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2007-09-17 CITY COUNCIL SPECIAL MEETING MINUTESMINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, HELD ON MONDAY, SEPTEMBER 17, 2007, AT 6:00 P.M., IN THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS. Mayor Reid called the meeting to order at 12:05 a.m. with the following present: Mayor Tom Reid Mayor Pro -Tem Steve Saboe Councilmember Woody Owens Councilmember Helen Beckman Councilmember Kevin Cole City Manager Bill Eisen City Attorney Darrin Coker City Secretary Young Lorfing Absent: Councilmember Felicia Kyle. Others in attendance: Jack Colbath Director of Fire Services; Trent Epperson Project Director; Nick Finan Assistant City Manager; Mike Hodge Assistant City Manager; Claire Manthei Finance Director. NEW BUSINESS FIRST AND ONLY READING OF ORDINANCE NO. 1328 — AN ORDINANCE LEVYING TAXES FOR THE USE AND SUPPORT OF THE MUNICIPAL GOVERNMENT OF THE CITY OF PEARLAND, TEXAS, AND PROVIDING FOR THE INTEREST AND SINKING FUND OF THE TAXABLE YEAR 2007 AND DECLARING AN EMERGENCY. Mr. Bill Eisen, City Manager. FIRST AND ONLY READING ORDINANCE NO. 870-5 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, DETERMINING CHARGES FOR WATER AND SEWER SERVICES FURNISHED BY THE CITY, AS PROVIDED IN CHAPTER 30, ARTICLE II, SECTION 30-35 AND SECTION 30-38 OF THE CODE OF ORDINANCES; REPEALING PREVIOUS WATER AND SEWER SERVICE RATE SCHEDULES; PROVIDING A PENALTY FOR VIOLATION; CONTAINING AN EMERGENCY CLAUSE, A SAVINGS CLAUSE AND A SEVERABILITY CLAUSE; PROVIDING FOR CODIFICATION, PUBLICATION, EMERGENCY, AND AN EFFECTIVE DATE. Mr. Bill Eisen, City Manager. Councilmember Owens made the motion, seconded by Mayor Pro -Tem Saboe, to approve Ordinance No. 1328 on its first and only reading, that property taxes be increased by the adoption of tax rate of $0.6526/$100, and to approve Ordinance No. 870-5 on its first and only reading. Page 1 of 4 — 9/17/2007 Voting "Aye" Councilmembers Owens, Beckman, Saboe, and Cole. Voting "No" None. Motion Passed 4 to 0, with Councilmember Kyle absent. COUNCIL ACTION — REGARDING THE REAPPOINTMENT OF TOM POOL TO DIRECTOR POSITION ONE, HENRY STANANLAND TO DIRECTOR POSITION THREE, AND MAYOR TOM REID TO DIRECTOR POSITION FIVE / CHAIR FOR A 2 - YEAR TERM EXPIRING SEPTEMBER 30, 2009 TO SERVE ON THE BOARD OF THE DEVELOPMENT AUTHORITY OF PEARLAND. Mr. Bill Eisen, City Manager. Councilmember Beckman made the motion, seconded by Councilmember Owens, to reappointment of Tom Pool to Director Position One, Henry Stananland to Director Position Three, and Mayor Tom Reid to Director Position Five / Chair for a 2 -year term expiring September 30, 2009 to serve on the Board of the Development Authority of Pearland Voting "Aye" Councilmembers Cole, Saboe, Beckman, and Owens. Voting "No" None. Motion Passed 4 to 0, with Councilmember Kyle absent. COUNCIL ACTION — RESOLUTION NO. 2007-144 — A RESOLUTION OF THE CITY OF PEARLAND, TEXAS, APPROVING THE ISSUANCE OF DEVELOPMENT AUTHORITY OF PEARLAND TAX INCREMENT CONTRACT REVENUE BONDS, SERIES 2007; APPROVING A BOND RESOLUTION, INDENTURE OF TRUST, PURCHASE CONTRACT AND OTHER DOCUMENTS RELATING TO THE BONDS; MAKING CERTAIN FINDINGS AND CONTAINING OTHER PROVISIONS RELATED THERETO. Mr. Bill Eisen, City Manager. No action taken by Council. COUNCIL ACTION — RESOLUTION NO. R2007-143 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO AMENDMENT NO. 1 TO AGREEMENT BY AND BETWEEN THE CITY OF PEARLAND, TEXAS, REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND, TEXAS, AND THE DEVELOPMENT AUTHORITY OF PEARLAND. Mr. Bill Eisen, City Manager. Mayor Pro -Tem Saboe made the motion, seconded by Councilmember Beckman, to approve Resolution No. R2007-143. Page 2 of 4 — 9/17/2007 City Manager Bill Eisen stated the current Tri -Party Agreement establishes the flow of Tax Increment Reinvestment Zone (TIRZ) funds from the City's Tax Increment Fund to the Development Authority of Pearland for use in paying debt service on the bonds and reimbursing the Developer. The original agreement obligated the City to pay tax increment to the Authority until the payment of all bonds or the termination of the TIRZ which ever occurs first. The TIRZ terminates on December 31, 2028, unless terminated earlier by the City. The Authority wants to issue bonds with a final maturity of 2029 since tax increment revenues from 2028 will be deposited in 2029. Having a 2029 maturity increases the amount of bonds that can be sold, which in turn accelerates reimbursement to the developer and shortens the eventual life of the TIRZ. Voting "Aye" Councilmembers Owens, Beckman, Saboe, and Cole. Voting "No" None. Motion Passed 4 to 0, with Councilmember Kyle absent. OTHER BUSINESS: Council adjourned into Executive Session under Texas Government Code at 12:12 a.m. to discuss the following: EXECUTIVE SESSION UNDER TEXAS GOVERNMENT CODE SECTION 551.074 - PERSONNEL MATTERS - REGARDING APPOINTMENTS TO THE CITY'S VARIOUS BOARDS AND COMMISSIONS. Mayor Tom Reid. 2. SECTION 551.072 - REAL PROPERTY: DISCUSSION REGARDING THE SALE, LEASE, PURCHASE, OR EXCHANGE OF REAL PROPERTY - CITY FACILITIES. Mr. Darrin Coker, City Attorney. 3. SECTION 551.087 - CONSULTATION WITH CITY ATTORNEY - REGARDING ECONOMIC DEVELOPMENT INCENTIVES. Mr. Bill Eisen, City Manager. 4. SECTION 551.071 - CONSULTATION WITH CITY ATTORNEY - REGARDING POTENTIAL LITIGATION ASSOCIATED WITH MUNICIPAL UTILITY DISTRICTS. Mr. Darrin Coker, City Attorney. NEW BUSINESS (CONTINUED): Council returned from Executive Session at 1:00 a.m. COUNCIL ACTION - REGARDING APPOINTMENTS TO THE CITY'S VARIOUS BOARDS AND COMMISSIONS. City Council. Page 3 of 4 - 9/17/2007 No action taken by Council. COUNCIL ACTION — REGARDING THE SALE, LEASE, PURCHASE, OR EXCHANGE OF REAL PROPERTY — CITY FACILITIES. City Council. No action taken by Council COUNCIL ACTION — REGARDING ECONOMIC DEVELOPMENT INCENTIVES. City Council. No action taken by Council. COUNCIL ACTION — REGARDING POTENTIAL LITIGATION ASSOCIATED WITH MUNICIPAL UTILITY DISTRICTS. City Council. Councilmember Cole made the motion, seconded by Mayor Pro-Tem Saboe, to authorize Staff to proceed with negotiations in the Strategic Partnership Agreement with Brazoria County Municipal Districts No. 1, 3, and 6. Voting "Aye" Councilmembers Cole, Saboe, Beckman, and Owens. Voting "No" None. Motion Passed 4 to 0, with Councilmember Kyle absent. ADJOURNMENT Meeting was adjourned at 1:00 a.m. Minutes approved as submitted and/or corrected this the 8th day of October, A.D., 2007. Tom Reid Mayor Page 4 of 4 — 9/17/2007