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2017-08-12 CITY COUNCIL SPECIAL MEETING MINUTESI 1 MINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, HELD ON SATURDAY, AUGUST 12, 2017 AT 8:30 A.M., AT THE PUBLIC SAFETY BUILDING, 2555 CULLEN BLVD., PEARLAND, TEXAS. Mayor Reid called the meeting to order at 8:34 a.m. with the following present: Mayor Mayor Pro -Tem Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Secretary Tom Reid Derrick Reed Tony Carbone Keith Ordeneaux Trent Perez Woody Owens Clay Pearson Darrin Coker Young Lorfing Absent: Councilmembers Gary Moore and J. David Little. Others in attendance: Daniel Baum Deputy Fire Chief; Jon Branson Deputy City Manager; Matt Buchanan President of Economic Development Corporation; Trent Epperson Assistant City Manager; Roland Garcia Fire Marshal; Michelle Graham Director of Human Resource; John McDonald Director of Community Development; John McCarter Budget Officer; Chris Orlea Director of Parks and Recreation; Cynthia Pearson Director of Finance; Vance Riley Fire Chief; Kim Sinistore Executive Director of the ConventionNisitors Bureau; Johnny Spires Police Chief; Robert Upton City Engineer; Sparkle Anderson Communications Manager; Andrea Brinkley Assistant Director of Public Works; Joel Hardy Interim Management Assistant; Jennifer Huhn Court Administrator; Daniel McGhinnis Chief Information Officer; Rick Overgaard Assistant Finance Director. New Business: Presentation: Regarding the Fiscal Year 2018 Budget and Multi -Year Financial Plan Budget Workshop #1 — Overview, Highlights, General Fund, Debt Service and Property Tax. City Manager Clay Pearson gave an overview of the Purpose of the 2017 — 2018 City of Pearland, Texas Fiscal Year Budget. Budget Officer John McCarter recognized Senior Budget Analyst Neelie Walker, Budget Analyst Shamire Jagrup, Assistant Finance Director Rick Overgaard and Department Heads who assisted with the budget process. Budget Officer John Mc Carter gave an overview of the budget. Discussion ensued between Councilmember Carbone, City Manager Clay Pearson, Director of Finance Cynthia Pearson, Assistant City Manager Trent Epperson and Assistant Director of Public Works Andrea Brinkley regarding the Compensation and Page 1 of 6 — 08112/2017 Classification Study, bringing the employees up to average salary that are below the 95% ' market average. Council Input and Discussion: Information requests for session #2; and formal changes by vote. Councilmember Perez stated the street and sidewalk fund has been taken from over the years to makeup balances in other areas and the streets are deteriorating. He would like to advance the conversation on what it will take to get to an enterprise fund to makeup these fund differences. Discussion ensued between Councilmember Perez, Assistant Public Works Director Andrea Brinkley, Right of Way Superintendent Eric Hammond and Assistant City Manager Trent Epperson regarding a centralized scads system, a hot shot crew and the HVAC system. Councilmember Owens stated unless the Directors within their department buy into this budget and is in agreement with the budget he expects each one to handle the budget the way it should be handled. Council Input and Discussion: Policy direction on preparing Maximum Property Tax Rate publication for August 2151 discussion and vote. ' City Manager Clay Pearson gave an overview of the Maximum Property Tax Rate publication. Councilmember Ordeneaux stated this is the same place we end up this time every year. What he his hearing so far is to go with the proposed rate. The proposed rate does not get us to where we said we wanted to be regarding the salaries. In order to do that we have to go above the roll back rate. This is a confusing message to staff and the tax payers. He stated his concerns regarding the sales tax. Mayor Pro -Tem Reed thanked staff for preparing a budget that falls under the roll back rate. He stated he is comfortable with the tax rate, but he would not be opposed if he saw something that went above the roll back rate. Councilmember Carbone stated he would like to see several things for the next meeting. Several commercial tax bills to look at. Those are the ones that do not have a homestead cap. They will probably be more effected than homeowners. He further stated the big driver is the Compensation and Classification plan, he would like to better understand how the City will get to the 100%. He stated staff has done a good job and we are trying to squeeze every penny for this process. Council is doing the best they can with where ' they are at. He is comfortable with the proposed rate. He asked regarding the sidewalk fund if there is a way to set up matching funds, something to make the City's dollars go Page 2 of 6 — 08/12/2017 ' further. For instance if a Home Owners Association (HOA) is wanting new sidewalks and would be willing to put up half of the cost. City Attorney Darrin Coker stated legally it can be done, the issue would be to budget the funds to match and to have an agreement with the entity that the City would be working with. Councilmember Carbone stated he is ok with waiting until after the budget is passed to put something in place regarding the sidewalk fund going further and if we need to make a budget amendment we can at that time. Mayor Reid called for a recess at 9:58 a.m. Council returned to open session at 10:17 a.m. Presentation: Water/Sewer Fund, Internal Service Funds, Special Revenue Funds, Multi -Year Forecast, and Capital Improvement Program. Senior Budget Analyst Neelie Walker presented the Enterprise (Water & Sewer) Fund. Budget Officer John McCarter presented the Internal Service Funds, City Engineer Robert Upton presented the Five -Year Capital Improvement Projects (CIP). Budget Officer John McCarter presented the Multi -Year Forecast. Council Input and Discussion: Regarding proposed Budget including information requests for session #2; any formal changes by vote. Discussion ensued between Councilmember Carbone and Budget Officer John McCarter regarding the Internal Service Fund for Fleet replacement, credit card fees and meter replacement. Councilmember Carbone stated after this budget season he would like to have a discussion regarding an Internal Service Fund for Fleet replacement. He further stated he does not think the residents should be paying the credit card fees. He would like to know how it will be clearly communicated in advance to the residents regarding credit card fees. He asked if a trail meter replacement could be done in a couple of sub -divisions and be on top of communication before, during and after, also some surveys on the back end asking residents their thoughts on their experience with the meter replacement. He sees the potential of this being a nightmare. He would like to see a Water & Sewer Rate ' Comparison of several Commercial users. Discussion ensued between Councilmember Carbone, Assistant City Manager Trent Epperson, Deputy City Manager Jon Branson and Director of Parks and Recreation Chris Page 3 of 6 — 08/12/2017 Orlea regarding the Traffic Improvement fund is specific to certain road improvements . based on the developer's contributions and the Park Development fund. Councilmember Carbone stated he would like to see some follow up regarding what the Municipal Channel fund can be used for to hopefully rectify the complaints from residents that are not able to see the televised Council meetings. Discussion ensued between Councilmember Carbone and City Manager Clay Pearson regarding the Sources of Funds, the 2019 Bond Referendum and getting voter approve from the residents. Councilmember Carbone stated he would like to have the discussion regarding the Bond Referendum to get Council's input and put it before the voters. Councilmember Carbone stated he is not convinced the City needs to spend $400,000 on a Multi -Modal Master Plan. Discussion ensued between Councilmember Carbone and Assistant Director of Public Works Andrea Brinkley regarding $1,725,000 for Lift Station Bar Screen. Councilmember Carbone stated regarding the Compensation and Classification implementation at mid -year to 95% of market for this year and at 100% in two years. He ' thinks it will take three years to get to 100% which the City will be three years prior. He would like to see what the plan is regarding that. Discussion ensued between Mayor Reid and City Manager Clay Pearson regarding the water and sewer rate if Council could see a possible population growth footprint chart putting this in perspective when comparing water rates for the future. Councilmember Ordeneaux stated he is very happy that the City has put the investment into the future regarding secured water rights. He further stated he does not have a problem passing along credit card expenses. He thanked staff for updating the City's software system. He knows it was a major project, the City is starting to see the benefits. He further stated he hopes during the bond issue that there is more input and to move the City forward in the right direction. Councilmember Perez stated regarding the Capital Improvement Projects, he would like to move the Westside Library with a shelf design to be complete by early next year, and budget for the bond election. He further stated he would like to minimize the use of the Certificates of Obligation (CO), if we know we are going to have some program needs let us put it for voter approve debt. He fully supports the Multi -Modal Master Plan and would like to utilize some resources to reach out to Metro to discuss the Park and Ride as an I option. Page 4 of 6 - 08/12/2017 ' Assistant City Manager Trent Epperson stated regarding the timing for the Westside Library in the Capital Improvement Plan (CIP) coincides with the lease the City has on the temporary building the Library is utilizing at this time. Discussion ensued between Councilmember Owens and City Manager Clay Pearson regarding the amount of a deposit for water service charged to new residents moving into the City. Councilmember Owens stated regarding if a project is a sizeable amount it should be brought for bond approval. He further stated when it is hurricane season he likes to see the Vector truck cleaning the inlets to help with flooding. Deputy City Manager Jon Branson stated Staff will be bringing information back to Council in the near future regarding options Council can consider regarding Park and Ride and bus services. Mayor Reid called for a break at 11:38 a.m. Council returned to open session at 11:45 a.m Next Steps: ' Budget Officer John McCarter stated Staff received the feedback they needed for the second Budget Discussion scheduled fbr August 21, 2017. Mayor Pro -Tem Reed stated he would like to have a discussion at an upcoming meeting regarding some information on adding another Associate Judge to help out on weekends. Public Comment: John DeSpain, 2555 Cullen Parkway, addressed Council stating this morning he has heard accolades to City Staff and employees for all their work on the budget. Staff did do a great job on the budget, but what about all the City employees that work every day to make this City what it is. He further stated after he spoke to City Council last time many employees thanked him for speaking up for them. The employees are frustrated and some are demoralized and interoperate the Compensation Plan as they are not even worth average pay. On August 21, 2017 at the second Budget Discussion there will be several employees in attendance. He would like to see Council consider the employees, let them know they are worth average. Charles Buck Stevens, 4701 W. Orange Street, addressed Council stating he has lived ' in Pearland for 50 years, and involved in the Parks and Recreation Advisory Board and several other fractions amongst the City. As a citizen he is proud of what the City has and appreciates the good stewards Council has been. He further stated it is time to hit some pocket books if the City wants to get ahead of where it is. He stated his concerns Page 5 of 6 — 08112/2017 regarding things being cut out of projects that have been approved because there is not ' enough money. If the City goes for a bond issue it needs to have a time line, stay held to it and get it done. He stated his concerns regarding Bailey overpass, Veterans Road, Harkey Road, Old Alvin South and the senior citizens not being addressed. He would like to see a skate park put into place and put in the bond election. The City needs to look to the future and open the pocket books. Meeting was adjourned at 11:57 a.m. Minutes approved as submitted and/or corrected this the 251" day of September, A.D., 2017. Tom Reid Mayor ATTEST: dy SeVetary . Page 6 of 6 — 06/12/2017