2018-04-30 CITY COUNCIL SPECIAL MEETING MINUTESMINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON MONDAY, APRIL 30, 2018, AT 6:30 P.M. IN THE
COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
Mayor Reid called the meeting to order 6:30 p.m. with the following present:
Mayor
Tom Reid
Mayor Pro -Tem
Derrick Reed
Councilmember
Tony Carbone
Councilmember
Gary Moore
Councilmember
Keith Ordeneaux
Councilmember
Trent Perez
Councilmember
Woody Owens
City Manager
Clay Pearson
City Attorney
Darrin Coker
City Secretary
Young Lorfing
Absent: Councilmember J. David Little.
Others in attendance: Jon Branson Deputy City Manager; Matt Buchanan President of
Pearland Economic Development Corporation; Trent Epperson Assistant City Manager;
John McDonald Director of Community Development; John McCarter Budget Officer;
Chris Orlea Director Parks and Recreation; Cynthia Pearson Director of Finance; Vance
Riley Fire Chief; Robert Upton City Engineer; Joshua Lee Communications Director;
Daniel McGhinnis Chief Information Officer; Lawrence Provins Deputy City Attorney.
Call to Order
Purpose of the Meeting:
Council Input and Discussion — Regarding the Tax Increment Reinvestment Zone No.
2, (TIRZ) FY19 Bond Package, and Debt Service Rate.
City Manager Clay Pearson stated this is an extension of the early budget input meetings
regarding the proposed 2019 Bond Program derived from a list of future projects brought
forth over several years by multiple departments as part of the Capital Improvement Plan
(CIP) budget process to meet the need of our citizens. Staff is looking for some direction
based on recommendations tonight to move to the next step in perusing the 2019 Bond
Program.
Assistant City Manager Trent Epperson presented the Tax Increment Reinvestment Zone
No. 2 (TIRZ) and potential projects it can fund which will relieve those from being in the
2019 Bond Program.
Discussion ensued between Councilmember Moore and City Manager Clay Pearson
regarding utilizing City funds for the Library, Fire Station and Park projects and the
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reimbursement from the Tax Increment Reinvestment Zone No. 2 (TIRZ).
Discussion ensued between Councilmember Owens and City Manager Clay Pearson
regarding an option of financing would be taking funds from Water/Wastewater, which
would be a loan.
Councilmember Perez stated if the City can avoid Certificates of Occupancies through a
legal tool creatively to fund these projects the City should do so. He is in favor of the City
utilizing the Tax Increment Reinvestment Zone No. 2 (TIRZ) dollars to move these
projects forward. He further stated he would like to see the Library completed sooner than
later.
Councilmember Ordeneaux stated if the residents are wanting a standalone library and
see value in that he will support it because value to create that library is coming from the
west side area. The library and fire station he can go with because those two projects
benefit the west side the most. He further stated he does like this idea and wants to stress
as soon as the City has approval and the financing tied down to break ground and start
these projects.
Mayor Pro -Tem Reed stated he hopes the library is at the top of the list. He agrees with
everything that has been stated.
Councilmember Moore stated this is a good way to go. It gives the City an opportunity to
receive funds from the Tax Increment reinvestment Zone No. 2 (TIRZ) and complete the
projects on the books.
Councilmember Carbone stated as a body these projects were agreed to. The only
chance to get reimbursed is getting them inside the Tax Increment Reinvestment Zone
No. 2 (TIRZ). The City will be recouping some of the capital cost from other participants
in the TIRZ. It is a good idea.
City Engineer Robert Upton presented the Capital Improvement Plan (CIP) Expenditure
Summary and Bond Types.
Assistant City Manager Trent Epperson presented the Historical General Obligation Debt
per Capita, Bond Agency Ratings and the Debt Service Impacts of 2019 Bond Package.
Discussion ensued between Councilmember Carbone and Deputy City Manager John
Branson regarding the projection rate will be a conservative 4% up to 5.25% rate on the
interest.
Discussion ensued between Councilmember Carbone and City Engineer Robert Upton
regarding the exclusion of projects that fall out of the Master Drainage Plan and the
funding source for the FM 518 TxDOT project.
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Discussion ensued between Councilmember Moore and City Manager Clay Pearson
regarding the increase in the debt tax rate, including some of the drainage projects and
the FM 518 expansion with TxDOT.
Mayor Pro -Tem Reed stated regarding some of the projects he does not think they will
be very appealing to the residents. If the goal is to get this bond passed marketing is
going to be important. He further stated staff may want to shift some things around to put
something else ahead of this bond.
Councilmember Moore stated he would like for staff to consider Fite Road from Cullen to
McLean Road. There is a lot of traffic and the road is getting worse.
Councilmember Carbone stated the Tax Increment Reinvestment Zone No. 2 (TIRZ)
financing makes sense, but this is a Public Relations (PR) nightmare in trying to explain
it. Trying to prepare an elevator speech to get some votes is going to be difficult.
Councilmember Ordeneaux stated this cannot be marketed.
Assistant City Manager Trent Epperson stated one item included in the information with
the 2007 Bond Package was projects with matching funds or other sources of funds to do
those projects.
Mayor Pro -Tem Reed stated Councilmember Ordeneaux is right, this cannot be
marketed, but Staff has to put it out for a vote.
Councilmember Ordeneaux stated Council structure's the bond, another group will sell
the bond. There are legal implications when we start talking about how a bond is going to
pass. Council's job is to create the bond, provide information and put it out for the voters.
Any direction or anything that can be looked at as marketing cannot be done by this
governmental body. He further stated Council has had multiple people state they want
more park equipment, open and green space. Council and Staff is going to have to figure
out how to pay for these improvements outside of bond elections. He stated the item on
the list for him is the Dixie Farm Road site. Dixie Farm Road is Pearland's only connection
to Interstate 45 and the more the City can do to help move the traffic going to that area of
Houston will be better for Pearland.
Councilmember Perez stated Council needs to prioritize the City's needs. City wide the
largest need is FM 518. The scope, -6f. -.!Mimosa Acres needs to be expanded. The City
needs to invest more in the areas.`with ;older., roads that need drainage and roadway
improvements. Hughes Ranch Road`°should bea-high priority., He further stated he agrees
with Councilmember Ordeneaux regarding using bond money and bond timing for routine
maintenance is not a good idea. The .,City needs to have a better long term plan to
continue to improve roadways and drainage. A Road and Drainage Enterprise Fund is a
necessity at this point. Council and Staff need to be mindful of conversations at the state
level regarding changing the requirements on bond elections. The governor has stated
he would like bond elections to require a super majority as opposed to a simple majority.
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Discussion ensued between Councilmember Perez and Fire Chief Vance Riley regarding
the Burn Building Phase I Project.
Discussion ensued between Councilmember Perez and Director of Parks and Recreation
Chris Orlea regarding the community swimming pool at Independence Park.
Discussion ensued between Councilmember Perez and City Engineer Robert Upton
regarding the Forest Park traffic signal.
Councilmember Owens stated he agrees with the $120,000,000. If the citizens are given
the information they will want to see those projects completed and vote for it. He further
stated at the time the Natatorium was being built citizens stated they would not be able
to afford the dues to join the Natatorium and that is why the repairs were made on the
pool at Independence Park.
Discussion. ensued between Councilmembers regarding giving Staff direction to move
forward with the Tax Increment Reinvestment Zone No. 2 (TIRZ) budget amendment and
to go with the $120,000,000 package projects. Staff will bring those back when completed
and Council can look at the final list and other items such as FM518 and drainage
projects.
Adjournment:
Meeting was adjourned at 9:03 p.m.
Minutes approved as submitted and/or corrected this the 21St day of May, A.D., 2018.
C--, �� "
Tom Reid
Mayor
ATTEST:
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