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2003-03-11 CITY COUNCIL PUBLIC HEARING MEETING MINUTESJ% MINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF PEARLAND, TEXAS, HELD ON MARCH 11, 2003, AT 6:30 P.M., IN CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS. The meeting was called to order with the following present: Mayor Councilmember Councilmember Councilmember City Manager City Attorney Deputy City Secretary Tom Reid Richard Tetens Larry Marcott Klaus Seeger Bill Eisen Darrin Coker LaKeisha Cannon -Scott THE CITY OF THE COUNCIL Absent: Councilmembers Woody Owens and Richard Tetens, City Manager Bill Eisen. Others in attendance: Deputy City Manager Alan Mueller. Brazoria County Municipal Utility District No. 4 Board of Directors F. C. (Bus) Adams .-- Hugh Pylant Charles A. Mills Thomas Goss Others in attendance: Tim Austin, Municipal Utility District No. 4 Attorney PURPOSE OF HEARING - PROPOSED ANNEXATION TO GATHER PUBLIC COMMENT AND TESTIMONY REGARDING THE ADOPTION OF A STRATEGIC PARTNERSHIP AGREEMENT AND A SALES & USE TAX AGREEMENT BETWEEN THE CITY AND BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NUMBER 4 AND THE PROPOSED ANNEXATION OF APPROXIMATELY 669 ACRES, OF LAND, MORE OR LESS, CONSISTING OF ALL OF BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NUMBER 4, BEING GENERALLY LOCATED SOUTH OF CLEAR CREEK, WEST AND NORTH OF BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NUMBER FIVE. STAFF REVIEW OF PROPOSED SERVICE PLAN Deputy City Manager, Alan Mueller, addressed Council and gave a brief overview of the Page 1 of 4 - 3/11/2003 r J annexation process of Municipal Utility District No. 4. Deputy City Manager, Alan Mueller, addressed Council and reported a previous public hearing took place on February 25, 2003 and another public hearing would take place on March 24, 2003. This Strategic Partnership Agreement is an agreement between the City of Pearland and the Municipal Utility District No. 4 authorized under. Interstate Law. This enables the City of Pearland and the Municipal Utility District No. 4 to agree upon and further annexation until a specific date of December 31, 2012. He stated on January 1, 2013 the Municipal Utility District No. 4 would be dissolved. The operation of the Municipal Utility District will remain the same with 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. Mr. Mueller stated this charge would be considered as part of the operating charge of the Municipal Utility District No. 4 and would not be an additional charge to the residents of the district. He stated during the transition the utility fees will be incrementally raised until 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. He stated the Municipal Utility District would also appoint a three-member liaison committee. He noted that the Home Owners Association would not be affected by the annexation or the Strategic Partnership Agreement. He stated the City would be responsible for any maintenance and operation of any public streets including a Street Lighting Bill. Any private streets would remain private and the Guard Station would stay in place. The Municipal Utility District tax would be dissolved once annexation takes place. Mr. Mueller stated that the Service Plan has an effective date of January 1, 2013, and also noted the Service Plan provides a level of services for the Municipal Utility District. The City may provide those services directly or may contract other parties to provide those services. He noted that the term Standard Policy and Procedures means that an application or fee for services may apply. He stated that State Law requires two portions of the Service Plan. First section is the Early Action Program and the second section is a Capital Improvement Program. The services are effective immediately upon the date of annexation. These services provide Police, Fire, and EMS services. Solid waste collections will transition to collection under the City's contract in accordance with State Law. Mr. Mueller stated that in regards to the operation maintenance of water and waste facilities, the City would take the place of the Municipal Utility District including any joint facilities. Mr. Mueller further stated there are no parks operated by the Municipal Utility District. Mr. Mueller stated the drainage facilities within the district would be maintained by the City. Additional services to the residents would include health services. In closing, Mr. Mueller stated the Capital Improvement Program has not foreseen a need for any additional facilities. Page 2 of 4 - 3/11/2003 CITIZEN COMMENTS 59 Rosemary Jackson, 3107 South Peach Hollow, addressed Council and asked what is the current value of the Municipal Utility District No. 4. Municipal Utility District No. 4 Board stated they do not have the current information at the meeting. Discussion ensued among Ms. Jackson and Municipal Utility District No. 4 Board regarding the district's value. Ms. Jackson asked what is the advantage to waiting ten years for annexation to take place. The Municipal Utility District No. 4 Board stated the City is not annexing until ten years due to the district's debt. The Board stated that all Municipal Utility Districts are destined for annexation at some time. Mayor Reid stated annexation normally takes place when the district's indebtedness has been paid and the district's current indebtedness is not matching the value of the properties. Deputy City Manager, Alan Mueller, stated that her advantage would be continuing to have the current Municipal Utility District atmosphere; therefore the agreement was to structure the annexation in this way giving the residents advanced notice. He also stated there are other districts being annexed at this time and they are being phased out yearly. He stated the districts with lower debt would be annexed first in the order of their indebtedness. Councilmember Marcott stated additional police officers would be hired to accommodate the additional City residents and there are costs for the additional personnel. Ms. Jackson asked who would provide for trash pick up. Deputy City Manager, Alan Mueller, stated trash collection would continue as is until 2013. He stated the Homeowner's Association is currently handling trash collection and once annexation take place it would be taken over by the City. Margaret Robinson, 938 South Palm Crest Court, addressed Council and asked when would the fee for utilities start. Page 3 of 4 - 3/11/2003 60 Municipal Utility District No. 4 Board stated the fee would be part of the operating charge of the Municipal Utility District No. 4 and would not be an additional charge to the residents of the district. He stated this fee would start thirty days after the Strategic Partnership Agreement is executed. Ms. Robinson asked what is the current City's tax rate. Mayor Reid stated the tax rate is $.686 per $100 of property value. A brief discussion ensued among Council, Staff, and Ms. Robinson regarding a Hospital District. Dollie Kendry, 8222 Woodfern Glen Lane, addressed Council and stated the Municipal Utility District No. 4 has a park. Deputy City Manager, Alan Mueller, stated the Municipal Utility District No. 4 does not operate any parks and it is possible the park is operated by the Homeowner's Association. He stated the Homeowner's Association would continue to operate the park after annexation. COUNCIL/STAFF DISCUSSION Brief discussion ensued among Council and Staff regarding the Strategic Partnership Agreement. Municipal Utility District No. 4 Board stated they appreciate the citizens coming to the meeting tonight and they feel the Strategic Partnership Agreement is good for the District. ADJOURNMENT Meeting was adjourned at 7:07 p.m. Minutes approved as submitted and/or corrected this 14" day of April A.D., 2003. TTEST: Page 4 of 4 - 3/11/2003 Tom Reid Mayor