a Municipal Utility District. Because a portion of that property is in the City’s ETJ, they would need the City’s approval. Cottonwood Shores will probably ask HSB at some point to release the Krumm Ranch from its ETJ. The City will have to consider how it will affect HSB South and have some assurance as to what development will be on the property before the City would consider releasing it from the ETJ or approving the formation of a MUD. Alderman Wood discussed the Wastewater Treatment Contract with the City of Cottonwood and noted that they will probably approach the City to approve increasing their current treatment capacity. He also stated the that City needs to reserve capacity of water and wastewater treatment for our own growth.

10. Adjournment: There being no further business, Alderman Wood made a motion to adjourn the meeting. Alderman Schrader seconded the motion. The motion passed by unanimous vote (4-0). The meeting was adjourned at 10:40 a.m.

APPROVED this 9^th day of May, 2006.

____________/ S /__________
Robert W. Lambert, Mayor

ATTEST:

__________/ S /__________
Toni Vanderburg, City Secretary