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1988-04-11 CITY COUNCIL REGULAR MEETING MINUTESKBUTES OF A REGULAR MEETIM OF TFE CITY ("M OF TFE CITY OF FEAR", TEXAS HELD ON APRIL 11, 1988, AT 7:30 P. M. IN THE CITY HALL, 3519 LIBERTY DRIVE, PEARI.AND, TEXAS The meeting was called to order with the following present: Mayor Tom Reid Councilmember/Mayor Pro Tem Richard Tetens Councilmember Stella Roberts Councilmember Councilmember Councilmember City Manager City Attorney City Secretary William Wolff James Bost Dennis Frauenberger Ronald J. Wicker Luke L. Daniel Kay Krouse The invocation was given by Councilmember James Bost. The Pledge of Allegiance was led by Councilmember Dennis Frauenberger. (MANCE IN THE ORDER OF BUSINESS NEW BUSINESS SEALED BIDS FOR THE PURCHASE OF $2,000,000 CITY OF PEARIAND PUBLIC IMPROVEMENT BONDS, SERIES 1988 Bids were opened and read aloud by Frank Ildebrando, Underwood Neuhaus, and are as follows: GRIFFIN, KUBIK, STEPHMS & THOMPSON, INC. 1,548,853.92 7.3347 % NNE(S) TOTAL INTEREST COST EFFECTIVE IlNTEEMST RATE MBANK CAPITAL MARKETS $ 1,548,175.00 7.3315 % RAUSCHER PIERCE REFSNES, INC. 1,578,329.17 7.4743 % ROTAN MOSLE, INC. 1,589,908.33 7.5291 % UNDERWOOD, NEUHAUS & CO, INC. 1,539,725.00 7.2915 % BLUNT ELLIS & LOEWI, INC. 1,548,208.33 7.3316 % DEAN WITTER REYNOLDS, INC. 1,562,854.17 7.4010 % CLAYTON BROWN & ASSOCIATES, INC. 1,531,700.00 7.2535 % SMITH BARNEY, HARRIS & UPHAM 1,549,581.50 7.3381 % GRIFFIN, KUBIK, STEPHMS & THOMPSON, INC. 1,548,853.92 7.3347 % 19 FIRST REPUBLICBANK 1,558,437.50 7.3801 % Mayor Reid referred the bids to Mr. Ildebrando for tabulation and recommendation later in the meeting. It was moved by Councilmember Roberts, seconded by Councilmember Bost, that the Minutes of the Regular Meeting of March 28, 1988, be approved as presented. Motion passed 5 to 0. It was moved by Councilmember Tetens, seconded by Councilmember Frauenberger, that the Minutes of the Joint Public Hearing held on April 4, 1988, be approved as submitted. Motion passed 4 to 0. Councilmember Wolff abstained. MAYOR'S ACTIVITY REPORT Mayor Reid issued a proclamation proclaiming April 23, 1988 as Clean Up Pearland Day and Community Adopt A -Spot Day in Pearland. Patty Bates accepted the proclamation on behalf of Clean Pearland and she described the activities that will be occurring on that day. Mayor Reid presented a proclamation to Trish Matheson that proclaimed the month of April as Child Abuse Prevention Month in Pearland. Councilmember Roberts reported on Clean Up Pearland Day. Lunch will be served around 2:00 P.M. in Independence Park and there will be live entertainment. In addition, as r— of this date, fifteen organizations or businesses have Adopted -A -Spot in Pearland. On FM 518, going toward Highway 288, the Highway Department has erected a sign indicating the Pearland Girl Scouts have Adopted -A -Spot. Councilmember Roberts also announced that this Saturday in Independence Park the American Business Women's Association will have a fun/activities day, with proceeds going to their scholarship fund. Councilmember Bost reported he has received from the City Manager a preliminary draft of the updated personnel rules and regulations for review and shortly he will bring to Council a recommendation for a workshop on this item. Councilmember Tetens reported a committee meeting was held last week on the Multi Service Center contract and a revised contract will be prepared and will, possibly, be on the next regular Council agenda for consideration. Councilmember Wolff expressed his appreciation to Delores Fenwick, Pearland Journal, for the notice placed in the newspaper concerning his meeting with citizens at City Hall on the second Saturday of each month. Councilmember Wolff stated five citizens came in to talk this last Saturday. Councilmember Wolff also reported he had received a telephone call from a citizen last night concerning the possible lease of the old City Hall by United Way of Brazoria County as a multi service center. The citizen related that he had a recent conversation with Tom Fowler, Executive Director of Brazoria County United Way, in which Mr. Fowler indicated that the center could be utilized by residents other than those in Brazoria County. Councilmember Wolff stated he had concerns about the number of people in need who might use the facility, coming from the southeast side of Houston. Mr. .Wolff feels further investigation of this matter is mandatory. Councilmember Roberts stated we have a unique situation, in that the City of Pearland is possibly the only city in Brazoria County also in Harris County and possibly, Harris County United Way, as well as Brazoria County United Way, could use the center to provide services to people of both counties. Mayor Reid requested Councilmembers Tetens and Wolff research this matter more thoroughly and get in contact with Mr. Fowler. City Manager Ron Wicker reported the contractor for the widening of FM 518 has moved in and has been setting up barricades in certain areas along 518 East. The first work they will probably be doing is on the old Mary's Creek bridge near the American Storage facility. City Attorney Luke Daniel advised that slower speed limit signs would be posted for the construction area. CITIZENS: None IIl�IlVISE� BUSINESS: None NEW BUSINESS (CONTINUED) RECOMMENDATION OF FISCAL AGENT ON AWARD OF BID FOR PURCHASE OF $2,000,000 CITY OF PEARLAND PUBLIC I1UVE@ W BONDS, SEEMS 1988 Fiscal Agent Frank Ildebrando advised he reviewed the bids and the bid from Clayton Brown and Associates, Inc. has been calculated properly and he would recommend acceptance of this bid of $1,531,700.00 with effective interest rate of 7.25359/6. Mr. Ildebrando instructed that, if Council so approves, they will need to adopt Ordinance No. 549, as presented, which will have the purchaser's name and the interest rate established in the Ordinance. Mr. Ildebrando added he would estimate the delivery of the $2,000,000 in about 30 days. 11111111 F D/ 1, •' •• � 151 : • I I ti `151. 15ti • :: I I 1 5� 1 � 151'x!' S1 Ordinance No. 549 was read in caption by Councilmember Frauenberger. (First and Only Reading) It was moved by Councilmember Frauenberger, seconded by Councilmember Wolff, that Ordinance No. 549 be passed and approved on the first and only required reading as an emergency ordinance. Voting "Aye" - Councilmembers Wolff, Frauenberger, Tetens, Bost and Roberts. Voting "No" - None. Motion passed 5 to 0. Certificate for Ordinance and Ordinance No. 549, as adopted, read as follows: 14151C�Y11� Y a•;: I;R11 1� ; �,M THE STATE OF TEXAS COUNTIES OF BRAZORIA AND HARRIS We, the undersigned officers of the City Council of the CITY OF PEARLAND, TEXAS, hereby certify as follows: 1. That the City Council of the CITY OF PEARLAND, TEXAS, convened in regular session on April 11, 1988, at the regular meeting place thereof, within the City and the roll was called of the duly constituted officers and members of the City Council, to -wit: Tom Reid Mayor Stella Roberts Councilmember Richard F. Tetens Councilmember James E. Bost Councilmember Dennis Frauenberger Councilmember William E. Wolff Councilmember Kay Krouse City Secretary and all of said persons were present, except the following absentee(s): none , thus constituting a quorum. Whereupon, among other business, the following was transacted at said meeting: a written 21 ORDINANCE AUTHORIZING THE ISSUANCE OF $2,000,000 CITY OF PEARLAND, TEXAS, PUBLIC IMPROVEMENT BONDS, SERIES 1988; AMID DECLARING THAT A SPECIFIC AMID IMMEDIATE PUBLIC EMERGENCY EXISTS IN THAT PROCEEDS OF SALE OF SUCH BONDS ARE REQUIRED AS SOON AS POSSIBLE TO ACCOMPLISH THE BOND PURPOSES FOR PRO- TECTION OF LIFE, HEALTH, PROPERTY AND THE PUBLIC PEACE WITHIN THE CITY was duly introduced for the consideration of the City Council and read in Hill. It was then duly moved and seconded that said ordinance be adopted; and, after due discussion, said motion, carrying with it the adoption of the ordinance, prevailed and carried by the following vote: AYES: All members of said City Council shown present above voted "Aye". NOES: None. 2. A true, full and correct copy of the aforesaid ordinance adopted at the meeting described in the above and foregoing paragraph is attached to and follows this certificate; that the ordinance has been duly recorded in the City Council's minutes of said meeting; that the above and foregoing paragraph is a true, full and correct excerpt from the City Council's minutes of said meeting pertaining to the adoption of the ordinance; that the persons named in the above and foregoing paragraph are the duly chosen, qualified and acting officers and members of the City Council as indicated therein; that each of the officers and members of the City Council was duly and sufficiently notified officially and personally, in advance, of the date, hour, place and purpose of the aforesaid meeting, and that the ordinance would be introduced and considered for adoption at said meeting, and each of said officers and members consented, in advance, to the holding of said meeting for such purpose; that said meeting was open to the public as required by law; and that public notice of the date, hour, place and subject of said meeting was given as required by Vernon's Texas Civil Statutes, Article 6252-17, as amended. SIGNED AND SEALED this 11th day of April, 1988. /s/ Kay Krouse - ity Secretary /s/ Tom Reid Mayor ORDINANCE AUTHORIZING THE ISSUANCE OF $2,000,000 CITY OF PEARLAND, TEXAS, PUBLIC IMPROVEMENT BONDS, SERIES 1988; AND DECLARING THAT A SPECIFIC AND IMMEDIATE PUBLIC EMERGENCY EXISTS IN THAT PROCEEDS OF SALE OF SUCH BONDS ARE REQUIRED AS SOON AS POSSIBLE TO ACCOMPLISH THE BOND PURPOSES FOR PRO- TECTION OF LIFE, HEALTH, PROPERTY AND THE PUBLIC PEACE WITHIN THE CITY. THE STATE OF TEXAS COUNTIES OF BRAZORIA.AND HARRIS CITY OF PEARIAND WHEREAS, the bonds hereinafter authorized were duly and favorably voted at an election held in the City on the 15th day of September, 1984; and WHEREAS, said election authorizing the issuance of the bonds was held in conformity with the Constitution and laws of the State of Texas and section 8.24 (a) of the home -rule charter of the City; and WHEREAS, the City Council of the City has and does hereby determine that bonds in the amount of $2,000,000, as a portion and the third installment of the $13,500,000 bonds voted at said election, should now be issued and delivered in order to accomplish the purposes for which they were voted, $9,500,00 bonds of said voted authorization having been heretofore issued, sold, and delivered, and the City reserving the right to issue the remainder of the bonds authorized at such election at a later time; Now, Therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, 22 � ARTICLE I DEFINITIONS -AND -INTERPRETATIONS Section -1.1: Definitions. Throughout this ordinance the following terms and expressions as used herein shall have the meanings set forth below: The term "Bond" or "Bonds" shall mean any bond or all bonds, as the case may be, of the Public Improvement Bonds, Series 1988, authorized in this Ordinance, unless the context clearly indicates otherwise. The term "City" shall mean the City of Pearland, Texas, and, where appropriate, the City Council. The term "Construction Fund" shall mean the construction fund established by the City pursuant to Article VI of this Ordinance. The term "Interest and Sinking Fund" shall mean the interest and sinking fund established by the City pursuant to Section 5.1 of this Ordinance. The term "Interest Payment Date", when used in connection with any Bond, shall mean March 1, 1989, and each September 1 and March 1 thereafter until maturity or earlier redemption of such Bond. The term "Ordinance" as used herein and in the Bonds shall mean this ordinance authorizing the Bonds and all amendments hereof and supplements hereto. The term "Owner" shall mean any person who shall be the registered owner of any outstanding Bonds. The tern "Paying Agent" shall mean the Registrar. The term "Record Date" shall mean, for any Interest Payment Date, the 15th calendar date of the month next preceding such Interest Payment Date. The term "Register" shall mean the books of registration kept by the Registrar in which are maintained the names and addresses of and the principal amounts registered to each Owner. The term "Registrar" shall mean MTrust Corp, National Association, Houston, Texas, and its successors in that capacity. Section 1.2: Interpretations. All definitions of terms used herein and all pronouns used in this Ordinance shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the articles and sections of this Ordinance have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof. This Ordinance and all the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein. ARTICLE II TERMS OF THE BONDS Section 2.1: Amount and Purpose. The Bonds shall be issued in fully registered form, without coupons, in the total authorized aggregate amount of Two Million Dollars ($2,000,000) for the purpose of construction and improvement of the roads, bridges, and streets of the City. . Section 2.2: Designation, Date, and Interest P ent Date. The Bonds shall be designated erste "CITY OF PEARLAND, TEXAS, PUBLIC IMPROVEMENT BONDS, SERIES 198811, and shall be dated May 1, 1988. The Bonds shall bear interest from the later of May 1, 1988, or the most recent Interest Payment Date to which interest has been paid or duly provided for, calculated on the basis of a 360 -day year of twelve 30 -day months, interest payable on March 1, 1989, and semiannually thereafter on September 1 and March 1 of each year until maturity or prior redemption. Section 2.3: Numbers, Denomination, Interest Rates and Maturities. The Bonds shall be issued bearing the numbers, in the principal amounts, and bearing interest at the rates set forth in the following schedule, and may be transferred and exchanged as set out in this Ordinance. The Bonds shall mature, subject to prior redemption in accordance with this Ordinance, on March 1 in each of the years and in the amounts set out in such schedule. Bonds delivered in transfer of or in exchange for other Bonds shall be integral multiples thereof, the same rate as the Bond o 23 r Bond Number Year numbered in order of their denomination of $5,000 or and shall mature on the same date and bear interest at Bonds in lieu of which they are delivered. Principal Amount Interest Rate R- 1 1989 $ 50,000 8.809/ R- 2 1990 50, 000 8.8099/o R- 3 1991 50,000 8.8099 R- 4 1992 50,000 8.80'1 R- 5 1993 50,000 8.809/0 R- 6 1994 50,000 8.80'9 R- 7 1995 50,000 8.8099/0 R- 8 1996 50,000 8.80% R- 9 1997 100,000 8.00'/ R-10 1998 250,000 6.80'9 R-11 1999 250,000 6.90.5 R-12 2000 250,000 7.00•l R-13 2001 250,000 7.10% R-14. 2002 250,000 7.25916 R--15. 2003 250,000 7.25% Section -2.4: Execution -of -Bonds; Seal. The Bonds shall be signed by the Mayor of the City and countersigned by the City Secretary of the City, by their manual, lithographed, or facsimile signatures, and the official seal of the City shall be impressed or placed in facsimile thereon. Such facsimile signatures on the Bonds shall have the same effect as if each of the Bonds had been signed manually and in person by each of said officers, and such facsimile seal on the Bonds shall have the same effect as if the official seal of the City had been manually impressed upon each of the Bonds. If any officer of the City whose manual or facsimile signature shall appear on the Bonds shall cease to be such officer before the authentication of such Bonds or before the delivery of such Bonds, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained in such office. Section 2.5: Authentication. Only such Bonds as shall bear thereon either (i) the manually executed registration certificate of the Comptroller of Public Accounts of Texas substantially in the form provided in Section 4.2 of this Ordinance or (ii) a certificate of authentication, substantially in the form provided in Section 4.3 of this Ordinance, manually executed by an authorized officer of the Registrar, shall be entitled to the benefits of this Ordinance or shall be valid or obligatory for any purpose. Such duly executed certificate of authentication shall be conclusive evidence that the Bond so authenticated was delivered by the Registrar hereunder. Section 2.6: Medium and Place of Payment. The Registrar is hereby appointed as the Paying Agent for the Bonds. The principal of the Bonds shall be payable without exchange or collection charges, in any coin or currency of the United States of America, which, on the date of payment, is legal tender for the payment of debts due the United States of America, upon their presentation and surrender as they become due and payable, whether at maturity or by prior redemption, at the principal corporate trust office of the Registrar. The interest on each Bond shall be payable by check or draft payable on the Interest Payment Date mailed by the Registrar on or before each Interest Payment Date to the Owner of record as of the Record Date, to the address of such Owner as shown on the Register. Section 2.7: Ownership; Unclaimed Principal and Interest. The City, the Registrar and any other person may treat the person in whose name any Bond is registered as the absolute owner of such Bond for the purpose of making and receiving payment of the principal thereof and for the further purpose of making and receiving payment of the interest thereon, and for all other purposes, whether or not such Bond r--� is overdue, and neither the City nor the Registrar shall be bound by any notice or knowledge to the contrary. All payments made to the person deemed to be the Owner of any Bond in accordance with this Section 2.7 shall be valid and effectual and shall discharge the liability of the City and the Registrar upon such Bond to the extent of the sums paid. Amounts held by the Registrar which represent principal of and interest on the Bonds remaining unclaimed by the Owner after the expiration of three years from the date such amounts have become due and payable shall be reported and disposed of by the Registrar in accordance with the applicable provisions of Texas law including, to the extent applicable, Title 6 of the Texas Property Code, as amended. Section 2.8: Registration, Transfer and Exchange. So long as any Bonds remain Com" outstanding, the Registrar steal l keep the Register at its principal corporate trust office in which, subject to such reasonable regulations as it may prescribe, the Registrar shal l provide for the registration and transfer of Bonds in accordance with the terms of this Ordinance. Each Bond shall be transferable only upon the presentation and surrender thereof at the principal corporate trust office of the Registrar, duly endorsed for transfer, or accompanied by an assig-grient duly executed by the registered Owner or his authorized representative in form satisfactory to the Registrar. Upon due pre- sentation of any Bond for transfer, the Registrar shall authenticate and deliver in exchange therefor, within 72 hours after such presentation, a new Bond or Bonds, registered in the name of the transferee or transferees, in authorized denominations and of the same maturity and aggregate principal amount and bearing interest at the same rate as the Bond or Bonds so presented. All Bonds shall be exchangeable upon presentation and surrender thereof at the principal. corporate trust office of the Registrar for a Bond or Bonds of the same maturity and interest rate and in any authorized denomination, in an aggregate principal amount equal to the unpaid principal amount of the Bond or Bonds presented for exchange. The Registrar shall be and is hereby authorized to authenticate and deliver exchange Bonds in accordance with the provisions of this Section 2.8. Each Bond delivered in accordance with this Section 2.8 shall be entitled to the benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which such Bond is delivered. The City or the Registrar may require the Owner of any Bond to pay a sum sufficient to cover any tax or other governmental. charge that may be imposed in connection with the transfer or exchange of such Bond. Any fee or charge of the Registrar for such transfer or exchange shall be paid by the City. The Registrar shall not be required to transfer or exchange any Bond during a period beginning at the opening of business fifteen (15) calendar days prior to the first mailing of a notice of redemption of Bonds and ending at the close of business on the day of such mailing. Section 2.9: Cancellation. All Bonds paid or redeemed in accordance with this Ordinance, and all Bonds in lieu of which exchange Bonds or replacement Bonds are authenticated and delivered in accordance herewith, shall be cancelled and destroyed upon the making of proper records regarding such payment or redemption. The Registrar shall furnish the City with appropriate certificates of destruction of such Bonds Section 2.10: Replacement Bonds. Upon the presentation and surrender to the Registrar of a mutilated Bond, the Registrar shall authenticate and deliver in exchange therefor a replacement Bond of like maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding. The City of the Registrar may require the Owner of such Bond to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith and any other expenses connected therewith, including the fees and expenses of the Registrar. If any Bond is lost, apparently destroyed, or wrongfully taken, the City, pursuant to the applicable laws of the State of Texas and in the absence of notice or knowledge that such Bond has been acquired by a bona fide purchaser, shall execute and the Registrar shall authenticate and deliver a replacement Bond of like maturity, interest rate and principal amount, bearing a number not contemporaneously outstanding, provided that the Owner thereof shall have: (a) furnished to the City and the Registrar satisfactory evidence of the ownership of and the circumstances of the loss, destruction or theft of such Bond; (b) furnished such security or indemnity as may be required by the Registrar and the City to save them harmless; (c) paid all expenses and charges in connection therewith, including, but not limited to, printing costs, legal fees, fees of the Registrar and any tax or other governmental charge that may be imposed; and (d) met any other reasonable requirements of the City and the Registrar. If, after the delivery of such replacement Bond, a bona fide purchaser of the original Bond in lieu of which such replacement Bond was issued presents for payment such original Bond, the City and the Registrar shall. be entitled to recover such 25 replacement Bond from the person to whom it was delivered or any person taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the City or the Registrar in connection therewith. If any such mutilated, lost, apparently destroyed or wrongfully taken Bond has become or is about to become due and payable, the City in its discretion may, instead of issuing a replacement Bond, authorize the Registrar to pay such Bond. Each replacement Bond delivered in accordance with this Section 2.10 shall be entitled to the benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which such replacement Bond is delivered. ARTICLE III OPTION OF --PRIOR REDEMPTION Section 3.1 Optional Redemption. The City reserves the right, at its option, to redeem prior to maturity the Bonds maturing on or after March 1, 1999, in whole or from time to time in part, on March 1, 1998, or on any Interest Payment Date thereafter at par plus accrued interest on the Bonds called for redemption to the date fixed for redemption. If less than all of the Bonds within a stated maturity are redeemed at any time, the Bonds to be redeemed shall be selected by the City. Section 3.2: Partial Redemption. Principal amounts may be redeemed only in integral multiples of $5,000. If a Bond subject to redemption is in a denomination larger than $5,000, a portion of such Bond may be redeemed, but only in integral multiples of $5,000. Upon surrender of any Bond for redemption in part, the Registrar, in accordance with Section 2.8 hereof, shall authenticate and deliver in exchange therefor a Bond or Bonds of like maturity and interest rate in an aggregate principal amount equal to the unredeemed portion of the Bond so surrendered. Section -3.3: Notice of -Redemption. Notice of any redemption identifying the Bonds to be redeemed in whole or in part shall be given by the Registrar at least thirty days prior to the date fixed for redemption by (i) sending written notice by -- certified mail to the Owner of each Bond to be redeemed in whole or in part at the adress shown on the Register and (ii) publication one time in a financial journal or publication published in the City of New York, New York, or in the City of Austin, Texas. Such notices shall state the redemption date, the amount of accrued interest payable on the redemption date, the place at which Bonds are to be surrendered for payment and, if less than all Bonds outstanding are to be redeemed, the numbers of the Bonds or portions thereof to be redeemed. Any notice given as provided in this Section 3.3 shall be conclusively presumed to have been duly given, whether or not the Owner receives such notice. By the date fixed for redemption, due provision shall be made with the Registrar for payment of the redemption price of the Bands or portions thereof to be redeemed, plus accrued interest to the date fixed for redemption. When Bonds have been called for redemption in whole or in part and due provision has been made to redeem same as herein provided, the Bonds or portions thereof so redeemed shall no longer be regarded as outstanding except for the purpose of receiving payment solely from the funds so provided for redemption, and the rights of the Owners to collect interest which would otherwise accrue after the redemption date on any Bond or portion thereof called for redemption shall terminate on the date fixed for redemption. ARTICLE IV FORM -OF -BONDS AND CERTIFICATES Section 4.1: Form of Bonds. The Bonds shall be in substantially the following form, with such additions, deletions and variations as may be necessary or desirable and not prohibited by this Ordinance: (Face of Bond) UNITED STATES OF AMERICA STATE OF TEXAS COUNITES OF BRAZORIA AND HARRIS NUMBER DENOMINATION R- $ REGISTERED REGISTERED 26 CITY OF PEARLAND, TEXAS PUBLIC IMPROVEM[M BOND, SERIES 1988 INTEREST RATE: MATURITY DATE: ISSUE DATE: CUSIP: May 1, 1988 REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS THE CITY OF PEARLAND, TEXAS (the "City") promises to pay to the registered owner identified above, or registered assigns, on the date specified above, upon presentation and surrender of this bond at the principal corporate trust office of MTrust Corp, National Association, HOUSTON, TEXAS (the "Registrar"), the principal amount identified above, payable in any coin or currency of the United States of America which on the date of payment of such principal is legal tender for the payment of debts due the United States of America, and to pay interest thereon at the rate shown above, calculated on the basis of a 360 -day year of twelve 30 -day months, from the later of May 1, 1988, or the most recent interest payment date to which interest has been paid or duly provided for. Interest on this bond is payable by check or draft payable on March 1, 1989 and semiannually thereafter on each September 1 and March 1, mailed to the registered owner as shown on the books of registration kept by the Registrar as of the 15th calendar date of the month next preceding each interest payment date. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL HAVE THE SAME FORCE AND EFFECT AS IF SET FORTH AT THIS PLACE. IN WITNESS WHEREOF, this bond has been signed with the manual or facsimile signature of the Mayor of the City and countersigned with the manual or facsimile signature of the City Secretary of the City, and the official seal of the City has been duly impressed, or placed in facsimile, on this bond. (AUTHENTICATION CERTIFICATE) (SEAL) CITY OF PEARLAND, Mayor City Secretary (Back Panel of Bond) THIS BOND is one of a duly authorized series of Bonds, aggregating $2,000,000 (the "Bonds"), issued for the purpose of construction and improvement of the roads, bridges, and streets of the city, and pursuant to an ordinance adopted by the City Council on April 11, 1988 (the "Ordinance"). THE CITY RESERVES THE RIGHT, at its option, to redeem the Bonds maturing on or after March 1, 1999, prior to their scheduled maturities, in whole or from time to time in part, in integral multiples of $5,000, on March 1, 1998, or on any interest payment date thereafter at par plus accrued interest on the principal amounts called for redemption. Reference is made to the Ordinance for complete details concerning the manner of redeeming the Bonds. NOTICE OF ANY REDEMPTION shall be given at least thirty (30) days prior to the date fixed for redemption by certified mail, addressed to the registered owners of each Bond to be redeemed in whole or in part at the address shown on the books of registration kept by the Registrar and by publication once in a financial journal or publication published in the City of New York, New York, or in the City of Austin, Texas. When Bonds or portions thereof have been called for redemption, and due provision has been made to redeem the same, the principal amounts so redeemed shall be payable solely from the funds provided for redemption, and interest which would otherwise accrue on the amounts called for redemption shall terminate on the date fixed for redemption. THIS BOND IS TRANSFERABLE only upon presentation and surrender at the principal corporate trust office of the Registrar, duly endorsed for transfer or accompanied by an assignment duly executed by the registered owner or his authorized representative, 27 subject to the terms and conditions of the Ordinance. THE BONDS ARE EXCHANGEABLE at the principal corporate trust office of the Registrar for bonds in the principal amount of $5,000 or any integral multiple thereof, subject to the terms and conditions of the Ordinance. THE REGISTRAR SHALL NOT BE REQUIRED to transfer or exchange any Bond during a period beginning at the opening of business fifteen (15) calendar days prior to the first mailing of a notice of redemption of Bonds and ending at the close of business on the day of such mailing. THIS BOND SHALL NOT BE valid or obligatory for any purpose or be entitled to any benefit under the Ordinance unless this Bond either (i) is registered by the Comptroller of Public Accounts of the State of Texas by registration certificate endorsed hereon or (ii) is authenticated by the Registrar by due execution certificate endorsed hereon. IT IS HEREBY CERTIFIED, RECITED AND COVENANTED that this Bond has been duly and validly issued and delivered; that all acts, conditions and things required or proper to be performed, to exist and to be done precedent to or in the issuance and delivery of this Bond have been performed, exist and have been done in accordance with law; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Bond, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in the City within the limits prescribed by the Constitution and laws of the State of Texas, and have been pledged irrevocably for such payment. Section 4.2: Registration -of -Bonds -by -State Comptroller. Bonds No. R-1 through R-15 shall be registered by the Comptroller of Public Accounts of the State of Texas, as provided by law. The registration certificate of the Comptroller of Public Accounts shall be attached or affixed to Bonds R-1 through R-15 and shall be in substantially the following form: COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I HEREBY CERTIFY that this bond has been examined, certified as to validity, and approved by the Attorney General of the State of Texas, and that this bond has been registered by the Comptroller of Public Accounts of the State of Texas. WITNESS MY SIGNATURE AND SEAL this I{ XXXXXXXX Comptroller of Public Accounts of the State of Texas Section 4.3: Form of Authentication Certificate. The following form of authentication certificate shall be printed on the face of each of the Bonds: Registration Date: AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been delivered pursuant to the Ordinance described in the text of this Bond, in exchange for or in replacement of a Bond, Bonds or a portion of a Bond or Bonds of a Series which was originally approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. r— MTrust Corp, National Association Houston, Texas By Authorized Signature Date of Authentication: Section 4.4: Form of Assig u pyit. The following form of assignment shall be printed on the back of each of the Bonds: rfill • ASSIGNMENT For value received, the undersigned hereby sells, assigns, and transfers unto Please print or type name, address, and zip code of Transferree Please insert Social Security or Taxpayer Identification Number of Transferree the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer said bond on the books kept for registration ereo , with full power of substitution in the premises. DATED: Signature Guaranteed: NOTICE: Signature must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. Registered Owner NOTICE: The signature above must correspond to the name of the registered owner s shown on the face of this cer- in every particular, without any alteration, enlargement or change whatsoever. Statement of Insurance Municipal Bond Guaranty Insurance Policy No. (the "Policy") with respect to payments due for principal of and interest on this bond has been issued by AMBAC Indemnity Corporation ("AMBAC Indemnity"). The policy has been delivered to the United States Trust Company of New York, New York, as the Insurance Trustee under said Policy and will be held by such Insurance Trustee or any successor insurance trustee. The policy is on file and available for inspection at the principal office of the Insurance Trustee and a copy thereof may be secured from AMBAC Indemnity or the Insurance Trustee. All payments required to be made under the Policy shall be made in accordance with the provisions thereof. The owner of this bond acknowledges and consents to the subrogation rights of AMBAC Indemnity as more Hilly set forth in the Policy. Section 4.5: Legal Opinion; CUSIP. The approving opinion of Vinson & Elkins, Houston, Texas, and CUSIP Numbers may be printed on the Bonds, but errors or omissions in the printing of such opinion or such numbers shall have no effect on the validity of the Bonds. ARTICLE V SECURITY AND SOURCE OF PAYMENT FOR BONDS Section 5.1: Interest and Sinking Fund; Tax Levy. The proceeds from all taxes levied, assessed and collected for and on account of the Bonds authorized by this Ordinance shall be deposited, as collected, in a special fund to be designated "City of Pearland, Texas, Public Improvement Bonds, Series 1988, Interest and Sinking Fund". While said Bonds or any part of the principal thereof or interest thereon remain outstanding and unpaid, there is hereby levied and there shall be annually levied, assessed and collected in due time, form and manner within the limits prescribed by law, and at the same time other City taxes are levied, assessed and collected, in each year, beginning with the current year, a continuing direct annual ad valorem tax upon all taxable property in said City sufficient to pay the current interest on said Bonds as the same becomes due, and to provide and maintain a sinking fund adequate to pay the principal of the Bonds as such principal matures but never less than two percent (2'16) of the original principal amount of the Bonds each year, full allowance being made for delinquencies and costs of collection, and said taxes when collected shall be applied to the payment of the interest on and principal of said Bonds and to no other purpose. In addition, interest accrued from the date of the Bonds until their delivery, and premium if any, is to be deposited in such find. Section 5.2: Investment of Interest and Sinking Fund. Money in the Interest and Sinking Fund may, at the option of the City, be invested in time deposits or certificates of deposit secured in the manner required by law for public funds, or be invested in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America, in obligations of any agencies or instrumentalities of the United States of America or as otherwise permitted by state law; provided that all such deposits and investments shall be made 29 in such manner (which may include repurchase agreements for such investments) Ratz'orrat--ba�ac7} that money required to be expended from the Interest and Sinking Fund will be available at the proper time or times. All such investments shall be valued in terms of current market value no less frequently than the last business day of the City's Fiscal Year, except that any direct obligations of the United States of America - State and Local Government Series shall be continuously valued at their par value or principal face amount. Any. obligation in which money is so invested shall be kept and held in an official depository of the City, except as hereinafter provided. For purposes of maximizing investment returns, money in such Interest and Sinking Fund may be invested, together with money in the Construction Fund or with other money of the City, in common investments of the kind described above, or in a common pool of such investments which shall be kept and held at an official depository of the City, which shall not be deemed to be or constitute a commingling of such money or Funds provided that safekeeping receipts or certificates of partici- pation clearly evidencing the investment or investment pool in which such money is invested and the share thereof purchased with such money or owned by such Fund are held by or on behalf of each such Fund. If necessary, such investments shall be promptly sold to prevent any default. All interest and income derived from such deposits and investments of the Interest and Sinking Fund shall be credited to the Interest and Sinking Fund. So long as any Bonds remain outstanding, all uninvested moneys on deposit in, or credited to, the Interest and Sinking Fund shall be secured ,by the pledge of security, as provided by law for cities in the State of Texas. ARTICLE VI CONSTRUCTION FUND Section 6.1: Construction Fund. There is hereby created and established a special fund o he City, to be known as the "City of Pearland, Texas, Public Improvement Bonds, Series 1988, Construction Fund", which shall be maintained as a separate account on the books of the City. Money on deposit in the Construction Fund shall be used only for the purposes set forth in Section, 2.1 of this Ordinance, except that interest and income derived from deposit and investment of moneys in the Construction Fund may be utilized as provided below in Section 6.2 -hereof. r-- Section 6.2: Investment -of Money in Construction Fund. Money on deposit in the Construction Fund may, at the option of the City, be invested as permitted by Texas law; provided that all such deposits and investments shall be made in such manner (which may include repurchase agreements for such investments)w-wry untie that the money required to be expended from the Construction Fund will be available at the proper time or times. All such investments shall be valued in terms of current market value no less frequently than the last business day of the City's Fiscal Year, except that any direct obligations of the United States of America — State and Local Government Series shall be continuously valued at their par value or principal face amount. Any obligation in which money is so invested shall be kept and held in an official depository of the City, except as hereinafter provided. For purposes of maximizing investment returns, money in the Construction Fund may be invested, together with money in the Interest and Sinking Fund or with other money of the City, in common investments of the kind described above, or in a common pool of such investments which shall be kept and held at an official depository of the City, which shall not be deemed to be or constitute a commingling of such money or Funds provided that safekeeping receipts or certificates of participation clearly evidencing the investment or investment pool in which such money is invested and the share thereof purchased with such money or owned by the Construction Fund are held by or on behalf of the Construction Fund. All interest and income derived from such deposits and investments shall remain in the Construction Fund, except that (a) to the extent required by law, such interest and income may be applied to make such payments to the United States of America as shall be required to assure that interest on the Bonds is exempt from Federal income taxation, and (b) in the discretion of the City, such interest and income may be utilized to pay principal of and interest on the Bonds. ARTICLE VII PROVISIONS CONCERNING SALE AND DISPOSITION OF PROCEEDS OF BONDS Section 7.1: Sale of Bonds. The sale of the Bonds to Clayton Brown & Associates Inc. - - he "Purchaser") at the price of par plus accrued -interest thereon to date of delivery, plus a cash premium of $ 0- , is hereby authorized, approved, ratified and confirmed, subject to the unqualified approving opinion as to the legality of the Bonds of the Attorney General of the State of Texas, and of Vinson & Elkins, Houston, Texas, bond counsel. It is hereby found and declared that 30 the bid of said Purchaser is the best obtained by the City for the Bonds pursuant to and after taking public bids for the sale thereof. Section 7.2: Approval, Registration and Deliver. After the Bonds to be initially issued shall have been executed, it shall be the duty of the Mayor of the City to deliver the Bonds to be initially issued and all pertinent records and proceedings to the Attorney General of Texas, for examination and approval by the Attorney General. After the Bonds to be initially issued shall have been approved by the Attorney General, they shall be delivered to the Comptroller of Public Accounts of the State of Texas for registration. Upon registration of the Bonds to be initially issued, the Comptroller of Public Accounts (or a deputy lawfully designated in writing to act for the Comptroller) shall manually sign the Comptroller's Registration Certificate prescribed herein to be attached or affixed to the Bonds to be initially issued, and the seal. of said Comptroller shall be impressed, or placed in facsimile, thereon. Section 7.3: Tax Exemption. The City covenants that it shall make such use of the proceeds of the Bonds, regulate investments of proceeds thereof and take such other and further actions as may be required by Sections 103 and 141-150 of the Internal Revenue Code of 1986 (the "Code") and all applicable temporary, proposed and final regulations and procedures promulgated thereunder or promulgated Conder the Internal Revenue Code of 1954, to the extent applicable to the Code ("Regulations"), necessary to assure that interest on the Bonds is excludable from gross income for federal income tax purposes. Without limiting the generality of the foregoing covenant, the City hereby covenants as follows: (a) The City will not use, nor permit to be used, more than 10 percent of the net proceeds of the Bonds in the trade or business of any person (other than use as a member of the general public) other than a governmental unit ("private -use proceeds"). For purposes of this Section, the term "net proceeds" means the proceeds derived from the sale of the Bonds, plus interest earnings thereon, less any amounts deposited in a reasonably required reserve or replacement fund; the term "person" includes any individual, corporation, partnership, unincorporated association or any other entity capable of carrying on a trade or business; and the term "trade or business" means, with respect to any natural person, any activity regularly carried on for profit and, with respect to persons other than natural persons, means any activity other than an activity carried on by a governmental unit; (b) The City will not use, nor permit to be used, more than 5 percent of the net proceeds of. the Bonds in the trade of business of any person other than a governmental unit if such use is unrelated to the governmental purpose of the Bonds. Further, the amount of private -use proceeds of the Bonds ("excess private use proceeds") will not exceed the proceeds of the Bonds expended for the governmental purpose of the Bonds to which such excess private -use proceeds relate; (c) Principal and interest on the Bonds will be paid solely from ad valorem taxes collected by the City. Further, no person using more than 10 percent of the net proceeds of the Bonds in a trade or business, other than a governmental unit, shall make payments (other than as a member of the general public), directly or indirectly, accounting for more than 10 percent of such principal and interest; (d) The City will not use, or permit to be used, an amount exceeding the lesser of (i) $5,000,000 or (ii) 5 percent of the net proceeds of the Bonds to finance loans to persons other than governmental units, directly or indirectly; (e) Based upon all facts and estimates now known or reasonably expected to be in existence on the date the Bonds are delivered, the City reasonably expects that the proceeds of the Bonds will not be used in a manner that would cause the Bonds or any portion thereof to be an "arbitrage bond" within the meaning of Section 148 of the Code; (f) The City will monitor the yield on the investment of the proceeds of the Bonds and moneys pledged to the repayment of the Bonds and will restrict the yield on such investments to the extent required by the Code or the Regulations. Without limiting the generality of the foregoing, the City will take appropriate steps to restrict the yield on all proceeds of the Bonds on hand on a date that is three years from the date of de 1 ivery of the Bonds to a yield which is not materially higher than the yield on the Bonds (in both cases calculated in accordance with the Code and Regulations); 31 (g) The City will not cause the Bonds to be treated as "federally guaranteed" obligations for purposes of Section 149(b) of the Code (as may be modified in any applicable rules, rulings, policies, procedures, regulations or other official statements promulgated or proposed by the Department of the Treasury or the Internal Revenue Service with respect to "federally guaranteed" obligations described in Section 149(b) of the Code); and (h) The City will take all necessary steps to comply with the requirement that "excess arbitrage profits" earned on the investment of the "gross proceeds" of the Bonds (within the meaning of Section 148(f)(6)(B) of the Code), if any, be rebated to the federal government. Specifically, the City will (i) maintain records regarding the investment of the gross proceeds of the Bonds as may be required to calculate such "excess arbitrage profits" separately from records of amounts on deposit in the funds and accounts of the City allocable to other bond issues of the City or moneys which do not represent gross proceeds of any bonds of the City, (ii) calculate, not less often than annually, the amt of "excess arbitrage profits," if any, earned from the investment of the gross proceeds of the Bonds and (iii) pay, not less often than every fifth anniversary date. of the delivery of the Bonds, all amounts required to be rebated to the federal government. Further, the City will not indirectly pay any amount otherwise payable to the federal government pursuant to the foregoing requirements to any person other than the federal government by entering into any investment arrangement with respect to the gross proceeds of the Bonds that might result in a "prohibited payment" within the meaning of Temp. Treas. Reg. 1.103-15AT. (i) The City will timely file a statement with the federal government setting forth the information required pursuant to Section 149(e) of the Code. All officers, employees and agents of the City are authorized and directed to provide certifications of facts and estimates that are material to the reasonable expecta- tions of the City regarding the foregoing as of the date the Bonds are delivered. In complying with the foregoing covenants, the City may rely from time to time upon an opinion issued by nationally -recognized bond counsel to the effect that any action by the City in reliance upon any interpretation of the Code or Regulations contained in r--- such opinion will not cause interest on the Bonds to be includable in gross income for federal income tax purposes under existing law. Section 7.4: Qualified Tax -Exempt Obligations. The City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of section 265(b) of the Code. In. connection therewith, the City represents (a) that the aggregate amount of tax-exempt obligations issued by the City during calendar year 1988, including the Bonds, which have been designated as "qualified tax-exempt obligations" under section 265(b)(3) of the Code does not exceed $10,000,000, and (b) that the reasonably anticipated amount of tax-exempt obligations which will be issued by the City during calendar year 1988, including the Bonds, will not exceed $10,000,000. For purposes of this section 7.4, the term "tax-exempt obligation" does not include "private activity bonds" within the meaning of section 141 of the Code, other than "qualified 501(c)(3) bonds" within the meaning of section 145 of the Code. In addition, for purposes of this section 7.4, the City includes all governmental units which are "subordinate entities" of the City, within the meaning of section 265(b) of the Code. Section 7.5: Books and Records. So long as any of the Bonds are outstanding the City covenants and agrees that it will keep proper books of record and account in which full, true and correct entries will be made of all dealings, activities and transactions relating to the Bonds and the funds created pursuant to this Ordinance, and all books, documents and vouchers relating thereto shall at all reasonable times be made available for inspection upon request of any Owner. ARTICLE VIII MISCELLANEOUS Section 8.1: Official Statement. The City ratifies and confirms its prior approval of the form and content of the Official Statement prepared for initial offering and sale of the Bonds and hereby approves the form and content of any addenda, supplement, or.amendment thereto. The use of such Official Statement in the reoffering of the Bonds by the Purchaser is hereby approved and authorized. The proper officials of the City are hereby authorized to execute and deliver a certificate pertaining to such Official Statement as. prescribed therein, dated as of the date of payment for and delivery of the Bonds. Section 8.2: Provisions Concerning Registrar. (a) The Registrar, by undertaking the performance of the duties of the Registrar and in consideration of the payment of fees and/or deposits of money pursuant to this Ordinance and a Paying Agent/Registrar Agreement, accepts and agrees to abide by the terms of this Ordinance and such Agreement. The City hereby approves the Paying Agent/Registrar Agreement. (b) The City reserves the right to replace the Registrar or its successor at any time. If the Registrar is replaced by the City, the new Registrar shall accept the previous Registrar's records and act in the same capacity as the previous Registrar. Any successor Registrar shall. be either a national or state banking institution and a corporation organized and doing business under the laws of the United States of America or any State authorized under such laws to exercise trust powers and subject to supervision or examination by Federal or State authority. Section 8.3: Further Procedures. The Mayor, and the City Secretary and other appropriate officials of the City are hereby authorized and directed to do any and all things necessary and/or convenient to carry out the terms and purposes of this Ordinance. Section 8.4: Severability. If any Section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such Section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. Section 8.5: Declaration of Emergency; Open Meeting. It is hereby officially found and determined that this Ordinance relates to an immediate public emergency affecting life, health, property and the public peace, and that such emergency and urgent public necessity exist, the specific emergency being that the proceeds from the sale of the Bonds are required as soon as possible so that the City may proceed without necessary delay to accomplish the purposes for which the Bonds were voted in order to further protect life, health, property and the public peace within the City; that such emergency and necessity require the adoption of this Ordinance and the holding of the meeting at which this Ordinance is adopted at the time and place held; the meeting at which this Ordinance was adopted was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Vernon's Texas Civil Statutes Article 6252-17, as amended; and that such notice as given is hereby authorized, approved, adopted and ratified. Section 8.6: Effect of Ordinance. This Ordinance shall be in force and effect from and after its passage, and it is so ordered. Section 8.7: Repealer. All orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent of such inconsistency. PASSED AND APPROVED on first and only required reading as an emergency ordinance pursuant to Section 3.10 of the City Charter on this 11th day of April, 1988. Mayor CITY OF PEARLAND, TEXAS ATTEST: City Secretary CITY OF PEARLAND, TEXAS (SEAL) CITY ACGE.PTANCE OF 0AM100K SUBDIVISION, S=ON 1, STREETS, WATER SYSTEM, SANITARY SEWER SYSTEM AND DRAINAGE City Manager Ron Wicker explained this subdivision is located off Dixie Farm Road, east of Mary's Creek, between Dixie Farm Road and Shadycrest. City Engineer Dick Qualtrough advised that the developer has met all the requirements and he would recommend approval. It was moved by Councilmember Wolff, seconded by Councilmember Frauenberger, that Oakbrook Subdivision, Section 1, streets, water system, sanitary sewer system and 33 drainage, be accepted by the City. Motion passed 5 to 0. r r iX r; �r a e; a ♦r i r ". r. w r i• • i� ��; ..• City Manager Ron Wicker explained that SB 336, Section 7, discusses the requirement of establishing a capital improvements advisory committee and also allows the Council to assign the additional duty to the Planning and Zoning Commission if they so desire. Mr. Wicker stated that it was Staff's recommendation along with Art Storey from Bernard Johnson, consultant for Pearland Facility Planning, for Council to appoint the Planning and Zoning Commission and, at a later date, appoint an ad hoc member to represent the extraterritorial jurisdiction. It was moved by Councilmember Bost, seconded by Councilmember Tetens, that the City Council appoint the Planning and Zoning Commission as the Capital Improvements Advisory Committee. Motion passed 4 to 1. Councilmember Wolff voted against. RESOLUTION NO. R88-12, RESOLUTION =XV A PiMUC WARING ON LW USE AS&MVI0I15 (SB 336) FOR MAY 16, 1988 Resolution No. R88-12 was read in its entirety by Councilmember Bost. It was moved by Councilmember Bost, seconded by Councilmember Roberts, that Resolution No. R88-12 be passed and approved on the first and only reading. Said Resolution No. R88-12 reads in caption as follows: RESULUI'ION M. RB8-12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, CALLING r-- A PUBLIC HEARING FOR MAY 16, 1988, TO RECEIVE PUBLIC COMMENT ON LAND USE ASSUMPTIONS, TO BE USED TO DEVELOP A CAPITAL IMPROVEMENTS PLAN PURSUANT TO WHICH AN IMPACT FEE FOR WATER AND SEWERAGE FACILITIES MAY BE IMPOSED. Voting "Aye" - Councilmembers Roberts, Bost, Tetens, Frauenberger and Wolff. Voting "No" - None. Motion passed 5 to 0. APPOIN.ETP OF TWO POURS TO PLANNING AMID ZONIWx COMMISSION FOR A TFIlEE-YEAR TERK It was moved by Councilmember Tetens, seconded by Councilmember Wolff, that Council reappoint Benny Frank and Helen Beckman to a three-year term on the Planning and Zoning Commission. Motion passed 5 to 0. AUTHORIZATION FOR STAFF TO TARE INFORMAL BIDS FOR EMERGENCY REPAIR OF MANHOLE AT WALNUT AMID MCIEAN ROAD City Manager Ron Wicker explained this is the third time we have had problems with this manhole sinking into quicksand. The engineering department feels the solution is to drive piling down to the c 1 ay and install the manhole on top of the piling. This will be an expensive process, Mr. Wicker added, but one that is badly needed. Councilmember Wolff suggested that bids for this project be taken on "force account" basis. He stated he believed this would be the most cost effective way. Councilmember Roberts questioned whether it was possible that. when this project is being worked, could the City also look at changing the intersection, to alleviate the traffic problems created by the four -war stop signs there. It was moved by Councilmember Wolff, seconded by Councilmember Frauenberger, that informal bids be taken and submitted for Council consideration on the repair of the sunken sewer line on Walnut and McLean. Motion passed 5 to 0. 34 INVOICE NO. 3-4017-01, INSITUFORM GULF SOUTH, INC., FOR CLEANING, TELEVISING, AND LINING OF APPROXIMATELY 354 FEET OF SANITARY SEWER LINE ON OLD ALVIN ROAD, IN THE AKXINT OF $35,400.00 It was moved by Councilmember Tetens, seconded by Councilmember Bost, that Invoice No. 3-4017-01, Insituform Gulf South, Inc., for cleaning, televising and lining of approximately 354 feet of sanitary sewer line on Old Alvin Road, in the amount of $35,400.00 be approved and payment made from the appropriate funds. Motion passed 5 to 0. Mayor Reid mentioned that the City lost a very good friend recently - Tommy LeClere passed away. He also recognized Mary Ethel Wolff from the audience, who recently experienced some health problems, and stated it was nice to see her looking so well. MEETING RECESSED TO EXECUTIVE SESSION AT 8:40 P. M. UNDER TEXAS REVISED CIVIL STATUTES, ARTICIE 6252-17, SECTION 2 Mayor Reid read, from the posted agenda, the topics to be discussed in Executive Session. NEETIlG RETURNED TO OPEN SESSION AT 9:12 P. M. - NO ACTION TAIC!'•N Mayor Reid read the following items which were discussed in Executive Session and signed a certification to that effect: UNDER SUBSECTION (e) LEGAL - Contemplated and Pending Litigation: Council heard an update from the City Attorney regarding (1) Webb v. City of Pearland and (2) Ford v. Pearland Wrecker lawsuits. The meeting adjourned at 9:13 P. M. Minutes approved as submitted and/or corrected this day of A. D., 1988. ATTEST: City Sejfretary