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2002-11-05 CITY COUNCIL AND BOARD OF DIRECTORS OF BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 5 JOINT PUBLIC HEARING MEETING MINUTES121 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 NOVEMBER 5, 2002, AT 7:00 P.M., IN SWEETS & EATS 1131 COUNTY ROAD 94, BRAZORIA COUNTY, TEXAS. The meeting was called to order with the following present: Mayor Tom Reid Mayor Pro -Tem Woody Owens Councilmember Richard Tetens Councilmember Charles Viktorin Councilmember Larry Marcott Councilmember Klaus Seeger City Manager Bill Eisen Deputy City Manager Alan Mueller City Attorney Darrin Coker City Secretary Young Lorfing Brazoria County Municipal Utility District No. 5 Board of Directors President Ricki A. Willoughby Vice President Phil S. Ardon Secretary/Treasurer Kelly C. Flanagan Assistant Secretary Steve Hughes Assistant Vice President Steve Friedman and Assistant. Secretary/Treasurer Other in attendance: Jennifer Lang, Vickie Neal, and Steve Zak, residents of the District; and Linda L. Rowlett of Coats, Rose, Yale, Ryman & Lee, P.C., the District's Attorney. 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 outlined the intention of the City to annex the District at some future date. He stated the City had commenced meetings with the Municipal Utility Districts in the City's extraterritorial jurisdiction and had discussed the possibility of annexation or of entering into a Strategic Partnership Agreement with each district. He Page 1 of 5 - 11/5/2002 further stated the District and the City had determined to enter into an agreement. Mr. Eisen listed some of the terms of the Agreement, including the fee for fire and ambulance services, the liaison committee between the District and the City, and the imposition of a sales tax with the District commencing on 1 April 2003. Mr. Eisen mentioned that any funds remaining in the District's coffers at the time of annexation would be spent within the District. Director Willoughby stated the Board undertook to enter into the agreement with the City to mitigate the effects of annexation of the District on the residents of the District, to complete certain maintenance and repair projects, and to work on the development of a park on the 11.91 acre of land purchased by the District. Director Hughes pointed out the $4.38 per month per connection charge for fire and emergency medical services would be paid by the District out of revenues of the District. Director Willoughby noted that the City has a higher rate for services than the District, and she explained that the District would be increasing the rates for services over the next three years in order for the rates to be equal with the City's rates prior to dissolution of the District. The income from the increases would be used to fund the $4.38 charge. She further noted that a copy of a hand out was provided to the residents outlining these facts. CITIZEN COMMENTS Ms. Lang, Municipal Utility District No. 5 resident, addressed Council and stated she has been living in the District since 1983 and has served on the Civic Association and the Homeowners Association for Southdown Subdivision. She stated most residents of the District were aware that annexation of the District by the City would take place. Ms. Lang requested some indication of the increases in fees for services that the residents might expect from the City in the future. She also requested what the direct costs would be to the residents of the District. Ms. Lang stated she hoped the City would look after the residents as closely as the Board of the District has done. Director Willoughby explained the Board was making an effort to ease the transition in costs. City Manager, Bill Eisen, calculated that on a $100,000 house, the tax rate difference would be about $16 per year. Ms. Lang, Municipal Utility District No. 5 resident, asked whether the City would be assessing a sales tax in the District. The Municipal Utility District Board reviewed the commercial locations in the District. Page 2 of 5 - 11/5/2002 12.1 City Manager, Bill Eisen, stated certain sales taxes could be assessed on certain services as well, such as solid waste collection charges. Ms. Lang, Municipal Utility District No. 5 resident, asked how solid waste collection would be handled once the City had annexed the District and how it would be handled after dissolution of the District by the City. City Manager, Bill Eisen, stated the City included solid waste collection charges on the bills for water and sewer services. He also stated the City would be taking responsibility for solid waste collection service after dissolution of the District. He further stated the City's tax rate could increase as much as $.08 per $100.00 property value over the next few years. He noted that when the various Municipal Utility Districts in the City's extraterritorial jurisdiction are annexed, the City would be taking on the bonded indebtedness of the districts, which would have some affect on the City's tax rate. Discussion ensued among Council and the Municipal Utility District No. 5 Board of Directors concerning the Shadow Creek Ranch Project. Director Willoughby stated the Board was making efforts to keep the District's tax rate as close to the City's rate as possible. She stated the Board had set a debt service tax rate at $.42 per $100.00 property value. She further stated the District had some constraints on the set tax rate. Steve Zack, 1023 St. John Tribe, addressed Council and asked would it be possible to spend some of the District's funds on a hike and bike path from the District to Bass Park. Director Hughes stated the Park is located in Harris County and some coordination between the District and that County would be required. Director Friedman stated the cost of a trail could be prohibitive, the District had obtained a cost estimate for a trail along the drainage ditches that serve the District and Brazoria County Municipal Utility District No. 4, which was about $220,000. Director Hughes stated the park might include a hiking/jogging trail. Lengthy discussion ensued among Council, Municipal Utility District No. 5 Board, and Citizens regarding the widening of County Road 403 and County Road 94. City Manager, Bill Eisen, stated actions the City would have to take prior to January 1, 2006 when the District would be dissolved. He stated the communication between the City and the District would continue. The District would continue to operate as it Page 3 of 5 - 11/5/2002 124 currently operates in the interim through December 31, 2005. Mr. Eisen stated the City has 1.6 police officers for every 1,000 residents. He further stated the District would add about 5,000 people to the City, which would require about eight additional police officers who would be in place by the date of final annexation. Mr. Eisen stated the City would take responsibility for streetlights located on public streets and the maintenance of any public infrastructure. Director Friedman asked when would the District obtain surface water supplies through the City. City Manager, Bill Eisen, stated the City would be connecting to a surface water supply line form the City of Houston in the next few weeks, with a commitment of 10,000,000 gallons per day of water. The City has an option from the Gulf Coat Water Authority for an additional 10,000,000 gallons per day in the future. Deputy City Manger, Alan Mueller, explained where the connections to the City would be located and details regarding water plans and the projected years ahead. Brief discussion ensued among Council and Municipal Utility District No. 5 Board regarding future water plans including treatment facilities and future mandates. Steve Zack, 1023 St. John Tribe, addressed Council and asked what are the plans for future libraries in the City. Mayor Reid briefly reviewed the proposed locations for future libraries in the City. City Manager, Bill Eisen, stated the City provided the library building and Brazoria County provided the personnel and materials. He stated the future libraries would be a combined effort between City and County. Ms. Neal, Municipal Utility District No. 5 resident, addressed Council and asked about the construction of a police substation behind the Kroger Store. Deputy City Manager, Alan Mueller, stated the project was not funded, but it was included in the master plan for the site. Director Hughes stated during the final annexation the District's police protection would be obtained through Brazoria County as it is at present. He added due to laws regarding enforcement issues the police protection will not be secured with the City prior to annexation. Page 4 of 5 - 11/5/2002 125 Ms. Lang, Municipal Utility District No. 5 resident, stated the Brazoria County Sheriff's Department had a good presence in the District and the number of policemen from various jurisdictions lived in the District. COUNCIL AND STAFF DISCUSSION None ADJOURNMENT Meeting was adjourned at 8:15 p.m. Minutes approved as submitted and/or corrected this 27th day of January A.D., 2003. ATTEST: Y ng L i Seckqary Tom Reid Mayor Page 5 of 5 - 11/5/2002 126 THIS PAGE LEFT INTENTIONALLY BLANK