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2002-10-24 CITY COUNCIL AND BOARD OF DIRECTORS OF BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 5 JOINT PUBLIC HEARING MEETING MINUTES089 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. 5, HELD ON OCTOBER 24, 2002, AT 7:00 P.M., AT CHALLENGER ELEMENTARY, CAFETERIA, 9434 HUGHES RANCH ROAD, PEARLAND, TEXAS. The meeting was called to order with the following present: Mayor Mayor Pro -Tem Councilmember Councilmember Councilmember City Attorney City Secretary Tom Reid Woody Owens Richard Tetens Charles Viktorin Klaus Seeger Darrin Coker Young Lorfing Others in attendance: Deputy City Manager Alan Mueller. Brazoria County Municipal Utility District No. 5 Board of Directors Ricki. A. Willoughby Phil S. Ardon Kelly C. Flanagan Steve Hughes Steve Friedman 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 Attorney, Darrin Coker, addressed Council and gave a brief explanation for the Public Hearing. Deputy City Manager, Alan Mueller, addressed Council and gave a brief explanation of the purpose for the Public Hearing in regards to the Strategic Partnership Agreement. Mr. Mueller stated this is the first of two Public Hearings and the next will take place on November 5, 2002. This Strategic Partnership agreement is proposed in conjunction with annexation proceedings. The second public hearing concerning the annexation Page 1 of 5 - 10/24/2002 090 process will be held on October 29, 2002. Under the terms of State law regarding the Strategic Partnership Agreements the City and Municipal Utility District are allowed to enter into an agreement with certain provisions. Mr. Mueller further stated the provision of the Strategic Partnership Agreement creates a date for annexation and the effective date of the annexation will be December 31, 2005. 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. The utilities of the Municipal Utility District will be transitioned. 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. Mr. Mueller 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. A liaison committee will be appointed by the Municipal Utility District Board to accommodate transition issues. Mr. Mueller stated the Homeowners Association would not be affected in any way. The only change will be the maintenance of the public streets will be the City's responsibility. Brazoria County Municipal Utility District No. 5 Board members gave brief comments regarding to the utility charges, services, water, and sewage. City Manager, Alan Muller, stated the District would appoint an advisory board consisting of three Municipal Utility District residents who are active liaisons with the City for two years following the annexation. CITIZEN COMMENTS Richard R. Williams, Municipal Utility District No. 5 resident addressed, council and stated he had concerns about the dates of annexation in regards to paying district taxes and City taxes. Deputy City Manager, Alan Mueller, stated the effective date of annexation would be December 31, 2005. Prior to that time the citizens would only be responsible for paying Municipal Utility District No. 5 taxes. Mr. Mueller further explained the two taxes would not be in conjunction with the other, but separate. A brief discussion ensued among members of Council, Staff, and Brazoria County Municipal Utility District No. 5 Board regarding the Police services for the Municipal Utility District until the time of annexation. Beth Arduen, Norwood Street South Down, addressed Council and stated her concerns Page 2 of 5 - 10/24/2002 091 about the proposed park and the monies used to fund the park. She questioned would the park remain in the ownership of the City. Deputy City Manager, Alan Mueller, stated the citizens would vote on the park. Citizen of Municipal Utility District No. 5 addressed Council and stated he is a resident of Crystal Lakes. He stated that the community streets are paid for by the citizens and would like to know what happens to the taxes once the annexation is effective. Deputy City Manager, Alan Mueller, stated communities with private streets would continue paying for the maintenance in that area due to the streets in the community being private. He stated City property taxes for those gated communities would also be effective after annexation. Mr. Mueller stated the garbage collection would be taken over by the city and a separate statement for the garbage services would be billed to the resident. Val Comer, Municipal Utility District No. 5 resident, addressed Council and questioned could the private streets be changed to public streets by removing the gated fences and how would this affect police jurisdiction. Deputy City Manager, Alan Mueller, stated by removing the gated fences the streets could change over to public streets and traffic laws could be enforced on private or public streets. A brief discussion ensued among members of Council, and Brazoria County Municipal Utility District No. 5 Board concerning the schedules of annexation for all the Municipal Utility Districts. Deputy City Manager, Alan Mueller, stated Municipal Utility Districts No. 4 and No. 5 would have shared facilities during the transition and annexation process. Brief comments were made about taxes during the time of annexation due to shared facilities. Deputy City Manager, Alan Mueller, gave a brief overview of the scheduled public hearings and adoption date. Discussion ensued among Council and Municipal Utility District No. 5 Board concerning the dates and process of annexation and the adoption of the Strategic Partnership Agreement. Page 3 of 5 -10/24/2002 092 Beth Arduen, Norwood Street South Down, addressed Council and stated her concerns about any advantages for South Down and Crystal Lake being annexed into the City of Pearland. Mayor Reid stated the advantages to South Down and Crystal Lake are the waste - water treatment facilities and availability of ground water and water wells. He stated this will allow the communities to be tied into the Houston Water Lines and the City would upgrade water pipes. Mayor Reid further stated City services such as, Fire and EMS will be provided to communities. Discussion ensued among Council, Staff, Municipal Utility District No. 5 Board members, and Citizens regarding the City's service plan and water projects. Councilmember Viktorin stated another advantage for the Municipal Utility Districts once annexed would be choosing elected officials. Mr. Viktorin stated the residents that are currently in the Municipal Utility Districts are not able to vote. City Attorney, Darrin Coker, stated the actual voting rights of the Municipal Utility Districts residents would be December 31, 2005. At this time a notice to the U.S. Department of Justice would be sent requesting the addition of the citizens annexed and any opposition.: Mr. Coker stated once this has been done the voters will be registered and able to vote in 2006. Don Daugherty, Municipal Utility District No. 5 resident, addressed Council and questioned the revenues that are coming outside of the City's limits. He asked would there be a reduction in taxes once the annexation takes place. Deputy City Manager, Alan Mueller, stated that City taxes were at a $.695 per $100.00 of property value - regular rate until a year ago and they dropped to $.686 per $100.00 of property value. Projections depending on different growth assumptions that would pay for the bonds over a ten-year period were projected to increase the tax rate up $.08 to $.10 and the first increase was scheduled to take place 2002. Mr. Mueller stated the budget supplied sufficient revenues that kept the tax rate at 68.6 cent. Debra Barfield, Manager of South Down and Crystal Lakes, addressed Council and asked if the City had a website with information regarding the annexation. Deputy City Manager, Alan Mueller, stated there is a website that contains the Annexation Service Plan and the Strategic Partnership Agreement. Discussion ensued among Council, Staff, Municipal Utility District Board No. 5 members, Page 4 of 5 - 10/24/2002 093 and Citizens about police and EMS, knock box access, and annexation proceedings. Beth Arduen, Norwood Street South Down, addressed Council and stated she requests the City to keep the residents posted on anything taking place in the City. Councilmember Viktorin gave information pertaining the City of Pearland website. COUNCIUSTAFF DISCUSSION Members of Board stated their appreciation to Council for taking the time out to discuss the issues of the annexation. ADJOURNMENT Meeting was adjourned at 8:30 p.m. Minutes approved as submitted and/or corrected this 13th day of January A.D., 2003. t Tom Reid Mayor ATTEST: Page 5 of 5 - 10/24/2002 094 THIS PAGE LEFT INTENTIONALLY BLANK