2015-08-10 CITY COUNCIL REGULAR MEETING MINUTESL
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MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON MONDAY, AUGUST 10, 2015, AT 6:30 P.M., IN THE
COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
Mayor Reid called the meeting to order at 6:37 p.m. with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
Councilmember
City Manager
City Attorney
City Secretary
Tom Reid
Tony Carbone
Derrick Reed
Gary Moore
Keith Ordeneaux
Greg Hill
Clay Pearson
Darrin Coker
Young Lorfing
Others in attendance: Daniel Baum Deputy Fire Chief; Claire Bogard Director of Finance; Jon
Branson Deputy City Manager; Matt Buchanan President of Economic Development
Corporation; J.0 Doyle Police Chief; Trent Epperson Assistant City Manager; Chris Orlea
Interim Director of Parks and Recreation; Michelle Graham Interim Director of Human
Resource; Lata Krishnarao Director of Community Development; Sue Polka Director of
Engineering; Kim Sinistore Executive Director, Convention/Visitors Bureau; Eric Wilson
Public Works Director; Sparkle Anderson Communications Manager; Joel Hardy Grants
Coordinator; Skipper Jones Assistant Director of Capital Projects; John Knight IT Manager;
Michael Leech Assistant; Director, Public Works; John McCarter Management Assistant;
Daniel McGhinnis Chief Information Officer; Jennifer Huhn Municipal Court Administrator;
Letitia Farnie Municipal Court Judge.
The invocation was given by Mayor Pro -Tem Carbone and the Pledge of Allegiance was led
by Police Chief J.0 Doyle.
ROLL CALL: Mayor Reid, Mayor Pro -Tem Carbone, Councilmembers Moore, Reed,
Ordeneaux, and Hill.
CITIZEN COMMENTS:
Ernest DeMartino, 5108 Brett Drive, addressed Council stating his concerns regarding the
homeowner of 5110 Brett Drive that has been in violation of the Pearland Animal Ordinance.
He stated this resident has 19 dogs and has been issued many citations. He is asking
Council to use any legal action possible to remedy this situation.
Lance Foss, 1409 O'Day Road #57, addressed Council stating he is appreciative of the great
taste of the City water. He further stated he recently contacted the EMS department because
his father in-law had fallen and he is pleased with their service. He stated there was a fire
' recently on Gardenia Street and the fire department did a great job in controlling and putting
the fire out. He is pleased Past Councilmember Scott Sherman is going to be recognized by
Council. He stated the City's Core Beliefs, Responsive, Results Oriented, Trust Builders, and
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Accountable are fantastic, but there are little glitches if anyone is paying attention that gives a
wrong impression in the way of steam rolling.
PUBLIC HEARING: None
CONSENT AGENDA:
A. Consideration and Possible Action — Approval Of Minutes:
1. Minutes of the June 29, 2015, Special Meeting, held at 7:00 p.m.
2. Minutes of the July 20, 2015, Special Meeting, held at 7:00 p.m.
B. Consideration and Possible Action — Excuse the absence of
Councilmember Greg Hill from the Regular Council Meeting held on July 27,
2015.
C. Consideration and Possible Action — Resolution No. R2015-130 — A
Resolution of the City Council of the City of Pearland, Texas, accepting the
City's Investment Report for the quarter ending June 2015.
D. Consideration and Possible Action — Resolution No. R2015-134 — A
Resolution of The City Council of the City of Pearland, Texas, adopting an
Amended Investment Policy, Investment Strategy and approved Brokers in ,
accordance with Chapter 2256 of the Government Code ("Public Funds
Investment Act").
Councilmember Hill made the motion, seconded by Mayor Pro -Tem Carbone to adopt
Consent Agenda Items A through D as presented on the Consent Agenda.
Voting "Aye" Councilmembers Moore, Reed, Carbone, Ordeneaux, and Hill.
Voting "No" None.
Motion Passed 5 to 0.
NEW BUSINESS:
Council Action — Resolution No. R2015-132 — A Resolution of Appreciation for
Councilmember Scott Sherman to recognize his contributions and service as Councilmember
Pos. 2.
Councilmember Ordeneaux made the motion, seconded by Councilmember Moore, to
approve Resolution No. R2015-132.
Mayor Reid presented Past Councilmember Scott Sherman with Resolution No. R2015-132
of Appreciation for his contributions and service as Councilmember Pos. 2. '
Past Councilmember Scott Sherman thanked the Mayor and Councilmembers for the
recognition. He stated he appreciates the Mayor and Councilmembers for their service to the
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City. He further stated he recently became involved with Big Brothers and Sisters, he
recognized his little brother in the audience and stated if anyone has a couple of hours a
week to take advantage of this, there are hundreds of kids waiting for a match.
' Voting "Aye" Councilmembers Hill, Ordeneaux, Carbone, Reed, and Moore.
Voting "No" None.
Motion Passed 5 to 0.
Second and Final Reading of Ordinance No. 2000M-128 — 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 1.749 acres (currently 0.9 acres due to right-of-way dedication, etc.) acres of
land being a certain parcel of ground together with all the buildings and improvements being
a portion of No. 2 Southern Trails Commercial No. 1, H.T. and B.R.R Company Survey,
Section 84, A-538, City of Pearland, Brazoria County, Texas (generally located on the
south side of Broadway Street, between Windward Bay Drive to the west and Kinglsey
Drive to the east), Zone Change 2014-20Z; a request of BGE Kerry R. Gilbert and
Associates, applicant; on behalf of CL Ashton Woods, LP., owner; for approval of a change in
zoning to amend the Southern Trails Planned Development (PD), from an overlay zoning
district which allows for Civic/Church uses to General Business (GB) uses, with
restrictions on permitted uses; on approximately 0.9 acres of land of the total 522.62
acres, 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, 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.
Mayor Pro -Tem Carbone made the motion, seconded by Councilmember Moore, to approve
Ordinance No. 2000M-128 on its Second and Final Reading.
Mayor Reid read into the record the Planning and Zoning Commission's recommendation to
forward to Council for approval of Zone Change 2014-20Z.
City Manager Clay Pearson reported this case was approved by City Council at a first
reading on December 15, 2014. At that time, the applicant did not submit a revised Planned
Development (PD) to include the approved conditions added by the Planning and Zoning
Commission and approved by City Council.
Director of Community Development Lata Krishnarao gave an updated report regarding Zone
Change 2014-20Z.
Voting "Aye" Councilmembers Moore, Reed, Carbone, Ordeneaux, and Hill.
Voting "No" None.
' Motion Passed 5 to 0.
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First Reading of Ordinance No. 2000T-18 - An Ordinance of the City Council of the City of
Pearland, Texas, amending selected provisions of the Unified Development Code of the City;
regarding automobile related uses in BP -288, OF, NS,GB, and GC zones, and
undergrounding requirement for electrical utilities; having a savings clause, a severability '
clause, and a repealer clause; providing for codification, publication and an effective date.
Councilmember Reed made the motion, seconded by Councilmember Moore, to approve
Ordinance No. 2000T-18 on its First Reading.
City Manager Clay Pearson reported staff was directed to review the Pearland Parkway
Corridor to identify all undeveloped tracts of land within the specified review area and where
existing zoning districts allow for automobile related uses by right. For those specific tracts,
the City Council requested staff to recommend changes that would limit the continued growth
of automobile related uses along Pearland Parkway.
Director of Community Development Lata Krishnarao reported on limited ways to restrict
continued growth of automobile related uses, pawn shops, Payday Loans, and Gold
Exchange use. She further reported on utility equipment, when underground is required, and
who is responsible for payment of installation.
Councilmember Hill stated he appreciates staff for presenting what would have the greatest
affect to the City regarding zoning. He stated he struggles with restricting property owners in
developing his or her property. He further stated the City has zoning for a reason and if you
can use zoning to enhance your City, but still allow the land owner to develop his or her
property that is a plus. This is a good starting point and a way to meet in the middle. ,
Councilmember Ordeneaux stated the City still has Auto Accessories, Inside Auto Part Sales,
and a Conditional Use Permit (CUP) is required. He further stated he does not see any
difference with a Best Buy, Radio Shack, or any other retail business. He stated he will be
voting against it.
Mayor Reid stated Pearland is noted for its quality of development and attractive community.
He further stated the City should take what action they can to continue the City's quality of
development. He stated the City can do this without prohibiting the opportunity for people to
put their businesses in town in an appropriate area.
Mayor Pro -Tem Carbone stated it is a struggle with restricting property owners in developing
their property. He further stated he does not necessarily think this is the right way to go. In
terms of quality the City has the Corridor Overlay District and the Unified Development Code
(UDC) Requirements which is plenty to get the quality development. He stated affecting
property across the City is an overkill.
Councilmember Reed stated we can choose to look like a beautiful City or like Houston
where any kind of businesses are everywhere and anywhere. He stated he does not see
anything wrong with the change, he will be voting for it. He further stated he thinks this is
something good for our City.
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Councilmember Moore stated this is a difficult decision, but with it only limited to automobile
related uses, Pawn Shops, Payday Loans, and Gold Exchange he does not think it will be an
issue. He further stated he will be voting for the change.
Voting "Aye" Councilmembers Moore, Reed, and Hill.
Voting "No" Councilmember Carbone and Ordeneaux.
Motion Passed 3 to 2.
Council Action - Resolution No. R2015-136 - A Resolution of the City Council of the City
of Pearland, Texas, authorizing the City Manager or his designee to enter into a
Reimbursement Agreement with the Pearland Economic Development Corporation and a
Letter Financing Agreement with the Lower Kirby Pearland Management District for the
design and construction of Kirby Ditch Improvements Lateral Ditch No. 1 Project.
Councilmember Moore made the motion, seconded by Councilmember Reed, to approve
Resolution No. R2015-136.
City Manager Clay Pearson reported Council is being asked to approve a Reimbursement
Agreement with the Pearland Economic Development Corporation and a Letter Financing
Agreement with Lower Kirby Pearland Municipal Management District for the design and
construction of Kirby Ditch Improvements Lateral No. 1 Project.
' Councilmember Moore thanked Staff for becoming aware of this very restrictive Clean Water
Act rule.
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Voting "Aye" Councilmembers Hill, Ordeneaux, Carbone, Reed, and Moore.
Voting "No" None.
Motion Passed 5 to 0.
Council Action - Resolution No. R2015-137 - A Resolution of the City Council of the City
of Pearland, Texas, authorizing the Lower Kirby Pearland Management District ("District") to
issue and sell bonds for certain road improvement projects (Hooper Road and North
Spectrum between Kirby Drive and Hooper Road) in the District.
Councilmember Hill made the motion, seconded by Councilmember Ordeneaux, to approve
Resolution No. R2015-137.
City Manager Clay Pearson reported the District plans to issue bonds to reimburse the City
for its portion of the road projects, and Chapter 375 of the Local Government Code requires
the City's consent to the issuance of bonds before they can be issued.
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Voting "Aye" Councilmembers Moore, Reed, Carbone, Ordeneaux, and Hill.
Voting "No" None.
Motion Passed 5 to 0.
Council Action — Resolution No. R2015-133 — A Resolution granting the consent of the
City Council of the City of Pearland, Texas, consenting to the annexation of property,
generally located at the intersection of FM 518 at Roy Road, into Harris County Municipal
Utility District No. 509.
Councilmember Ordeneaux made the motion, seconded by Councilmember Hill, to approve
Resolution No. R2015-133.
City Manager Clay Pearson reported this item and a separate new business (Kroger's site)
item number were originally part of the same consent resolution. Based on recent
discussions with the City Council, a decision was made to separate the two parcels into
individual consent resolutions.
Councilmember Hill thanked Staff for separating the two items.
Voting "Aye" Councilmembers Hill, Ordeneaux, Carbone, Reed, and Moore.
Voting "No" None.
Motion Passed 5 to 0.
Council Action - Resolution No. R2015-122 — A Resolution granting the consent of the City
Council of the City of Pearland, Texas, consenting to the annexation of property, generally
located at the intersection of Barry Rose Road at Pearland Parkway, into Harris County
Municipal Utility District No. 509.
Mayor Pro -Tem Carbone made the motion, seconded by Councilmember Moore, to approve
Resolution No. R2015-122.
City Manager Clay Pearson reported Municipal Utility District 509 recently submitted an
application for the City's consent to the annexation of an additional 26.522 acres into its
boundaries. Staff is unable to recommend this request. Council has the option to consent,
and the City would assume the ownership and maintenance of the majority of the
infrastructure that gets constructed (except detention); or the Council can refuse consent and
let the developer determine whether or not to proceed with the transaction.
LJA Engineering Representative Greg Patch addressed Council with information regarding
the request, and asked Council to approve this annexation into the Municipal Utility District
509.
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Discussion ensued between Council and LJA Engineering Representative Greg Patch
regarding the annexation and maintaining the detention pond.
' Councilmember Hill stated he does not think this would be good business for the City or fair
to the taxpayers.
City Attorney Darrin Coker stated he would like to clarify what was indicated by Mr. Patch.
Traditionally the Municipal Utility District has a Property Maintenance Association that would
maintain the detention pond. The City will typically take over the water and sewer, and there
is a security agreement at that time. If the MUD goes away the detention pond becomes the
City's or for some reason the Property Maintenance Association does not take care of the
detention pond it becomes the City's as well. The reason the MUD uses a Property
Maintenance Association is because they will probably demand more frequent maintenance
and mowing's than what the City could provide even though it would be public improvements.
He further stated he would like to encourage Council to base their decision on what is
presented tonight, the information in the MUD data form, the value of the property, the value
of what is going to be on the property, the tax base that will be generated by it, and
compared against the reimbursement that has to be made. He stated Council will have to
make a decision untimely at the end of the day whether or not it makes financial sense for
this particular piece of property.
LJA Engineering Representative Greg Patch stated he would have to check with his client,
but if the detention pond is a continuous issue the client and the City could come up with
something that would satisfy the City.
' Councilmember Ordeneaux stated regarding the City budget he does not think financially the
City can do this. He further stated he does not think government should prop up a private
business.
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Mayor Reid stated he does not support moving the subject into Municipal Utility District 509
Mayor Pro -Tem Carbone stated he struggled with this. He stated he is not as concerned with
the detention pond as he is with the City owning and maintaining water and sewer lines
inside the parcel. He stated he is still unclear on some things, and would be willing to table
this item and get more information regarding this.
Councilmember Reed stated he is having trouble understanding this also. A lot of money was
spent for a Planned Development (PD) and some of this information never came up.
Councilmember Moore stated he will give up his time to speak if Council is voting to table this
issue.
Mayor Pro -Tem Carbone made a motion, seconded by Councilmember Ordeneaux, to table
Resolution No. R2015-122.
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Voting "Aye" Councilmembers Moore, Carbone, Ordeneaux, and Hill.
Voting "No" Councilmember Reed.
Motion Passed 4 to 1. '
Council Action - Resolution No R2015-123 — A Resolution of the City Council of the City of
Pearland, Texas, authorizing the City Manager or his designee to enter into a First Amended
Utility Agreement with Harris County Municipal Utility District No. 509.
Councilmember Reed made the motion, seconded by Councilmember Carbone, to approve
Resolution No. R2015-123 as amended.
Councilmember Ordeneaux made a motion, seconded by Councilmember Hill, to amend the
motion to exclude the 26 acre track from this agreement.
Voting "Aye" Councilmembers Moore, Reed, Carbone, Ordeneaux, and Hill.
Voting "No" None.
Motion Passed 5 to 0.
Council Input and Discussion: Fiscal Year 2016 Budget — Workshop #2 — Effective Tax
Rate, Five -Year CIP for General Government, Future Bond Referendum Scenarios and Debt
Service Fund Five -Year Forecast. '
City Engineer Sue Polka gave a presentation on the Five -Year Capital Improvement Plan
(CIP).
Assistant City Manager Trent Epperson gave a presentation on the Future Bond
Referendum.
Director of Finance Claire Bogard gave a presentation on the Debt Service Forecast.
Mayor Reid stated the Five -Year Capital Improvement Plan (CIP) was well thought out and
structured for the needs of our community. Having a program where you pass a bond issue
with the anticipated revenue to support it and get it done in a reasonable amount of time was
well done. He further stated if the City does not keep up with the high value of projects and
development in the City he is afraid there will be a deterioration of the quality of growth and
development in the City. With the continued growth the concern is that we do not have in
place all of the infrastructure and needs to support the population today, much less what is
going to happen in the future.
Councilmember Ordeneaux stated under the purposed budget, and evaluations the City can
do everything in the budget with the purposed tax rate of $0.2293, but the City will be subject
to the rollback tax rate. He stated the budget shows to cut half a million from roads and '
sidewalks. He stated his vote is to let the voters have the ability to vote down the rollback tax
rate. He stated the City needs to spend $3,000,000. to keep the roads in their current state,
and the City is going to cut more than half that amount from the budget. He stated he hopes
the economy does not crash because the City is relying on the sales tax rate to do things that
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should be coming out of the Operations and Maintenance (O&M). He stated the City does not
have a choice except to increase the tax rate while evaluations go up. At some point this
body is going to have to step up and say the City is tired of going into debt, and using 70% of
' the resident's tax money to pay debt. The City needs to get out of debt.
Councilmember Hill stated Pearland is unique, and this is difficult, what each Councilmember
is saying is true. He stated if you look at surrounding cities in comparison on average the
Debt Service is about 60% going to Operations and Maintenance (O&M) and 30% going to
Debt Service. He stated Councilmember Ordeneaux makes a valid point. The difficult part is
Friendswood is not expanding three Wastewater Treatment plants or putting $3,000,000. into
streets over the next five years, and Sugar Land is a Master Plan Development. Every city is
uniquely different. No one is growing the way Pearland is growing. He looks forward to the
day the City's budget balances out, but in the meantime how do you do that and benefit the
tax payer at the same time. His vote for the O&M is to keep the rollback tax rate at $0.2225.
Mayor Pro -Tem Carbone stated regarding the Operations and Maintenance (O&M) he would
like to go with the rollback tax rate because laws were put in place to give the citizens relief
and to keep City's under control whenever they get hit with high appraisals which most
everybody did in the City. He stated the rules of calculation are there so City's will not hit
them with an outrages tax increase. He stated as far as his vote for the O&M he would like to
keep it at the rollback tax rate of $0.2225.
Councilmember Reed stated he would like the City to stay at the rollback tax rate of $0.2225,
and work with the Debt Service.
' Councilmember Moore stated he would also like the City to stay at the rollback tax rate of
$0.2225.
Mayor Reid stated the Debt Service has got the City where it is today because the City did
not have the tax base. He stated he gets concerned with issues regarding quality
development along the City's visible roadways. The City needs to focus on getting some high
value development along the visible roadways that will bring the tax base in.
Discussion ensued between Council and Director of Finance Claire Bogard regarding the
Debt Service at $0.49 versus $0.4828 will not pay off debt.
Mayor Pro -Tem Carbone stated regarding the Debt Service he would like to keep the rate
low and let the residents keep their money because all the City will do is sit on it in reserve
and it will earn nothing. By letting the residents keep their money the City will have something
closer to a true rate when the City approaches the Bond Referendum. He stated taking it to
$0.4828 makes perfect sense.
Councilmember Reed stated he disagrees with Mayor Pro -Tem Carbone, he would like to
stay at $0.49. He further stated he does not want to see an increase that large from 2018 to
2019. The City is still dealing with projects not completed from the 2007 Bond that was
' issued. He stated he does not know how much trust the residents will have in Council to
issue a new bond when the City will still be trying to complete projects from the 2007 Bond.
He is not in favor of lowering the Debt Service, he would like to leave it at $0.49
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Councilmember Moore stated he agrees with Mayor Pro -Tem Carbone that the money is
sifting in reserve earning nothing. He further stated he would like to reduce it to $0.4828.
Discussion ensued between Council and Director of Finance Claire Bogard regarding the '
2018 Bond Referendum will go to the voters in May 2018.
Councilmember Hill stated he would like to lower the Debt Service to $0.4828 which will
lower taxes and help with property values.
Councilmember Ordeneaux stated the City will lower taxes in 2016 and 2017, stay the same
in 2018 then in 2019 raise taxes more than Council would have had than going with the other
plan. He stated he will see how many people remembered Council lowering taxes in 2016
and raising taxes even higher in 2019 and 2020. It is not being paid off. He stated he thinks
the average voter would like to have it smoothed out then be hit with higher increases further
years down. Unless someone can say the City does not need the projects I do not see a way
around a Bond Issue sometime in 2018, 2019, or 2020. He stated he is not for lowering it to
$0.4828.
City Manager Clay Pearson stated the Future Bond Referendum is more for planning
purposes. He further stated Future Bond Referendum can be timed based on valuation
growth or a specific year.
Councilmember Ordeneaux stated he agrees with the Bond Referendum based on valuation.
He further stated the only years the tax rate would be higher is 2025 and 2030, everywhere
else there is a lower tax rate. '
Mayor Pro -Tem Carbone stated he agrees with Councilmember Ordeneaux, he would like to
go with the Bond Referendum based on valuation.
Councilmember Moore stated he agrees also, he would like to go with the Bond Referendum
based on valuation.
Councilmember Hill stated he agrees also, it makes more sense to go with the Bond
Referendum based on valuation.
Councilmember Reed stated regarding the new projects and infrastructure he agrees to go
with the Bond Referendum based on valuation.
Discussion ensued between Council, City Manager Clay Pearson and Deputy City Manager
Jon Branson regarding the Proposed 2018 Bond Projects, the Delores Fenwick Nature
Center and an update on the Cullen/FM 518 Detention Pond.
Councilmember Moore thanked Staff for creating a Five Year Capital Improvement Plan
(CIP) for the projects verses longer so the residents can see some completed projects that
they may have voted on in a Bond package. He further stated we are approaching eight
years regarding the 2007 Bond package passed and some of those projects are still not '
complete.
Mayor Pro -Tem Carbone stated regarding the City Hall Renovations he has not seen any
justification that says this is the right decision to issue more debt. He further stated Council
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talks about paying off debt, if we do not issue debt we will not have it to pay off. With the
Bond Referendum coming up it would be easy to slide this into the Bond Referendum, and if
the residents want this they can vote for ft. With the concerns issuing debt he does not know
' if issuing an additional five and a half million in Certificates of Obligation for the City Hall is
going to have the impact on the residents that Council is here to represent.
Councilmember Ordeneaux stated the building is old, and if some renovations are not done it
will end up costing more. He stated in today's age security is something to look at. He further
stated he would not mind having a workshop to look at the City Hall renovations again and
crunch some numbers, but he does not think they can take the whole five million off.
Councilmember Hill stated he agrees with Councilmember Ordeneaux that it is worth looking
at again.
Assistant City Manager Trent Epperson stated the last time there was a discussion regarding
the City Hall we went ahead and moved forward with the design with some different
alternatives which will be brought back to Council early next year, 2016.
Director of Finance Claire Bogard stated based on what Staff heard we will come back on
August 17, 2015 to vote on a tax rate increase, the Operations and Maintenance (O&M) tax
rate of $0.2225 and a O&M tax rate of $0.4828 for a total tax rate of $1.7053 which is slightly
lower than the current tax rate. As long as the tax rate is set there can be adjustments made
inside the general fund.
' MAYORICOUNCIL ISSUES FOR FUTURE CITY COUNCIL AGENDAS: None.
OTHER BUSINESS: None.
ADJOURNMENT
Meeting was adjourned at 9:17 p.m.
Minutes approved as submitted and/or corrected this the 141^ day of September, A.D., 2015.
P
Tom Reid
Mayor
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