1987-09-14 CITY COUNCIL REGULAR MEETING MINUTES169
MRAYI'ES OF A RE 3MAR MEEPING OF THE CITY CaAUIL OF THE CITY OF PEAH AM, TEXAS, HEID
ON SEPTEMBER 14, 1987, AT 7:30 P. M. IN THE CITY HALL, 3519 LIBERTY DRIVE, PEARLAND,
TEXAS
The Meeting was called to order with the following present:
Mayor
Tom Reid
Councilmember/Mayor Pro Tem Richard Tetens
Councilmember Stella Roberts
Councilmember
Councilmember
City Manager
Assistant City Manager
Police Chief
City Attorney
James Bost
Dennis Frauenberger
Ronald J. Wicker
Don Birkner
Bob Riemenschneider
Luke L. Daniel
City Secretary Kay Krouse
Absent from the Meeting: Councilmember Charles Mack
The invocation was given by Councilmember James Bost.
led by Assistant City Manager Don Birkner.
The Pledge of Allegiance was
It was moved by Councilmember Tetens, seconded by Councilmember Frauenberger, that
the minutes of the regular meeting of August 24, 1987, be approved as submitted.
Motion passed 3 to 0. Councilmember Bost abstained.
Mayor Reid reported the Freedom Run held last Saturday was a big success.
Proclamations issued by area Mayors honoring the 200th anniversary of the U. S.
Constitution were relayed by Scouts from city to city to Galveston.
Mayor Reid reported Councilmember Charles Mack is seriously ill and awaiting a heart
transplant. City employees are keeping current on his condition and everyone wishes
him well.
Mayor Reid presented a proclamation to three members of St. Helen 8960 Council pro-
claiming September 26, 1987, as "Knights of Columbus Day for the Hearing Impaired."
None
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City Manager Ron Wicker introduced to the audience the new Assistant City Manager,
Don Birkner.
2. David Miller, Pearland Properties. Mr. Miller discussed the sale of Clover Field
Airport and requested Council consider participating in a feasibility study to
determine the importance of that airport to the surrounding area or the implications
of it not being there.
1. Emery Miller, Emchem Corp. Mr. Miller reviewed with Council information about
the operations of his company, reading from his answer to citation filed by the City
regarding the chemical waste spilled in the drainage ditches in front of his place of
business. Mr. Miller stated he is trying to meet all the issues and is seeking
cooperation with the City in cleaning up the spill.
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Mayor Reid recognized from the audience students from a government class at Pearland
High School.
tA�Il�IIS'� ) BUSINESS
ORDEWEE NO. 541, AN APPROPRIATION ORDINANCE ADOPTING A BUDGET FUR ME FISCAL YEAR
BEGIflN1NG OCTOBER 1, 1987 AND ELIDING S YMVMER 30, 1988
Ordinance No. 541 read in caption by Councilmember Frauenberger. (Second Reading)
It was moved by Councilmember Frauenberger, seconded by Councilmember Tetens, that
Ordinance No. 541 be passed and approved on the second and final reading. Said
Ordinance No. 541 reads in caption as follows:
ORDINANCE NO. 541
AN APPROPRIATION ORDINANCE ADOPTING A BUDGET FOR THE FISCAL YEAR
BEGLVNING OCTOBER 1, 1987, AND ENDING SEPTEMBER 30, 1988.
Voting "Aye" - Councilmembers Frauenberger, Tetens, Bost and Roberts.
Voting "No" - None.
Motion passed 4 to 0.
ORDINANCE NO. 542, ORDINANCE LEVYING TAXES, AND PROVIDING FOR THE INTEREST AND
SINKING FUND OF THE TAXABLE YEAR 1987 AND APPORTIONING EACH LEVY FOR THE SPECIFIC
PUPPOISE
Ordinance No. 542 read in caption by Councilmember Tetens. (Second Reading)
It was moved by Councilmember Tetens, seconded by Councilmember Bost, that Ordinance
No. 542 be passed and approved on the second and final reading. Said Ordinance No.
542 reads in caption as follows:
ORDINANCE NO. 542
AN ORDINANCE LEVYING TAXES FOR THE USE AND SUPPORT OF THE MUNICIPAL
GOVERNMENT OF THE CITY OF PEARLAND, TEXAS, AND PROVIDING FOR THE
INTEREST AND SINKING FUND OF THE TAXABLE YEAR 1987 AND APPORTIONING
EACH LEVY FOR THE SPECIFIC PURPOSE.
Voting "Aye" - Councilmembers Roberts, Bost, Tetens and Frauenberger.
Voting "No" - None.
Motion passed 4 to 0.
BID NO. B87-12, BANK DEPOSITORY CONTRACT
Council reviewed the following bids:
FNB
PSB
WNB
DEPOSITS
Demand Deposits
NOW Accounts
Interest Rates
5 1/4916
5 1/4916
5 1/4916
Minimum balance
$2,500
$1,000
$1,500
Super NOW Accounts
Interest rates
5 1/2%
5%
1/2 under 3 month T -Bill
Minimum balance
$2,500
$1,000
$10,000
Service charges
None
None
Balances below $10,000
FNB PSB WNB
Time Deposits
C. D.'s Less than $100,000 .25 pts under T -Bill .25 pts under
T -Bill T -Bill
C. D.'s Over $100,000 .125 pts under T -Bill .25 pts under
T -Bill T -Bill
Compounded When Daily Daily Annually (1)
(1) The RFP required daily
compounding
OTHER SERVICES
Charges for Handling Checks None None None (2)
and Deposits
(2) Excluding Super NOW Accounts
Charges for Handling
Temporary Overdrafts
None None (3)
(3) Where demand deposits of equal
amounts are available in other
accounts.
LOAN SERVICES
Rates of Interest and
Maximum Loan Limits
Rate of Interest
Loan Limit
None (3)
Prime Prime Less 1916 Prime
(Tex Commerce Bank) (First City Nat (Allied Bank
Bank of Houston) of Houston)
8 1/4916 8 1/4910 (1%) 7 1/4% 8 1/4910
Not Indicated Not Indicated
Not Indicated
171
Mr. Earl Lairson, Earl Lairson and Company, our City auditor, presented the following
recommendation to the Council:
Honorable Mayor and Council
City of Pearland
Pearland, Texas 77581
We have reviewed the bids from First National Bank of Pearland (FNB), Pearland State
Bank (PSB), and Westside National Bank of Pearland (WNB) to serve as prime depository
for the City of Pearland and to maintain custody of funds of the City for the period
from October 1, 1987 to September 30, 1990. A summary of those bids is attached.
The major areas of distinction between the proposals are as follows:
1. Pearland State Bank has offered to provide a rate of return on Certificates of
Deposit in excess of $100,000 at T -Bill rate. This is .125% more favorable
than the next highest bid.
2. Pearland State Bank's interest rate on Certificates of Deposit of less than
$100,000 (equal to T -Bill rate) is .25% more favorable than the next highest
bid.
3. Pearland State Bank's offer to loan funds at prime rates less than 1% is more
favorable than the other bids of prime rate.
i
172
4. Westside National Bank has deviated from the specifications set forth in the
Request for Proposals which required daily compounding of interest income.
The most significant distinctions here are the cost of borrowed funds and the
interest earned on Certificates of Deposit. Pearland State Bank has presented the
more favorable bid in these areas by charging less for borrowed funds and by
providing a greater rate of return on invested funds. In our opinion, therefore, the
bid submitted by Pearland State Bank is the most favorable for the City of Pearland.
/s/ Earl Lairson & Company
Houston, Texas
August 31, 1987
It was moved by Councilmember Bost, seconded by Councilmember Tetens, that Council
award Bid No. B87-12, Bank Depository Contract to Pearland State Bank for a three-
year contract.
Motion passed 3 to 0. Councilmember Roberts absent from the Chambers at that time.
APPOINTMENT OF MEER TO FILL UNEXPIRED TERM ON THE PI"UM AND ZONIING CESSION
It was moved by Councilmember Tetens, seconded by Councilmember Roberts, that Council
appoint Benny Frank to fill the unexpired term of Bill Teasdale on the Planning and
Zoning Commission; term to expire in April, 1988.
Motion passed 4 to 0.
Mayor Reid administered the Oath of Office to Benny Frank.
ADJUSTMENT AND ENCUMBRANCE FR0M THE 1986-87 BUDGET
City Manager Ron Wicker explained he was requesting Council to encumber $5,000.00
presently in Account No. 5303 and that it be transferred into the same account for
budget year 1987-88 to allow for drainage and fencing work at the Old Settler's
Cemetery.
It was moved by Councilmember Frauenberger, seconded by Councilmember Tetens, that
Council encumber $5,000.00 in Account No. 5303 from the 1986-87 budget and carry it
forward to same account in the 1987-88 budget.
Motion passed 4 to 0.
EMEM ABSENCE FUR CCUNCILMEJMBER aMRLFS MACK FROM THE SEYBMER 14, 1987 REaK AR
SIL NEETING NG DUE TO II LESS
It was moved by Councilmember Bost, seconded by Councilmember Roberts, that
Councilmember Charles Mack be excused from the meeting tonight because of his
illness.
Motion passed 4 to 0.
APPROVAL OF INVOICES
(a) It was moved by Councilmember Tetens, seconded by Councilmember Bost, that
Invoice No. DR -31751, Industrial International, Inc., for pipe for water line
from Woodcreek to Regal Oaks in the amount of $16,410.00 be approved and
payment made from the appropriate finds.
Motion passed 4 to 0.
(b) It was moved by Councilmember Tetens, seconded by Councilmember Bost, that
invoice dated September 4, 1987, from Sears and Burns, Attorneys at Law, for
legal services rendered in the amount of $4,089.61 be approved and payment made
from the appropriate funds.
Motion passed 4 to 0.
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6:104 4* a 0.1'sli I s l
MEETING RECESSED TO EXECUTIVE SESSION AT 8:29 P. M. UNDER TEXAS REVISED CIVIL
STATUTES, ARTICLE 6252-17, SECTION 2
Mayor Reid read, from the posted agenda, the topics to be discussed in Executive
Session.
MF:F'P7 Wz RETURNED TO OPEN SESSION AT 8:52 P. M. - NO ACTION TAKEN
Mayor Reid signed a certification to the effect and read the following items that
were discussed in Executive Session:
UNDER SUBSECTION (e) LEGAL - The City Attorney brought the Council and City Manager
up-to-date on contemplated and pending litigation, discussing the following: (1)
City of Pearland v. Emchem Corp., (2) State of Texas and City of Pearland v. B. M.
Jamison et ux, (3) Ford v. Pearland Wrecker, and (4) Milstead v. City of Pearland.
The meeting adjourned at 8:54 P. M.
Minutes approved as submitted and/or corrected this
A. D., 1987.
ATTEST:
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City S4bretary