2004-05-03 CITY COUNCIL SPECIAL MEETING MINUTESMINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON MAY 3, 2004, AT 6:00 P.M., IN THE COUNCIL
CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
The meeting was called to order with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
City Manager
City Attorney
City Secretary
Tom Reid
Richard Tetens
Woody Owens
Charles Viktorin
Klaus Seeger
Bill Eisen
Darrin Coker
Young Lorfing
Absent: Councilmember Larry Marcott
Others in attendance: Deputy City Manager Alan Mueller; Executive Director of
Community Services Tobin Maples; Executive Director of Economic Development
Corporation Fred Welch.
PURPOSE OF THE MEETING:
COUNCIL ACTION — RESOLUTION NO. R2004-62 — A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PEARLAND, TEXAS, APPROVING A BOND ORDER OF
BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 6 AUTHORIZING THE
ISSUANCE OF $8,120,000 UNLIMITED TAX BONDS, SERIES 2004. Mr. Darrin Coker,
City Attorney.
Mayor Pro -Tem Tetens made the motion, seconded by Councilmember Seeger, to approve
Resolution No. R2004-62
City Manager, Bill Eisen stated this item is regarding proposed debt information and
issuance of bonds for Municipal Utility District No 6. Gene Sheppard, RBC Dane Rauscher,
is a financial advisor for the District. He provided the information for the current bond
issuance and future issuance of bonds.
Gene Sheppard, RBC Dane Rauscher, addressed Council and stated the bonds are
typically issued with a twenty-year maximum maturity. Some of them have been issued for
eighteen, nineteen, and twenty-year maximum maturity. This is the sixth issuance. Five
have already approved by Council. The design is to end up with a level debt service,
slightly declining towards the end so that the tax rate remains the same.
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City Attorney, Darrin Coker, stated the City of Pearland currently has an agreement with
Municipal Utility District No. 6 not to annex the District until September 2011. During the
time of annexation, the City of Pearland will take on any debt issuance of the Municipal
Utility District.
Councilmember Owens asked if this would push the debt out to 2024.
Gene Sheppard, RBC Dane Rauscher, addressed Council and stated 2024 is the final
maturity. The average maturity is approximately eleven years.
Mayor Pro -Tem Tetens asked if this would affect the time frame of annexation.
City Manager, Bill Eisen stated, depending on the debt distribution and debt service
payments, this would give Council information regarding the best time for annexation. It
would need to be economically feasible, before the City annexed the property.
Councilmember Owens asked for the boundaries of Municipal Utility District No. 6.
Gene Sheppard, RBC Dane Rauscher, briefly gave a description of the Municipal Utility
District No. 6 area.
City Manager, Bill Eisen, stated some of the District is located in the City of Pearland's
extraterritorial jurisdiction and some of it is in the City of Manvel.
City Attorney, Darrin Coker, stated there are some properties along SH 288 that will be
petitioned to become annexed into Municipal Utility District No. 6.
Mayor Pro -Tem Tetens asked if there will be two more bond issuances before total build-
out.
Gene Sheppard, RBC Dane Rauscher, stated there most likely would be one or two more
bond issuance depending on property annexation. Approximately $5 million will reimburse
the developers for all the utilities within the present boundaries of Municipal Utility District
No. 6.
Mayor Reid asked for information regarding the cash reserve for the bond issuances.
Gene Sheppard, RBC Dane Rauscher, stated the cash reserve is in the range of 100% of
next year debt service. This will decline once the issuance has stopped. Mr. Sheppard
stated Municipal Utility District No. 6 has experienced a lot of growth. The last bond sale
approximately one year ago was a little under 4%.
Voting "Aye" Councilmembers Viktorin, Owens, Tetens, and Seeger.
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Voting "No" None.
Motion Passed 4 to 0, with Councilmember Marcott absent.
COUNCIL ACTION — RESOLUTION NO. 2004-63 — A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PEARLAND, TEXAS, SCHEDULING A PUBLIC HEARING
ON LAND USE ASSUMPTIONS AND A CAPITAL IMPROVEMENTS PLAN FOR
ROADWAY FACILITIES WITHIN THE CITY; DIRECTING THE CITY SECRETARY TO
PUBLISH NOTICE OF SAID PUBLIC HEARING; AND DIRECTING THE CAPITAL
IMPROVEMENTS ADVISORY COMMITTEE TO CONSIDER AND MAKE
RECOMMENDATIONS ON THE LAND USE ASSUMPTIONS AND CAPITAL
IMPROVEMENTS PLAN. Mr. Darrin Coker, City Attorney
Councilmember Seeger made the motion, seconded by Mayor Pro -Tem Tetens, to approve
Resolution No. R2004-63.
City Manager, Bill Eisen stated this item is regarding traffic impact fees. Council has
discussed traffic impact fees in previous Workshops. This item would set a Public Hearing
date -for June 7, 2004, in order to move forward with the fee calculations.
Brief discussion ensued among Council and Staff regarding the fee calculations and
providing information to Council prior to the Public Hearing.
Voting "Aye" Councilmembers Seeger, Tetens, Owens, and Viktorin.
Voting "No" None.
Motion Passed 4 to 0, with Councilmember Marcott absent.
ADJOURNMENT
Meeting was adjourned at 6:15 p.m.
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Minutes approved as submitted and/or corrected this the 24th day of May , A.D.
2004.
Tom Reid
ATTEST:
Mayor
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