2017-08-21 CITY COUNCIL SPECIAL MEETING MINUTES' MINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON MONDAY, AUGUST 21, 2017 AT 6:30 P.M., AT THE
PUBLIC SAFETY BUILDING, 2555 CULLEN BLVD., 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
Councilmember
City Manager
City Attorney
City Secretary
Absent: Councilmember Trent Perez
Tom Reid
Derrick Reed
Tony Carbone
Gary Moore
Keith Ordeneaux
J. David Little
Woody Owens
Clay Pearson
Darrin Coker
Young Lorfing
Others in attendance: 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; Vance Riley Fire Chief; Johnny Spires Police Chief;
Robert Upton City Engineer; Eric Wilson Director of Public Works; Sparkle Anderson
Communications Director; Andrea Brinkley Assistant Director of Public Works; Joel
Hardy Interim Management Assistant; Jennifer Huhn Court Administrator; Daniel
McGhinnis Chief Information Officer.
PURPOSE OF THE MEETING:
Consideration and Possible Action - Resolution No. 2017-165 - A Resolution of the
City Council of the City of Pearland, Texas, placing on the agendas of September 18,
2017 and September 25, 2017 City Council meetings, consideration of the proposed
fiscal year 2017-2018 budget and setting the public hearing on the budget for
September 5, 2017.
Councilmember Moore made the motion, seconded by Mayor Pro -Tem Reed to approve
the Resolution No. 2017-165.
City Manager Clay Pearson reported Council is being asked for consideration and
approval of a Resolution of the City Council of the City of Pearland, placing on the
' agendas of September 18, 2017 and September 25, 2017 City Council meetings,
consideration of the proposed fiscal year 2017-2018 budget and setting the public
hearing on the budget for September 5, 2017.
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Voting "Aye"Councilmembers Carbone, Moore, Reed, Ordeneaux, Little, and Owens. I Voting "No" None.
Motion Passed 6 to 0, with Councilmember Perez absent.
PUBLIC COMMENT:
John DeSpain, 2555 Cullen Parkway, address Council stating his concerns regarding
the occupancy survey for Council meetings by the Fire Marshal and the Compensation
Plan for the employees.
Lynn Holleman, 4910 Sentry Woods Lane, addressed Council stating he is speaking on
behalf of the Pearland Emergency Services Personnel. He is speaking for these
employees because every day they put on that uniform risking their lives because they
love what they do. They should be compensated fairly, not below standard, not above
standard, but fairly.
Kevin Collins, 1801 Cripple Creek Lane, addressed Council stating he is a resident of
Pearland and a City employee for over 12 years. He stated his concerns regarding the
Compensation plan and employee salaries below the fair market value.
Council Input and Discussion: Discussion#2, Fiscal Year 2017-2018 Budget. '
Director of Human Resource Michelle Graham gave an overview of the Compensation
and Classification Implementation.
Deputy City Manager Jon Branson stated in order to implement the different fees Staff
will need more time. When the ERP was implemented there were some issues
specifically related to Utility Billing. Staff recommends we move forward with Utility
Billing, Permit fees, Court fees and Animal Control fees during the first quarter of this
physical year. There are still some issues that need to be resolved with the different
merchants and the service provided. It needs to be a flat fee across the board. Staff
would like to have the opportunity to continue to work through that process and will
bring something back to council during the first quarter. If the budget is approved and
the revenue for water & sewer is increased and implemented with no issues regarding
the ERP Staff will come back with the details on how to implement the credit card fees.
Councilmember Carbone stated to clarify Council will see the details before it is
implemented. He further stated he will not be a fan of increasing the Homestead
exemption, that forces more of the tax burden onto the commercial payers because they
do not have a homestead cap or other exemptions. On the power point it says the City '
has to raise the tax rate to get to a 100% for the employees compensation at average
market value, he does not believe that. He wants to see a budget that keeps the tax rate
Page 2 of 5 — 08/21/2017
' at $0.6800 and still get 100% compensation for the employees. He has a couple of
ideas but he is willing to listen to the rest of Council.
Councilmember Moore stated he is ok to move forward with the tax rate of $0.6800. He
further stated the pay for the employees is a priority. If the City is not able to get to
100% by this April for the employees, Council needs to make a priority plan for
employee compensation before anything else is budgeted.
Mayor Pro -Tem Reed stated he is in favor of adding another Associate Judge for
Municipal Court. He further stated he is 100% for the employees, without the employees
the City does not operate. He is willing to stay where the City is as far as the tax rate or
even go to $0.7000 to be able to get to 100% compensation for the employees, but he
is not willing to sacrifice this year's budget on what we have already committed to.
Councilmember Ordeneaux stated it takes everyone in the City to get where we are in
this great City. He further stated there is a very good chance he will make a motion to
change the tax rate to $0.7000 because that is the only way he can see getting to 100%
compensation for the employees. He will not support onetime cost moved into re-
occurring cost or cutting other parts of the budget. Unfortunately employee
compensation is not the only thing in the budget that is underfunded.
' Councilmember Little stated the bottom line is we need to give 100% compensation to
the employees. The employees are working and taking care of the City and Council
needs to take care of them. He further stated he would like to go line by line with the
budget to find a way to get 100% for the employees.
Councilmember Owens stated the City only has so much money and if the
compensation is reached by 100% in 2018 that would be a good thing. He further stated
his concern is re -occurring cost.
Councilmember Carbone stated to keep the tax rate at $0.6800 he would like to see the
scenario of going to a 1% COLA instead of a 2% COLA and a 100% market
compensation in April 2018. He would also like to look at the 2% COLA and to push
back the 100% market compensation later in the year to July or August 2018. He would
like to see if there is any savings regarding bringing on the new firefighters if that could
be pushed back to be able to get to the 100% compensation for the employees. He
further stated before the City spends any more money on MAG regarding the Class and
Compensation study he would like to dig deeper into the information.
Consideration and Possible Action — Resolution No. R2017-164 — A Resolution of
the City Council of the City of Pearland, Texas, voting on a proposed tax rate of
' $0.6800, a property tax revenue increase of 6.09% above the effective tax rate, and
placing on the agendas of September 18, 2017 and September 25, 2017 City Council
meetings, consideration of the proposed fiscal year 2017-2018 budget and setting the
public hearing on the budget for September 5, 2017 and September 11, 2017.
Page 3 of 5 — 08/21/2017
Mayor Pro -Tem Reed made the motion, to vote on a proposed tax rate of $0.6800, a '
property tax revenue increase of 1.94% above the effective tax rate, and placing on the
agendas of September 18, 2017 and September 25, 2017 City Council meetings,
consideration of the proposed fiscal year 2017-2018 tax rate and setting the public
hearing on the tax rate for September 5, 2017 and September 11, 2017, seconded by
Councilmember Moore.
City Manager Clay Pearson reported the City Council held its first budget workshop for
the 2017-2018 budget on Saturday, August 12, 2017. The budget as filed included a
proposed tax rate of $0.6800 per $100 valuation; $0.4300 for the debt service
component of the tax rate and $0.2500 for the operating component of the tax rate.
Deputy City Manager Jon Branson stated to clarify the resolution on the agenda is
showing 6.0% and what Mayor Pro -Tem Reed read, a property tax revenue increase of
1.94% is correct. It will need to reflect on the resolution a property tax revenue increase
of 1.94% above the effective tax rate.
Councilmember Ordeneaux amended the motion, seconded by Councilmember Little to
vote on a proposed tax rate of $0.7000, a property tax revenue increase of 4.94%
above the effective tax rate, and placing on the agendas of September 18, 2017 and
September 25, 2017 City Council meetings, consideration of the proposed fiscal year
2017-2018 tax rate and setting the public hearings on the tax rate for September 5, ,
2017 and September 11, 2017.
Councilmember Carbone stated this is wrong, the tax rate should stay at $0.6800. With
this budget Council got backed into a corner, and stated Council can get to the 100%
compensation for the employees with the tax rate of $0.6800.
Councilmember Ordeneaux stated the reason he amended this motion going to a tax
rate of $0.7000 on each $100 valuation of property will allow the 100% compensation
for the employees without removing funds from the fund balance.
Mayor Reid called for the vote on the amended motion.
Voting "Aye" Councilmembers Ordeneaux, Little, Owens, and Reed.
Voting "No" Councilmembers Carbone and Moore.
Motion Passed 4 to 2, with Councilmember Perez absent.
Mayor Reid called for the vote on the original motion as amended.
Voting "Aye' Councilmembers Reed, Ordeneaux, Little, and Owens. I
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' Voting "No" Councilmember Carbone and Moore.
Motion Passed 4 to 2, with Councilmember Perez absent.
C
ADJOURNMENT
Meeting was adjourned at 8:00 p.m.
Minutes approved as submitted and/or corrected this the g'h day of October, A.D., 2017.
Tom Reid
Mayor
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