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1995-03-13 CITY COUNCIL REGULAR MEETING MINUTES - 8:00PM236 MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, HELD ON MARCH 13, 1995 AT 8:00 P. M., IN THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS The meeting was called to order with the following present: Mayor Mayor Pro Tem/Councilmember Councilmember Councilmember Councilmember Councilmember City Manager City Attorney Interim City Secretary C. V. Coppinger David Smith D. A. Miller Richard Tetens Randy Weber Jerry Richardson Paul Grohman Amy McCullough Tommie Jean Vial Others in attendance: Assistant City Managers Glen Erwin and Richard Burdine; and Police Chief Mike Hogg. INVOCATION AND PLEDGE OF ALLEGIANCE The invocation was given by Rev. Rick Scarborough of the First Baptist Church of Pearland. The Pledge of Allegiance was led by Councilmember Tetens. APPROVAL OF MINUTES MAYOR'S ACTIVITY REPORT COUNCIL ACTIVITY REPORTS Councilmember Smith stated he was informed that the local Y.M.C.A. was considering changing the name of their building to the C. V. "Vic" Coppinger Tri -County Y.M.C.A." A standing ovation was given Mayor Coppinger. Mayor Coppinger said he was very appreciative of this honor and that it was a real joy and pleasure to be a part of the progress that the "Y" has made over the past ten to 15 years. CITY MANAGER'S REPORT CITIZENS: None DOCKETED PUBLIC HEARINGS: None UNFINISHED BUSINESS: None NEW BUSINESS APPROVAL OF LITTLE LEAGUE PARADE ROUTE Chief Hogg explained his department will be submitting to the City Attorney, for her review, their recommended changes to the City's parade routes and procedures. He said that with all our rapid growth and additional traffic problems, he felt it was not in the best interest of Pearland to have parades routed down FM518 or SH35 on a routine basis. under their new plan, if and when approved by Council, all routine parade requests will be approved through his office but the significant parades, that Council desires to route down our major thoroughfares, will be submitted to Council for their approval. Continuing, Chief Hogg said the item on the agenda tonight for Council's approval is the annual Little League Parade, which will be held on Saturday, March 25, 1995, at 9:00 a.m. The parade will begin on N. Texas at Broadway, proceed west on Broadway, south on Hatfield and then west on Fite to the Pearland Area Dad's Club. After a brief discussion, it was moved by Councilmember Tetens, seconded by Councilmember Richardson to approve the Little League Parade Route as approved by Chief Hogg. Motion passed 5 to 0. Mayor Coppinger recognized from the audience Steve Gimenez of the YMCA. He commended Steve for his fine leadership in the community and all the dedicated professionals who are associated with the YMCA. REVIEW OF IMMEDIATE CAPITAL IMPROVEMENT NEEDS Mr. Grohman explained that the City's improvement needs identified today could reasonably be in excess of $100 million. However, only $5 million in bond resources can be identified without a tax increase. He said Assistant City Manager Burdine would be giving us a review of projects, with specific timeframes, that need to be at the top of the list in considering the $5 million bond project. Assistant City Manager Burdine, using the overhead projector, highlighted the six priority projects needed by the City. The first two projects identified by Mr. Burdine are the Centennial Blvd. /Oiler Drive project, the first two lanes of a road from SH35, along the south side of the High School, turning northwest up to John Lizer, crossing John Lizer, Mary's Creek to FM518. Continuing, Mr. Burdine informed the third project is the upgrade of Shadybend Drive from Liberty to Misty, as a collector width street. The fourth, fifth and sixth projects are combined in the West Broadway upgrade, i.e., reconstruction of the McLean/Walnut/ 518 intersection; reconstruction of the old and new Hatfield intersections, including new signalization; and the alignment of the Harkey/O'Day intersection. In conclusion, Mr. Burdine advised that the funding resources summary, i.e., the proposed $5 million in Certificates of Obligation, the previously paid engineering for Centennial Blvd., and some remaining 1992 street bonds, totals approximately $5,700,000. The immediate funding needs of $3,172,400 subtracted from the above amount would leave a balance of $2,514,400 available for other projects. A short discussion ensued regarding the immediate needs projects. RESOLUTION NO. R95-15, AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION NOT TO EXCEED $5,500,000. Resolution No. R95-15 read in caption by Councilmember Weber. It was moved by Councilmember Weber, seconded by Councilmember Richardson to approve Resolution No. R95-15. Said Resolution No. R95-15 reads in caption as follows: RESOLUTION NO. R95-15 RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION IN A PRINCIPAL AMOUNT NOT TO EXCEED $5,500,000 FOR THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF CERTAIN PUBLIC WORKS, AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO SUCH CERTIFICATES AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO. 238 Mr. Frank Ildebrando, Senior Vice President of Rauscher Pierce Refsnes, Inc., using the overhead projector, gave an overview of the Schedule of Events regarding the bond sale on April 24, 1995. He said the Notice of Intention to Issue Certificates of Obligation must first be published twice in the official newspaper before any action can be taken. The Official Statement and Notice of Sale will be prepared within the next two weeks and will be distributed to approximately 300-400 prospective buyers around the middle of April. Bids will be received on April 24, 1995 and recommendations made at that time. Mr. Ildebrando said they have estimated the rate of interest to the City should be approximately 6%, or lower, under present market conditions. Continuing, he said that Standards & Poor have upgraded the City's bond rating from an A minus to an A. Continuing further, Mr. Ildebrando said in the past when interests rates were low, they were able to sell bonds around 5-1/4% to 5- 1/2%, but investments on the bonds were in the 4% range. Today while interest rates are slightly higher, the short term market is very much higher in interest rates and they should be able to invest the money from the bond sale in excess of 6%. He said he thought we were fairly stable for the next 60-90 days, should be able to keep the debt service tax rate at 26C over the next three to four years, and be able to support this debt without any increase there. Questions were posed regarding the City's financial condition, reserves, and timing of the sale. A brief discussion followed. Mr. Ildebrando also read a portion of the Standard & Poor's report concerning the City's upgrade from an A minus to an A. He felt that the last paragraph of the report stating, "The City's financial operations are sound despite rapid budget growth because of population growth, the City has been able to lower it's tax rate and maintain strong reserves." was an important statement. Mr. Rick Witte, of the law firm of Mayor, Day, Caldwell & Keeton, introduced himself and advised that their firm had prepared the Resolution given to each Councilmember. He then offered to answer any questions that Council might have. Councilmember Richardson requested guidelines for spending the monies remaining from the $5,000,000 bond issue (approximately $3.1 million is already allocated for six priority projects.) Mr. Witte said that by statutes, the monies can be used for the construction of any public works, purchase of material, supplies, equipment, machinery, buildings, lands and rights-of-way, payment of professional services rendered in connection with any of those activities, constructing or equipping a jail, constructing/renovating any buildings, constructing a bridge, or demolition of dangerous structures. He then discussed a new rule from the Attorney General's office and its effect on the issuing of certificates and the publishing of the notice. With this new rule, the Attorney General's office asks that a specific description on how the City intends to spend the money be given. A brief discussion followed concerning whether the wording of the notice would also include such things as library expansion and flood control. Mr. Witte said they list the projects to satisfy the Attorney General's requirements, but also include the phrase, "including, but not limited to. . ." to build in some flexibility. Upon call for the question, Council voted as follows: Voting "Aye" - Councilmembers Richardson, Weber, Smith, Tetens and Miller. Voting "No" - None. Motion passed 5 to 0. AUTHORIZATION FOR CITY MANAGER TO ENTER INTO AN AGREEMENT WITH A CONSULTING ENGINEER FOR DESIGN OF SHADYBEND DRIVE. Mr. Grohman explained this is a small project needing authorization to go forward. He said that we do not have the ability to do this engineering job in-house at this time and that the project could be completed fairly quickly. A brief discussion followed. It was moved by Councilmember Tetens, seconded by Councilmember Richardson to authorize the City Manager to enter into an agreement with a consulting engineer for design of Shadybend Drive. Motion passed 5 to 0. OTHER BUSINESS MEETING RECESSED TO EXECUTIVE SESSION AT 8:47 P. M. UNDER TEXAS GOVERNMENT CODE Mayor Coppinger read from the posted agenda the following topic to be discussed in Executive Session: UNDER SECTION 551.072 - ACQUISITION OF LAND - PURCHASE OF DRAINAGE RIGHT-OF-WAY FOR HICKORY DETENTION PROJECT. MEETING RETURNED TO OPEN SESSION AT 9:15 P. M. NEW BUSINESS: (Continued) DIRECTION TO CITY STAFF REGARDING THE ACQUISITION OF LAND FOR DRAINAGE RIGHT-OF-WAY FOR HICKORY DETENTION PROJECT It was moved by Councilmember Richardson, seconded by Councilmember Tetens that the staff be directed to proceed with the acquisition of land of the drainage right-of-way for Hickory Detention as prescribed in Executive Session. Motion passed 5 to 0. ADJOURNMENT The meeting adjourned at 9:17 P.M. Minutes approved as submitted and/or corrected this �� day of _ , A. D., 1995. C. V. Coppinger Mayor ATTEST: Tommie Jean Vi4i Interim City Secretary Wui