2012-04-30 CITY COUNCIL SPECIAL MEETING MINUTESMINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY
OF PEARLAND, TEXAS, HELD ON MONDAY, APRIL 30, 2012, 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
Scott Sherman
Woody Owens
Susan Sherrouse
Felicia Harris
Greg Hill
Bill Eisen
Darrin Coker
Young Lorfing
Others in attendance: Claire Bogard Director of Finance.
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COUNCIL ACTION — REGARDING RESOLUTION NO. R2012-55 —
RESOLUTION OF THE CITY OF PEARLAND, TEXAS, APPROVING THE
ISSUANCE OF DEVELOPMENT AUTHORITY OF PEARLAND TAX
INCREMENT CONTRACT REVENUE AND REFUNDING BONDS, SERIES
2012; APPROVING A BOND RESOLUTION, INDENTURE OF TRUST, A
PRIVATE PLACEMENT LETTER, ESCROW AGREEMENT AND OTHER
DOCUMENTS RELATING TO THE BONDS; MAKING CERTAIN FINDINGS
AND CONTAINING OTHER PROVISIONS RELATED THERETO. Mr. Bill Eisen,
City Manager.
Mayor Pro -Tem Sherman made the motion, seconded by Councilmember
Owens, to approve Resolution No. R2012-55.
City Manager Bill Eisen reported this is an opportunity of the Development
Authority of Pearland to refund some existing bonds which has some financial
opportunities for the City and also release some funds that are being held under
requirements of some prior issues as reserves. He further commented DAP met
earlier today and did vote unanimously to approve the sell of these bonds.
Frank Ildebrando, BOSC, Inc., gave a detailed overview of the Development
Authority of Pearland's $56,915,000 Tax Increment Contract Revenue and
Refunding Bonds, Series 2012. Capital One made an offer of 3.07% for 10 -years
until May 21, 2022 then 65% for 6 -month LIBOR+2,00% maximum rate of 6%.
Rate today is below 2.50%. The Bonds are callable anytime at par. The
proposed private placement refunding of all the Development Authority of
Pearland's existing bond issues allow the DAP to amend the Bond Indenture.
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The Indenture can be modified to free up some of the approximately $2.83 million
of Operating Funds. Capital One has waived the Reserve Fund Requirements on
the proposed Bonds. The proposed will lower the debt service requirements of
the DAP and create capacity to issue $3,250,000 in new money bonds. Mr.
Ildebrando further report the developer will be able to be reimbursed $3,100,000.
Brief discussion ensued between Council and Mr. Ildebrando.
Voting "Aye" Owens, Sherrouse, Sherman, and Hill.
Voting "No" None.
Motion Passed 4 to 0, with Councilmember Harris absent from the Chambers.
OTHER BUSINESS:
Council adjourned into Executive Session under Texas Government Code at
6:59 p.m. to discuss the following:
Councilmember Harris arrived and joined the Executive Session at 7:00 p.m.
EXECUTIVE SESSION UNDER TEXAS GOVERNMENT CODE
1. SECTION 551.074 — PERSONNEL MATTERS —
DISCUSSION REGARDING CITY MANAGER'S
EVALUATION AND PERFORMANCE GOALS FOR 2011 -
2012. City Council.
NEW BUSINESS (CONTINUED):
Council returned from Executive Session at 8:37 p.m.
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Mayor Pro -Tem Sherman made the motion, seconded by Councilmember
Sherrouse to comply with what was discussed in Executive Session.
Councilmember Harris stated she is not going to vote in favor of this motion for
all the reasons stated in Executive Session including the fact that the bonus that
is going to be paid to the City Manager is going to come out of reserves.
Voting "Aye" Councilmembers Owens, Sherrouse, Sherman, and Hill.
Voting "No" Councilmember Harris.
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Minutes approved as submitted and/or corrected this the 14th day of May, A.D.,
2012.
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Tom Reid
Mayor
ATTEST:
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