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2014-07-14 CITY COUNCIL REGULAR MEETING MINUTESMINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, HELD ON MONDAY, JULY 14, 2014, AT 6:30 P.M., IN THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS. Mayor Reid called the meeting to order at 6:35 p.m. with the following present: Mayor Mayor Pro -Tem Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Secretary Tom Reid Keith Ordeneaux Tony Carbone Scott Sherman Gary Moore Greg Hill Clay Pearson Darrin Coker Young Lorfing Others in attendance: Claire Bogard Director of Finance; Jon Branson Assistant City Manager; J.C. Doyle Police Chief; Trent Epperson Director of Engineering and Capital Projects; Roland Garcia Fire Marshal; Michelle Graham Director of Parks and Recreation; Bonita Hall Director of Human Resource and Safety Management; Lata Krishnarao Director of Community Development; Vance Riley Fire Chief; Kim Sinistore Executive Director of the Convention/Visitors Bureau; Eric Wilson Public Works Director; Sparkle Anderson Communications Manager; Skipper Jones Assistant Director of Capital Projects; Bob Pearce Purchasing Officer. The invocation was given by Madsen Baum of Scout Troop 461 and the Pledge of Allegiance was led by Abraham Heredia of Scout Troop 461. CALL TO ORDER: ROLL CALL: Mayor Reid, Mayor Pro -Tem Ordeneaux, Councilmembers Carbone, Sherman, Moore, and Hill. CITIZEN COMMENTS: Lance Foss, 1409 O'Day Road, addressed Council stating he would like to thank Council for requesting a second reading on the issuance of permanent improvement and refunding bonds. He stated the $78,000 Parks Master Plan and other plans that have been approved is taking a lot of tax money from Pearland citizens. Everyone needs healthcare, and it is expensive. People in Pearland that do not earn much income and have to pay a premium, deductibles and co -pays is hard for them to support a family. Mayor Reid called the Public Hearing Meeting to order at 6:43 p.m. PUBLIC HEARING: To gather public comment and testimony regarding amendments to the Strategic Partnership Agreements between the City and Brazoria County Municipal Utility Districts Nos. 21 and 22. Mr. Darrin Coker, City Attorney. Page 1 of 16 — 7/14/2014 STAFF REVIEW: City Attorney Darrin Coker reported prior to the creation of the Municipal Utility Districts, the City obtained a Certificate of Convenience and Necessity (CCN) over the portion of the Extraterritorial Jurisdiction (ETJ) in which the Municipal Utility Districts are located, and Municipal Utility District No. 21 obtained an overlapping CCN to provide water/sewer services to the area. Construction in Municipal Utility District No. 22 has commenced, and the residents in the area will need water/sewer services. Representatives for MUD No. 22 recently informed the City that their engineers made an erroneous assumption that the original CCN applied to both MUD Nos. 21 and 22; however, that is not the case. MUD No. 22 has since initiated a CCN application for the service area. While MUD No. 22 is waiting for its CNN application to be processed, it has been proposed that the parties amend the Strategic Partnership Agreements (SPA) allowing the MUD to construct and operate its facilities as a temporary agent of the City. The agency relationship would terminate once the MUD's CNN is issued. The proposed amendment will also allow the City to collect sales tax from the commercial tracts when they develop. The second public hearing on this issue is scheduled for July 28, 2014, and a resolution approving the amendments is scheduled for the same meeting. CITIZEN COMMENTS: Tim Austin, Attorney for Municipal Utility District Nos. 21 and 22, addressed Council and stated MUD Nos. 21 and 22 are in favor of this amendment. He thanked Council for taking the time to hear this request. COUNCIL/STAFF DISCUSSION: Discussion ensued between Council and City Attorney Darrin Coker regarding sales tax and commercial property. Councilmember Carbone asked what would happen if the Municipal Utility District does not obtain a Certificate of Convenience and Necessity (CCN). Attorney Tim Austin stated if the Municipal Utility District petitioned the City to provide water and sewer, and the City could not, by law Texas Commission on Environmental Quality (TCEQ) is going to look for an entity that can provide the services. The MUD is that entity that has the ability to provide the services. The Certificate of Convenience and Necessity (CCN) is a process the MUD has to go through. It is a given they will receive the CCN. City Attorney Darrin Coker stated the Municipal Utility District has agreed to pay for any liability that may occur. Councilmember Hill stated the commercial property is not developed at this time so there will be no sales tax revenue. ADJOURNMENT: Public Hearing was adjourned at 6:50 p.m. Page 2 of 16 — 7/14/2014 CONSENT AGENDA: A. Consideration And Possible Action — Approval Of Minutes: 1. Minutes of the June 23, 2014, Regular Meeting, held at 6:30 p.m. 2. Minutes of the June 16, 2014, Joint Public Hearing, held at 6:30 p.m. B. Consideration and Possible Action — Resolution No. R2014-74 — A Resolution of the City Council of the City of Pearland, Texas, authorizing the City Manager or his designee to enter into a contract for engineering services with Costello, Inc., in the amount of $123,780.00 for the Longwood Wastewater Treatment Plant Service Project (Phase II). Mr. Trent Epperson, Director of Capital Projects and Engineering. C. Consideration and Possible Action — Resolution No. R2014-71 — A Resolution of the City Council of the City of Pearland, Texas, renewing a bid for ditch cleaning services with Don Mar Grading, Inc. at the unit cost of $2.69 per linear foot for cleaning services and $0.31 per linear foot for preparation of a preliminary survey/drainage plan, for the period of July 24, 2014 through July 23, 2015. Mr. Eric Wilson, Director of Public Works. D. Consideration and Possible Action — Resolution No. R2014-69 — A Resolution of the City Council of the City of Pearland, Texas, renewing a unit supply bid for employee uniform rental services with G & K Services in the estimated amount of $61,000 for the period of August 14, 2014 through August 13, 2015. Mr. Eric Wilson, Director of Public Works. E. Consideration and Possible Action — Resolution No. R2014-70 — A Resolution of the City Council of the City of Pearland, Texas, renewing a bid for road striping services with Texas Lone Star Pavement Services, Inc. in the estimated cost of $125,000 for the period of September 1, 2014 through August 31, 2015. Mr. Trent Epperson, Director of Capital Projects and Engineering. F. Consideration and Possible Action — Resolution No. R2014-79 — A Resolution of the City Council of the City of Pearland, Texas, awarding a bid for construction services in the amount of $131,892.00 to FW Walton for roof repairs to Fire Station No. 4. Ms. Michelle Graham, Director of Parks and Recreation. G. Consideration and Possible Action — Resolution No.R2014-72 — A Resolution of the City Council of the City of Pearland, Texas, awarding a bid for rental of a belt filter press from Magnaflow Environmental in the amount of $209,000.00 for a period of eighteen (18) months. Mr. Eric Wilson, Director of Public Works Page 3 of 16 — 7/14/2014 H. Consideration and Possible Action — Resolution No. R2014-75 — A Resolution of the City Council of the City of Pearland, Texas, authorizing the City Manager or his designee to enter into a contract for engineering services with Binkley & Barfield, Inc., in the amount of $282,297.00 for the Regency Park Subdivision Paving and Drainage Project. Mr. Trent Epperson, Director of Capital Projects and Engineering. Councilmember Carbone made the motion, seconded by Mayor Pro -Tem Ordeneaux, to adopt Consent Agenda Items A through H as presented on the Consent Agenda. Voting "Aye" Councilmembers Carbone, Sherman, Ordeneaux, Moore, and Hill. Voting "No" None. Motion Passed 5 to 0. NEW BUSINESS: Consideration and Possible Action — Regarding the update on the competitive sealed proposals for the Shadow Creek Ranch Park Project. Mr. Trent Epperson, Director of Capital Projects and Engineering. Councilmember Sherman made the motion, seconded by Mayor Pro -Tem Ordeneaux regarding the update on the competitive sealed proposals for the Shadow Creek Ranch Park Project. City Manager Clay Pearson reported Staff recommends completing the negotiations with the Crain Group and to bring back a construction contract for award at the July 28, 2014 Council Meeting. Any Council feedback on park elements to keep or remove from the project will be included in the final contract. Karri Axtell, 4102 Yucca Court, addressed Council stating she is representing Brazoria Municipal Utility District No. 26 and Brazoria Fort Bend MUD No. 1. She would like to ask Council to consider some financial assistance from the MUD Nos. 26 and 1. She stated the MUDs do have the capability to fund part of the water, sewer, and drainage. The residents would receive a great benefit from this development. Mayor Pro -Tem Ordeneaux stated he does not want to see the soccer field removed. He stated he does not have an issue with the Municipal Utility Districts assisting financially. He would like to see at least 50% of the residents in those MUDs agree to it. He stated he has not seen the willingness from talking to the people and from the actual election several years ago for the MUDs to complete that park. Councilmember Sherman stated he agrees with Mayor Pro -Tem Ordeneaux regarding the soccer fields, but the number of parking spaces needs to be taken into consideration. There are a lot of citizens in that area upset that there are not more soccer fields. He will fight for the soccer field. As a resident of MUD 26 he understands the residents want infrastructure, but he also understands the residents will have a great concern about the money being used to fund a City park when it could be used to bring down the debt of those MUDs. The City Page 4 of 16 — 7/14/2014 needs to keep in mind the residents voted for this seven years ago because this is what they wanted. It is not fair to the residents and we need to move forward. Councilmember Hill stated after talking to the residents in the Municipal Utility District Nos. 26 and 1 he agrees to not take out the soccer field. The residents should not have to leave Shadow Creek to go to a park or soccer field since they voted for this in 2007. This has been a disservice to the residents. The City needs to do everything possible to give the residents what has already been voted on. If the MUD Board wants to financially assist to help with this project he does not have a problem with it. Discussion ensued between Council regarding approval from the residents of MUD Nos. 26 and 1, and not only the MUD Board. Councilmember Carbone stated he is in favor of getting the park built. He understands the concerns of the Municipal Utility District, but the board approved it, they were elected by the people to represent the people. If the City has an entity that is willing to financially assist with a project he does not want to turn them down. Mayor Pro -Tem Ordeneaux stated he would agree with that. Another idea this body has talked about is naming rights that would not cost the tax payers any money. He does not know if that could be done before the park is built, but that is something else to look at. Councilmember Moore stated he is in favor of putting soccer fields out there. He would like to look at a plan that might take away one or two of the baseball fields to be able to put more soccer fields. Mayor Pro -Tem Ordeneaux stated he cannot support that because the voters approved the baseball fields in the outline. If that nullifies what the voters said in 2007 he cannot support it. Mayor Reid stated the debt service today was set by citizens that have a desire to have certain capital improvements made. The bond issue passed because it was something desirable by the community. Councilmember Hill stated he has received emails from Shadow Creek residents asking for the park in its entirety. They voted for it in 2007 and they want it. If the MUD is willing to help finance this project the City should do it. City Manager Clay Pearson stated Staff will work on this and have discussion with the Municipal Utility District Boards and bring it back to Council before the award consideration in two weeks. City Attorney Darrin Coker stated City Staff will meet with the attorney for the Municipal Utility District Board and one representative from each board. Mayor Reid stated this item will be moved to July 28, 2014 agenda. Page 5 of 16 — 7/14/2014 Council Action — Resolution No. R2014-77 — A Resolution of the City Council of the City of Pearland, Texas, supporting passage of a Texas State Constitutional Amendment (Proposition 1) providing increased funding for highway maintenance and construction. Mr. Trent Epperson, Director of Capital Projects and Engineering. Mayor Pro -Tem Ordeneaux made the motion, seconded by Councilmember Sherman to approve Resolution No. R2014-77. City Manager Clay Pearson reported the passage of Proposition 1 will provide additional transportation funds through the Houston Galveston Area Council (H -GAC), and Transportation Improvement Program (TIP), which will increase the chances for the City of Pearland to leverage local roadway funds with State and Federal transportation funds. Voting "Aye" Councilmembers Carbone, Sherman, Ordeneaux, Moore, and Hill. Voting "No" None. Motion Passed 5 to 0. Council Action — First Reading of Ordinance No. CUP 2014-03 — An ordinance of the City Council of the City of Pearland, Texas, approving a Conditional Use Permit (CUP), for certain property, being legally described as 4.83 acres (210,206 square feet), all of a called 4.826 acres being the south 129' of Lot 79 and the north 214' of Lot 78, Figland Orchard, H.T. and B.R.R. Survey, Abstract 240, Brazoria County, Texas, located on the east side of Harkey Road, between Josephine Street to the north and Fite Road to the south; Pearland, TX., for Conditional Use Permit Application No. CUP2014-03 to allow for a church, within the Neighborhood Service (NS) zoning district, at the request of Verret Group, applicant; on behalf of Vineyard Christian Fellowship of Pearland, owner; containing a savings clause, a severability clause and an effective date and other provisions related to the subject. Ms. Lata Krishnarao, Director of Community Development. Councilmember Moore made the motion, seconded by Councilmember Carbone to approve Ordinance No. CUP 2014-03 on its First Reading. Mayor Reid read into the record the Planning & Zoning Commission's recommendation to forward to Council for approval of Application No. CUP 2014-03. Director of Community Development Lata Krishnarao reported Council is being asked to consider CUP2014-03 to construct an approximately 15,500 square foot church on 4.83 acres of land, subject to the following condition: As approved with the expired CUP that was approved for a church in 2008, no access to the site shall be granted via Bardet Street. Voting "Aye" Councilmembers Hill, Moore, Ordeneaux, Sherman, and Carbone. Voting "No" None. Motion Passed 5 to 0. Page 6 of 16 — 7/14/2014 Council Action — First Reading of Ordinance No. 2000M-116 — An ordinance of the City Council of the City of Pearland, Texas, amending Ordinance No. 2000M, the zoning map of the City of Pearland, Texas, for the purpose of changing the classification of certain real property, being a tract ofland containing 0.4362 acres (19,000 square feet), situated in the H.T. & R.R.R.Survey, Abstract No. 543, Brazoria County, Texas, being out of the H.C. Johnson 1.0 acre tract out of Lot 1 of a subdivision of Section 4 recorded in Volume 410, Page 536 of the Deed Records of Brazoria County, Texas, Brazoria County,Texas, (located at the northwest corner of Walnut Street and Johnson Street, Pearland, TX), Zone Change 2014-08Z; a request of Evelyn Pineda, owner/applicant; for approval of a change in zoning from Single Family Residential 2 (R-2) to Office and Professional (OP) on approximately 0.44 acres of land, providing for an amendment of the zoning district map; containing a savings clause, a severability clause and an effective date and other provisions related to the subject. Ms. Lata Krishnarao, Director of Community Development. Councilmember Hill made the motion, seconded by Councilmember Sherman to approve Ordinance No. 2000M-116 on its First Reading. Mayor Reid read into the record the Planning & Zoning Commission's recommendation to forward to Council for approval of Zone Change 2014-08Z. Director of Community Development Lata Krishnarao reported Council is being asked to consider Zone Change Application 2014-08Z to change the zoning of the approximately 0.44 acres from a Single Family Residential 2 (R-2) to an Office and Professional (OP) zoning district. Voting "Aye" Councilmembers Carbone, Sherman, Ordeneaux, Moore, and Hill. Voting "No" None. Motion Passed 5 to 0. Council Action — Second and Final Reading of Ordinance No. 1500 — An ordinance of the City Council of the City of Pearland, Texas authorizing the issuance of permanent improvement and/or refunding bonds in one or more series; setting certain parameters for the bonds; authorizing refunding of certain outstanding obligations; authorizing a pricing officer to approve the amount, the interest rate, price, and terms thereof and certain other procedures and provisions relating thereto. Ms. Claire Bogard, Director of Finance. Councilmember Carbone made the motion, seconded by Mayor Pro -Tem Ordeneaux to approve Ordinance No. 1500 on its Second and Final Reading. Carol Artz-Bucek, President and CEO of the Pearland Chamber of Commerce, 6117 Broadway, addressed Council stating she appreciates Councils leadership and knows they have a lot of hard decisions to make. We as the Chamber of Commerce since 1963 have been building business leaders in our City. The issue was brought to our Community Leadership Organization by the City Manager wanting to explain the tax increase. Most of the businesses do agree that the City should pay off debt and save money. The concern is what Page 7 of 16 — 7/14/2014 will happen when that debt is paid off, will the taxes go back down. Those are questions that need to be answered to insure our businesses in Pearland stay in Pearland and they continue to grow and continue to provide jobs for our community. Most of the CEOs of our industry do not live in Pearland so they don't see the services that are needed. They do want to have a good quality of life for their employees. They want to continue to grow and add jobs. We need to support them and make sure that Council is making the right decisions for the future of our businesses in Pearland. Monica Morgan, 2301 Shady Cove Court, addressed Council stating she is a business owner in Pearland. Being a resident at the time the 2007 bond passed, she remembers approving the bond. She knew there would be a tax increase and thought it would be shared with the tax payers over a period of time. She understands maybe Council did not pass on enough of that tax increase, but she thought the City was paying the debt the way it was structured when it was issued. She does not understand why it needs to be restructured at this time and causing such a large increase. To do a 3.5% increase at this time when a lot of people are recovering from a recent recession will be a hardship on the people. The tax base is still growing and she was hoping the existing debt could be left as is. A lot of homeowners live paycheck to paycheck and every cent counts. On the west side of town there was a huge Independent School District bond passed and the resident's next tax bill is going to be considerably higher. She would like for Council to think about the impact that will have on the homeowners, tax payers, and small business owners. Quentin Wiltz, 4105 Summer Lane, addressed Council thanking them for what they do and the decisions they make. As a resident he does not completely understand why the urgency to make a decision, and a lot of referencing to 2007. There was a bond that was passed by residents in 2007. He stated as he walks down his street the turnover since 2007 is dramatic. Everyone knows what has happened to the landscape of our economy since 2007. To make this decision based on the 2007 bond election is very disturbing to him. He knows projects need to continue, but the recession did a lot of different things to people. He would like for Council to take that into account when making this decision. He further stated it was unfair the comment Mayor Pro -Tem Ordeneaux made regarding 50% of residents to come forward with a petition. He is involved in local elections, and there is only a 4% to 5% voter turnout in Pearland, and Mayor Pro -Tem Ordeneaux is asking 50% of residents to sign a petition. At this point he is against this. John Gordon, 3103 Creek Bank Lane, addressed Council and stated he is the President of Brazoria County Municipal Utility District No. 28 and Vice President of Creekside Homeowners Association. When the 2007 bond was passed by the residents at that time MUD No. 28 was much smaller. Today there is around 1,200 homes and still growing. It is not fair to the residents that have recently moved in that had no part of the 2007 bond, and now they are going to be burdened with this tax increase. He does understand residents did vote for it in 2007, but things are different today with the economy, people are still struggling. He would like for Council to take all of the comments into consideration when making this decision. Page 8 of 16 — 7/14/2014 Jana Langent, 3901 East Pear Street, addressed Council stating she has had a business in Pearland for the last 12 years. Her payroll tax has been increased, and she now has a franchise tax. She does not have room for a tax rate increase. She brings in 280 people a month to shop in Pearland, her employees shop in Pearland to help the economy. She stated she attended an investment group meeting and asked why not open a business in Pearland, and was told Pearland is too expensive. She has cut salary's 20,000 a month, she cannot afford to pay more taxes. Small businesses may not be able to afford to stay in Pearland and it is a shame. Gilbert Freitag, 3602 Shady Crest, addressed Council stating he came to Pearland in 1988. He built his own home and proud to be a Pearland resident. He makes a decent living, and believes in paying his fair share of taxes. He does not mind bond or tax increases within reason. He would like for the information to be more public when the City or Pearland Economic Development is giving out tax abatements to new companies. Those dollars that are given out for free may equal to what the City is asking for in tax increases. That is very unfair. City Manager Clay Pearson reported Council is being asked for consideration and approval of an Ordinance authorizing the issuance of City of Pearland Permanent Improvement and/or Refunding Bonds in one or more series. Setting certain parameters for the Bonds, authorizing refunding of certain outstanding obligations, authorizing a Pricing Officer to approve the amount, the interest rate, price, and terms thereof and certain other procedures and provisions relating thereto. Financial Advisor for the City of Pearland John Robuck gave an overview of the modified, Refunding Option 2. Discussion ensued between Council and John Robuck, Financial Advisor regarding the schedule of transaction cost. Mayor Pro -Tem Ordeneaux stated he would like to respond to the earlier statement about 50% of residents signing a petition. The reason he is asking the Municipal Utility District for 50% is the MUD has already voted not to pay for the park. My view is the MUD board is trying to nullify the previous vote by their people. There is not enough time to go out for another vote, so before I allow someone to go against what I view as the previous voter action I want to see conclusive proof that is what the MUD residents want. Councilmember Carbone stated he would like to clarify the statement Mayor Pro -Tem Ordeneaux just made regarding New Business Item No. 1. The item at this time in discussion is the refunding debt structure which has nothing to do with the Municipal Utility District or building this park or any other project. Mayor Pro -Tem Ordeneaux stated he knows the tax payers in Shadow Creek Ranch want new facilities. They asked for them, and agreed to pay for them. They just passed a large bond issue for Alvin Independent School District. Shadow Creek residents are going to have a larger burden because of this bond issue that passed. He would encourage the residents to look at Pearland Independent School District tax rates compared to Alvin Independent Page 9 of 16 - 7/14/2014 School District tax rates. Pearland ISD tax payers pay a higher tax rate because of growth, and what is needed for the growth. The restructure of the debt is going to help pay down the tax rate. It is true that the City will build in room for additional debt. The debt has to be issued by the residents through a bond issue, or by the representatives the residents put on Council through certificates of obligation, or by other instruments of debt. It is the responsibility of the voters to vote their mind, put the right people in place to reduce the debt. He believes at one time there were Councilmembers that did not have the backbone to follow through with the tax increase the voters approved beginning in 2007. If they would have Council would not be here today discussing it. He believes Council needs to restructure the debt and pay it off. Councilmember Hill stated in his opinion it is good the Council is arguing over two conservative principals. That is what makes this complicated. On one hand it makes sense to pay off debt and on the other hand it makes sense not to raise taxes. He further stated you have not seen Councilmembers of old that engage the public and their opinion in these types of issues like in today's time. He will be voting against this restructure because looking at all the information there is going to be a greater tax increase. He thinks taking an incremental approach by moving from a 25 year to a 20 year, pay down debt, attack debt aggressively, and not burden the tax payers with a greater increase. He feels it is being more responsible and not putting so much of a tax burden on the tax payers. Councilmember Carbone stated the Alvin Independent School District bond according to their information is coming on board with the largest tax rate increases for the next two years. Council is looking at this restructuring somewhat as an artificial raise of taxes over the next two year period. He does not want to be in the position to make a decision to sell a new bond package to keep from raising the tax rates. He wants to take it to the voters and if they want a new project they will know their taxes will go up. He is concerned with what it is going to do to the tax rate, and believes this is another way structurally sweeping it under the rug. Staff's comments on June 9, 2014 was nothing about decreasing taxes, it was future capacity for more spending. I have a problem with that. When we spend that money we know the tax rate will go up, and I think that causes pause. I do not want to restructure for that purpose. Mayor Pro -Tem Ordeneaux stated if the City restructures and go to 20 years, the City will be paying off the principal towards the beginning along with the interest. Physical conservative policy tells me you pay as much towards principal as you can. Council is saying we do not want to do that. We do not want to put the burden on the tax payers even though the tax payers approved this 7 years ago. I wish I had been on Council 7 years ago to make this point. The City would have this paid off by now. Councilmember Carbone asked Staff for clarification on the voter approved tax rate. Finance Director Claire Bogard stated when the analysis was done in 2006 there were unissued bonds from the 2001 bond mendarandom. The built in and unissued bonds from 2001 raised taxes 5.5 cents. Adding the 2007 bonds on top of that to give it 7.5 cents with a total of 13 cents. Discussion ensued between Council and Finance Director Claire Bogard regarding the tax increase was disclosed to the voters in 2007. Page 10 of 16 — 7/14/2014 Discussion ensued between Council and City Manager Clay Pearson regarding the savings with Option 1 compared to the savings on the refinance only option. Voting "Aye" Councilmembers Ordeneaux, and Sherman. Voting "No" Councilmembers Hill, Moore, and Carbone. Motion Failed 3 to 2. Mayor Reid called for a recess at 8:44 p.m. Mayor Reid called the meeting to order at 9:00 p.m. Council Action - First Reading of Ordinance No. 788-1 - An ordinance of the City Council of the City of Pearland, Texas amending the procedure for abandoning, altering, closing, and vacating streets, alleys, and other public rights-of-way and portions thereof within the City of Pearland; containing a savings clause and a severability clause; providing for codification and an effective date; and containing other provisions relating to the subject. Mr. Darrin Coker, City Attorney. Councilmember Sherman made the motion, seconded by Councilmember Carbone to approve Ordinance No. 788-1 on its First Reading. City Attorney Darrin Coker reported several times a year individual's petition Council for abandonment of old right-of-way easements that cross their undeveloped property. The proposed amendment would allow these requests to be handled through the platting process by Planning and Zoning. Requests that my include streets previously accepted by the City; the right-of-way may be located on or adjacent to multiple properties; or other properties could be affected by the proposed abandonment. Such request will be required to follow the City's existing protocol. Voting "Aye" Councilmembers Hill, Moore, Ordeneaux, Sherman, and Carbone. Voting "No" None. Motion Passed 5 to 0. Council Action - Resolution No. R2014-73 - A Resolution of the City Council of the City of Pearland, Texas, awarding a bid for manhole rehabilitation services, in the amount of $338,770.00 to National Works, Inc. Mr. Eric Wilson, Director of Public Works. Mayor Pro -Tem Ordeneaux made the motion, seconded by Councilmember Carbone to approve Resolution No. R2014-73. City Manager Clay Pearson reported Council is being asked to award a bid for manhole rehabilitation services, in the amount of $338,770 to National Works, Inc. Page 11 of 16 — 7/14/2014 Discussion ensued between Council and Public Works Director Eric Wilson regarding the manholes being lined with a product that will provide a corrosion resistant coating and prevent future manhole failure. Voting "Aye" Councilmembers Carbone, Sherman, Ordeneaux, Moore, and Hill. Voting "No" None. Motion Passed 5 to 0. OTHER BUSINESS: None. MAYOR/COUNCIL ISSUES: Consideration and Possible Action — Regarding a fire hydrant that was removed from the Koza property on Highway 35. City Council. Councilmember Carbone made the motion, seconded by Councilmember Hill regarding a fire hydrant that was removed from the Koza property on Highway 35. After Council discussion Councilmember Hill made a motion, seconded by Mayor Pro -Tem Ordeneaux to postpone putting back the fire hydrant and waterline, to the next scheduled Regular Council Meeting, July 28, 2014, so staff can review and bring back a recommendation. Councilmember Moore stated this item came before Council two weeks ago and he feels Pearland has a bad rap regarding smaller and older businesses. He stated there was not a notice sent to the businesses informing them the fire hydrant was going to be removed. He stated Mr. Koza is wanting to expand his business and it will require water lines and a fire hydrant. He understands what was there may not have been sufficient for the expansion, but the simple fact is the fire hydrant was there, and it was removed with no notification to the businesses. I do not think it was right and believe the fire hydrant should be put back. Jerry Koza Jr., 2823 Knobhill, addressed Council stating prior to the fire hydrant being removed we had already started development on the property. We applied for a permit, received the permit to build a retention pond, and to build out the entire property. When the highway announcement came we requested notification on where the median breaks would be so we could build a new driveway. Regardless to whether we were going to develop the property or not our existing building no longer meets fire code. We do not understand why the City has the right to take our building out of code. We feel the fire hydrant was there for a reason and feel it should be put back. We do not feel it is our responsibility to put the fire hydrant back. Councilmember Hill stated he agrees with Mr. Koza. Prior to Highway 35 expansion there were meetings with staff, and we knew Mr. Koza was wanting to develop his property. He requested permits, built a retention pond, requested median breaks, put in a new driveway. By removing the fire hydrant it took the existing building out of code. With concerns about fire protection they now have to make their building right. I think the City needs to do what we can to make it better. He further stated he thinks the City needs to implement a new system Page 12 of 16 — 7/14/2014 to notify people the way the City does when there is going to be a zone change. City Manager Clay Pearson stated the Pearland Economic Development Corporation met and authorized a shortened process. PEDC funds are available for improvements on the property. Discussion ensued between Council and Fire Marshal Roland Garcia regarding the current building and fire codes. Councilmember Sherman asked if someone from the company could tell him why the Pearland Economic Development Corporation funds are being rejected. Jerry Koza Jr., stated he told Pearland Economic Development Corporation thanks for the funds, but no thanks. We do not feel it is our responsibility to put the fire hydrant in whether someone else is paying for it or not. The fire hydrant was there and then taken out without anyone notifying us. If PEDC wants to give the City the funds and the City put the fire hydrant back, that is fine. If we had received notification the fire hydrant was going to be removed we could have gone back to the City and this would have been simpler. Councilmember Carbone stated he thinks it would be great if they take the PEDC funds, but that is not going to happen. There could be blame of TxDOT or blame of the City. The City was put on notice of the company's expansion by the permits that were pulled. This is a business that is wanting to expand, something out of their control caused them a hardship and if we cannot make an exception for a long time, decent size business in Pearland which is a prescient's that I am willing to set. He does not know procedurally how staff can do this, but I have confidence in staff to get this done. Jerry Koza Jr., stated if the same size fire hydrant is put back we cannot expand. What you also have to look at is next to us is an industrial park and there is no fire hydrant from Profax all the way to Wal-Mart. All that property is cut off from fire service. PEDC has hired a consultant to figure out how to improve the looks of Highway 35. The looks of Highway 35 will not improve if it cannot be developed. To be developed there will be a cost of every individual piece of land to be bored under Highway 35. We were told we had to put in a large enough line that the City could tie into and it would become public domain. Discussion ensued between Council and Staff regarding the size of water lines and buildings/businesses out of code. City Manager Clay Pearson stated three weeks ago when this issue came up it was discussed regarding Pearland Economic Development funds, and not anything regarding being out of code. I believe staff needs to take a look at this and verify this information and not except it at face value. We can come back with a report regarding buildings that were in and out of code. Discussion ensued between Council and City Attorney regarding the City and Pearland Economic Development Corporation entering into an agreement to restore previous services. Page 13 of 16 — 7/14/2014 Councilmember Carbone stated it is getting late, there are three Councilmembers that agree to put the fire hydrant back. I do not want to leave here tonight with an indecision and come back next month doing this same thing over again. Assistant City Manager Jon Branson stated to clarify what Councilmember Carbone is recommending is replacing the line exactly as it was based on the code initially approved or are you talking about expanding the line to a larger size to accommodate future improvements. Councilmember Carbone stated if it was important enough for the City to force the business owner to bore under Highway 35 and put in a larger line then it is important enough for the City to follow the same principal. Councilmembers Moore and Hill agreed with putting in the larger waterline. City Manager Clay Pearson stated staff will take a look at this. If there is a public purpose for the City to install a larger waterline we will come back and share that with Council. Councilmember Carbone stated he is not comfortable with that. He believes the waterline needs to go back whether it is decided it is a public purpose or not. It was an oversight, whether it was TxDOT or the City or whoever it was. We are here tonight and we need to take care of it. City Attorney Darrin Coker stated everyone here tonight wants to come up with a solution. The issue has shifted to using City funds instead of Pearland Economic Development funds. It now is not an issue of funding, it is an issue of wanting the water line put back. The State Constitution Provision in Article 3, Section 52 states "Prohibits legislation or political subdivision to lend their credit or to grant public money." For instance, if the City wants to write them a check and let them do it, the City has to make sure there is a public purpose being served. If the City does not make sure it is a public purpose it is considered an unconstutional grant of funds. If it is for economic purposes we can do a Chapter 380 Agreement. The 380 Agreement allows the City to make grants for economic development purposes, but again that would be granting the funds for them to do the project themselves. If the City is going to do the project we cannot put in a waterline for the sole purpose of benefiting that property. The courts say that "Cities cannot expend public funds simply to obtain for the community general benefits resulting from the operation of a corporate enterprise." The City has to make sure putting in the waterline does not solely benefit Profax, that there is a greater benefit of public service being served. It would be more appropriate to make sure a public purpose is being served. If not Council would have to authorize the funds to be spent for the City to do the project. Councilmember Carbone stated Council can decide if it is a public purpose. There are three Councilmembers that say this is a public purpose, let's move on. Discussion ensued between Council regarding a study to be brought back to Council showing buildings that are in and out of code. Page 14 of 16 — 7/14/2014 Councilmember Sherman stated two hours ago Council was not comfortable to make a decision on a tax restructure based on receiving the information two hours before the meeting. You're willing at this point to put in a fire hydrant and waterline based on what folks in the audience have said. Councilmember Carbone stated he has been looking into this issue ever since it was brought up at the last Council meeting. Mayor Reid stated to let staff work on this and come back to Council with a solution to this problem. Councilmember Carbone stated he would like to call for a vote to say this is a public purpose and put the waterline back. Mayor Pro -Tem Ordeneaux asked for clarification. Where is the waterline starting and ending, is this the only property that needs this, and is the property outside the fire code. We do not know. I will either abstain or not vote, because I do not have all the information. If we are going to do this it makes sense to do it for the entire strip of Highway 35. Councilmember Sherman stated he agrees with Mayor Pro -Tem Ordeneaux, he does not think this can be presented without having all the information. Director of Public Works Eric Wilson stated it can be brought back to the next Regular Council Meeting, July 28, 2014 with regards to compliance from fire code standing, when the facilities were constructed, from options to provide service to the east side of Highway 35. We can look at some of those various options and come up with some prices. Mayor Pro -Tem Ordeneaux stated he would like for it to be from when the waterline was removed and not from the time of construction. Mayor Pro -Tem Ordeneaux asked the Fire Marshal Roland Garcia to come back with a report letting him know how big of a scale this affected along Highway 35 when the waterline was removed. What he is seeing is there could have been other buildings that existed before the waterline was removed. If they had fire protection before the waterline was removed I feel that it is the City's duty to replace it. City Manager Clay Pearson stated in two weeks we will come back and do this the right way. We will find out what the costs will be, what was in and out of code, find the best way to approach this, and not make a decision open ended. Councilmember Hill stated he does not mind waiting if the information will be by the next scheduled Council Meeting. He does not want to keep the Kozas waiting, they have already been waiting long enough. Page 15 of 16 — 7/14/2014 Voting "Aye" Councilmembers Sherman, Ordeneaux, and Hill. Voting "No" Councilmembers Carbone and Moore. Motion Passed 3 to 2. ADJOURNMENT Meeting was adjourned at 9:55 p.m. Minutes approved as submitted and/or corrected this the 11th day of August, A.D. 2014. Tom Reid Mayor ATTEST ARLA4,",, Yg Lorf RMC =� ._ C ty Sec re a Page 16 of 16 — 7/14/2014