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AGENDA

City Council Regular Meeting

  Monday, July 21, 2025

City Hall

 1102 Lohmans Crossing Road

Lakeway, TX 78734

6:30 PM

Individuals who do not plan to attend the meeting, but wish to submit comments during the public hearings and citizen participation at the meeting may submit a comment through our Online Form: Public Comment Form

Comments received by the 12:00 p.m. deadline Friday, July 18, 2025 will be provided to the City Council.

Page

1

ESTABLISH QUORUM AND CALL TO ORDER.

2

PLEDGE OF ALLEGIANCE.

3

RECOGNITION AND HONORS.

         Badge Pinning Ceremony for Sergeant Nate Stallings and Sergeant Rudy Moreno.

         Badge Pinning Ceremony for Officer Andrew Anderson and Officer John Myrick.

         Retirement of Reserve Officer Al Purcell.

         Employee of the Quarter.

4

CITIZEN PARTICIPATION FOR THE CONSENT AGENDA AND THE FINANCIAL REPORT.

CONSENT AGENDA

All items listed under the consent agenda may be approved by one motion.   Members of the Council may pull items from the consent agenda for discussion.

5

DISCUSSION AND POSSIBLE ACTION REGARDING THE MINUTES FROM THE JUNE 16, 2025 REGULAR CITY COUNCIL MEETING.

2025-06-16 DRAFT Regular City Council Meeting Minutes

8 - 14

6

DISCUSSION AND POSSIBLE ACTION REGARDING THE MINUTES FROM THE JULY 7, 2025 SPECIAL CITY COUNCIL MEETING.

2025-07-07 DRAFT Special City Council Meeting Minutes

15 - 18

7

DISCUSSION AND POSSIBLE ACTION REGARDING SERENE HILLS MEDIAN MAINTENANCE.

Staff Report

19

8

DISCUSSION AND POSSIBLE ACTION REGARDING RESOLUTION NO. 2025-07-21-01 - A RESOLUTION OF THE CITY OF LAKEWAY, TEXAS APPOINTING A SPECIAL MUNICIPAL PROSECUTOR.

Resolution No. 2025-07-21-01

20

9

DISCUSSION AND POSSIBLE ACTION REGARDING ORDINANCE NO. 2025-07-21-01 - AN ORDINANCE OF THE CITY OF LAKEWAY, TEXAS AMENDING TITLE II: BUILDING AND DEVELOPMENT REGULATIONS; CHAPTER 22: GENERAL REGULATIONS; ARTICLE 22.02: DEFINITIONS; CHAPTER 24: BUILDING REGULATIONS: ARTICLE 24.02: BUILDING CODE;  CHAPTER 28: SUBDIVISION AND SITE DEVELOPMENT: ARTICLE 28.09: STANDARDS & SPECIFICATIONS; AND PROVIDING FOR PENALTY, SEVERABILITY, REPEALER, AND AN EFFECTIVE DATE.

Staff Report and Materials

Ordinance No. 2025-07-21-01

Ordinance No. 2025-07-21-01 Redline

21 - 87

10

DISCUSSION AND POSSIBLE ACTION REGARDING REQUEST TO PURCHASE REDUNDANCY EQUIPMENT FOR CITY HALL.

Staff Report

88 - 102

11

DISCUSSION AND POSSIBLE ACTION REGARDING RESOLUTION NO. 2025-07-21-02 - A RESOLUTION OF THE CITY OF LAKEWAY, TEXAS SUSPENDING THE AUGUST 19, 2025 EFFECTIVE DATE OF TEXAS GAS SERVICE COMPANY’S REQUESTED INCREASE TO PERMIT THE CITY TIME TO STUDY THE REQUEST AND TO ESTABLISH REASONABLE RATES; APPROVING COOPERATION WITH OTHER CITIES IN THE TEXAS GAS SERVICE COMPANY’S SERVICE AREA; HIRING LEGAL AND CONSULTING SERVICES TO NEGOTIATE WITH THE COMPANY AND DIRECT ANY NECESSARY LITIGATION AND APPEALS; AUTHORIZING INTERVENTION IN TEXAS GAS SERVICE’S STATEMENT OF INTENT TO CHANGE GAS UTILITY RATES AT THE RAILROAD COMMISSION; REQUIRING REIMBURSEMENT OF CITIES’ RATE CASE EXPENSES; FINDING THAT THE MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW;  REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL.

Staff Report

Resolution No. 2025-07-21-02

103 - 107

12

QUARTERLY INVESTMENT REPORT FOR PERIOD ENDING JUNE 30, 2025.

Investment Report Q3 FY2025

108 - 118

13

MONTHLY FUND STATEMENT.

Monthly Fund Statement June 2025

119 - 120

THE FOLLOWING ITEM IS ADDED TO THE AGENDA FOR CONSIDERATION:

Pursuant to Texas Government Code Section 551.045, the following agenda item is hereby added to the Council Meeting Agenda for July 21, 2025:

CONSENT AGENDA:

A.1

DISCUSSION AND POSSIBLE ACTION REGARDING THE RENEWAL OF THE INTERLOCAL AGREEMENT FOR PUBLIC HEALTH SERVICES BETWEEN THE CITY OF AUSTIN AND THE CITY OF LAKEWAY.

Staff Report

Original ILA for Public Health Services between City of Austin and City of Lakeway

Second Renewal of ILA for Public Health Services

121 - 133

END CONSENT AGENDA

14

FINANCIAL REPORT.

15

CITIZENS PARTICIPATION FOR ITEMS NOT ON THIS AGENDA.

Up to thirty minutes may be allotted, and additional time granted after all business, if needed.

16

DISCUSSION AND POSSIBLE ACTION REGARDING BUTLER ROUGH HOLLOW PARK PLAN.

         Staff report by Parks and Recreation Director Andra Bennett.

         Citizen participation.

         Council discussion/action.

Staff Report

Updated Butler Rough Hollow Park Plan

Opinion of Probable Construction Costs (OPCC)

Highlands Parkland Fund Balance

134 - 140

17

CITY MANAGER REPORT - PARKS BOND PROJECT UPDATE.

         Staff report by City Manager Joseph Molis.

         Citizen participation.

         Council discussion/action.

Staff Report

141 - 145

18

DISCUSSION AND POSSIBLE ACTION REGARDING RESOLUTION NO. 2025-07-21-03 - A RESOLUTION OF THE CITY OF LAKEWAY, TEXAS FOR SUPPORT OF A TSIF GRANT APPLICATION – BEE CREEK AND SH 71 SEMICONDUCTOR PROJECT.

         Staff report by Assistant City Manager Ashby Grundman.

         Citizen participation.

         Council discussion/action.

Staff Report

Resolution No. 2025-07-21-03

TSIF Application FAQs

TSIF Private Entity Application

Defense Industrial Base Overview

Bee Creek Gear Shift PUD (for reference)

146 - 183

19

DISCUSSION AND POSSIBLE ACTION REGARDING UPDATE ON DATA ANALYSIS OF HOTEL OCCUPANCY TAX FUND GRANTS

         Staff report by HOT Fund Coordinator Steve Wille.

         Citizen participation.

         Council discussion/action.

Staff Report

Revised HOT Application - Hotel Version

RevPar Report for Lakeway Hotels 2023 2024 and 2025

184 - 190

20

DISCUSSION AND POSSIBLE ACTION REGARDING A REQUEST FROM LAKE TRAVIS YOUTH ASSOCIATION FOR $60,000 OF HOTEL OCCUPANCY TAX FUNDS.

         Staff report by HOT Fund Coordinator Steve Wille.

         Citizen participation.

         Council discussion/action.

Staff Report

LTYA 2025 HOT Application

LTYA Post Funding Report and Proof of Payments

191 - 216

21

DISCUSSION AND POSSIBLE ACTION REGARDING A REQUEST FROM  LA QUINTA INN & SUITES FOR $26,000 OF HOTEL OCCUPANCY TAX FUNDS.

         Staff report by HOT Fund Coordinator Steve Wille.

         Citizen participation.

         Council discussion/action.

Staff Report

La Quinta 2025 HOT Application

La Quinta 2025 Post Funding Report

217 - 228

22

DISCUSSION AND POSSIBLE ACTION REGARDING A REQUEST FROM SPRINGHILL SUITES FOR $35,000 OF HOTEL OCCUPANCY TAX FUNDS.

         Staff report by HOT Fund Coordinator Steve Wille.

         Citizen participation.

         Council discussion/action.

Staff Report

Springhill 2025 HOT Application

Springhill 2025 Post Funding Report

229 - 239

23

DISCUSSION AND POSSIBLE ACTION REGARDING ORDINANCE NO. 2025-07-21-02 - PLANNED UNIT DEVELOPMENT AMENDMENT: THE SQUARE AT LOHMANS AMENDMENT NO. 3 - AN ORDINANCE AMENDING CITY OF LAKEWAY ORDINANCE NO. 2021-10-18-04, THE SQUARE AT LOHMANS PLANNED UNIT DEVELOPMENT (PUD) APPROXIMATELY 62.979 ACRES OF LAND LOCATED AT 1935 LOHMANS CROSSING ROAD; AND PROVIDING FOR: FINDINGS OF FACT; SEVERABILITY; REPEALER; EFFECTIVE DATE; AND PROPER NOTICE AND MEETING.

         Staff report by Building and Development Services Director Erin Carr.

         Citizen participation.

         Council discussion/action.

Staff Report and Materials

Ordinance No. 2025-07-21-02

240 - 373

24

FIRST READING OF AN ORDINANCE OF THE CITY OF LAKEWAY, TEXAS REGARDING BOARD AND COMMISSION MEMBER REMOVAL.

         Staff report by City Attorney Cobby Caputo.

         Citizen participation.

         Council discussion.

Staff Report

Draft Ordinance

Redline Code of Ordinances changes

374 - 378

25

PRESENTATION OF FISCAL YEAR 2025-2026 BUDGET.

         Presentation by City Manager Joseph Molis.

         Citizen participation.

         Council discussion.

26

DISCUSSION AND POSSIBLE ACTION REGARDING INTELLIGENT INFRASTRUCTURE.

         Report by Councilmember Kent O'Brien.

         Citizen participation.

         Council discussion/action.

Councilmember Report

379 - 381

THE FOLLOWING ITEM IS ADDED TO THE AGENDA FOR CONSIDERATION:

Pursuant to Texas Government Code Section 551.045, the following agenda item is hereby added to the Council Meeting Agenda for July 21, 2025:

REGULAR AGENDA:

A.2

DISCUSSION AND POSSIBLE ACTION REGARDING LCRA PLAN AND OPERATIONS.

         Report by Mayor Tom Kilgore.

         Citizen participation.

         Council discussion/action.

Mayor Report

382

27

EXECUTIVE SESSION - ENTER INTO EXECUTIVE SESSION PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.071 (CONSULTATION WITH ATTORNEY), SECTION 551.087 (ECONOMIC DEVELOPMENT), AND SECTION 551.074 (PERSONNEL MATTERS). NO ACTION WILL BE TAKEN IN EXECUTIVE SESSION; ACTION, IF ANY, WILL BE TAKEN IN OPEN SESSION.

         City Center.

         Litigation update.

         Rebel and Sailfish Park.

         Economic Development.

         Personnel Matters.

28

CITIZENS PARTICIPATION FOR ITEMS NOT ON THIS AGENDA, IF NEEDED.

29

ADJOURN.

Signed this 15th day of July, 2025.

_____________________________

Thomas Kilgore, Mayor

All items may be subject to action by City Council pursuant to Ordinance No. 2001-10-29-1, Article VI. The City Council may adjourn into Executive Session at any time during the course of this meeting to discuss any matters listed on the agenda, as authorized by the Texas Government Code including, but not limited to, Sections: 551.071 (Consultation with Attorney), 551.072 (Deliberations about Real Property), 551.073 (Deliberations about Gifts and Donations), 551.074 (Personnel Matters), 551.076 (Deliberations about Security Devices), 551.087 (Economic Development), 418.183 (Deliberations about Homeland Security Issues) and as authorized by the Texas Tax Code including, but not limited to, Section 321.3022 (Sales Tax Information).

Pursuant to Texas Government Code Sec. 551.127, on a regular, non-emergency basis, members may attend and participate in the meeting remotely by video conference. Should that occur, a quorum of the members will be physically present at the location noted above on this agenda.

Certification: I certify that the above notice of meeting was posted on the City of Lakeway Official Community Bulletin Board on the 15th day of July, 2025 at 5:30 p.m.  Council approved agendas and action minutes are available on line at http://www.lakeway-tx.gov/. The City of Lakeway Council meetings are available to all persons regardless of ability.  If you require special assistance, please contact Desiree Adair, City Secretary, at 512-314-7506 at least 48 hours in advance of the meeting.

_________________________________

Desiree Adair, City Secretary