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2008-05-19 CITY COUNCIL SPECIAL MEETING MINUTESMINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, HELD ON MONDAY, MAY 19, 2008, 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 Pro -Tem Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Secretary Absent: Mayor Tom Reid Helen Beckman Steve Saboe Woody Owens Felicia Kyle Kevin Cole Bill Eisen Darrin Coker Young Lorfing Others in attendance: Nick Finan Assistant City Manager; Mike Hodge Assistant City Manager and Danny Cameron Public Works Director. NEW BUSINESS COUNCIL ACTION — REMOVE FROM TABLE ORDINANCE NO. 2000CUP-13. City Council. Councilmember Owens made the motion, seconded by Councilmember Saboe, to remove Ordinance No. 2000CUP-13. Voting "Aye" Councilmembers Owens, Saboe, Beckman, Kyle, and Cole. Voting "No" None. Motion Passed 5 to 0. FIRST AND ONLY READING OF ORDINANCE NO. 2000CUP-13 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, APPROVING A CONDITIONAL USE PERMIT FOR CERTAIN REAL PROPERTY, LOCATION BEING 0.86 ACRES OF LAND, OUT OF A 9.6809 ACRE TRACT, BEING ALL THE LAND REMAINING UNSOLD OUT OF THAT CERTAIN 13.892 ACRE TRACT OF LAND DESCRIBED IN VOLUME 636, PAGE 695, OF THE DEED RECORDS OF BRAZORIA COUNTY, TEXAS, SITUATED IN THE A.C.H. & B. SURVEY, ABSTRACT 416, AND THE H.T. & B.R.R. COMPANY SURVEY, ABSTRACT 292, CITY OF PEARLAND, BRAZORIA COUNTY, TEXAS (GENERALLY LOCATED ON THE EAST SIDE OF SH 35 (MAIN STREET), AND ON THE NORTH SIDE OF HASTINGS CANNON ROAD (CR Page 1 of 6 — 5/19/2008 128)), (CONDITIONAL USE PERMIT APPLICATION NO. CUP2008-11), TO ALLOW FOR A "GAMING ESTABLISHMENT" FACILITY IN THE GENERAL COMMERCIAL DISTRICT (GC); AT THE REQUEST OF BETTY JONES, APPLICANT FOR S. KEVIN PRICE, OWNER; CONTAINING A SAVINGS CLAUSE, A SEVERABILITY CLAUSE, AN EFFECTIVE DATE AND OTHER PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EMERGENCY BECAUSE THE NEED TO REGULATE LAND USE INURES TO THE BENEFIT OF THE PUBLIC AND, THEREFORE, BEARS DIRECTLY UPON THE HEALTH, SAFETY, AND WELFARE OF THE CITIZENRY. Mr. Nick Finan, Assistant City Manager. Councilmember Owens made the motion, seconded by Councilmember Saboe, to approve Ordinance No. 2000CUP-13 on its first reading. Councilmember Kyle stated the property was not identified in Section II of the Ordinance and she feels wording should be added to tie the original amendment to the operation of the specific property. City Attorney Darrin Coker stated he will add any wording requested by Council, but the Conditional Use Permit reference in the Ordinance contains the description of the property. Discussion ensued between Council and City Attorney Darrin Coker regarding the Ordinance. City Attorney Darrin Coker stated he will add wording to the Ordinance that clarifies the specific property referenced by the Conditional Use Permit. Voting "Aye" Councilmembers Owens, Saboe, Beckman, and Cole. Voting "No" Councilmember Kyle_ Motion Passed 4 to 1. COUNCIL ACTION — RESOLUTION NO. R2008-78 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, CONSENTING TO ASSIGNMENT OF CERTAIN AGREEMENTS. Mr. Bill Eisen, City Manager. Councilmember Saboe made the motion, seconded by Councilmember Owens, to approve Resolution No. R2008-78. City Manager Bill Eisen stated recently Council approved the transfer of all the rights and reimbursements for the specific agreements from Transwestern to AmREIT Realty Investment Corporation. This item is a request by Am REIT Realty Investment Corporation for the City to transfer their receivables under agreements with the City to Stonelake Capital Partners, LLC. The Tax Reinvestment Zone No. 2 (TIRZ No. 2) has not taken official action regarding this, but will also be required to do so. Page 2 of 6 — 5/19/2008 Councilmember Kyle stated she feels there is an error in the audit performed by the City Director of Finance. In the audit it was suggested there was not an opportunity to tie back the expenses to particular items which are part of the agreement. Councilmember Kyle asked for clarification on this statement. City Manager Bill Eisen stated the indication is that the improvements to Broadway Street are located partially in and partially outside of the TIRZ No. 2. The portion located inside the TIRZ No. 2 is subject to reimbursement through the TIRZ and the portion located outside is subject to the Sales Tax Reimbursement Agreement. The contract rendered into for construction did not distinguish between what was inside or outside the TIRZ No. 2. The cost of construction and TIRZ No. 2 improvement substantially exceeded the amount of the reimbursement. The Director of Finance was making a distinction in saying approximately 46% of the Broadway Street improvement is sales -tax related and the remainder is not. Voting "Aye" Councilmembers Owens, Saboe, Beckman, Kyle, and Cole. Voting "No" None. Motion Passed 5 to O. COUNCIL ACTION — RESOLUTION NO. 82008-76 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING AN AGREEMENT WITH THE TEXAS DEPARTMENT OF TRANSPORTATION FOR THE RELOCATION AND MAINTENANCE OF MAST LIGHTS ALONG SH 288. Mr. Danny Cameron, Public Works Director. Councilmember Kyle made the motion, seconded by Councilmember Saboe, to approve Resolution No. R2008-76 as amended. City Manager Bill Eisen stated the design has been completed for the SH 288 Frontage Road from FM 518 to Shadow Creek Parkway. TxDOT has recently notified the City that it will be necessary to change the location of two high mast lights as a result of the improvements that will have to be made. Part of the requirement for this is that the City will be responsible for the relocation and take on maintenance and electrical cost of the lights. There are five fixtures total and the electrical cost is $3,600 per fixture per year. The total estimate cost is $25,000 per year. Discussion ensued between Council and City Manager Bill Eisen regarding the project. Councilmember Kyle asked if the Resolution could be approved contingent upon the project being completed. Page 3 of 6 — 5/19/2008 City Manager Bill Eisen stated that it can be amended to reflect the contingency; however, light fixtures will need to be moved prior to the project being completed. Councilmember Kyle made the motion, seconded by Councilmember Cole, to amend the motion to include a contingency factor stating the agreement does not become effective until the project begins and the City receives notice from the Federal Highway Department. Voting "Aye" Councilmembers Owens, Saboe, Beckman, Kyle, and Cole. Voting "No" None. Motion Passed 5 to 0. Discussion ensued between Council and City Manager Bill Eisen regarding the project. Mayor Pro -Tem Beckman called for the vote on the original motion as amended Voting "Aye" Councilmembers Cole, Kyle, Beckman, Saboe, and Owens. Voting "No" None. Motion Passed 5 to 0. COUNCIL ACTION — RESOLUTION NO. R2008-77 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING AN AGREEMENT WITH THE TEXAS DEPARTMENT OF TRANSPORTATION FOR THE INSTALLATION OF AND MAINTENANCE OF TRAFFIC SIGNALS. Mr. Danny Cameron, Public Works Director. Councilmember Cole made the motion, seconded by Councilmember Kyle, to approve Resolution No. R2008-77. City Manager Bill Eisen stated TxDOT has determined traffic signals are warranted at the intersection of CR 59 and SH 288. A portion of this area is located within the City Limits of Pearland and because of this, TxDOT requires the City to authorize or agree to the installation. Voting "Aye" Councilmembers Cole, Kyle, Beckman, Saboe, and Owens. Voting "No" None. Motion Passed 5 to 0. Page 4 of 6 — 5/19/2008 Mayor Pro -Tem Beckman recessed this Special Meeting at 6:28 p.m. to conduct Joint Public Hearings starting at 6:30 p.m. Mayor Pro -Tem Beckman called this Special Meeting back to order 8:28 p.m. OTHER BUSINESS: Council adjourned into Executive Session under Texas Government Code at 8:29 p.m. to discuss the following: EXECUTIVE SESSION UNDER TEXAS GOVERNMENT CODE 1. SECTION 551.071 — CONSULTATION WITH CITY ATTORNEY — REGARDING PENDING LITIGATION ASSOCIATED WITH MUNICIPAL UTILITY DISTRICTS. Mr. Darrin Coker, City Attorney. 2. SECTION 551.071 — CONSULTATION WITH CITY ATTORNEY — REGARDING POTENTIAL LITIGATION ASSOCIATED WITH PLATTING REQUIREMENTS. Mr. Darrin Coker, City Attorney. 3. SECTION 551.071 — CONSULTATION WITH CITY ATTORNEY — REGARDING POTENTIAL LITIGATION WITH OTHON ENGINEERING REGARDING THE MAGNOLIA PROJECT. Mr. Darrin Coker, City Attorney. 4. SECTION 551.072 — REAL PROPERTY: DISCUSSION REGARDING THE SALE, LEASE, PURCHASE, OR EXCHANGE OF REAL PROPERTY. Mr. Bill Eisen, City Manager. 5. SECTION 551.071 - CONSULTATION WITH CITY ATTORNEY — REGARDING PENDING AND POTENTIAL LITIGATION ASSOCIATED WITH THE BLUE RIDGE LANDFILL AND LAND USE. Mr. Darrin Coker, City Attorney. NEW BUSINESS (CONTINUED): Council returned from Executive Session at 6:51 p.m. COUNCIL ACTION — REGARDING PENDING LITIGATION ASSOCIATED WITH MUNICIPAL UTILITY DISTRICTS. City Council. No action taken by Council. Page 5 of 6 — 5/19/2008 COUNCIL ACTION — REGARDING POTENTIAL LITIGATION ASSOCIATED WITH PLATTING REQUIREMENTS. City Council. No action taken by Council. COUNCIL ACTION — REGARDING POTENTIAL LITIGATION WITH OTHON ENGINEERING REGARDING THE MAGNOLIA PROJECT. City Council. No action taken by Council. COUNCIL ACTION — REGARDING THE SALE, LEASE, PURCHASE, OR EXCHANGE OF REAL PROPERTY. City Council. No action taken by Council. COUNCIL ACTION — REGARDING PENDING AND POTENTIAL LITIGATION ASSOCIATED WITH THE BLUE RIDGE LANDFILL AND LAND USE. City Council. No action taken by Council. ADJOURNMENT Meeting was adjourned at 9:51 p.m. Minutes approved as submitted and/or corrected this the 9th day of June , A.D., 2008. Tom Reid Mayor ATTEST: Z Q�PRL...... ng Lo g, T M Uy Secr ry _ ............... Page 6 of 6 — 5/19/2008