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2006-05-15 CITY COUNCIL SPECIAL MEETING MINUTESMINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, HELD ON MAY 15, 2006, AT 6:00 P.M., IN THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS. Mayor Reid called the meeting to order at 6:05 p.m. with the following present: Mayor Mayor Pro -Tem Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Secretary Tom Reid Kevin Cole Richard Tetens Woody Owens Larry Marcott Steve Saboe Bill Eisen Darrin Coker Young Lorfing Others in attendance: Public Works Director Danny Cameron; City Engineer Doug Kneupper; Assistant City Manager Mike Hodge; Director of Finance Claire Manthei; and Senior Planner Theresa Grahmann. NEW BUSINESS FIRST AND ONLY READING OF ORDINANCE NO. 1268 — ORDINANCE AUTHORIZING ISSUANCE OF CITY OF PEARLAND, TEXAS, WATER AND SEWER SYSTEM REVENUE AND REFUNDING BONDS, SERIES 2006; PRESCRIBING THE TERMS AND CONDITIONS THEREOF; PROVIDING FOR THE PAYMENT THEREOF; AWARDING THE SALE THEREOF; AUTHORIZING THE PREPARATION AND DISTRIBUTION OF AN OFFICIAL STATEMENT TO BE USED IN CONNECTION WITH THE SALE OF THE BONDS; AUTHORIZING THE REFUNDING OF CERTAIN OUTSTANDING BONDS; AUTHORIZING THE PURCHASE OF BOND INSURANCE; MAKING OTHER PROVISIONS REGARDING SUCH BONDS AND MATTERS INCIDENT THERETO; AUTHORIZING EXECUTION AND DELIVERY OF A PAYING AGENT/REGISTRAR AGREEMENT; CONTAINING OTHER MATTERS RELATED THERETO; AND DECLARING AN EMERGENCY. Mr. Bill Eisen, City Manager. Councilmember Tetens made the motion, seconded by Councilmember Owens, to approve Ordinance No. 1268 on its first and only reading. Director of Finance Claire Manthei stated on April 24, 2006, RBC Capital Markets reviewed the City's issuance plan for the year 2006. Pursuant to the plan, the City will be selling approximately $13,800,000 in water and sewer system revenue and refunding bonds. $5,100,000 will refund outstanding principal on series 1996B; the net present value benefit is approximately $85,000. The remaining amount of $8,700,000 will be used to fund infrastructure for water and sewer capital improvement projects. Because Page 1 of 6 —5/15/2006 this issuance included a refunding component, the sale was a negotiated sale with a underwriting syndicate. The good news is Sandard & Poor's confirmed the City's rating as an "A" and Moody's Investor Services upgraded the City's rating from an "A3" to an "A2„ Ryan O'Hara, RBC Capital Markets, Inc., stated interests rates are at a 5.25%, which is well below the average 6.27%. The City saved $85,000 by refinancing the series 1996 issue. The new money summary shows the bonds were sold at a true interest cost on the new money side at a 5.008%. All this combined, the new money with the refunding, was a 4.906%. RBC Capital Markets, Inc. will deliver $8,700,000 in proceeds at closing. Mayor Reid asked if there were any legal issues involved that Council needed to be aware of. Rick Witte, Andrews Kurth LLP, stated Council has a copy of the draft Ordinance that includes blanks because he did not receive the numbers until today. The Ordinance is consistent with past water and sewer Ordinances. If Council chooses to go forward this evening, the Ordinance would need to be adopted subject to incorporating the numbers presented by RBC Capital Markets, Inc. Mayor Pro -Tem Cole asked if there was an actual name for the low -bidder. Frank Ildebrando, RBC Capital Markets, Inc., stated the underwriter is UBC Financial Services, who is a consistent bidder for them and has performed very well over the years. Councilmember Owens asked how the approval of this Ordinance would affect the water and sewer rates for the current year. City Manager Bill Eisen stated this issue does not affect the rates and is a separate issue. Voting "Aye" Councilmembers Tetens, Owens, Cole, Marcott, and Saboe. Voting "No" None. Motion Passed 5 to 0. COUNCIL ACTION — RESOLUTION NO. R2006-36 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION IN A PRINCIPAL AMOUNT NOT TO EXCEED $10,000,000 FOR THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF CERTAIN PUBLIC WORKS, Page 2 of 6 —5/15/2006 AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO SUCH CERTIFICATES AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO. Mr. Mike Hodge, Assistant City Manager. Councilmember Owens made the motion, seconded by Councilmember Tetens, to approve Resolution No. R2006-36. Assistant City Manager Mike Hodge stated this Resolution is the notice of intent to issue Certificates of Obligation. This was brought to Council in April 2006 and at that time it was anticipated to be $4,300,000 worth of projects primarily dealing with detention and drainage over -sizing. At that time, it was discussed to look at any additional projects and the need to anticipate any additional preliminary engineering associated with the upcoming proposed bond election in 2007. With the additional considerations, Staff is now proposing Certificates of Obligation in the amount of $10,000,000. The Certificates of Obligation are anticipated to be sold on June 12, 2006. Discussion ensued between Council, City Manager Bill Eisen, and Assistant City Manager Mike Hodge regarding the Resolution. Voting "Aye" Councilmembers Saboe, Marcott, Cole, Owens, and Tetens. Voting "No" None. Motion Passed 5 to 0 Mayor Reid, with concurrence of Council moved to New Business Item No. 4, Ordinance No. 1269. FIRST AND ONLY READING OF ORDINANCE NO. 1269 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, PRESCRIBING THE TYPE OF NOTICE TO BE GIVEN OF THE TIME AND PLACE OF THE JOINT PUBLIC HEARING OF THE CITY COUNCIL AND THE PLANNING AND ZONING COMMISSION FOR AN AMENDMENT TO THE CITY'S ZONING MAP. Mr. Darrin Coker, City Attorney. Councilmember Marcott made the motion, seconded by Councilmember Saboe, to approve Ordinance No. 1269 on its first and only reading. City Attorney Darrin Coker stated this Ordinance was previously approved by Council and provides the alternate notice procedures for the zone changes associated for the Old Town -site. The Ordinance was very specific as to when the Public Hearing would be held. The Public Hearing has been postponed until June 5, 2006 and consequently Council must approve a new Ordinance with the new date. Page 3 of 6 —5/15/2006 Voting "Aye" Councilmembers Tetens, Owens, Cole, Marcott, and Saboe. Voting "No" None. Motion Passed 5 to 0. Mayor Reid, with concurrence of Council moved back to New Business Item No.3 COUNCIL ACTION — REGARDING PEARLAND INDEPENDENT SCHOOL DISTRICT'S CONSTRUCTION OF NEW FACILITIES AND THE CITY OF PEARLAND CODES AND REGULATIONS. Mr. Bill Eisen, City Manager. Mayor Pro -Tem Cole made the motion, seconded by Councilmember Owens, to place this item on the table for discussion and accept the amendment to authorize Staff to release the building permits and to proceed with modification to the Overlay District to consider the special issues that face the School District. City Manager Bill Eisen stated this item refers to two permits for the School District projects in the City. One is relatively minor, however the other is an elementary school on McHard Road, which is in the Overlay District. The School District has some issue on being able to conform to requirements to the Overlay districts pertaining to glass on the front of the building and different trees that are allowed. Staff is requesting Council to do two things. One is to instruct staff to issue building permits on both projects and secondly to instruct Staff to initiate a process of working with the School District to provide them with total or partial exemption status from the Overlay requirements. Dr. Bonny Cain, Pearland Independent School District, stated the School District's biggest supporter is Mayor Reid and stated she would like to make Mayor Reid an Honorary Staff Member and provided Council with an over -view of the School District's future plans for the construction of the new schools. Mayor Pro -Tem Cole stated he would like to see a compromise, instead of a total exemption for the School District, to the Overlay requirements. Discussion ensued between Council, City Manager Bill Eisen, and Dr. Bonny Cain, Superintendent of Pearland Independent School District regarding the item. Mayor Pro -Tem Cole made the motion, seconded by Councilmember Saboe to amend this item to authorize Staff to release the building permits and to proceed with modification to the Overlay District to consider the special issues that face the School District. Voting "Aye" Councilmembers Tetens, Owens, Cole, Marcott, and Saboe. Voting "No" None. Page 4 of 6 —5/15/2006 Motion Passed 5 to 0. Mayor Reid called for the vote on the original motion as amended. Voting "Aye" Councilmembers Tetens, Owens, Cole, Marcott, and Saboe. Voting "No" None. Motion Passed 5 to 0. OTHER BUSINESS: Council adjourned into Executive Session under Texas Government Code at 9:00 p.m. to discuss the following: EXECUTIVE SESSION UNDER TEXAS GOVERNMENT CODE 1. SECTION 551.072 — REAL PROPERTY: DISCUSSION REGARDING THE SALE, LEASE, PURCHASE, OR EXCHANGE OF REAL PROPERTY — CITY FACILITIES. Mr. Bill Eisen, City Manager. NEW BUSINESS CONTINUED: Council returned from Executive Session at 9:37 p.m. COUNCIL ACTION — REGARDING THE SALE, LEASE, PURCHASE, OR EXCHANGE OF REAL PROPERTY — CITY FACILITIES. City Council. No action taken by Council. COUNCIL ACTION — RESOLUTION R2006-57 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A PROPERTY EXCHANGE AGREEMENT WITH CBL & ASSOCIATES MANAGEMENT, INC. AND PEYTON MARTIN. Mr. Darrin Coker, City Attorney. No Action taken by Council. COUNCIL ACTION — RESOLUTION R2006-56 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A ROAD CONSTRUCTION AGREEMENT WITH CBL & ASSOCIATES MANAGEMENT, INC. Mr. Darrin Coker, City Attorney. Page 5 of 6 —5/15/2006 No action taken by Council. ADJOURNMENT Meeting was adjourned at 9:38 p.m. Minutes approved as submitted and/or corrected this the 22nd day of May, 2006. ATTEST: Tom Mayor Page 6 of 6 —5/15/2006