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2002-10-23 CITY COUNCIL AND BOARD OF DIRECTORS OF BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 JOINT PUBLIC HEARING MEETING MINUTES081 MINUTES OF A JOINT PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AND THE BOARD OF DIRECTORS OF BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 1, HELD ON OCTOBER 23, 2002, AT 6:30 P.M., AT THE SOUTHWYCK GOLF CLUB, PRESTWICK ROOM, 2901 CLUBHOUSE DRIVE, PEARLAND, TEXAS. The meeting was called to order with the following present: Mayor Tom Reid Councilmember Richard Tetens Councilmember Charles Viktorin Councilmember Larry Marcott Councilmember Klaus Seeger City Manager Bill Eisen City Attorney Darrin Coker City Secretary Young Lorfing Absent: Mayor Pro -Tem Woody Owens. Others in attendance: Deputy City Manager Alan Mueller. Brazoria County Municipal Utility District No. 1 Board of Directors Vice President Secretary Treasurer Deputy Secretary Others in attendance: Paul Philbin Laura Brazil Brenda Jenkins Scott Lester Loice Cottingham PURPOSE OF HEARING — CONSIDER TESTIMONY AND EVIDENCE To consider testimony and evidence, regarding the proposed strategic partnership agreement from members of the public wishing to present such testimony and evidence. STAFF REVIEW OF PROPOSED SERVICE PLAN City Manager, Bill Eisen, addressed Council and gave a brief explanation of the agreement and general terms. Mr. Eisen stated several months ago City Staff and the instruction of Council began holding meetings with the Municipal Utility District No. 1 Board of Directors. The issue of annexation of Municipal Utility District No. 1 and the Page 1 of 7 - 10/23/2002 08?� interest of the City participating in a Strategic Partnership Agreement were both discussed during the meetings. He further reported a Strategic Partnership Agreement was drafted during that time. This annexation is proposed in conjunction with a Strategic Partnership Agreement. Mr. Eisen stated there are two public hearings being held for each issue. The first was last night and one tonight. The second public hearing concerning the annexation process will be held on October 29, 2002. Another public hearing regarding the Strategic Partnership Agreement will take place on November 4, 2002. Under the terms of State law regarding annexation and the Strategic Partnership Agreements the effective date of the annexation will be December 31, 2006. Mr. Eisen further stated the provision of the Strategic Partnership Agreement creates a date for annexation. A liaison committee will be appointed by the Municipal Utility District Board to accommodate transition issues. The operation of the Municipal Utility District will remain the same. An additional charge of $ 4.38 per month collected on the utility bill. This charge will be used to offset the City's costs in providing Fire and EMS Services to the Municipal Utility District. The agreement does provide other services if requested by the Municipal Utility District Board. He stated during the transition the utility fees will be consistent with the City and the City will be allowed to collect sales tax on any taxable items within the Municipal Utility District and would start April 1, 2003. Mr. Eisen further stated any remaining funds in the Municipal Utility District accounts during the time of annexation would be spent within the boundaries of the Municipal Utility District. Brazoria County Municipal Utility District No. 1 Board members was introduced. Copies of the Strategic Partnership Agreement were distributed. CITIZEN COMMENTS Member of Homeowners Association Southwyck, addressed Council and stated he was upset and he needs some time to review the information in the agreement. Jeff Davidson, 3103 Plotwood Court, addressed Council and stated the summary states the remaining funds during the time of annexation would be used in the District. He questioned would it be possible to return those funds to the taxpayers. Brazoria County Municipal Utility District No. 1 Board member stated the funds would be used to benefit the taxpayers in the District for District projects. A brief discussion ensued among members of Council, Brazoria County Municipal Utility District No. 1 Board, and Mr. Davidson concerning the return of funds to the taxpayers. James Willis, 2918 Harvard, addressed Council and stated his question concerning the Page 2 of 7 - 10/23/2002 I benefits to the homeowners in regards to the partnership. City Manager, Bill Eisen, stated the benefits are this agreement delays annexation for a four-year time period, without the strategic partnership agreement the city could annex the property immediately. Mr. Eisen stated that another benefit is many things that happen around the district are decided by the City of Pearland and residents, the annexation will allow those who live in the Municipal Utility District a chance to have their voices heard and make decisions. Eusing Washington, 2910 Auburn, addressed Council and questioned would the Municipal Utility District taxes cease. City Manager, Bill Eisen, stated the Municipal Utility District taxes would cease, however City property taxes would be assessed when the Municipal Utility District tax ceases. A brief discussion ensued among members of Council, Brazoria County Municipal Utility District No.1 Board, and Ms. Washington. Mayor Reid stated Police Department services would also become available to Municipal Utility District No. 1. He further stated additional Police Officers would be employed due to the annexation. City Manager, Bill Eisen, stated the City has an informal policy at this time that a number of Police Officers equal to 1.6 officers for every thousand residents will be added once the annexation is complete. A brief discussion ensued among the City Manager and Citizens regarding the response time for repairs on water lines and sewer lines, the tax rate increase, and the maintenance of homeowners association pools and streets. Councilmember Viktorin stated he lives near Municipal Utility District No. 1 and what is put into this area affects him, as well. He further stated that if there are any concerns he is available. Brief comments were given by the Municipal Utility District No. 1 Board members regarding the area and its facilities. A brief discussion ensued among members of Council, Brazoria County Municipal Utility District No.1 Board, and Citizens concerning a library facility, emergency dispatch facility, and more services that would become available to Municipal Utility District No. 1. Page 3 of 7 - 10/23/2002 08 Seal Willis, 4115 North Milen Place, addressed Council and stated he would like to discuss services currently received compared to future services. He stated that he receives trash services twice a week and he would like to know the services offered from the City of Pearland. Mr. Willis further stated he would like some information about the water rates. City Manager, Bill Eisen, stated the City of Pearland currently uses Waste Management Operations and trash is picked up twice a week with no limit on the pick up amount of trash. He further stated the water and sewer rates are higher because the rates include debt service for the City of Pearland. Discussion ensued among Council, Municipal Utility District No. 1 Board members, and Citizens regarding debt service, tax rates, and annexation. Sherry Boscott, Municipal Utility District No. 1 resident, addressed Council and stated the drainage issues in her neighborhood. Municipal Utility District No. 1 Board member and engineer commented on the drainage problems and the attempted solutions for improvement. Vincent Johnson, Municipal Utility District No. 1 resident, addressed Council and stated he has been a resident since 1993. He stated he reviewed planning documents since 1993 and he would like to know would there be any traffic area additions to some of the problem road areas in the district. Comments made on improvements of the area due to the bond program would start the middle of 2003. Alternate routes from 288 will be added and some target road areas would be expanded to four lanes. The new road will also extend to the new 9t" grade campus high school and the City's budget for the project is $60 million. City Manager, Bill Eisen, stated there would be some improvements from Cullen Road extended to FM 518; also some additional turn lanes would be added to several roads in the area. Question from citizen concerning the Silver Lake area roads and drainage system. Municipal Utility District No. 1 Board member informed citizen that he would set up an appointment with him to discuss this area and his issues. Gwendolyn Conaway, 411 Lotus Drive, addressed Council and stated her concern about the annexation and the maintenance fees. Page 4 of 7 -10/23/2002 085 Municipal Utility District No. 1 Board member clarified that maintenance fees are affiliated only with the Homeowners Association and should be addressed to their board. Citizens questioned would there be a list of comparisons to the fees of the City and the fees of the Homeowners Association. Discussion ensued among Council, Municipal Utility District No. 1 Board members, and Citizens concerning fees the City would charge after annexation. Question from citizen concerning the Sales and Use tax agreement and would this sales tax cover everything, including the new developments on FM518, the amount of the sales tax, and restricted items of the sales tax. City Manager, Bill Eisen, stated the sales tax only relates to Municipal Utility District No. 1 and any sales made within the district. Mr. Eisen stated similar agreements have been made with the other Municipal Utility Districts. He further stated the local sales tax is currently at 1.50 percent. Mayor Reid stated the Municipal Utility Districts could not collect the tax only the City. Question from citizen concerning the tax and any objections to this tax by the Municipal Utility District No. 1 Board members. Municipal Utility District No. 1 Board members commented during the discussions of the City and the Board, there were several reservations concerning the annexation. Citizen questioned the future repairs from the City regarding the sewer lines and the starting and ending point of responsibility for the homeowner and City. City Manager, Bill Eisen, stated the responsibility point is at the right of way line. Mayor Reid stated that over time water and sewage issues cause increase in taxes due to the upkeep of facilities and any new facilities providing service. Citizen commented on the drainage of his streets and flooding. City Manager, Bill Eisen, stated joint responsibility of the drainage district and the City would take place after annexation. Discussion ensued among Council, Municipal Utility District No. 1 Board members, and Page 5 of 7 -10/23/2002 086 Citizens concerning drainage projects in the near future. Citizen comment on any future City offices for permits and other citizen issues located in the area of annexation. Further discussion ensued among Council, Municipal Utility District No. 1 Board members, and Citizens concerning the upcoming services provided the City and the taxes. Citizen comments on future address changes. Discussion ensued among Council, Municipal Utility District No. 1 Board members, and Citizens concerning address changes. Charles Sky, 4947 Country Wood Lane, addressed Council and stated he is concerned about the operating budget of the City of Pearland. Mayor Reid stated he would be delighted to come out to the Homeowner's Association and meet with the citizens in order to discuss the City of Pearland. City Manager, Bill Eisen, stated the City's budget generally works by the City Manager and then it is forwarded to City Council for review and revision. He stated in last year budget 25 million dollars in bonds were sold and the City was able to hold the tax rate instead of an increase. Discussion ensued among Council, Municipal Utility District No. 1 Board members, and Citizens concerning the budget. Citizen made comment on the Volunteer Fire Department and Police Department. Council made comment referring to the visibility of police cars in communities would be a positive for the communities. Interlocal agreements were discussed among Council and Citizens. A brief explanation of the annexation and hearings was given by City Attorney, Darrin Coker. Municipal Utility District No. 1 Board members stated final questions pertaining to annexation and the voting rights there after. Page 6 of 7 - 10/23/2002 087 City Attorney, Darrin Coker, stated the pre -clearance from the U.S. Justice Department would occur after the annexation. COUNCIUSTAFF DISCUSSION None ADJOURNMENT Meeting was adjourned at 8:20 p.m. Minutes approved as submitted and/or corrected this 13th day of January A.D., 2003. ATTEST: Y tgLo g t Secr ry Tom Reid Mayor Page 7 of 7 - 10/23/2002 088 THIS PAGE LEFT INTENTIONALLY BLANK