As stated in the Unified Development Code (UDC), City Council from time to time, on its own motion, or at the recommendation of City staff amend, change, or modify text in any portion of the UDC to establish and maintain stable and desirable development. It is generally considered good practice to periodically review and update the development regulations due to changing conditions, community goals, and/or State and Federal regulations.

Background:
Currently, the zone change process begins when the city or an applicant requests a zone change for a property. The City of Schertz UDC Section 21.5.4.C, in conformance with the State of Texas Local Government Code (LGC) then requires a public hearing. The City of Schertz UDC stipulates that the first public hearing is before the Planning and Zoning Commission where a recommendation is made to City Council. City Council then has two readings on the zone change request with the first reading being a public hearing as well. The final reading is not a public hearing, but in the event the action on the first reading was not unanimous, it could be a discussion item.

Before the public hearing is scheduled for a Planning and Zoning Commission meeting, State law requires that public hearing notifications must be sent out to property owners within 200-feet of a proposed zone change. UDC section 21.5.4.C.2.a call these notifications "Written Notices". These notices are mailed to said property owners at least 10 days before the Planning and Zoning Commission hearing. On these public hearing notices are options to vote "in favor of", "neutral to", or "opposed to" the zone change request. Then the property owners may return these notices either by mail, e-mail, or in-person to have their votes counted. 

The votes that are "opposed to" are considered protest votes. These votes are critically important for the City Council readings as the LGC has a threshold that, once crossed, requires a 3/4 majority vote to approve the zone change. This rule is often called the "super-majority" rule. UDC Section 21.5.4.E.1. states the following:
 
The UDC follows the specific requirements laid out in the LGC when counting votes. However, the LGC nor the UDC has stipulations for cut-off dates. In practice, this means that these notices can be turned in all the way up to the point of the meeting. Also, with three separate readings in regard to the zone change, property owners have the opportunity to change their vote in-between these meetings. This can potentially create a difficult situation for staff, citizens, and applicants to keep track of protest votes and more importantly, to properly account for the super-majority threshold.

Lastly, there is often confusion around rental properties, and properties that have recently been sold. Rental tenants may receive a mailed notice, but the LGC explicitly states that only the surrounding property owners (not tenants) votes are counted. Also, the LGC states that the "most recently approved municipal tax roll", is used to determine property ownership. In practice, the city uses the County Appraisal District to determine mailing addresses and in consultation with the city attorney, this is an acceptable practice.

Proposed Amendments:
Staff is proposing amendments to UDC Section 21.5.4.E. to help with these potential issues. The first portion of these proposed amendments will be to Section 21.5.4.E.3 and they will explicitly state what the "municipal tax roll" is, what needs to happen to count votes for recent property purchases, and stating that tenants are not counted in conformance with the LGC. The language proposed is as followed:

3. The owner as idicated by the most recently approved municipal tax roll, is determined by the City Manager or his/her designee from the County Appraisal District in which the property in question and the real property within 200 feet of the exterior boundary of the property in question resides.
Also, an additional section will be added at the end of UDC 21.5.4.E. This new section stipulates that these protest votes must be turned in by noon the Friday before the first reading of City Council. This gives staff time to account for the protest votes to determine if the super-majority threshold has been reached, and to prepare the necessary reports. Staff is then proposing a second deadline of noon the Friday before the second reading as well. This gives more time for the surrounding owners to submit their votes on the request; this also provides an opportunity for a property owner to change their vote if they so decide. The proposed language is as follows: 

4. The written protest must be received by City no later than noon on the Friday before the first reading of the public hearing by the City Council for which the notice was published per Section 21.2.3 Notice Requirements to trigger the affirmative vote of at least three-fourths (¾) of all members of the City Council. The written protest must be received by City no later than noon on the Friday before the final reading of the ordinance by the City Council to trigger the affirmative vote of at least three-fourths (¾) of all members of the City Council.
 

PLUDC20230025 would add clarity and organization to the public hearing notice process as it relates to a zone change request. This will help staff, applicants, citizens, and Commissioners and Council Members account for protest votes and if the super-majority threshold has been reached.

Therefore, Staff recommends approval of the amendments to the Unified Development Code (UDC) as proposed and discussed.

The Planning and Zoning Commission in making a recommendation to City Council on the proposed Unified Development Code Amendment. In considering action on a UDC Amendment, the Commission should consider the criteria within UDC, Section 21.4.7 D.