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2019-08-19 CITY COUNCIL SPECIAL MEETING MINUTESMINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, HELD ON MONDAY, AUGUST 19, 2019, 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 J. David Little Councilmember Luke Orlando Councilmember Derrick Reed Councilmember Gary Moore Councilmember Adrian Hernandez Councilmember Trent Perez Councilmember Woody Owens City Manager Clay Pearson City Attorney Darrin Coker Interim City Secretary Maria E. Rodriguez Absent: None. Others in attendance: Jon Branson Deputy City Manager, Matt Buchanan President of EDC, Trent Epperson Assistant City Manager, Michelle Graham Director of Human Resources, John McDonald Director of Community Development, John McCarter Assistant Finance Director, Chris Orlea Director of Parks and Recreation, Cynthia Pearson Director of Finance, Robert Upton Director of Engineering ad Capital Projects, Clarence Wittwer Director of Public Works, Andrea Brinkley Assistant Director of Public Works, Joel Hardy Grants — Special Projects Administrator, Jennifer Huhn Court Administrator, Skipper Jones Assistant Director of Capital Projects, Joshua Lee Communications Director, Daniel McGhinnis Chief Information Officer and Lawrence Provins Deputy City Attorney. NEW BUSINESS Council Input and Discussion: Discussion #2, Fiscal Year 2019 — 2020 Budget. Assistant Director of Finance John McCarter presented to Council regarding the first eight changes to the proposed Fiscal Year 2019 Budget that Council asked for following the last Budget presentation. Councilmember Owens asked staff for clarification on the Pavement Condition Index ratings across the City that is in the presentation. Assistant City Manager Trent Epperson stated the ratings are applicable to both concrete and asphalt, although the streets listed in the presentation are asphalt roads. Councilmember Owens asked staff if the funds allocated to the Independence Park Bridge have to be used for that projects because they were allocated Park Development Funds. Page 1 of 3 City Manager Clay Pearson stated that project is the recommended best use of those funds, to establish connectivity. Conversation ensued between Councilmember Owens and City Manager Clay Pearson regarding the discussed drop in debt obligations and the proposed time period in which the City will be issuing more debt. Councilmember Trent Perez spoke regarding the changes in the budget and the positive effect it has on helping to understand the Budget items. He further asked staff to go more into detail regarding the Hotel Occupancy Tax (HOT) debt issuance. Deputy City Manager Jon Branson addressed Council and provided the details of the HOT tax debt issuance stating the City can issue debt with the tax revenue, but it must be allocated to a project related to directly promoting tourism and hotel activity. Councilmember Moore asked staff if the funds allocated for the Independence Park Bridge can be used for any other project. Director of Parks and Recreation Chris Orlea stated the money allocated for that project must be used for something that has deteriorated over time due to overuse and the bridge fits that special use. Councilmember Hernandez spoke regarding the negative effects on the City if the effective tax rate is kept the same. City Manager Clay Pearson presented to Council regarding the last five changes to the proposed Fiscal Year 2019 Budget that Council asked for following the last Budget presentation. Councilmember Perez stated the water rates need to be looked at more so that residents do not pay more due to businesses use, and possibly pass the higher rate to businesses. Conversation ensued between Council and staff regarding the use of different size meters, the effect of the sizes relative to the water rate, how to spread out the cost and future building requirements. Councilmember Owens stated the amount allocated for conventions and seminars is hard to justify when the City is looking to cut costs. City Manager Clay Pearson spoke to Council regarding the need to have staff go to seminars and conventions to stay current with the changes in policies and government. Council Action - Resolution No. R2019-212- A Resolution of the City Council of the City of Pearland, Texas, placing on the agendas of September 16, 2019 and September 23, 2019 City Council meetings, consideration of the proposed fiscal year 2019-2020 budget and setting the public hearing on the budget for September 3, 2019 at 6:30 PM. Page 2 of 3 Councilmember Little made the motion, seconded by Councilmember Hernandez to approve Resolution No. R2019-212. City Manager Clay Pearson stated this is setting up the additional meeting for the Budget and sets the date for the Public Hearing. Voting "Aye" Councilmember Orlando, Reed, Little, Hernandez, Moore, Perez and Owens. Voting "No" None. Motion passed 7 to 0. Council Action - Resolution No. R2019-211 - A Resolution of the City Council of the City of Pearland, Texas, voting on a proposed tax rate of 0.741212, the rollback tax rate which represents a property tax revenue increase of 3% above the effective tax rate, and placing on the agendas of September 16, 2019 and September 23, 2019 City Council meetings, consideration of the proposed fiscal year 2019-2020 tax rate and setting the public hearings on the proposed tax rate for September 3, 2019 and September 9, 2019 at 6:15 PM. Councilmember Hernandez made the motion, seconded by Councilmember Moore to approve Resolution No. R2019-211. City Manager Clay Pearson stated this is setting up the remainder of the Tax Rate Meetings and set the date for the Public Hearing. Voting "Aye" Councilmember Orlando, Reed, Little, Hernandez, Moore, and Perez. Voting "No" Councilmember Owens. Motion passed 6 to 1. ADJOURNMENT Meeting was adjourned at 7:50 p.m. Minutes approved as submitted and/or corrected this the 25th day of November, A.D., 2019. ATTEST: �'% • ' Maria Rodriguez • L Interim City Secretary Tom Reid Mayor Page 3 of 3