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2011-05-02 CITY COUNCIL PUBLIC HEARING MEETING MINUTESr MINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF 1 PEARLAND, TEXAS, TO BE HELD ON MONDAY, MAY 2, 2011, AT 6:30 P.M. IN THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS. Mayor Reid called the meeting to order at 6:30 p.m. with the following present: Mayor Mayor Pro -Tem Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Secretary Tom Reid Scott Sherman Woody Owens Steve Saboe Felicia Kyle Ed Thompson Bill Eisen Darrin Coker Young Lorfing Others in attendance: Jon Branson Assistant City Manager; Danny Cameron Public Works Director; Glen Turner Director of Fire Services; J.C. Doyle Police Chief; Trent Epperson Project Director; Roland Garcia Fire Marshal; Bonita J. Hall Director of Human Resources and Safety Management; Mike Hodge Assistant City Manager; Lata Krishnarao Planning Director; Narciso Lira City Engineer; Claire Bogard Finance 1 Director; Michelle Smith Director of Parks and Recreation; Jeff Sundseth EMS Operations Director; Fred Welch Executive Director of Economic Development Corporation; David Whittaker Director of Inspection Services. PURPOSE OF HEARING — PROPOSED ANNEXATION OF APPROXIMATELY 589 ACRES (AREA 5) 589 ACRES OF LAND, MORE OR LESS, AREA GENERALLY LOCATED WEST OF SH 35, EAST OF THE RAILROAD, SOUTH OF HASTINGS FIELD ROAD AND NORTH OF HASTINGS CANNON ROAD. (AREA 5) STAFF REVIEW OF THE FEASIBILITY PLAN AND SERVICE PLAN: Planner II Evan Duvall stated this is the second of two Public Hearings regarding this proposed annexation. The zoning of the property will be addressed following the annexation if it is approved. The area is approximately 589 acres located west of Main Street and south of Hastings Field Road. The land has a combination of uses, which include residential, industrial, and agricultural. There are also approximately ninety- eight oil rigs in the area. Residents will have the ability to have an agricultural exemption or development agreement with the City for agricultural land being annexed. The City hosted an Open House, mailed out certified letters, and did a walk-through to place door hangers along with letters inviting resident to meet one on one with staff. Page 1 of 4 — 5/2/2011 Common comments from residents have been that services offered by the Volunteer Fire Department, and Brazoria County have been satisfactory. The residents are also satisfied with current septic systems and water wells. Concerns voiced by residents include police and fire services, paying taxes with little returns, and animal restrictions. Residents have also stated concerns regarding the operation of oil field having diminished the quality of the roads. Upon approval of the proposed annexation, the City will provide residents with police services, fire services, emergency management services, and code enforcement. After the annexation is complete the proposed zoning for the area will be Suburban Development District. CITIZEN COMMENTS: James Fields, Denbury Resources, Inc., addressed Council and stated Denbury is drilling of the fifth of a nine well drilling package in the field which will bring new well bores to replace those that could not be rehabilitated. They have completed six recompletions to replace pipe and have scheduled ten more. Mr. Fields provided Council with an overview of Denbury Resources, Inc. operations within the proposed annexation area. Jim Williford, 9180 County Road 414, addressed Council and stated he has lived in this area for thirty-five years and is strictly against the annexation. G. C. Cannan III, South of County Rd 128, addressed Council and stated his concern is the affect of the taxes, the agriculture exemption, and the animal ordinance. The residents are against the annexation. Sarah Fusig, 18613 County Rd 414A, addressed Council and stated her concerns regarding economic times and the negative effect that will take place on the families and residents in the Hastings Field area should the City choose annex the area. COUNCIL/STAFF DISCUSSION: Councilmember Thompson stated he would like additional information regarding any concerns the Citizens may have about the City being proactive and regulating the oil and gas operations and future growth issues. Planner II Evan Duvall stated the concern was mainly regarding the degradation of the roads due to oil operations and oil spills. Discussion ensued between Council, Planning Director Lata Krishnarao Planner II Evan Duvall, and Assistant City Engineer Trent Perez regarding the proposed annexation. Mary Price, 5204 Main, stated she has oil wells on her property and was told they were going dry at the time she purchased the land. Since 2009, Denbury Resources, Inc. Page 2 of 4 — 5/2/2011 has had approximately eight oil spills on her property and run the wells twenty-four hours a day. The twenty-four hour activity violates the City Noise Ordinance and she would like this addressed. i Councilmember Kyle asked if Denbury Resources, Inc. is currently operating within the guidelines of the Noise Ordinance. James Fields, Denbury Resources, Inc. stated Denbury Resources, Inc. is currently in compliance with the City Ordinance. Couniclmember Thompson stated he would like more information regarding the field and the complete production agreement between Denbury Resources, Inc. and the City of Alvin. James Denbury Resources, Inc. entered into an industrial Agreement with the City of Alvin that states the company will be exempt from the City's annexation for a specified amount of time. Denbury Resources, Inc. will pay a reduced amount of ad valorem taxes. Discussion ensued between Council, City Attorney Darrin Coker, and James Field, Denbury Resources, Inc. regarding the proposed annexation. Mayor Pro -Tem Sherman asked how long Area No. 5 had been located within the City's Extraterritorial Jurisdiction and if the City has had the option to annex the land since that time. Planner II Evan Duvall stated the land became a part of the City's Extraterritorial Jurisdiction in 1962 and the City has had the ability to annex it since then. Mayor Pro -Tem Sherman asked how residents are informed that the City has the ability to annex the property when they purchase it. Assistant City Manager Jon Branson stated the realtor should inform the buyer and the contract they enter into for the purchase tells them to check with the municipality they reside in or are located in their Extraterritorial Jurisdiction. Councilmember Owens requested a copy of any additional anticipated cost to the City that would result from the proposed annexation. Assistant City Manager Mike Hodge stated the City departments have been asked to review the services required and establish if they need any additional funding to provide the level of service provided to the rest of the City at this time. Page 3 of 4 — 5/2/2011 Assistant City Manager Jon Branson stated that a supplement request from the Street Department additional maintenance money for roads that need improvement in the proposed annexed area that are not available at this time. City Manager Bill Eisen stated the City must take into consideration that any information regarding property value and lease hold increases are only assumption at this point. Councilmember Owens stated he would like to see the projected estimated value this proposed annexation would bring to the City. Meeting was adjourned at 7:35 p.m. Minutes approved as submitted and/or corrected this the 13th day of June, A.D., 2011. ATTEST: r Tom Reid Mayor Page 4 of 4 — 5/2/2011