City Council Regular Meeting Minutes

January 26, 2012

Page 1 of 23

D R A F T

MINUTES OF THEREGULAR MEETING OF THE CITY

COUNCILOF THE CITY OF BAYTOWN

January 26, 2012

The City Council of the City of Baytown, Texas, met in aRegularMeeting on Thursday, January 26, 2012,at6:30P.M. in the Council Chamber of the BaytownCity Hall, 2401 Market Street, Baytown, Texas with the following in attendance:

Brandon CapetilloCouncil Member

Robert HoskinsCouncil Member

David McCartneyCouncil Member

Mercedes RenteriaCouncil Member

Terry SainCouncil Member

Stephen H. DonCarlosMayor

Robert D.LeiperCity Manager

Ron BottomsDeputyCity Manager

Kevin TrollerAssistant City Manager

Ignacio RamirezCity Attorney

Leticia BryschCity Clerk

Keith DoughertySergeant at Arms

Mayor DonCarlos convened the January 26, 2012, City Council RegularMeeting with a quorum present at 6:30P.M., all members were present with the exception of Council Member Sheley who was absent.

Pledge of AllegianceandTexas Pledge was led by Daniel Crespo;Invocation was led by Council Member Capetillo.

1.MINUTES

a.Consider Approving the Minutes of the City Council Regular Meeting held onJanuary 12, 2012 - City Clerk.

A motion was made by Council Member Terry Sainand seconded by Council Member Mercedes Renteria III approving the minutes of the January 12, 2012, City Council Regular Meeting. The vote was as follows:

Ayes: Mayor Stephen DonCarlos, Council Member Brandon Capetillo, Council Member Robert C. Hoskins, Council Member David McCartney, Council Member Mercedes Renteria III, Council Member Terry Sain

Nays:None

Other:Council Member Scott Sheley (Absent)

Approved

2.RECOGNITIONS AND CITIZEN COMMUNICATIONS

a.Citizen Communication: Joan Martin.

Ms. Joan Martin requested to address Council to persuade the Council to pass and enforce rules to stop dogs from running loose.

City Manager Leiper stated that staff has been in touch with Ms. Martin before today's meeting and is working with her on getting information to follow up on her concern.

Tom Slackregistered to speak before Council in regards to item 2.a. and stated that he lives at 1000 Polly Avenue. Mr. Slack stated that he is in favor of making a law against pitbulls.

b.Years of Service Awards - Human Resources.

City Manager Leiper presented the agenda itemandrecognized theCity of Baytown employees for their 5, 10, and 15 plus years of service.

5 YEAR:
Robert Brown, Finance, Accountant II
Mikel Marino, Parks & Recreation, Heavy Equipment Operator I
30 YEAR:
Larry Lewis, Police, Patrol Officer
Terry Seely, Public Works, BAWA Laboratory Technician
35 YEAR:
Shon Blake, Fire Chief

c.Employee and Team of the Month - Human Resources.

City Manager Leiper presented the agenda item and recognized the December employee of the month to Nancy Nealand the team of the month to Tiffany Foster and John Dupuis.

d.Recognition: Daniel Adam Crespo - Administration.

City Manager Leiper presented the agenda item to present recognition to Daniel Adam Crespo for his outstanding community service and achievement of the Eagle Scout Rank.

3.PROPOSED ORDINANCES

a.Consider Authorizing the Issuance of General Obligation and Refunding Bonds Series 2012 - Finance.

City Manager Leiper presented the agenda item and stated thatthe bonds issued pursuant to this Ordinance No. 11,846will be issued in a par amount not to exceed $34,500,000, with approximately $14,005,000 allocated to new projects and approximately $20,495,000 allocated to the refunding.Theseamounts may be adjusted so long as the maximum does not exceed $34,500,000. Proceeds from the general obligation bonds will be used for streets, sidewalks and related drainage and utilities; public safety; park improvements and land; the design of the East Baker Road extension; and drainage. City Council previously approved an advanced funding resolution for construction costs, which istheintent of the general obligations bonds,on June 23, 2011.Additionally, Ordinance No. 11,846:

  • sets certain parameters for the bonds;
  • authorizes the Mayor and/or City Manager to approve the amount, the interest rate, price and certain other terms of the bonds;
  • authorizes execution of a bond purchase agreement and a paying agent/registrar agreement;
  • appoints underwriters; and
  • approves the preparation and distribution of an official statement.

City Manager Leiper stated that Drew Masterson would provide additional explanations of this process.

Mr. Masterson presented a tablefor the 2012 year that includeddata showing the refinancing of the year 2004 Bond. Mr. Masterson stated that thenet present value savings would be a little over$1.6 million which would be 9.4% of the bondsrefunded.He also stated that the average savings ayear would be $161,000 and a refinancing amount would be $17,095,000 of old bonds.Mr. Masterson stated that the average interest rate would be 2.17%.

Mr. Masterson explained that the next step in the process and stated that it included Council appointing the City Manager to finalize the transactionbysigning the Officers Pricing Certificatein which the certificate secures the interest rate andthen thedocuments are expected the mailed February 09, 2012.

A motion was made by Council Member David McCartneyand seconded by Council Member Brandon Capetillo approving Ordinance No. 11,846. The vote was as follows:

Ayes: Mayor Stephen DonCarlos, Council Member Brandon Capetillo, Council Member Robert C. Hoskins, Council Member David McCartney, Council Member Mercedes Renteria III, Council Member Terry Sain

Nays:None

Other:Council Member Scott Sheley (Absent)

Approved

ORDINANCE NO. 11,846

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE ISSUANCE OF CITY OF BAYTOWN, TEXAS GENERAL OBLIGATION AND REFUNDING BONDS, SERIES 2012; LEVYING A TAX IN PAYMENT THEREOF; SETTING CERTAIN PARAMETERS FOR THE BONDS; AUTHORIZING THE AUTHORIZED OFFICER TO APPROVE THE AMOUNT, THE INTEREST RATE, PRICE AND CERTAIN OTHER TERMS THEREOF; AUTHORIZING THE REDEMPTION PRIOR TO MATURITY OF CERTAIN OUTSTANDING BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE AGREEMENT, AN ESCROW AGREEMENT AND A PAYING AGENT/REGISTRAR AGREEMENT RELATING TO SUCH BONDS; APPROVING THE PREPARATION AND DISTRIBUTION OF AN OFFICIAL STATEMENT; AND ENACTING OTHER PROVISIONS RELATING THERETO; AND PROVIDING FOR THE EFFECT WE DATE THEREOF.

MayorDonCarlos recommendedwith Council’s approval thatthe agendabe taken out of orderand stated thatagenda item 4.i. would beconsidered.

4.i.First Public Hearing: Regarding the Proposed Annexation of 608 Acres of Land in the ETJ - Planning and Development Services.

At 6:52 P.M., Mayor DonCarlos conducted the first public hearing regarding the proposed annexation of approximately 608 acres of land in the City's extraterritorial jurisdiction, generally located between Interstate 10 to the north, East Cedar Bayou-Lynchburg Road to the south, Garth Road on the west, North Main Street to the east, as well as the unincorporated property located approximately 500 feet east of North Main Street between Interstate 10 and West Cedar Bayou-Lynchburg Road in Harris County, Texas.
City Manager Leiper stated that on October 11, 2011, the City Council authorized staff to prepare a service plan for thedescribed annexation. Parts of the surrounding area have been incrementally annexed over the years as utilities are extended. The upcoming completion of the water and sewer project along N. Main Street will provide the base infrastructure for extending utilities to all of this area. This parcel is contiguous to the city limits of Baytown and is occupied with 83 residential parcels.

City Manager Leiper stated that a service plan was created for the property andnotice of the first public hearing was published in the January 10, 2012, issue of the Baytown Sun and posted on the City of Baytown’s notice board and website on January 10, 2011. The next public hearing is scheduled for February 09, 2012.

City Manager Leiper stated that the questions and interaction that he’s had since the notice was sent out to the residents surrounds the utilities. He stated that in that area most of the residents are on well or septic systems and are concerned that once the utilities are extended, if theywillbe required topay impact fees and connect to those utilities. City Manager Leiper stated that as long as the resident has a properly licensed and functioningseptic system,which is required byHarrisCounty,they can remain on that system. City Manager Leiper stated that some residents receive the City's sewer and water, because in the pastthe City provided those services to residentsoutside of the city limits sothey were grandfathered in.He also stated thatthose residents pay a 50% premiumon their water and sewer rates and that theCitycharges1 1/2 times the rate for utilities outside the City. City Manager Leiper stated that upon completion of the annexation,the rates will adjust to the City rates.Additionally,as utilities are installed in this area, fire hydrants will be put in, which could orshouldlower the residents’ insurancerates and they will receivefull police and fire protection from City of Baytown. He stated that those residents receive limited fireprotection with HarrisCounty and they rely on the Sheriff's Department for their police protection.

Paula Bradley, Linda Ball, Ann Stubbs, Barry Woodward, Dannyand Sylvia Foster, Sandy Sobotik, Belinda Tigert, Walter Halzlere, Kansas Tigert-Smith, David Tigert, Balbino Faz, E. Hutton, and Kelly Hollaway all registered to speak before a public hearing in regards to item 4.i.

Ms. Paula Bradley stated that she lives at 315 West Archer Road and that the City Manager Leiper answered most of her questions but she inquired if the taxes would increase. City Manager Leiper stated that the taxes would increase.

City Manager Leiper stated that he submitted a written policy that includedFAQ'stoall departments and stated that it will take approximately two (2) years to get the system installed. He also stated that the engineering department will provide the design which will expedite the process which would reduce the cost, and that the funds are available in the CIP.

Mayor DonCarlos inquired if the City could save theresidents money on garbage services. CityManager Leiper stated that the residents would be eligible for Citygarbageand staff willwork with residents that have contracts with other garbage service companies. For clarification purposes, City Manager Leiper stated that if a resident does not want the City's water and sewer services, they will not be billed for those services. Additionally, the residents can receive water and not sewer,but they could not receive sewerand notwater because the sewer is billed based on the gallons on the water meter.

Ms. Linda Ball stated that she owns Lazy Acres Mobile Home Park and inquired if the City'swater and sewerlines would connect tothe individualmobile homes on the parkor if she would be required torun the lines to the mobile homes and then connectone main line to the City's line and if she would be required to have a retention pond.City Manager Leiper stated thatMs. Ball would have to connectto the City at the right-of-way line but that he would provide her with a more definite answer after the meeting and that she would not be required to have a retention pond. City Manager Leiper stated that everything that is currently built isgrandfatheredto the standards that were there. Ms. Ball inquired of the grandfathered standards applied if she expanded the park. CityManager Leiper stated that the part that isexpanded would have to meet the City'scode and standards.

Ms. Ann Stubbs stated that she lives at 707 North Road and inquired what the impact fees would be, how soon the fire hydrants would be put in, if the insurancewill begin to lower once the hydrants are put in, when would the property tax increase become effective,how would the residents know that their septic system is meeting the City standards, how would the City work with residents who want to connect with the City butcan't afford to, and inquired if the City would come back and change their minds in regards tothose residents that were grandfathered. City Manager Leiper addressed Ms. Stubbs questions and replied as follows: the impact fees are based on water meter size which a standard residential 5/8 meter is approximately $2,200 for water and sewer,approximately $350 for water only, and for sewer a little less than $2,000; the hydrants are put in on the same main so it would take approximately 18 months to 2 years for the hydrants to be installed; one thing that may lower the insurance is that the resident will change from the County fire protection to the City fire protection and receive the benefit of the City's insurance rating; the residents would not go onto the City's tax roll until January 01, 2013; the City of Baytown standards are the same as the County standards so the septic systems should currentlybe registered and certified by Harris County; a resident would have to pay the fees in order to connect to City utilities; and in reference to the City changing their minds in regards to the residents that aregrandfathered, City Manager Leiper stated that he wouldn't say that they never would change their minds, but he didn'tseea reason why they would.City Manager Leiper stated for clarification that any new development in that area would haveto connect to city utilities.

During discussion, Council inquired if there was a way to work out the impact fees. City Manager Leiper stated that the stated law requires that the impact fees be paid at the time the connection is made.

Mr. Barry Woodward stated that he owns the property located at 6450 North Main and when he purchased the property it was zoned aslight industrial use and wanted to know what the zoning would be forthe properties thatare going to beannexed. City Manager Leiper stated that all newly annexed property would come in under the most restrictive classification which is neighborhood conservation and single familyand stated that the reason for that was so that a developer or propertyowner can put together a development plan that goes through the Planning and Zoning Commission and the City Councilto get rezoned. Mr. Woodward inquired if the property that he owns is considered commercial property, will it remain as commercial property.City Manager Leiper stated that if the property isalready developed itis grandfathered for that use regardless of what it zoned.

Mr. Danny Foster stated that once the Hunt Road annexation is complete he would be left with nine (9) feet of space to back out ofhis grandmother's driveway onto a highway which puts his family's life in danger. City Manager Leiper asked Mr. Foster to leave his contact information with his assistant Nick Woolery and he would personally go out andvisit Mr. Foster's home.

Ms. Sandy Sobotik inquired if she removes her current home and rebuilds a new home could she continue to use her well water or with the new construction would she have to connect with the City’s utilities. City Manager Leiper stated that if a permit is obtained to build a new home, it would require connecting to the City’s utilities.

Ms. Belinda Tigert stated that she lives at 405 North Road and that she does not want to live in the City of Baytown because of the many restrictions.

Mr. Walter Halzlere signed up to speak, but did not approach the podium.

Ms. Kansas Tigert Smith stated that she lives at 417 North Road and inquired if the opinion of theproperty ownersopposingto the annexation arebeing considered and if there are plans to extend North Road being that it is a dead end street. City Manager Leiper stated that the public hearing is to give those residents the opportunity to expresstheir opinionsto Council and that the Council woulddetermine whether or not to go through with the annexation. City Manager Leiper stated that there are no plans to extend any roads at this time but that the road maintenance would become the City's responsibility instead of HarrisCounty.

Mr. David Tigert stated that he’s opposed to living within the City of Baytownand didn’t want to deal with the City’s stipulations.

Mr. Balbino Faz signed up to speak, but did not approach the podium.

Mr. E. Hutto stated that the annexation would hurt him because he’s on a fixed income and due to his health concerns he would not be able to repair needed adjustments to his home that may not meetthe city standards.

Mrs. Kelly Hollaway stated that she in not in favor of the annexation and because she received short notice, would provide more information in regards to her opposition of the annexation at the second public hearing.

At 8:08 P.M., Mayor DonCarlos closed the public hearing and stated that the next item to be considered would be item 4.a.

4.PUBLIC HEARINGS

a.First Public Hearing: Regarding a Strategic Partnership Agreement Related to a Limited Purpose Annexation with Chambers County Improvement District No. 3 for Approximately 948 Acres of Land in the City's Extraterritorial Jurisdiction, Generally Located East and West of Texas State Highway 99 and Needlepoint Road (FM 2354) Approximately 1,900 Feet South of Interstate 10 in Chambers County, Texas - Planning and Development Services.