HomeMy WebLinkAboutOrd. 1431 2010-09-13 Draft
9/2/2010
ORDINANCE NO 1431
AN ORDINANCE AUTHORIZING AND ORDERING THE ISSUANCE OF CITY OF
PEARLAND, TEXAS PERMANENT IMPROVEMENT REFUNDING BONDS, SERIES
2010B, PRESCRIBING THE TERMS AND FORM THEREOF, MAKING OTHER
PROVISIONS REGARDING SUCH BONDS, INCLUDING USE OF THE PROCEEDS
THEREOF, AUTHORIZING THE DEFEASANCE AND DISCHARGE OF CERTAIN
OUTSTANDING OBLIGATIONS, AND MATTERS INCIDENT THERETO, AND
DECLARING AN EMERGENCY
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS
ARTICLE I
FINDINGS AND DETERMINATIONS
Section 1 1 Findings and Determinations The City Council hereby officially fmds and
determines that
(a) The City of Pearland, Texas (the "City"), acting through its City Council, is
authorized by Section 3 07 of its Home Rule Charter and the Constitution and laws of the State
of Texas, particularly Chapter 1207 of the Texas Government Code, as amended, to issue bonds
for the purpose of refunding the Refunded Obligations(hereinafter defined);
(b) The City, actmg through its City Council, has heretofore issued, assumed or
undertaken and there remain outstanding the obligations described m Exhibit G attached hereto
(the"Refunded Obligations"),
(c) The City desires to refund the Refunded Obligations in advance of their maturities
which will benefit the City by reducing total debt service,
(d) The City is authorized by Chapter 1207,Texas Government Code, as amended, to
accomplish such refunding by depositing with an escrow agent a portion of the proceeds from
the sale of the refunding bonds authonzed herein,together with any other legally available funds,
which shall be sufficient to provide for the payment of the Refunded Obligations on their date of
redemption, and such deposit shall constitute the making of firm banking and financial
arrangements for the discharge and final payment of the Refunded Obligations;
(e) The City desires to enter mto an escrow deposit agreement (the "Escrow Deposit
Agreement") with Wells Fargo Bank, N A , Houston, Texas, as escrow agent, as authorized m
Chapter 1207, pursuant to which a portion of the proceeds of the refundmg bonds herein
authorized, and other legally available funds of the City, if any, will be deposited and applied m
a manner sufficient to provide for the full and timely payment of all principal of, premium, if
any,and mterest on the Refunded Obligations,
(f) Upon the issuance of the refunding bonds herein authorized and the creation of
the escrow referred to above, the Refunded Obligations shall no longer be regarded as bemg
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outstanding, except for the purpose of being paid pursuant to such Escrow Deposit Agreement,
and the pledges, liens, trusts and all other covenants, provisions, terms and conditions of the
ordmances authorizing the issuance of the Refunded Obligations shall be, with respect to the
Refunded Obligations, discharged, terminated and defeased, and
(g) The City Council is of the opinion and hereby affirmatively fmds that it is m the
best interest of the City to issue the bonds m the amounts and for the purposes herein stated
ARTICLE II
DEFINITIONS AND INTERPRETATIONS
Section 2 1 Definitions As used herein, the following terms shall have the meanings
specified,unless the context clearly mdicates otherwise
"Act"shall mean Chapter 1207,Texas Government Code,as amended
"Attorney General"shall mean the Attorney General of the State of Texas.
"Bond" or "Bonds" shall mean any or all of the City of Pearland, Texas Permanent
Improvement Refunding Bonds, Series 2010B,authorized by this Ordinance
"City" shall mean the City of Pearland,Texas and,where appropnate,its City Council
"City Council"shall mean the governing body of the City
"Code" shall mean the Internal Revenue Code of 1986,as amended
"Comptroller"shall mean the Comptroller of Public Accounts of the State of Texas
"Debt Service Fund" shall mean the Permanent Improvement Refunding Bonds, Series
2010B Debt Service Fund established by the City and described m section 5 2 of this Ordinance
"DTC" shall mean The Depository Trust Company, New York, New York, or any
successor securities depository
"DTC Participant" shall mean brokers and dealers, banks, trust compames, clearing
corporations and certain other organizations on whose behalf DTC was created to hold securities
to facilitate the clearance and settlement of securities transactions among DTC Participants.
"Escrow Agent" shall mean Wells Fargo Bank, N.A., Houston, Texas, and its successors
in that capacity.
"Escrow Deposit Agreement" shall mean the agreement between the City and the Escrow
Agent relating to the deposit of funds to pay the Refunded Obligations
"Fiscal Year" shall mean the City's then designated fiscal year, which currently is the
twelve-month period beginning on the first day of October of a calendar year and ending on the
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last day of September of the next succeedmg calendar year and each such penod may be
designated with the number of the calendar year in which such period ends
"Interest Payment Date," when used in connection with any Bond, shall mean March 1,
2010, and each September 1 and March 1 thereafter until maturity or earlier redemption of such
Bond
"MSRB"means the Mumcipal Securities Rulemakmg Board
"Ordinance" shall mean this Ordinance and all amendments hereof and supplements
hereto
"Outstanding",when used with reference to the Bonds, shall mean, as of a particular date,
all Bonds theretofore and thereupon delivered pursuant to this Ordinance except (a)any Bonds
canceled by or on behalf of the City at or before such date, (b)any Bonds defeased pursuant to
the defeasance provisions of this Ordinance or otherwise defeased as permitted by applicable
law, and(c)any Bonds m lieu of or m substitution for which a replacement Bond shall have been
delivered pursuant to this Ordinance
"Paying Agent/Registrar" shall mean Wells Fargo Bank Texas, N.A., Houston, Texas,
and its successors in that capacity
"Paying Agent/Registrar Agreement" shall mean the agreement between the City and the
Paying Agent/Registrar as described more particularly in Section 6 1 hereof
"Record Date" shall mean the close of business on the 15th day of the calendar month
immediately precedmg the applicable Interest Payment Date
"Refunded Obligations" shall mean those obligations described m Exhibit G attached
hereto, which are bemg refunded and defeased with the proceeds of the Bonds and other legally
available funds of the City, if any.
"Register" shall mean the registration books for the Bonds kept by the Paying
Agent/Registrar in which are maintained the names and addresses of, and the principal amounts
registered to, each Registered Owner of Bonds
"Registered Owner" shall mean the person or entity in whose name any Bond is
registered in the Register
"Report" shall mean the verification report prepared by Grant Thornton LLP, Certified
Public Accountants, verifymg the accuracy of certain mathematical computations relating to the
Bonds and the refunding of the Refunded Obligations
"Rule"means SEC Rule 15c2 12,as amended from time to time
"SEC"means the Umted States Securities and Exchange Commission
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"Underwriters" shall mean First Southwest Company, Jefferies & Company, Inc , and
Morgan Keegan&Co., Inc
Section 2 2• Interpretations All terms defined herem and all pronouns used in this
Ordinance shall be deemed to apply equally to smgular and plural and to all genders The titles
and headings of the articles and sections of this Ordinance have been inserted for convenience of
reference only and are not to be considered a part hereof and shall not m any way modify or
restrict any of the terms or provisions hereof This Ordinance and all the terms and provisions
hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the
validity of the Bonds and the validity of the levy of ad valorem taxes to pay the principal of and
interest on the Bonds
ARTICLE III
TERMS OF THE BONDS
Section 3 1 Amount, Purpose and Authorization (a) The Bonds shall be issued m
fully registered form, without coupons, under and pursuant to the authority of the City's Home
Rule Charter and the Act in the total authorized aggregate principal amount of
AND NO/100 DOLLARS ($ ) for the purpose of providing all
or part of the funds to refund the Refunded Obligations Proceeds from the sale of the Bonds
will also be used for paymg costs of issuance of the Bonds and other professional services related
thereto
(b) It is hereby found and determined that the refunding of the Refunded Obligations
and the issuance of the Bonds will benefit the City by reducing total debt service, and that such
benefit is sufficient consideration for the issuance of the Bonds.
(c) It is hereby found and determined that the refundmg of the Refunded Obligations
will result m a gross savings of$ and a present value savings of$ to the
City
Section 3 2 Designation. Date and Interest Payment Dates The Bonds shall be
designated as the "City of Pearland, Texas Permanent Improvement Refunding Bonds, Series
2010B," and shall be dated October 1, 2010. The Bonds shall bear interest at the rates set forth
m Section 3 3 below, from the later of October 1,2010 or the most recent Interest Payment Date
to which mterest has been paid or duly provided for, calculated on the basis of a 360-day year of
twelve 30-day months, payable on March 1, 2011, and each September 1 and March 1 thereafter
until maturity or earlier redemption
If interest on any Bond is not paid on any Interest Payment Date and continues unpaid for
thirty (30) days thereafter, the Paymg Agent/Registrar shall establish a new record date for the
payment of such interest, to be known as a Special Record Date The Paying Agent/Registrar
shall establish a Special Record Date when funds to make such interest payment are received
from or on behalf of the City Such Special Record Date shall be fifteen (15) days prior to the
date fixed for payment of such past due interest, and notice of the date of payment and the
Special Record Date shall be sent by Umted States mail, first class, postage prepaid, not later
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than five (5) days prior to the Special Record Date, to each affected Registered Owner as of the
close of business on the day prior to mailing of such notice
Section 3 3 Numbers, Denommation, Interest Rates and Maturities. The Bonds shall
be initially issued bearing the numbers, in the principal amounts and bearing interest at the rates
set forth in the followmg schedule, and may be transferred and exchanged as set out in this
Ordinance The Bonds shall mature on March 1 m each of the years and in the amounts set out in
such schedule Bonds delivered in transfer of or in exchange for other Bonds shall be numbered
in order of their authentication by the Paying Agent/Registrar, shall be in the denomination of
$5,000 or integral multiples thereof and shall mature on the same date and bear interest at the
same rate as the Bond or Bonds in lieu of which they are delivered.
Bond Year of Principal Interest
Number Maturity Amount Rate
R-1 2011 $
R-2 2012
R-3 2013
R-4 2014
R-5 2015
R-6 2016
R-7 2017
R-8 2018
Section 3 4 Redemption Prior to Matunty. The Bonds are not subject to optional
redemption prior to stated maturity
Section 3.5. Manner of Payment, Characteristics, Execution and Authentication The
Paying Agent/Registrar is hereby appointed the paying agent for the Bonds The Bonds shall be
payable, shall have the characteristics and shall be executed, sealed,registered and authenticated,
all as provided and m the manner indicated in the FORM OF BONDS set forth in Article IV of
this Ordmance If any officer of the City whose manual or facsimile signature shall appear on the
Bonds shall cease to be such officer before the authentication of the Bonds or before the delivery
of the Bonds, such manual or facsimile signature shall nevertheless be valid and sufficient for all
purposes as if such officer had remained in such office.
The approving legal opinion of Andrews Kurth LLP, Houston, Texas, Bond Counsel,
may be printed on the Bonds over the certification of the City Secretary, which may be executed
in facsimile. CUSIP numbers also may be printed on the Bonds, but errors or omissions in the
printing of either the opinion or the numbers shall have no effect on the validity of the Bonds
Section 3 6 Authentication Except for the Bonds to be initially issued,which need not
be authenticated by the Paying Agent/Registrar, only such Bonds as shall bear thereon a
certificate of authentication, substantially in the form provided in Article IV of this Ordinance,
manually executed by an authorized representative of the Paying Agent/Registrar, shall be
entitled to the benefits of this Ordinance or shall be valid or obligatory for any purpose. Such
duly executed certificate of authentication shall be conclusive evidence that the Bond so
authenticated was delivered by the Paying Agent/Registrar hereunder
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Section 3 7• Ownership The City, the Paying Agent/Registrar and any other person
may treat the person in whose name any Bond is registered as the absolute owner of such Bond
for the purpose of making and receiving payment of the principal thereof and interest thereon
and for all other purposes, whether or not such Bond is overdue, and neither the City nor the
Paying Agent/Registrar shall be bound by any notice or knowledge to the contrary All payments
made to the person deemed to be the Registered Owner of any Bond m accordance with this
Section shall be valid and effective and shall discharge the liability of the City and the Paying
Agent/Registrar upon such Bond to the extent of the sums paid
Section 3.8. Registration Transfer and Exchange The Paying Agent/Registrar is
hereby appointed the registrar for the Bonds So long as any Bond remains Outstanding, the
Paying Agent/Registrar shall keep the Register at its office in Houston, Texas m which, subject
to such reasonable regulations as it may prescribe, the Paying Agent/Registrar shall provide for
the registration and transfer of the Bonds in accordance with the terms of this Ordinance
Each Bond shall be transferable only upon the presentation and surrender thereof at the
office of the Paying Agent/Registrar, accompanied by an assignment duly executed by the
Registered Owner or his authorized representative in form satisfactory to the Paying
Agent/Registrar Upon due presentation of any Bond for transfer, the Paying Agent/Registrar
shall authenticate and deliver in exchange therefor, within seventy-two (72) hours after such
presentation, a new Bond or Bonds, registered m the name of the transferee or transferees, in
authorized denommations and of the same maturity and aggregate principal amount and bearing
interest at the same rate as the Bond or Bonds so presented and surrendered.
All Bonds shall be exchangeable upon the presentation and surrender thereof at the office
of the Paying Agent/Registrar for a Bond or Bonds, maturity and mterest rate and m any
authorized denomination, m an aggregate principal amount equal to the unpaid principal amount
of the Bond or Bonds presented for exchange The Paying Agent/Registrar shall be and is hereby
authorized to authenticate and deliver exchange Bonds in accordance with the provisions of this
Section Each Bond delivered by the Paying Agent/Registrar in accordance with this Section
shall be entitled to the benefits and security of this Ordinance to the same extent as the Bond or
Bonds m lieu of which such Bond is delivered.
All Bonds issued in transfer or exchange shall be delivered to the Registered Owners
thereof at the office of the Paying Agent/Registrar or sent by United States mail, first class,
postage prepaid
The City or the Paying Agent/Registrar may require the Registered Owner of any Bond to
pay a sum sufficient to cover any tax or other governmental charge that may be imposed m
connection with the transfer or exchange of such Bond Any fee or charge of the Paying
Agent/Registrar for such transfer or exchange shall be paid by the City.
The Paying Agent/Registrar shall not be required to transfer or exchange any Bond called
for redemption in whole or in part during the forty-five (45) day period immediately prior to the
date fixed for redemption; provided, however, that this restriction shall not apply to the transfer
or exchange by the Registered Owner of the unredeemed portion of a Bond called for redemption
in part
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Section 3 9 Book-Entry Only System The definitive Bonds shall be initially issued m
the form of a separate single fully registered Bond for each of the maturities thereof Upon
m tial issuance, the ownership of each such Bond shall be registered in the name of Cede&Co.,
as nominee of DTC, and except as provided in Section 3 11 hereof, all of the Outstanding Bonds
shall be registered in the name of Cede & Co , as nominee of DTC. Upon delivery by DTC to
the Paymg Agent/Registrar of written notice to the effect that DTC has determined to substitute a
new nominee m place of Cede & Co., and subject to the provisions in this Ordinance with
respect to interest checks being mailed to the Owner at the close of business on the Record Date,
the word"Cede&Co"m this Ordinance shall refer to such new nommee of DTC
With respect to Bonds registered m the name of Cede & Co., as nominee of DTC, the
City and the Paying Agent/Registrar shall have no responsibility or obligation to any DTC
Participant or to any person on behalf of whom such a DTC Participant holds an interest in the
Bonds Without limiting the immediately preceding sentence, the City and the Paying
Agent/Registrar shall have no responsibility or obligation with respect to (a) the accuracy of the
records of DTC, Cede & Co or any DTC Participant with respect to any ownership interest in
the Bonds, (b) the delivery to any DTC Participant or any other person, other than a Bondholder,
as shown on the Register, of any notice with respect to the Bonds, including any notice of
redemption or (c) the payment to any DTC Participant or any other person, other than a
Bondholder as shown in the Register, of any amount with respect to principal of Bonds,
premium, if any,or interest on the Bonds
Except as provided m Section 3.10 of this Ordinance, the City and the Paymg
Agent/Registrar shall be entitled to treat and consider the person in whose name each Bond is
registered in the Register as the absolute owner of such Bond for the purpose of payment of
principal of, premium, if any, and interest on Bonds, for the purpose of giving notices of
redemption and other matters with respect to such Bond, for the purpose of registering transfer
with respect to such Bond, and for all other purposes whatsoever The Paying Agent/Registrar
shall pay all principal of Bonds, premium, if any, and interest on the Bonds only to or upon the
order of the respective owners, as shown in the Register as provided in this Ordinance, or their
respective attorneys duly authorized in writing, and all such payments shall be valid and
effective to fully satisfy and discharge the City's obligations with respect to payment of principal
of, premium, if any, and interest on the Bonds to the extent of the sum or sums so paid No
person other than an owner shall receive a Bond evidencing the obligation of the City to make
payments of amounts due pursuant to this Ordinance
Section 3 10 Payments and Notices to Cede & Co. Notwithstanding any other
provision of this Ordinance to the contrary, as long as any Bonds are registered in the name of
Cede & Co , as nominee of DTC, all payments with respect to principal of,premium, if any, and
interest on the Bonds, and all notices with respect to such Bonds shall be made and given,
respectively, in the manner provided in the representation letter of the City to DTC
Section 3.11. Successor Securities Depository, Transfer Outside Book-Entry Only
System In the event that the City or the Paying Agent/Registrar determines that DTC is
incapable of discharging its responsibilities described herein and in the representation letter of
the City to DTC, and that it is in the best interest of the beneficial owners of the Bonds that they
be able to obtain certificated Bonds, the City or the Paying Agent/Registrar shall (a) appoint a
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successor securities depository, qualified to act as such under Section 17(a) of the Secunties and
Exchange Act of 1934, as amended, notify DTC of the appointment of such successor secunties
depository and transfer one or more separate Bonds to such successor securities depository or(b)
notify DTC of the availability through DTC of Bonds and transfer one or more separate Bonds to
DTC Participants having Bonds credited to their DTC accounts In such event, the Bonds shall
no longer be restricted to bemg registered m the Register m the name of Cede&Co , as nominee
of DTC,but may be registered in the name of the successor securities depository, or its nominee,
or m whatever name or names Bondholders transferring or exchangmg Bonds shall designate, in
accordance with the provisions of this Ordinance
Section 3 12 Replacement Bonds. Upon the presentation and surrender to the Paying
Agent/Registrar of a damaged or mutilated Bond, the Paying Agent/Registrar shall authenticate
and deliver in exchange therefor a replacement Bond, of the same maturity, interest rate and
principal amount, bearing a number not contemporaneously outstanding The City or the Paying
Agent/Registrar may require the Registered Owner of such Bond to pay a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection therewith and any other
expenses connected therewith, including the fees and expenses of the Paying Agent/Registrar
and the City
If any Bond is lost, apparently destroyed or wrongfully taken, the City, pursuant to the
applicable laws of the State of Texas and ordinances of the City, and m the absence of notice or
knowledge that such Bond has been acquired by a bona fide purchaser, shall execute, and the
Paymg Agent/Registrar shall authenticate and deliver, a replacement Bond of the same matunty,
interest rate and principal amount, bearing a number not contemporaneously outstanding, pro-
vided that the Registered Owner thereof shall have
(a) furnished to the City and the Paying Agent/Registrar satisfactory evidence of the
ownership of and the circumstances of the loss, destruction or theft of such Bond,
(b) furnished such security or mdemmty as may be required by the Paying
Agent/Registrar and the City to save and hold them harmless,
(c) paid all expenses and charges m connection therewith, including, but not limited
to, prmtmg costs, legal fees, fees of the Paying Agent/Registrar and any tax or other
governmental charge that may be imposed, and
(d) met any other reasonable requirements of the City and the Paying
Agent/Registrar
If,after the delivery of such replacement Bond,a bona fide purchaser of the original Bond m lieu
of which such replacement Bond was issued presents for payment such original Bond, the City
and the Paying Agent/Registrar shall be entitled to recover such replacement Bond from the
person to whom it was delivered or any person taking therefrom, except a bona fide purchaser,
and shall be entitled to recover upon the security or mdemmty provided therefor to the extent of
any loss, damage, cost or expense incurred by the City or the Paymg Agent/Registrar in
connection therewith
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If any such mutilated, lost, apparently destroyed or wrongfully taken Bond has become or
is about to become due and payable, the City in its discretion may, instead of issuing a
replacement Bond,authorize the Paying Agent/Registrar to pay such Bond
Each replacement Bond delivered in accordance with this Section shall be entitled to the
benefits and security of this Ordinance to the same extent as the Bond or Bonds in lieu of which
such replacement Bond is delivered
Section 3 13 Cancellation All Bonds paid or redeemed in accordance with this
Ordinance, and all Bonds in lieu of which exchange Bonds or replacement Bonds are
authenticated and delivered m accordance herewith, shall be canceled and destroyed upon the
making of proper records regarding such payment or redemption. The Paying Agent/Registrar
shall periodically furnish the City with certificates of destruction of such Bonds
ARTICLE IV
FORM OF BONDS
The Bonds, including the Form of Comptroller's Registration Certificate, Form of Paymg
Agent/Registrar Authentication Certificate, Form of Statement of Insurance, if any, and Form of
Assignment, shall be in substantially the form set forth in Exhibit A hereto, with such omissions,
msertions and variations as may be necessary or desirable,and not prohibited by this Ordinance
ARTICLE V
SECURITY FOR THE BONDS
Section 5 1 Pledge and Levy of Taxes (a) To provide for the payment of principal of
and interest on the Bonds, there is hereby levied, within the limits prescribed by law, for the
current year and each succeedmg year thereafter, while the Bonds or any part of the principal
thereof and the interest thereon remain outstanding and unpaid, an ad valorem tax upon all
taxable property within the City sufficient to pay the interest on the Bonds and to create and
provide a sinking fund of not less than 2% of the principal amount of the Bonds or not less than
the principal payable out of such tax, whichever is greater, with full allowance being made for
tax delinquencies and the costs of tax collection, and such taxes, when collected, shall be applied
to the payment of principal of and interest on the Bonds by deposit to the Debt Service Fund and
to no other purpose
(b) The City hereby declares its purpose and intent to provide and levy a tax legally
sufficient to pay the principal of and interest on the Bonds, it having been determined that the
existing and available taxing authority of the City for such purpose is adequate to permit a
legally sufficient tax As long as any Bonds remain outstanding, all moneys on deposit m, or
credited to, the Debt Service Fund shall be secured by a pledge of secunty, as provided by law
for cities in the State of Texas
(c) The City hereby appropriates from current funds on hand and legally available
therefor, funds sufficient,when added to the accrued interest received from the sale of the Bonds,
to pay the interest on the Bonds payable on March 1, 2011 and September 1, 2011
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Section 5 2 Debt Service Fund The Permanent Improvement Refundmg Bonds, Senes
2010B Debt Service Fund (the "Debt Service Fund") is hereby created as a special fund solely
for the benefit of the Bonds. The City shall establish and maintain such fund at an official City
depository and shall keep such fund separate and apart from all other funds and accounts of the
City. Any amount on deposit in the Debt Service Fund shall be mamtamed by the City m trust
for the Registered Owners of the Bonds Such amount, plus any other amounts deposited by the
City into such fund and any and all mvestment earnings on amounts on deposit in such fund,
shall be used only to pay the principal of,premium, if any, and interest on the Bonds
Section 5 3 Further Proceedings After the Bonds to be uutially issued have been
executed, it shall be the duty of the Mayor to deliver the Bonds to be initially issued and all
pertinent records and proceedings to the Attorney General for examination and approval After
the Bonds to be initially issued shall have been approved by the Attorney General, they shall be
delivered to the Comptroller for registration. Upon registration of the Bonds to be initially
issued, the Comptroller (or a deputy lawfully designated in wntmg to act for the Comptroller)
shall manually sign the Comptroller's registration certificate prescribed herein to be affixed or
attached to the Bonds to be initially issued, and the seal of said Comptroller shall be impressed,
or placed m facsimile,thereon
ARTICLE VI
CONCERNING THE PAYING AGENT/REGISTRAR
Section 6 1• Acceptance Wells Fargo Bank Texas, N A, Houston, Texas, is hereby
appointed as the initial Paying Agent/Registrar for the Bonds pursuant to the terms and
provisions of the Paying Agent/Registrar Agreement by and between the City and the Paying
Agent/Registrar The Paying Agent/Registrar Agreement shall be substantially m the form
attached hereto as Exhibit B, the terms and provisions of which are hereby approved, and the
Mayor is hereby authorized to execute and deliver such Paying Agent/Registrar Agreement on
behalf of the City in multiple counterparts and the City Secretary is hereby authorized to attest
thereto and affix the City's seal Such initial Paymg Agent/Registrar and any successor Paying
Agent/Registrar, by undertaking the performance of the duties of the Paying Agent/Registrar
hereunder, and m consideration of the payment of any fees pursuant to the terms of any contract
between the Paying Agent/Registrar and the City and/or the deposits of money pursuant to this
Ordinance, shall be deemed to accept and agree to abide by the terms of this Ordinance.
Section 6 2 Trust Funds All money transferred to the Paying Agent/Registrar m its
capacity as Paying Agent/Registrar for the Bonds under this Ordinance (except any sums
representing Paying Agent/Registrar's fees) shall be held in trust for the benefit of the City, shall
be the property of the City and shall be disbursed m accordance with this Ordmance.
Section 6 3• Bonds Presented Subject to the provisions of Section 6 4, all matured
Bonds presented to the Paying Agent/Registrar for payment shall be paid without the necessity of
further instructions from the City Such Bonds shall be canceled as provided herein
Section 6.4. Unclaimed Funds Held by the Paying Agent/Registrar. Funds held by the
Paying Agent/Registrar that represent principal of and interest on the Bonds remaining
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unclaimed by the Registered Owner thereof after the expiration of three years from the date such
funds have become due and payable (a) shall be reported and disposed of by the Paymg
Agent/Registrar in accordance with the provisions of Title 6 of the Texas Property Code, as
amended, to the extent such provisions are applicable to such funds, or (b)to the extent such
provisions do not apply to the funds, such funds shall be paid by the Paymg Agent/Registrar to
the City upon receipt by the Paying Agent/Registrar of a written request therefor from the City
The Paying Agent/Registrar shall have no liability to the Registered Owners of the Bonds
by virtue of actions taken in compliance with this Section
Section 6.5. Paying Agent/Registrar May Own Bonds The Paymg Agent/Registrar in
its individual or any other capacity, may become the owner or pledgee of Bonds with the same
rights it would have if it were not the Paying Agent/Registrar.
Section 6 6 Successor Paying Agents/Registrars The City covenants that at all times
while any Bonds are Outstanding it will provide a legally qualified bank, trust company,
financial institution or other agency to act as Paying Agent/Registrar for the Bonds The City
reserves the right to change the Paying Agent/Registrar for the Bonds on not less than sixty(60)
days' written notice to the Paying Agent/Registrar,as long as any such notice is effective not less
than 60 days prior to the next succeeding principal or interest payment date on the Bonds
Promptly upon the appointment of any successor Paying Agent/Registrar, the previous Paymg
Agent/Registrar shall deliver the Register or a copy thereof to the new Paying Agent/Registrar,
and the new Paying Agent/Registrar shall notify each Registered Owner, by Umted States mail,
first class,postage prepaid, of such change and of the address of the new Paying Agent/Registrar
Each Paying Agent/Registrar hereunder, by acting in that capacity, shall be deemed to have
agreed to the provisions of this Ordinance
ARTICLE VII
PROVISIONS CONCERNING SALE AND
APPLICATION OF PROCEEDS OF BONDS
Section 7 1 Sale of Bonds. Insurance The sale of the Bonds to the Underwnters at a
price of $ (representing the principal amount of the Bonds, plus an original issue
premium on the Bonds of $ and less an underwriting discount of $ ), plus
accrued interest on the Bonds to the date of delivery of the Certificates, is hereby approved, and
delivery of the Bonds to the Underwnters shall be made upon payment therefor in accordance
with the terms of the Bond Purchase Agreement presented to and hereby approved by the Board,
in substantially the form attached hereto as Exhibit C, which pnce and terms are hereby found
and determined to be the most advantageous reasonably obtainable by the City The Mayor or
the City Secretary and other appropriate officials of the City are hereby authorized and directed
to execute such Bond Purchase Agreement on behalf of the City, and the Mayor and the City
Secretary and all other officials, agents and representatives of the City are hereby authorized to
do any and all things necessary or desirable to satisfy the conditions set out therein and to
provide for the issuance and delivery of the Bonds
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Section 7 2 Approval, Registration and Delivery. The Mayor is hereby authorized to
have control and custody of the Bonds and all necessary records and proceedings pertaining
thereto pendmg their delivery, and the Mayor and other officers and employees of the City are
hereby authorized and directed to make such certifications and to execute such instruments as
may be necessary to accomplish the delivery of the Bonds and to assure the investigation,
examination and approval thereof by the Attorney General and the registration of the initial
Bonds by the Comptroller. Upon registration of the Bonds, the Comptroller(or the Comptroller's
certificates clerk or an assistant certificates clerk lawfully designated m writing to act for the
Comptroller) shall manually sign the Comptroller's Registration Certificates prescribed herein to
be attached or affixed to each Bond initially delivered and the seal of the Comptroller shall be
impressed or printed or lithographed thereon
Section 7.3. Offermg Documents, Ratings The City hereby approves the form and
contents of the Prelimmary Official Statement and the final Official Statement, dated as of the
date hereof, relating to the Bonds, and any addenda, supplement or amendment thereto, and
ratifies and approves the distribution of such Preliminary Official Statement and Official
Statement in the offer and sale of the Bonds and m the reoffering of the Bonds by the
Underwriters, with such changes therein or additions thereto as the officials executing same may
deem advisable, such determination to be conclusively evidenced by their execution thereof
The Mayor is hereby authorized and directed to execute, and the City Secretary is hereby
authorized and directed to attest, the final Official Statement. It is further hereby officially
found, determined and declared that the statements and representations contained m the
Preliminary Official Statement and fmal Official Statement are true and correct in all material
respects,to the best knowledge and belief of the City Council, and that, as of the date thereof, the
Prelimmary Official Statement was an official statement of the City with respect to the Bonds
that was deemed"final"by an authorized official of the City except for the omission of no more
than the information permitted by subsection (b)(1) of Rule 15c2-12 of the Securities and
Exchange Commission Copies of the Preliminary Official Statement and the Official Statement
are attached hereto as Exhibit D and Exhibit E, respectively
Further, the City Council hereby ratifies, authorizes and approves the actions of the
Mayor, the City's fmancial advisor and other consultants m seeking ratings on the Bonds from
Standard & Poor's Ratings Services and Fitch Ratings, Inc , and such actions are hereby ratified
and confirmed
Section 7 4 Application of Proceeds of Bonds, Appropriation (a) Proceeds from the
sale of the Bonds shall, promptly upon receipt by the City,be applied as follows
(1) Accrued interest shall be deposited mto the Debt Service Fund created m Section
5 2 of this Ordinance,
(2) A portion of the proceeds shall be applied to pay expenses arising in connection
with the issuance of the Bonds and the refunding of the Refunded Obligations,
(3) The remaining proceeds shall be used to establish an escrow fund to refund the
Refunded Obligations,as more fully provided below.
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(b) From the existing debt service fund for the Refunded Obligations there shall be
transferred to the escrow fund established pursuant to the Escrow Deposit Agreement the amount
of$ and to the Debt Service Fund the amount of$
Section 7 5• Tax Exemption The City mtends that the interest on the Bonds shall be
excludable from gross income of the owners thereof for federal income tax purposes pursuant to
Sections 103 and 141 through 150 of the Internal Revenue Code of 1986, as amended, (the
"Code") and all applicable temporary, proposed and final regulations (the "Regulations") and
procedures promulgated thereunder and applicable to the Bonds For this purpose, the City
covenants that it will momtor and control the receipt, investment, expenditure and use of all
gross proceeds of the Bonds(including all property, the acquisition,construction or improvement
of which is to be fmanced directly or mdirectly with the proceeds of the Bonds) and take or omit
to take such other and further actions as may be required by Sections 103 and 141 through 150 of
the Code and the Regulations to cause the interest on the Bonds to be and remam excludable
from the gross income, as defined m Section 61 of the Code, of the owners of the Bonds for
federal income tax purposes Without hunting the generality of the foregoing, the City shall
comply with each of the followmg covenants.
(a) The City shall not use, permit the use of or omit to use Gross Proceeds or any
other amounts (or any property the acquisition, construction or improvement of
which is to be financed directly or indirectly with Gross Proceeds) in a manner
which, if made or omitted, respectively, would cause the mterest on any Bond to
become includable m the gross mcome, as defined m Section 61 of the Code, of
the owner thereof for federal mcome tax purposes Without limiting the generality
of the foregomg, unless and until the City shall have received a written opinion of
counsel nationally recognized m the field of municipal bond law to the effect that
failure to comply with such covenant will not adversely affect the exemption from
federal income tax of the interest on any Bond, the City shall comply with each of
the specific covenants in this Section
(b) Except as permitted by Section 141 of the Code and the regulations and rulings
thereunder,the City shall, at all times prior to the last stated maturity of the Bonds,
(1) exclusively own, operate, and possess all property the acquisition,
construction, or improvement of which is to be fmanced directly or mdirectly with
Gross Proceeds of such series of the Bonds (mcludmg property fmanced with
Gross Proceeds of the Refunded Obligations or notes or bonds refunded by the
Refunded Obligations and not use or permit the use of such Gross Proceeds or any
property acquired, constructed, or improved with such Gross Proceeds m any
activity carried on by any person or entity other than a state or local government,
unless such use is solely as a member of the general public, or
(2) not directly or indirectly impose or accept any charge or other
payment for use of Gross Proceeds of such series of the Bonds or any property the
acquisition, construction or improvement of which is to be fmanced directly or
indirectly with such Gross Proceeds (mcludmg property fmanced with Gross
Proceeds of the Refunded Obligations or notes or bonds refunded by the
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Refunded Obligations other than taxes of general application and mterest earned
on investments acquired with such Gross Proceeds pending application for their
intended purposes
(c) Except to the extent permitted by Section 141 of the Code and the regulations and
rulings thereunder, the City shall not use Gross Proceeds of the Bonds to make or
finance loans to any person or entity other than a state or local government For
purposes of the foregoing covenant, Gross Proceeds are considered to be "loaned"
to a person or entity if(1) property acquired, constructed or improved with Gross
Proceeds (including property fmanced with Gross Proceeds of the Refunded
Obligations or notes or bonds refunded by the Refunded Obligations is sold or
leased to such person or entity m a transaction which creates a debt for federal
income tax purposes, (2) capacity in or service from such property is committed to
such person or entity under a take-or-pay, output, or similar contract or
arrangement, or(3) indirect benefits, or burdens and benefits of ownership, of such
Gross Proceeds or such property are otherwise transferred in a transaction which is
the economic equivalent of a loan
(d) Except to the extent permitted by Section 148 of the Code and the regulations and
rulmgs thereunder, the City shall not, at any time prior to the earlier of the final
stated maturity or final payment of the Refunded Obligations, directly or indirectly
invest Gross Proceeds of such Bonds m any Investment (or use such Gross
Proceeds to replace money so invested), if as a result of such investment the Yield
of all Investments allocated to such Gross Proceeds whether then held or
previously disposed of, exceeds the Yield on the Refunded Obligations
(e) Based on all of the facts and estimates now known or reasonably expected to be m
existence on the date the Bonds are delivered, the City reasonably expects that the
proceeds of the Bonds and the Refunded Obligations (to the extent any of such
proceeds remain unexpended) will not be used m a manner that would cause the
Bonds or the Refunded Obligations or any portion thereof to be "arbitrage bonds"
within the meaning of Section 148 of the Cod
(0 At all times while the Bonds are outstanding, the City will identify and properly
account for all amounts constituting gross proceeds of the Bonds m accordance
with the Regulations The City will monitor the yield on the mvestments of the
proceeds of the Bonds and, to the extent required by the Code and the Regulations,
will restrict the yield on such mvestments to a yield which is not matenally higher
than the yield on the Bonds. To the extent necessary to prevent the Bonds from
constituting "arbitrage bonds," the City will make such payments as are necessary
to cause the yield on all yield restricted nonpurpose investments allocable to the
Bonds to be less than the yield that is materially higher than the yield on the
Bonds,
(g) The City will not take any action or knowingly omit to take any action, if taken or
omitted, would cause the Bonds to be treated as "federally guaranteed"obligations
for purposes of Section 149(b)of the Code,
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(h) The City represents that not more than fifty percent (50%) of the proceeds of any
new money portion of the Bonds or any new money issue refunded by, the
Refunded Bonds was invested m nonpurpose investments (as defined m Section
148(f)(b)(A) of the Code) havmg a substantially guaranteed yield for four years or
more within the meaning of Section 149(g)(3)(A)(u) of the Code, and the City
reasonably expected at the time each issue of the Refunded Bonds was issued that
at least eighty-five percent (85%) of the spendable proceeds of the Bonds or the
Refunded Bonds would be used to carry out the governmental purpose of such
Bonds within the corresponding three-year penod beginning on the respective
dates of the Bonds or the Refunded Bonds.
(I) The City will take all necessary steps to comply with the requirement that certain
amounts earned by the City on the investment of the gross proceeds of the Bonds,
if any,be rebated to the federal government Specifically, the City will(i)maintain
records regarding the receipt, investment and expenditure of the gross proceeds of
the Bonds as may be required to calculate such excess arbitrage profits separately
from records of amounts on deposit in the funds and accounts of the City allocable
to other obligations of the City or moneys which do not represent gross proceeds
of any obligations of the City and retain such records for at least six years after the
day on which the last outstanding Bond is discharged, (ii) account for all gross
proceeds under a reasonable, consistently applied method of accounting, not
employed as an artifice or device to avoid, in whole or in part, the requirements of
Section 148 of the Code, including any specified method of accountmg required by
applicable Regulations to be used for all or a portion of the gross proceeds, (iii)
calculate, at such times as are required by applicable Regulations, the amount of
excess arbitrage profits, if any, earned from the investment of the gross proceeds
of the Bonds and (iv) timely pay, as required by applicable Regulations, all
amounts required to be rebated to the federal government In addition, the City will
exercise reasonable diligence to assure that no errors are made in the calculations
required by the preceding sentence and, if such an error is made, to discover and
promptly correct such error within a reasonable amount of time thereafter,
mcludmg payment to the federal government of any delinquent amounts owed to
it, including interest thereon and penalty
(1) The City will not indirectly pay any amount otherwise payable to the federal
government pursuant to the foregoing requirements to any person other than the
federal government by entenng mto any investment arrangement with respect to
the gross proceeds of the Bonds that might result in a reduction m the amount
required to be paid to the federal government because such arrangement results m
smaller profit or a larger loss than would have resulted if such arrangement had
been at arm's length and had the yield on the issue not been relevant to either party
(k) The City will timely file or cause to be filed with the Secretary of the Treasury of
the United States the information required by Section 149(e) of the Code with
respect to the Bonds on such form and m such place as the Secretary may
prescnbe
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(1) The City will not issue or use the Bonds as part of an "abusive arbitrage device"
(as defined in Section 1.148 10(a) of the Regulations) Without limiting the
foregoing, the Bonds are not and will not be a part of a transaction or senes of
transactions that attempts to circumvent the provisions of Section 148 of the Code
and the Regulations, by (i) enabling the City to exploit the difference between tax
exempt and taxable interest rates to gam a material financial advantage, or (ii)
mcreasmg the burden on the market for tax-exempt obligations
(m) Proper officers of the City charged with the responsibility for issuing the Bonds
are hereby directed to make, execute and deliver certifications as to facts,
estimates or circumstances m existence as of the Issue Date and stating whether
there are facts, estimates or circumstances that would materially change the City's
expectations On or after the Issue Date, the City will take such actions as are
necessary and appropriate to assure the continuous accuracy of the representations
contamed in such certificates.
(n) The covenants and representations made or required by this Section are for the
benefit of the Bond holders and any subsequent Bond holder, and may be relied
upon by the Bond holder and any subsequent Bond holder and bond counsel to the
City
In complymg with the foregoing covenants, the City may rely upon an unqualified
opinion issued to the City by nationally recognized bond counsel that any action by the City or
reliance upon any interpretation of the Code or Regulations contained in such opinion will not
cause interest on the Bonds to be includable m gross income for federal income tax purposes
under existing law
Notwithstanding any other provision of this Ordinance, the City's representations and
obligations under the covenants and provisions of this Section 7.5 shall survive the defeasance
and discharge of the Bonds for as long as such matters are relevant to the exclusion of mterest on
the Bonds from the gross income of the owners for federal income tax purposes.
Section 7.6. Escrow Deposit Agreement The discharge and defeasance of the
Refunded Obligations shall be effectuated pursuant to the terms and provisions of the Escrow
Deposit Agreement to be entered into by and between the City and the Escrow Agent, which
shall be substantially in the form attached hereto as Exhibit F, the terms and provisions of which
are hereby approved, subject to such insertions, additions and modifications as shall be necessary
(a) to carry out the program designed for the City by the Underwriters and the City's Financial
Advisor,(b) to minimize the City's costs of refunding, (c)to comply with all applicable laws and
regulations relating to the refunding of the Refunded Obligations and (d) to carry out the other
intents and purposes of this Ordinance, and the Mayor or President of Vice President of the City
Council is hereby authorized to execute and deliver such Escrow Deposit Agreement on behalf
of the City in multiple counterparts and the City Secretary is hereby authorized to attest thereto
and affix the City's seal
Section 7.7. Redemption Prior to Matunty of Refunded Obligations To minimize the
City's costs of refunding, the City hereby authorizes and directs that certain of the Refunded
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Obligations shall be called for redemption prior to maturity m the amounts, at the dates and at the
redemption prices set forth m Exhibit G attached hereto, and the Mayor is hereby authorized and
directed to take all necessary and appropriate action to give or cause to be given a notice of
redemption and/or a notice of defeasance to the holders or paying agent/ registrars, as
appropnate, of such bonds, and, if required,to publish such notices, all in the manner required by
the documents authonzmg the issuance of such Refunded Obligations
Section 7.8: Cash Deposit to Escrow Fund The Mayor and other officers and
employees of the City are hereby authorized to deposit cash, m such amounts as may be provided
for m the Report to be attached to the Escrow Deposit Agreement, and to execute any and all
agreements and other documents necessary to effectuate the foregoing Any actions heretofore
taken for such purpose are hereby ratified and approved.
Section 7.9. Related Matters In order that the City shall satisfy m a timely manner all
of its obligations under this Ordinance, the Mayor, City Secretary and all other appropriate
officers, agents, representatives and employees of the City are hereby authorized and directed to
take all other actions that are reasonably necessary to provide for the issuance and delivery of the
Bonds, including, without limitation, executing and delivering on behalf of the City all
certificates, consents, receipts, requests, notices, and other documents as may be reasonably
necessary to satisfy the City's obligations under this Ordinance and to direct the transfer and
application of funds of the City consistent with the provisions of this Ordinance
ARTICLE VIII
CONTINUING DISCLOSURE UNDERTAKING
Section 8.1• Annual Reports The City shall provide annually to the MSRB, within six
(6) months after the end of each fiscal year and in an electronic format prescribed by the MSRB,
financial mformation and operating data with respect to the City of the general type described in
the Official Statement, being the information described m Exhibit H attached hereto Any
financial statements so to be provided shall be (a)prepared in accordance with generally
accepted accounting principles for governmental units as prescribed by the Government
Accountmg Standards Board from time to time, as such principles may be changed from time to
time to comply with state or federal law or regulation and(b)audited, if the City commissions an
audit of such statements and the audit is completed within the period during which they must be
provided If audited financial statements are not available at the time the financial information
and operatmg data must be provided, then the City shall provide unaudited financial statements
for the applicable fiscal year to the MSRB and shall provide to the MSRB audited fmancial
statements,when and if the same become available
If the City changes its Fiscal Year, it will notify the MSRB of the change(and of the date
of the new fiscal year end) pnor to the next date by which the City otherwise would be required
to provide financial information and operating data pursuant to this Article
The financial information and operating data to be provided pursuant to this Article may
be set forth in full m one or more documents or may be mcluded by specific reference to
documents(i) available to the public on the MSRB's mternet web site or(n) filed with the SEC
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Section 8 2• Matenal Event Notice The City shall notify the MSRB m an
electronic format prescnbed by the MSRB, m a timely manner, of any of the following events
with respect to the Bonds, if such event is material within the meaning of the federal secunties
laws.
(a) Pnncipal and interest payment delinquencies,
(b) Non-payment related defaults,
(c) Unscheduled draws on debt service reserves reflecting financial difficulties,
(d) Unscheduled draws on credit enhancements reflecting financial difficulties,
(e) Substitution of credit or liquidity providers or their failure to perform,
(f) Adverse tax opinions or events affecting the tax-exempt status of the Bonds;
(g) Modifications to nghts of holders of the Bonds,
(h) Bond calls,
(1) Defeasances,
(1) Release, substitution,or sale of property securing repayment of the Bonds,
(k) Rating changes
The City shall notify the MSRB m an electromc format prescnbed by the MSRB, m a
timely manner, of any failure by the City to provide financial information or operating data in
accordance with Section 8.1 of this Order by the time required by such Article
Section 8 3 Identifying Information All documents provided to the MSRB shall be
accompanied by identifying information, as prescribed by the MSRB
Section 8 4 Limitations, Disclaimers and Amendments. The City shall be obligated to
observe and perform the covenants specified m this Article for so long as,but only for so long as,
the City remains an"obligated person"with respect to the Bonds within the meaning of the Rule,
except that the City m any event will give the notice required by Section 8 2 of any Bond calls
and defeasance that cause the City to be no longer such an"obligated person"
The provisions of this Article are for the sole benefit of the Holders and beneficial
owners of the Bonds, and nothing m this Article, express or implied, shall give any benefit or any
legal or equitable right, remedy, or claim hereunder to any other person The City undertakes to
provide only the financial mformahon, operating data, principal statements, and notices which it
has expressly agreed to provide pursuant to this Article and does not hereby undertake to provide
any other information that may be relevant or matenal to a complete presentation of the City's
financial results, condition, or prospects or hereby undertake to update any information provided
m accordance with this Article or otherwise, except expressly provided herein The City does not
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make any representation or warranty concerning such information or its usefulness to a decision
to invest in or sell Bonds at any future date
UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER
OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR
TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY
THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY
COVENANT SPECIFIED IN THIS ARTICLE, BUT EVERY RIGHT AND REMEDY OF
ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH
BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC
PERFORMANCE
No default by the City in observing or performing its obligations under this Article shall
constitute a breach of or default under the Order for purposes of any other provision of this
Order
Nothing in this Article is intended or shall act to disclaim, waive, or otherwise limit the
duties of the City under federal and state securities law
The provisions of this Article may be amended by the City from time to time to adapt to
changed circumstances that anse from a change, legal requirements,a change in law, or a change
in the identity, nature, status, or type of operations of the City, but only if(1) the provisions of
this Article,as so amended,would have permitted an underwnter to purchase or sell Bonds in the
pnmary offenng of the Bonds in compliance with the Rule, taking into account any amendments
or interpretations of the Rule to the date of such amendment, as well as such changed
circumstances and (2) either(a) the Holders of a majority in aggregate principal amount (or any
greater amount required by any other provision of this Order that authorizes such an amendment)
of the Outstanding Bonds consent to such amendment or(b)a person that is unaffiliated with the
City (such as nationally recognized bond counsel) determines that such amendment will not
materially impair the interest of the Holders and beneficial owners of the Bonds If the City so
amends the provisions of this Article it shall include with any amended financial information or
operating data next provided in accordance with Section 8 1 an explanation in narrative form of
the reasons for the amendment and of the impact of any change in the type of financial
information or operating data so provided. The City may also amend or repeal the provisions of
this continuing disclosure agreement if the SEC amends or repeals the applicable provision of the
Rule or a court of final jurisdiction enters judgment that such provisions of the Rule are invalid,
but only if and to the extent that the provisions of this sentence would not prevent an underwriter
from lawfully purchasing or selling Bonds in the primary offering of the Bonds
ARTICLE IX
MISCELLANEOUS
Section 9.1. Defeasance The City may defease the provisions of this Ordinance and
discharge its obligations to the Registered Owners of any or all of the Bonds to pay the principal
of and interest thereon in any manner permitted by law, including by depositing with the Paying
Agent/Registrar or with the Comptroller of Public Accounts of the State of Texas either
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(a) cash m an amount equal to the pnncipal amount of such Bonds plus Interest
thereon to the date of maturity or redemption, or
(b) pursuant to an escrow or trust agreement, cash and/or (i) direct noncallable
obligations of United States of America, including obligations that are unconditionally
guaranteed by the United States of Amenca, (ii) noncallable obligations of an agency or
instrumentality of the United States, including obligations that are unconditionally guaranteed or
insured by the agency or instrumentality and that, on the date the governing body of the issuer
adopts or approves the proceedings authonzmg the issuance of refunding bonds, are rated as to
investment quality by a nationally recognized investment rating firm not less than AAA or its
equivalent, or (iii) noncallable obligations of a state or an agency or a county, municipality, or
other political subdivision of a state that have been refunded and that, on the date the governing
body of the issuer adopts or approves the proceedings authorizing the issuance of refundmg
bonds, are rated as to investment quality by a nationally recognized investment ratmg firm not
less than AAA or its equivalent, which, in the case of(i), (u)or(ui), may be m book-entry form,
and the principal of and interest on which will, when due or redeemable at the option of the
holder, without further investment or reinvestment of either the principal amount thereof or the
interest earnings thereon, provide money in an amount which, together with other moneys, if
any, held in such escrow at the same time and available for such purpose, shall be sufficient to
provide for the timely payment of the pnncipal of and interest thereon to the date of matunty or
earlier redemption, provided, however, that if any of the Bonds are to be redeemed pnor to their
respective dates of maturity, provision shall have been made for giving notice of redemption as
provided m this Ordmance Upon such deposit, such Bonds shall no longer be regarded to be
Outstandmg or unpaid. Any surplus amounts not required to accomplish such defeasance shall
be returned to the City
Section 9.2. Application of Chapter 1208, Government Code Chapter 1208,
Government Code, applies to the issuance of the Bonds and the pledge of the taxes granted by
the City under Section 5 1 of this Ordinance, and such pledge is therefore valid, effective and
perfected If Texas law is amended at any time while the Bonds are outstanding and unpaid such
that the pledge of the taxes granted by the City under Section 5 1 of this Ordmance is to be
subject to the filing requirements of Chapter 9, Business & Commerce Code, then m order to
preserve to the Registered Owners of the Bonds the perfection of the security mterest m said
pledge, the City agrees to take such measures as it determines are reasonable and necessary
under Texas law to comply with the applicable provisions of Chapter 9, Business & Commerce
Code and enable a filing to perfect the security interest in said pledge to occur
Section 9 3 Ordinance a Contract - Amendments This Ordinance shall constitute a
contract with the Registered Owners from time to time, be bmdmg on the City, and shall not be
amended or repealed by the City so long as any Bond remains Outstanding except as permitted m
this Section The City may,without the consent of or notice to any Registered Owners, from time
to time and at any time, amend this Ordinance in any manner not detrimental to the interests of
the Registered Owners, including the curing of any ambiguity, inconsistency, or formal defect or
omission herein. In addition, the City may, with the consent of Registered Owners who own m
the aggregate 51 % of the principal amount of the Bond then Outstanding, amend, add to, or
rescind any of the provisions of this Ordinance, provided that, without the consent of all
Registered Owners of Outstanding Bonds, no such amendment, addition, or rescission shall
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(i) extend the time or times of payment of the principal of and interest on the Bonds, reduce the
principal amount thereof, the redemption price, or the rate of interest thereon, or in any other
way modify the terms of payment of the principal of or interest on the Bonds, (u) give any
preference to any Bond over any other Bond, or (ui)reduce the aggregate principal amount of
Bonds required to be held by Registered Owners for consent to any such amendment, addition,
or rescission
Section 9.4. Legal Holidays In any case where the date interest accrues and becomes
payable on the Bonds or principal of the Bonds matures or the date fixed for redemption of any
Bonds or a Record Date shall be in the City a Saturday, Sunday, legal holiday or a day on which
banking institutions are authorized by law to close, then payment of interest or principal need not
be made on such date, or the Record Date shall not occur on such date, but payment may be
made or the Record Date shall occur on the next succeeding day which is not in the City a
Saturday, Sunday, legal holiday or a day on which banking institutions are authorized by law to
close with the same force and effect as if(i)made on the date of matunty or the date fixed for
redemption and no interest shall accrue for the period from the date of maturity or redemption to
the date of actual payment or (ii)the Record Date had occurred on the fifteenth day of that
calendar month.
Section 9 5 No Recourse Against City Officials No recourse shall be had for the
payment of principal of or interest on any Bonds or for any claim based thereon or on this
Ordinance against any official of the City or any person executing any Bonds
Section 9 6• Further Proceedings The Mayor, City Secretary and other appropnate
officials of the City are hereby authorized and directed to do any and all things necessary and/or
convement to carry out the terms of this Ordinance
Section 9 7 Severability If any Section, paragraph, clause or provision of this
Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or
unenforceability of such Section, paragraph, clause or provision shall not affect any of the
remaining provisions of this Ordinance
Section 9.8. Power to Revise Form of Documents Notwithstanding any other
provision of this Ordinance, the Mayor is hereby authorized to make or approve such revisions,
additions, deletions, and variations to this Ordinance and in the form of the documents attached
hereto as exhibits as, in the judgment of the Mayor, and in the opinion of Bond Counsel to the
City, may be necessary or convenient to carry out or assist in carrying out the purposes of this
Ordinance, or as may be required for approval of the Bonds by the Attorney General of Texas;
provided, however, that any changes to such documents resultmg in substantive amendments to
the terms and conditions of the Bonds or such documents shall be subject to the prior approval of
the City Council
Section 9 9. Open Meeting. It is hereby found, determined and declared that a
sufficient written notice of the date, hour, place and subject of the meeting of the City Council at
which this Ordinance was adopted was posted at a place convement and readily accessible at all
times to the general public at City Hall for the time required by law preceding this meeting, as
required by the Open Meetings Law, Chapter 551, Texas Government Code, and that this
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meeting has been open to the public as required by law at all tunes during which this Ordinance
and the subject matter thereof has been discussed, considered and formally acted upon The City
Council further ratifies, approves and confirms such written notice and the contents and posting
thereof
Section 9.10. Repealer All orders, resolutions and ordinances, or parts thereof,
inconsistent herewith are hereby repealed to the extent of such inconsistency
Section 9.11: Declaration of Emergency It is hereby officially found and determined
that a case of emergency and urgent public necessity exists that requires that this Ordinance be
passed finally and take effect immediately on the date of its introduction, such emergency and
urgent public necessity being that the proceeds from the sale of the Bonds are required as soon as
possible and without delay for the purposes set forth herein.
Section 9 12 Effective Date. This Ordinance shall be m force and effect from and after
its passage on the date shown below
[signature page follows]
22
HOU 3053159 1
PASSED AND APPROVED on first reading pursuant to Section 3.10 of the City Charter
this September , 2010
CITY OF PEARLAND, TEXAS
Mayor
ATTEST
City Secretary
(SEAL)
Exhibit A—Form of Bond
Exhibit B—Paymg Agent/Registrar Agreement
Exhibit C—Bond Purchase Agreement
Exhibit D—Preliminary Official Statement
Exhibit E—Official Statement
Exhibit F—Escrow Deposit Agreement
Exhibit G—Refunded Obligations
Exhibit H—Continuing Disclosure
S-1
HOU 3053159 1
EXHIBIT A
FORM OF BOND
UNITED STATES OF AMERICA
STATE OF TEXAS
CITY OF PEARLAND, TEXAS
PERMANENT IMPROVEMENT REFUNDING BONDS, SERIES 2010B
NUMBER DENOMINATION
1R-
REGISTERED REGISTERED
2INTEREST RATE DATED DATE 2MATURITY DATE 2 CUSIP
October 1,2010 March 1,
REGISTERED OWNER.
PRINCIPAL AMOUNT DOLLARS
3THE CITY OF PEARLAND, TEXAS, a municipal corporation of the State of Texas
(the"City"), for value received,hereby promises to pay to the Registered Owner identified above
or its registered assigns, on the maturity date specified above(or on earlier redemption as herein
provided),upon presentation and surrender of this Bond at the office of Wells Fargo Bank Texas,
N A, Houston, Texas or its successor (the "Paying Agent/Registrar"), the principal amount
identified above (or so much thereof as shall not have been paid or deemed to have been paid
upon prior redemption) payable m any coin or currency of the United States of America which
on the date of payment of such principal is legal tender for the payment of debts due to the
United States of America, and to pay interest thereon at the rate shown above, calculated on a
basis of a 360-day year composed of twelve 30-day months, from the later of the Dated Date
identified above or the most recent interest payment date to which interest has been paid or duly
provided for Interest on this Bond is payable on March 1, 2011, and each September 1 and
Initial Bond shall be numbered T-1
2 Omitted from Initial Bond
3 The first sentence of the initial Bond shall read as follows
THE CITY OF PEARLAND,TEXAS,a municipal corporation of the State of Texas(the"City"),for value
received, hereby promises to pay to the Registered Owner identified above or its registered assigns, on
March 1 of the year of matunty specified below (or on earlier redemption as herein provided), upon
presentation and surrender of this Bond at the office of Wells Fargo Bank Texas,N A,Houston,Texas or
its successor (the "Paying Agent/Registrar"), the principal amount identified set forth in the following
schedule [Insert information regarding years of maturity, principal amounts and interest rates from the
Section 3 3 of the Bond Order] (or so much thereof as shall not have been paid or deemed to have been
paid upon prior redemption)payable in any coin or currency of the United States of Amenca which on the
date of payment of such principal is legal tender for the payment of debts due to the United States of
America, and to pay interest thereon at the rate shown above, calculated on a basis of a 360-day year
composed of twelve 30-day months, from the later of the Dated Date identified above or the most recent
interest payment date to which interest has been paid or duly provided for
A-1
HOU 3053159 1
March 1 thereafter until matunty or earlier redemption of this Bond, by check sent by United
States mail, first class, postage prepaid, by the Paying Agent/Registrar to the Registered Owner
of record as of the close of busmess on the 15th day of the calendar month immediately preceding
the applicable interest payment date, as shown on the registration books kept by the Paying
Agent/Registrar Any accrued interest payable at maturity or earlier redemption shall be paid
upon presentation and surrender of this Bond at the office of the Paying Agent/Registrar
THIS BOND IS ONE OF A DULY AUTHORIZED SERIES OF BONDS (the "Bonds")
m the aggregate principal amount of$ issued pursuant to an ordinance adopted by the
City Council of the City on September 13, 2010 (the "Ordinance") for the purpose of providing
funds to refundmg certain outstanding obligations of the City, under and pursuant to the
authonty of Chapter 1207 Texas Government Code, as amended, and the City's Home Rule
Charter Proceeds of the Bonds will also be used to pay costs of issuance of the Bonds and other
professional services related thereto
4THIS BOND SHALL NOT BE VALID OR OBLIGATORY for any purpose or be
entitled to any benefit under the Ordinance unless this Bond is authenticated by the Paying
Agent/Registrar by due execution of the authentication certificate endorsed hereon
THIS BOND IS NOT subject to optional redemption pnor to maturity
THIS BOND IS TRANSFERABLE only upon presentation and surrender at the office of
the Paying Agent/Registrar, accompanied by an assignment duly executed by the Registered
Owner or its authorized representative, subject to the terms and conditions of the Ordinance
THIS BOND IS EXCHANGEABLE at the office of the Paying Agent/Registrar for a
Bond or Bonds of the same matunty and interest rate and in the principal amount of$5,000 or
any integral multiple thereof, subject to the terms and conditions of the Ordinance
THE PAYING AGENT/REGISTRAR is not required to accept for transfer or exchange
any Bond called for redemption, m whole or m part, during the forty-five (45) day period
immediately pnor to the date fixed for redemption, provided, however, that such limitation shall
not apply to the transfer or exchange by the Registered Owner of an unredeemed portion of a
Bond called for redemption in part
THE CITY OR PAYING AGENT/REGISTRAR may require the Registered Owner of
any Bond to pay a sum sufficient to cover any tax or other governmental charge that may be
imposed m connection with the transfer or exchange of a Bond Any fee or charge of the Paying
Agent/Registrar for a transfer or exchange shall be paid by the City
THE REGISTERED OWNER of this Bond by acceptance hereof, acknowledges and
agrees to be bound by all the terms and conditions of the Ordinance
4 In the Initial Bond,this paragraph shall read
THIS BOND SHALL NOT BE VALID OR OBLIGATORY for any purpose or be entitled to any benefit under the
Ordinance unless this Bond is registered by the Comptroller of Public Accounts of the State of Texas by due
execution of the registration certificate endorsed hereon
A-2
HOU 3053159 1
IT IS HEREBY DECLARED AND REPRESENTED that this Bond has been duly and
validly issued and delivered, that all acts, conditions and things required or proper to be
performed, exist and to be done precedent to or m the issuance and delivery of this Bond have
been performed, exist and have been done in accordance with law, that the Bonds do not exceed
any constitutional or statutory limitation, and that annual ad valorem taxes sufficient to provide
for the payment of the interest on and principal of this Bond,as such interest comes due and such
principal matures, have been levied and ordered to be levied, within the limits prescnbed by law,
against all taxable property in the City and have been irrevocably pledged for such payment.
REFERENCE IS HEREBY MADE TO THE ORDINANCE, a copy of which is filed
with the Paying Agent/Registrar, for the full provisions thereof, to all of which the Registered
Owners of the Bonds assent by acceptance of the Bonds
IN WITNESS WHEREOF, the City has caused its corporate seal to be impressed or
placed in facsimile hereon and this Bond to be signed by the Mayor and countersigned by the
City Secretary by their manual, lithographed or printed facsimile signatures.
(AUTHENTICATION OR CITY OF PEARLAND, TEXAS
REGISTRATION CERTIFICATE)
Mayor
(SEAL)
COUNTERSIGNED.
City Secretary
* * *
A-3
HOU 3053159 1
FORM OF COMPTROLLER'S REGISTRATION CERTIFICATE
The following form of Comptroller's Registration Certificate shall be attached or affixed
to each of the Bonds initially delivered
OFFICE OF THE COMPTROLLER §
OF PUBLIC ACCOUNTS § REGISTER NO
THE STATE OF TEXAS §
I hereby certify that this bond has been examined, certified as to validity and approved by
the Attorney General of the State of Texas, and that this bond has been registered by the
Comptroller of Public Accounts of the State of Texas.
WITNESS MY SIGNATURE AND SEAL OF OFFICE this
Comptroller of Public Accounts
(SEAL) of the State of Texas
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
The following form of authentication certificate shall be printed on the face of each of the
Bonds other than those initially delivered
AUTHENTICATION CERTIFICATE
This Bond is one of the Bonds descnbed in and delivered pursuant to the within
mentioned Ordinance, and, except for the Bonds initially delivered, this Bond has been issued in
exchange for or replacement of a Bond, Bonds, or a portion of a Bond or Bonds of an issue
which ongmally was approved by the Attorney General of the State of Texas and registered by
the Comptroller of Public Accounts of the State of Texas
WELLS FARGO BANK,N A
as Paying Agent/Registrar
By
Authonzed Signature
Date of Authentication
* * *
A-4
HOU 3053159 1
FORM OF ASSIGNMENT
The following form of assignment shall be pnnted on the back of each of the Bonds
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
(Please print or type name,address,and zip code of Transferee)
(Please insert Social Security or Taxpayer Identification Number of Transferee)
the within bond and all nghts thereunder, and hereby irrevocably constitutes and appoints
attorney to transfer such bond on the books kept for
registration thereof,with full power of substitution m the premises
DATED
Signature Guaranteed.
Registered Owner
NOTICE The signature above must
correspond to the name of the Registered
Owner as shown on the face of this bond m
NOTICE Signature must be guaranteed every particular, without any alteration,
by a member firm of the New York Stock enlargement or change whatsoever
Exchange or a commercial bank or trust
company
* * *
A-5
HOU 3053159 1
EXHIBIT B
PAYING AGENT/REGISTRAR AGREEMENT
See Tab
B-1
HOU 3053159 1
EXHIBIT C
BOND PURCHASE AGREEMENT
See Tab No._
C-1
HOU 30531591
EXHIBIT D
PRELIMINARY OFFICIAL STATEMENT
See Tab No._
D-1
HOU 3053159 1
EXHIBIT E
OFFICIAL STATEMENT
See Tab No._
E-1
HOU 3053159 1
EXHIBIT F
ESCROW DEPOSIT AGREEMENT
See Tab No.
F-1
HOU 3053159 1
EXHIBIT G
REFUNDED OBLIGATIONS
Brazoria County Municipal Utility District No. 1
Waterworks and Sewer System
Combination Unlimited Tax and Revenue and Refunding Bonds, Series 2001
Maturity Date Interest Rate Par Amount Call Date Price
09/01/2011 4 400% $185,000 10/13/2010 100%
09/01/2012 4.500 200,000 10/13/2010 100%
09/01/2013 4 650 210,000 10/13/2010 100%
09/01/2014 4 750 220,000 10/13/2010 100%
09/01/2015 4.875 230,000 10/13/2010 100%
09/01/2016 4 900 235,000 10/13/2010 100%
* * * * * * * * * * * * * * *
09/01/2018(a) 5 000 365,000 10/13/2010 100%
(a) Term Bond
G-1
HOU 3053159 1
EXHIBIT H
CONTINUING DISCLOSURE
The followmg mformation is referred to in Section 8 1 of this Ordinance
Annual Financial Statements and Operating Data
The fmancial information and operating data with respect to the City to be provided
annually in accordance with such Section are as specified (and included m the Appendix or
under the headings of the Official Statement referred to)below.
1 The audited mformation found in the Official Statement under the headmgs
"INVESTMENT AUTHORITY AND INVESTMENT OBJECTIVES OF THE CITY- Current
Investments," "CITY TAX DEBT," "TAX DATA" (except under the subheading estimated
overlapping taxes), "SELECTED FINANCIAL DATA" and m Appendix B
Accounting Principles
The accounting principles referred to in such Section are the accounting principles
described in the notes to the financial statements referred to m paragraph 1 above
H-1
HOU 3053159 1
MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON MONDAY, SEPTEMBER 13, 2010, AT 7:30 P.M., IN
THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND,
TEXAS.
Mayor Reid called the meeting to order at 7:58 p.m. with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
Councilmember
City Manager
City Attorney
City Secretary
Tom Reid
Scott Sherman
Woody Owens
Steve Saboe
Felicia Kyle
Ed Thompson
Bill Eisen
Darrin Coker
Young Lorfing
Others in attendance: Jon Branson Assistant City Manager; J.C. Doyle Police Chief;
Trent Epperson Project Director; Mike Hodge Assistant City Manager; Lata Krishnarao
Planning Director; Claire Bogard Finance Director; Michelle Smith Director of Parks and
Recreation; Colene Cabezas Recreation Superintendent; Meg McNulty Utility Billing
Services Supervisor; Ian Clowes Planner I; Judy Krajca Planning Office Coordinator;
June Ellis Budget Officer; Julie Diaz Recreation Manager; Evan Duvall Planner II;
Theresa Battenfield Assistant Project Director; Andrea Brinkley Project Manager; Cara
Nesby Project Manager; Debbie Schielke Web/Cable Administrator; Rosalyn Epting
Assistant Director of Parks and Recreation; Billy Pounds Aquatic Manager.
The invocation was given by Councilmember Saboe and the Pledge of Allegiance was
led by Troop 460 Eagle Scout Terry Johnston.
MAYOR'S ACTIVITY REPORT
Mayor Reid reported on August 31 he attended the Northern Brazoria County
Educational Alliance Board of Director's Meeting; September 3, joined the Chamber of
Commerce for the Premier Pool Ribbon Cutting; September 7, attended the Agenda
Meeting and joined Mayor Pro -Tem Scott Sherman and City Manager Bill Eisen at the
Westside Library Meeting; September 8, spoke on City Progress at the Exchange Club;
September 9, attended the Brazoria County Tax Abatement Review Committee;
September 10 attended the Chamber Before Business Breakfast, met with Alvin Animal
Trainer to present a Service Dog to Sherry Govella, a Pearland citizen and presented a
Certificate of Appreciation to Kyle Lord, a Pearland soldier just returned home;
September 11 gave the prayer at the opening ceremony of Little League Football, spoke
at the recognition of the Pearland Little League Allstar Team and spoke at the Eagle
Scout Court of Honor for Troop 464.
Page 1 of 16 — 9/10/2010
Mayor Reid presented Pearland Chamber of Commerce President Carol Artz with a
Certificate of Recognition for achieving the Chamber Executive Certification.
Mayor Reid presented Janie Lewis, Alzheimer's Association, with a proclamation
proclaiming September 21, 2010, "World Alzheimer's Day."
Mayor Reid and Councilmember Owens presented Michael Rambaran, Ruth
Rambaran, and Bill Cyrus with a proclamation proclaiming September 19 — 24, 2010,
"Employee Support of Guard and Reserve Week."
Mayor Reid and Assistant City Manager Mike Hodge presented Planning Director Lata
Krishnarao, Plan and Plat Administrator Richard Keller, Office Coordinator Judy Krajca,
Planner II Evan Duvall, and Planning and Zoning Commissioners Henry Fuertes, Susan
Sherrouse, Neil West, and Richard Golden with the American Planning Association
"Planning Excellence Award 2009" for the Planning Department.
Parks, Recreation, and Beautification Boardmembers Quentin P. Wiltz and Kelly Moody
presented Parks and Recreation director Michelle Smith, Assistant Parks and
Recreation Director Rosalyn Epting, Recreation Superintendent Colene Cabezas,
Recreation Manager Julie Diaz, Aquatic Manager Billy Pounds, Project Director Trent
Epperson, and Project Manager Andrea Brinkley with a plaque for the Recognition of
their commitment and dedication to the Recreation Center and Natatorium Project.
COUNCIL ACTIVITY REPORTS
Councilmember Owens commended the Parks and Recreation Department for a great
job on the parade for the Little League Team's efforts in the World Series. He stated the
boys are a great group of kids that represented themselves and Pearland in a very
positive way. The Texas Contractors Association voted the Pearland Recreation Center
and Natatorium as the best Natatorium in the area and he feels Staff did an excellent
job.
Councilmember Saboe passed on giving a report.
Mayor Pro -Tem Sherman stated he agrees with Councilmember Owens on the success
of the Little League Parade. The Friends of the Westside Pearland Library conducted a
reorganization meeting and will meet September 14, 2010, at 7:00 p.m. at Nolan Ryan
Junior High if anyone is interested in attending.
Councilmember Kyle stated she attended the Ring of Honor Fundraiser. She wanted to
commend the group that organized the event and the citizens that came out for the
cause and help raise $40,000, which was the most money that had been raised at a
single event.
Page 2 of 16 — 9/10/2010
Councilmember Thompson stated he attended the Ring of Honor Fundraiser and it was
a wonderful event. The citizens that came out to donate their time and money exhibited
the caring and giving attitude of the community. He also is very proud of the young men
on the Little League Team and the parents of the Dad's Club.
CITY MANAGER'S REPORT
City Manager Bill Eisen stated he wanted to recognize Cary Cappers of the Parks and
Recreation Department for her efforts involved with the Little League Parade. He would
also like to thank the Pearland Police Department, Pearland Citizen Police Academy
Alumni Association for their services for crowd control. The Fire and EMS Departments
also committed their time and services for the event.
CITIZENS
Larry Marcott, 3606 Inverness Court, addressed Council and stated he would like to
discuss Inverness Lane. There is a sign that states Inverness Lane will be closed
September 20, 2010. The subdivision has only one way out and in and closing this road
will not allow residents in or out. He understands that this is probably something the
contractor has done and that the project is a State project. He has worked with Project
Director Trent Epperson on the issue before. Someone needs to address this situation
and accommodate the residents and allow them access to their homes.
DOCKETED PUBLIC HEARING: None
CONSENT AGENDA:
A. CONSIDERATION AND POSSIBLE ACTION — APPROVAL OF MINUTES:
1. Minutes of the August 16, 2010, Special Meeting — held at 6:00 p.m.
2. Minutes of the August 16, 2010, Public Hearing — Annexation Area No. 1
held at 6:30 p.m.
3. Minutes of the August 16, 2010, Public Hearing — Annexation Area No. 2
held at 6:30 p.m.
4. Minutes of the August 16, 2010, Public Hearing — Annexation Area No. 3
and 4 held at 6:30 p.m.
5. Minutes of the August 23, 2010, Special Meeting held at 7:15 p.m.
6. Minutes of the August 23, 2010, Public Hearing held at 6:30 p.m.
7. Minutes of the August 23, 2010, Regular Meeting held at 7:30 p.m.
B. CONSIDERATION AND POSSIBLE ACTION — EXCUSE
COUNCILMEMBER STEVE SABOE'S ABSENCE FROM THE AUGUST 23,
2010, REGULAR COUNCIL MEETING. City Council.
Page 3 of 16 — 9/10/2010
Councilmember Owens made the motion, seconded by Councilmember Saboe, to adopt
Consent Agenda Items A through B as presented on the Consent Agenda.
Voting "Aye" Councilmembers Owens, Saboe, Sherman, Kyle, and Thompson.
Voting "No" None.
Motion Passed 5 to 0.
MATTERS REMOVED FROM CONSENT AGENDA None
NEW BUSINESS:
FIRST READING OF ORDINANCE NO. 2000M-72 — AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF PEARLAND, TEXAS, AMENDING ORDINANCE NO.
2000M, THE ZONING MAP OF THE CITY OF PEARLAND, TEXAS, FOR THE
PURPOSE OF CHANGING THE CLASSIFICATION OF CERTAIN REAL PROPERTY,
LOCATION BEING APPROXIMATELY 3.0 ACRE TRACT OF LAND OUT OF A 10
ACRE TRACT, A RESIDUE OF D. H, STRIPLING12.000 ACRE TRACT RECORDED
VOLUME 868, PAGE 239 OF THE BRAZORIA COUNTY DEED RECORDS. ALL
BEING PART OF THE SOUTH 99 ACRES OF THE H.T. & B. R. R. CO. SURVEY,
SEC. 7, A-219 AS RECORDED IN VOLUME 595, PAGE 63 OF THE DEED OF
RECORDS OF BRAZORIA COUNTY, TEXAS GENERALLY LOCATED AT: 6301
BROADWAY STREET, PEARLAND TEXAS (ZONE CHANGE APPLICATION NO.
2010-03Z), FROM PLANNED DEVELOPMENT DISTRICT (PD) TO GENERAL
BUSINESS RETAIL DISTRICT (GB), AT THE REQUEST OF CROWN WAREHOUSE
SERVICES, APPLICANT AND OWNER, PROVIDING FOR AN AMENDMENT OF THE
ZONING DISTRICT MAP; CONTAINING A SAVINGS CLAUSE, A SEVERABILITY
CLAUSE, AN EFFECTIVE DATE AND OTHER PROVISIONS RELATED TO THE
SUBJECT. Mr. Mike Hodge, Assistant City Manager.
Councilmember Saboe made the motion, seconded by Mayor Pro -Tem Sherman, to
approve Ordinance No. 2000M-72 on its first reading.
Mayor Reid read into the record the Planning & Zoning Commission's recommendation
to forward to Council for approval of Application No. 2010-03Z.
City Manager Bill Eisen stated this item is a request for a zoning change from the
current zoning of Planned Development to General Business retail to accommodate a
fine arts studio. Staff and the Planning and Zoning Commission have recommended
the request be approved.
Page 4 of 16 — 9/10/2010
Connie McMaster, 2614 Thelma Drive, addressed Council and stated she has no
objection to the music studio being established, but she does have an objection to the
location being zoned as General Business. If the business moves out, there are too
many unfavorable businesses that can locate on the property with that zoning
classification. If the property is left at the current zoning, would the next owner be
required to obtain the approval of the Planning and Zoning Commission for any use.
Bettye Olsteen, 2550 Thelma Drive, addressed Council and stated she is concerned
that the residents aren't being governed well enough to monitor what the property may
be used for in the future. The proposed fine arts studio would be an asset if the
business succeeds. There are businesses that can potentially be located on the
property that will not be good for the surrounding residents.
Johnny Aguara, 2626 Thelma Drive, addressed Council and stated he agrees with the
previous statements and would like the businesses that could be located on the
property to be monitored and approved by the City.
Mayor Pro -Tem Sherman asked for an explanation of why the decision was made to not
follow the planned development route. It was his understanding that the City would
have some control over what happens next and he is not sure why this did not occur.
Planning Director Lata Krishnarao stated when the property was zoned planned
development, there were not sufficient buffers and other requirements between
residential and retail properties. There were certain issues associated with the zoning
at that time. This property was determined to be appropriate for a retail zoning
classification.
Discussion ensued between Council, Planning Director Lata Krishnarao, and Planner I
Ian Clowes regarding the Ordinance.
Councilmember Saboe made the motion, seconded by Councilmember Thompson, to
call the question.
Voting "Aye" Councilmembers Owens, Saboe, Sherman, Kyle, and Thompson.
Voting "No" None.
Motion Passed 5 to 0.
Mayor Reid called for the vote.
Voting "Aye" Councilmember Owens.
Voting "No" Councilmembers Thompson, Kyle, Sherman, and Saboe.
Page 5 of 16 — 9/10/2010
Motion Failed 4 to 1.
FIRST AND ONLY READING OF ORDINANCE NO. 1431 — AN ORDINANCE
AUTHORIZING AND ORDERING THE ISSUANCE OF CITY OF PEARLAND, TEXAS
PERMANENT IMPROVEMENT REFUNDING BONDS, SERIES 201013; PRESCRIBING
THE TERMS AND FORM THEREOF; MAKING OTHER PROVISIONS REGARDING
SUCH BONDS, INCLUDING USE OF THE PROCEEDS THEREOF, AUTHORIZING
THE DEFEASANCE AND DISCHARGE OF CERTAIN OUTSTANDING OBLIGATIONS,
AND MATTERS INCIDENT THERETO; AND DECLARING AN EMERGENCY.
Mr. Bill Eisen, City Manager.
Mayor Pro -Tem Sherman made the motion, seconded by Councilmember Saboe, to
approve Ordinance No. 1431 on its first reading.
Frank Ildebrando, RBC Capital Markets, provided Council with a detailed review of the
proposed bond sales.
City Manager Bill Eisen stated the City's existing credit rating is an AA- rating.
Voting "Aye" Councilmembers Thompson, Kyle, Sherman, Saboe, and Owens.
Voting "No" None.
Motion Passed 5 to 0.
FIRST AND ONLY READING OF ORDINANCE NO. 1430 — AN ORDINANCE
AUTHORIZING AND ORDERING THE ISSUANCE OF CITY OF PEARLAND, TEXAS
PERMANENT IMPROVEMENT BONDS, SERIES 2010A; PRESCRIBING THE TERMS
AND FORM THEREOF; MAKING OTHER PROVISIONS REGARDING SUCH BONDS,
INCLUDING USE OF THE PROCEEDS THEREOF, AND MATTERS INCIDENT
THERETO; AND DECLARING AN EMERGENCY. Mr. Bill Eisen, City Manager.
Councilmember Kyle made the motion, seconded by Councilmember Thompson, to
approve Ordinance No. 1430 on its first reading.
Voting "Aye" Councilmembers Owens, Saboe, Sherman, Kyle, and Thompson.
Voting "No" None.
Motion Passed 5 to 0.
Page 6 of 16 — 9/10/2010
FIRST READING OF ORDINANCE NO. 1427 — AN ORDINANCE EXTENDING THE
CITY LIMITS OF THE CITY OF PEARLAND, TEXAS, TO INCLUDE ALL LAND AREA
WITHIN CERTAIN LIMITS AND BOUNDARIES AND ANNEXING TO THE CITY OF
PEARLAND ALL OF THE AREA WITHIN SUCH LIMITS AND BOUNDARIES (126
ACRES OF LAND, MORE OR LESS, NORTH OF BAILEY ROAD AND EAST OF
FM1128 — AREA 1); APPROVING A SERVICE PLAN FOR ALL OF THE AREA WITHIN
SUCH LIMITS AND BOUNDARIES; CONTAINING OTHER PROVISIONS RELATED
TO THE SUBJECT; AND PROVIDING A SAVINGS AND SEVERABILITY CLAUSE.
Mr. Mike Hodge, Assistant City Manager.
Councilmember Thompson made the motion, seconded by Councilmember Saboe, to
approve Ordinance No. 1427 on its first reading.
City Manager Bill Eisen stated this Ordinance is for the annexation of Area No. 1. This
annexation has been the topic of discussions for several months.
Robin Anderson, 7730 Bailey Road, addressed Council and stated she noticed in the
proposed budget discussion that there were nine vacancies in the Police Department
and several positions were not going to be filled. She stated if the City is planning to
annex more land, those positions will be necessary to adequately serve those areas.
Ron Anderson, 7730 Bailey Road, addressed Council and stated the residents of the
area being annexed have been shown by the City that it is going to do whatever it wants
to do no matter how they feel about it. The children in the area that he lives in want to
raise live stock and use these skills throughout their lives. He likes to raise cattle and
ride horse and so does his entire family and now the City wants to take that away from
them. This will only bring taxes to the City to the detriment of the residents in the area.
The annexation of the area is not right and it needs to be reconsidered. This is not an
annexation, but a hostile take-over.
Debbie Kirby, 3610 Curtiss Lane, addressed Council and stated she is opposed to the
annexation of Area No. 1. She stated she has contacted many representatives of the
City and received no response. People from other cities have advised her that if a City
is annexing an area in this manner, it is not about anything except money. She moved
to her residence when Pearland had 17,000 residents and the increase in population
has not done nothing but raise the crime rate. She wishes that the City would
reconsider this annexation.
Bruce Kirby, 3610 Curtis Lane, addressed Council and stated he would like the City to
reconsider annexing the area where he resides. There are no benefits to the residents
in the area and they have not been able to get answers regarding the future plans for
their property.
Page 7 of 16 — 9/10/2010
Councilmember Owens stated he can understand how the residents feel and their
concern. Many of the complaints have been that the residents do not receive anything
from the City; however, the City will provide EMS and Fire Emergency service. He
stated he feels the City will be able to provide many benefits to the residents in the area.
Councilmember Saboe stated he is sympathetic to the residents who have spoken out
in opposition to this annexation. He does not see there being a solution to the problem
because the City and the residents see the situation differently. He fundamentally
believes that everyone in the area will receive a benefit whether they choose to utilize it
or not. He stated he does not agree that the City will be taking away any rights to
residents in the area and views zoning as a positive system.
Councilmember Thompson stated he does not have a problem with the proposed
annexation; however, one thing that concerns him is the zoning issue. He stated he
would feel more comfortable if the zoning issues were addressed before the annexation
process. When the residents bought their property it wasn't zoned and now the City will
bring it in and control what it can be used for and he doesn't feel this is right.
Mayor Pro -Tem Sherman stated he is concerned about coming in and telling the
residents what they can do in their backyard. He would not be opposed to having some
type of analysis done to better classify the properties.
City Attorney Darrin Coker stated the concern regarding livestock is not addressed by
zoning, but is address in a separate City Ordinance.
Discussion ensued between Council and City Attorney Darrin Coker regarding the
Ordinance.
Councilmember Kyle stated Council has invited Citizens to come speak because they
need to hear from them. We may not see eye to eye, but it doesn't mean a compromise
can't be reached. The Bailey Corridor is growing and the City is investing a large sum
of money and has to consider the position of the rest of the citizens.
Voting "Aye" Councilmembers Owens, Saboe, and Kyle.
Voting "No" Councilmembers Thompson and Sherman.
Motion Passed 3 to 2.
Page 8 of 16 — 9/10/2010
FIRST READING OF ORDINANCE NO. 1428 — AN ORDINANCE EXTENDING THE
CITY LIMITS OF THE CITY OF PEARLAND, TEXAS, TO INCLUDE ALL LAND AREA
WITHIN CERTAIN LIMITS AND BOUNDARIES AND ANNEXING TO THE CITY OF
PEARLAND ALL OF THE AREA WITHIN SUCH LIMITS AND BOUNDARIES (189
ACRES OF LAND, MORE OR LESS SOUTH OF BAILEY ROAD BETWEEN
VETERANS DRIVE AND FM 1128 — AREA 2); APPROVING A SERVICE PLAN FOR
ALL OF THE AREA WITHIN SUCH LIMITS AND BOUNDARIES; CONTAINING
OTHER PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING A SAVINGS
AND SEVERABILITY CLAUSE. Mr. Mike Hodge, Assistant City Manager.
Councilmember Owens made the motion, seconded by Councilmember Saboe, to
approve Ordinance No. 1428 on its first reading.
City Manager Bill Eisen stated this item is a proposed annexation of Area No. 2 that is
located south of Bailey Road between FM 1128 and Veterans Drive.
Voting "Aye" Councilmembers Owens, Saboe, and Kyle.
Voting "No" Councilmembers Thompson and Sherman.
Motion Passed 3 to 2.
FIRST READING OF ORDINANCE NO. 1429 — AN ORDINANCE EXTENDING THE
CITY LIMITS OF THE CITY OF PEARLAND, TEXAS, TO INCLUDE ALL LAND AREA
WITHIN CERTAIN LIMITS AND BOUNDARIES AND ANNEXING TO THE CITY OF
PEARLAND ALL OF THE AREA WITHIN SUCH LIMITS AND BOUNDARIES (307
ACRES MORE OR LESS WEST OF SH 288 BETWEEN BROADWAY AND MUSTANG
BAYOU — AREAS 3 AND 4); APPROVING A SERVICE PLAN FOR ALL OF THE AREA
WITHIN SUCH LIMITS AND BOUNDARIES; CONTAINING OTHER PROVISIONS
RELATED TO THE SUBJECT; AND PROVIDING A SAVINGS AND SEVERABILITY
CLAUSE. Mr. Mike Hodge, Assistant City Manager.
Councilmember Saboe made the motion, seconded by Councilmember Owens, to
approve Ordinance No. 1429 on its first reading.
City Manager Bill Eisen stated this item is for the annexation of Areas No. 3 and No. 4
that are located in the general vicinity of C.R. 48 south of Broadway.
Voting "Aye" Councilmembers Owens, Saboe, and Kyle.
Voting "No" Councilmembers Thompson and Sherman.
Voting "No" None.
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Motion Passed 3 to 2.
FIRST READING OF ORDINANCE NO. 1432 — AN APPROPRIATION ORDINANCE
ADOPTING A REVISED BUDGET FOR THE FISCAL YEAR ENDING SEPTEMBER
30, 2010 AND ADOPTING A BUDGET FOR THE FISCAL YEAR BEGINNING
OCTOBER 1, 2010, AND ENDING SEPTEMBER 30, 2011. Mr. Bill Eisen, City
Manager.
Mayor Pro -Tem Sherman made the motion, seconded by Councilmember Saboe, to
approve Ordinance No. 1432 on its first reading.
City Manager Bill Eisen stated Council has conducted five Workshops and two Public
Hearings regarding the proposed Fiscal Year 2011 Budget. This item is to approve the
Ordinance that will adopt the final Budget.
Councilmember Kyle stated she has not made a decision on whether to support the fire
service fees previously discussed because the information exchange was less than
perfect. She would like to be clear on that issue so that when and if the Ordinance for
the fire fees comes to Council, she has planted the seed that she may or may not
support it. She cannot take that item out of the proposed Budget at this point; however,
she would like to clarify that if she votes in favor of the budget the vote is not in favor of
that particular item.
Councilmember Kyle made the motion, seconded by Mayor Pro -Tem Sherman, to
amend the Ordinance No. 1432 to remove the funding of $210,000 for the Northern
Brazoria County Education Alliance from the Pearland Economic Development Budget.
Voting "Aye" Councilmembers Sherman and Kyle.
Voting "No" Councilmembers Thompson, Saboe, and Owens.
Motion Failed 3 to 2.
Mayor Reid called for the vote on the original motion.
Voting "Aye" Councilmembers Thompson, Kyle, Sherman, Saboe, and Owens.
Voting "No" None.
Motion Passed 5 to 0.
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FIRST READING OF ORDINANCE NO. 1433 — AN ORDINANCE ADOPTING A TAX
RATE OF $0.6651 AND 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
2010. Mr. Bill Eisen, City Manager.
Councilmember Kyle made the motion, seconded by Councilmember Owens, to
approve Ordinance No. 1433 on its first reading.
City Manager Bill Eisen stated this Ordinance will adopt a tax rate of $0.6551/$100.
Voting "Aye" Councilmembers Owens, Saboe, Sherman, Kyle, and Thompson.
Voting "No" None.
Motion Passed 5 to 0.
COUNCIL ACTION — RESOLUTION NO. R2010-117 — RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PEARLAND, TEXAS SUPPORTING THE
CERTIFICATION OF A MUNICIPAL SETTING DESIGNATION AT 6712 TELEAN
STREET, HOUSTON, HARRIS COUNTY, TEXAS. Mr. Darrin Coker, City Attorney.
Councilmember Thompson made the motion, seconded by Mayor Pro -Tem Sherman, to
approve Resolution No. R2010-117.
City Attorney Darrin Coker stated a Workshop was recently held regarding the Municipal
Setting Designation. An update of the status of the Resolutions of other entities has
also been provided to Council.
Voting "Aye" Councilmembers Thompson, Kyle, Sherman, Saboe, and Owens.
Voting "No" None.
Motion Passed 5 to 0.
COUNCIL ACTION — RESOLUTION NO. R2010-121 — A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PEARLAND, TEXAS, AWARDING A BID FOR
CONSTRUCTION SERVICES ASSOCIATED WITH THE MCHARD ROAD SOUND
WALL PROJECT. Mr. Trent Epperson, Project Director.
Councilmember Owens made the motion, seconded by Councilmember Saboe, to
approve Resolution No. R2010-121.
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City Manager Bill Eisen stated this item is for the award of a bid for the McHard Road
Sound Wall Project. Sound studies were completed that indicated in certain locations
sound walls were warranted. The low bid was submitted by John Reed and Company,
Ltd. in the amount of $934,242. Brazoria County will fund $575,906 of that amount.
Voting "Aye" Councilmembers Owens, Saboe, Sherman, Kyle, and Thompson.
Voting "No" None.
Motion Passed 5 to 0.
FIRST READING OF ORDINANCE NO. 1358-5 — AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF PEARLAND, TEXAS, AMENDING NON -DEVELOPMENT
USAGE AND SERVICE FEES; CONTAINING A SAVINGS CLAUSE, A SEVERABILITY
CLAUSE AND A REPEALER CLAUSE; PROVIDING FOR PUBLICATION AND AN
EFFECTIVE DATE. Mr. Bill Eisen, City Manager.
Councilmember Saboe made the motion, seconded by Mayor Pro -Tem Sherman, to
approve Ordinance No. 1358-5 on its first reading.
City Manager Bill Eisen stated the City has an Ordinance which prescribes various fees
that are provided. The changes needed are a result of changes in the proposed
Budget.
Voting "Aye" Councilmembers Thompson, Kyle, Sherman, Saboe, and Owens.
Voting "No" None.
Motion Passed 5 to 0.
COUNCIL ACTION — RESOLUTION NO. R2010-120 — A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PEARLAND, TEXAS, AWARDING A BID FOR
CONSTRUCTION SERVICES ASSOCIATED WITH THE INTERIM TRAFFIC SIGNAL
LOCATED AT MYKAWA ROAD AND BROOKSIDE ROAD. Mr. Bill Eisen, City
Manager.
Mayor Pro -Tem Sherman made the motion, seconded by Councilmember Kyle, to
approve Resolution No. R2010-120.
City Manager Bill Eisen stated a study was completed that determined that a signal was
warranted at the intersection of MyKawa Road and Brookside Road. This item is for the
temporary installation of an interim traffic light in that location.
Voting "Aye" Councilmembers Thompson, Kyle, Sherman, Saboe, and Owens.
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Voting "No" None.
Motion Passed 5 to 0.
COUNCIL ACTION — RESOLUTION NO. R2010-119 — A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PEARLAND, TEXAS RATIFYING EXPENDITURES FOR
REPAIRS AND REPLACEMENT PARTS ASSOCIATED WITH THE CITY'S WATER
METER TESTING PROGRAM. Mr. Bill Eisen, City Manager.
Councilmember Kyle made the motion, seconded by Councilmember Saboe, to approve
Resolution No. R2010-119.
City Manager Bill Eisen stated the City had entered into an agreement to test large
water meters within the City and, as a result of those tests, it was noted that many of the
water meters were reading inaccurately. The necessary repairs were completed and
the expenses exceeded the amount that could be expended without Council approval.
This Resolution is to ratify the expenditures associated with those repairs.
Councilmember Saboe asked if the possibility was considered when the firm was asked
to perform the testing.
Utility Billing Supervisor Margaret McNulty stated that at that time, the magnitude of
meters needing to be repaired was not realized. The Public Works Department was not
going to be able to get to the repairs of these meters right away. Because of the
financial impact, the firm that performed the testing was utilized to perform the repairs.
Discussion ensued between Council and Utility Billing Supervisor Margaret McNulty
regarding the Resolution.
Voting "Aye" Councilmembers Owens, Saboe, Sherman, Kyle, and Thompson.
Voting "No" None.
Motion Passed 5 to 0.
COUNCIL ACTION — RESOLUTION NO. R2010-118 — A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING PARTICIPATION
WITH THE TEXAS ASSOCIATION OF SCHOOL BOARDS (TASB) FOR THE
PURCHASE OF COPIER SERVICES. Mr. Bill Eisen, City Manager.
Councilmember Thompson made the motion, seconded by Councilmember Saboe, to
approve Resolution No. R2010-118.
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City Manager Bill Eisen stated this item would replace the existing copiers, within the
City, to take advantage of an $8,700 savings.
Councilmember Saboe asked if there was a local option to provide this service and
stated, with the current economic conditions, the City needs to utilize local businesses
whenever possible.
Purchasing Officer Bob Pearce stated, with service requirements of this size, there are
typically not local options.
Voting "Aye" Councilmembers Thompson, Kyle, Sherman, Saboe, and Owens.
Voting "No" None.
Motion Passed 5 to 0.
FIRST READING OF ORDINANCE NO. 33-1 — AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF PEARLAND, TEXAS, AMENDING CHAPTER 20,
OFFENSES AND MISCELLANEOUS PROVISIONS, OF THE CITY OF PEARLAND
CODE OF ORDINANCES, AS IT MAY HAVE BEEN, FROM TIME TO TIME,
AMENDED, TO AMEND SECTION 20-4, ENTITLED DISCHARGE OF WEAPONS;
PROVIDING A PENALTY; HAVING A SAVINGS CLAUSE, A SEVERABILITY CLAUSE,
AND A REPEALER CLAUSE; AND PROVIDING FOR CODIFICATION AND AN
EFFECTIVE DATE. Mr. Darrin Coker, City Attorney.
Councilmember Owens made the motion, seconded by Councilmember Saboe, to
approve Ordinance No. 33-1 on its first reading.
City Attorney Darrin Coker stated this Ordinance will amend the Fire Arms Ordinance to
allow in -door firing ranges within the allowances of the Unified Development Code and
zoning restrictions.
Voting "Aye" Councilmembers Owens, Saboe, Sherman, Kyle, and Thompson.
Voting "No" None.
Motion Passed 5 to 0.
OTHER BUSINESS:
Council adjourned into Executive Session under Texas Government Code at 10:20 p.m.
to discuss the following:
Page 14 of 16 — 9/10/2010
EXECUTIVE SESSION UNDER TEXAS GOVERNMENT CODE
1. SECTION 551.071 - CONSULTATION WITH CITY ATTORNEY -
REGARDING INFORMATION SUBJECT TO THE ATTORNEY CLIENT
PRIVILEGE REGARDING ECONOMIC DEVELOPMENT. Mr. Darrin Coker,
City Attorney.
NEW BUSINESS (CONTINUED):
Council returned from Executive Session at 11:54 p.m.
COUNCIL ACTION — REGARDING INFORMATION SUBJECT TO THE ATTORNEY
CLIENT PRIVILEGE REGARDING ECONOMIC DEVELOPMENT. City Council.
FIRST READING OF ORDINANCE NO. 1432 — AN APPROPRIATION ORDINANCE
ADOPTING A REVISED BUDGET FOR THE FISCAL YEAR ENDING SEPTEMBER
30, 2010 AND ADOPTING A BUDGET FOR THE FISCAL YEAR BEGINNING
OCTOBER 1, 2010, AND ENDING SEPTEMBER 30, 2011. Mr. Bill Eisen, City
Manager.
Councilmember Kyle made the motion, seconded by Mayor Pro -Tem Sherman, to place
Ordinance No. 1432 back on the table for Council's consideration.
Voting "Aye" Councilmembers Owens, Saboe, Sherman, Kyle, and Thompson.
Voting "No" None.
Motion Passed 5 to 0.
Councilmember Kyle made the motion, seconded by Mayor Pro -Tem Sherman, to
amend the Ordinance and remove the funding of $210,000 for the Northern Brazoria
County Education Alliance from the Pearland Economic Development Budget.
Voting "Aye" Councilmembers Thompson, Kyle, Sherman, Saboe, and Owens.
Voting "No" None.
Motion Passed 5 to 0.
FIRST READING OF ORDINANCE NO. 1432 — AN APPROPRIATION ORDINANCE
ADOPTING A REVISED BUDGET FOR THE FISCAL YEAR ENDING SEPTEMBER
30, 2010 AND ADOPTING A BUDGET FOR THE FISCAL YEAR BEGINNING
OCTOBER 1, 2010, AND ENDING SEPTEMBER 30, 2011.
Mr. Bill Eisen, City Manager.
Page 15 of 16 — 9/10/2010
Councilmember Kyle made the motion, seconded by Mayor Pro -Tem Sherman, approve
the 2010-2011 Budget as amended.
Voting "Aye" Councilmembers Owens, Saboe, Sherman, Kyle, and Thompson.
Voting "No" None.
Motion Passed 5 to 0.
ADJOURNMENT
Meeting was adjourned at 11:54 p.m.
Minutes approved as submitted and/or corrected this the 27th day of September, A.D.,
2010.
C-IVULIJ
Tom Reid
Mayor
ATTEST:
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