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HomeMy WebLinkAbout022805R CC Min CITY COUNCIL REGULAR AND WORKSHOP SESSION MONDAY, FEBRUARY 28, 2005 MUNICIPAL BUILDING 3800 UNIVERSITY BLVD. 6:30 P.M. The City Council convened in Regular and Workshop Session in the Municipal Building (3800 University Blvd.) on February 28, 2005, with the following members present: Mayor Ballanfant presiding, Council Members Segal, Farley, Fogler and Woods. The City Manager, City Secretary, City Attorney, Assistant City Manager/Public Works Director, Finance Director, Police Chief, Fire Chief, Parks and Recreation Director, Building Official and City Planner were also present. The notice for this meeting was posted in accordance with the Texas Government Code, th Chapter 551, on the 25 day of February 2005 at 4:30 p.m. Formal Session (in the Council Chambers) Citizen Comments Mayor Ballanfant invited citizens who wished to address the City Council to come forward as their names were called. Liz Wilder, 6645 Westchester, suggested that the garbage can at Buffalo Speedway and University be emptied daily. She stated that it is only emptied once a week and it is always full. Lauren Davatgar, 2612 Werlein, commented that her house caught fire due to the negligence of JTB Company when the worker hit a gas line. Ramsay Elder, 2821 Tangley, commented that he was in favor of purchasing additional park land on the east side of the city with certificates of obligation. Ad valorem taxation and disabled individuals. Matters related to ad valorem taxation and disabled individuals including Ordinance No. 1787. Mayor Ballanfant read the caption of Ordinance No. 1787 as follows: An ordinance relating to ad valorem taxation and an exemption for individuals who are disabled; amending the code of ordinances of the City of West University Place, Texas; and containing findings and provisions relating to the subject. City Council Regular and Workshop Session, February 28, 2005 Copies of Ordinance No. 1787, in the form proposed for adoption, were available in the Council Chambers. Finance Director Walter Thomas reported that as requested in a Council Workshop Session held last November, an ordinance granting an exemption of $110,000 of appraised value of their residence homestead to disabled taxpayers has been prepared. The City Council has authority under Section 11.13 (d) of the Texas Property Tax Code to grant exemption from taxation a portion of the appraised value of their residence homestead for individuals who are over 65 years old and/or individuals who are disabled. The individual must apply to the Harris County Appraisal District for the exemption. The City has used this authority to grant an exemption in the amount of $110,000 of taxable value to individuals over 65. Currently, disabled individuals are not provided any exemption. The Property Tax Code defines disabled as a disability for purposes of payment of disability insurance benefits under Federal Old-Age, Survivors, and Disability Insurance. As of January 30, 2005, there were 27 individuals owning property in West University Place who would qualify for any exemption Council might grant. The table below provides details about the impact of granting an $110,000 exemption to disabled taxpayers. Number of exemptions27 Appraised value of property10,681,100 Average appraised value395,596 Exempted value2,970,000 Stated value of exemption110,000 Tax revenue decrease13,068 Property tax rate equivalent to reduction in revenues0.00048 Tax rate after adjustment44.00048 Based on current tax rates and assessed values, the City?s tax revenues would be diminished by $13,100, an amount that could be absorbed without increasing the property tax rate. A motion was made by Council Member Segal, seconded by Council Member Fogler, to adopt Ordinance No. 1787 on the first reading. A vote was taken on the motion with the following result: Voting Aye: Mayor Ballanfant, Council Members Segal, Farley, Fogler and Woods Voting Nay: None Absent: None 2 City Council Regular and Workshop Session, February 28, 2005 City Council minutes. Matters related to the minutes of the Workshop Session on February 10, 2005 and the Regular Session conducted on February 14, 2005 A motion was made by Council Member Segal, seconded by Council Member Farley, to approve the minutes as amended. A vote was taken on the motion with the following result: Voting Aye: Mayor Ballanfant, Council Members Segal, Farley, Fogler and Woods Voting Nay: None Absent: None Intergovernmental & Infrastructure Issues; Staff or Council Report. Matters relating to intergovernmental relations and agreements including negotiations, extra jurisdictional meetings, regional issues, Interlocal Agreements with the City of Southside Place, Metropolitan Transit Authority agreements, infrastructure projects, drainage, flooding, Kirby Drive construction, Center Point Energy Entex, gas rates and coalition, City owned properties, potential purchase of property, City Center project, streetlights, railroad quiet zones and task force, board and commission liaison reports and related matters. This may include report(s) from staff and reports and directives to staff from Council Members. City Manager Michael Ross reported that the Federal Railroad Administration would be releasing their final rule on the requirements for a quiet zone by April 1, 2005. There will be a period of about 30 days between that release and allowing the cities to move forward. He also reported that the demo streetlights on University Boulevard are now installed and that Carlton Porter with Center Point Energy was present to answer any questions. Mayor Ballanfant commented that an ad hoc coalition on building toll ways might possibly be seeking to get some legislation through the Legislature. Council Member Segal commented that the Parks and Recreation Director has circulated among the members of the Rice Pocket Park Task Force a list of various options that they are going to rate numerically. They will develop some proposals that will be presented to Council and to a design architect to assist in the planning and design of the park. Parks and Drainage . Matters related to City parks and drainage improvements, including: 3 City Council Regular and Workshop Session, February 28, 2005 a. Matters relating to City parks, including plans, expenditures and agreements regarding same and also including: 1) purchase, exchange, lease or value of real property for park purposes in the portion of the City east of Poor Farm Ditch, including a closed executive session under Section 551.072 of the Texas Government Code and 2) agreements and expenditures regarding acquisition of such property. b. Matters relating to drainage improvements, including engineering, expenditures and agreements regarding same. c. Financing relating to such matters, including 1) Matters relating to certificates of obligation for City parks and/or drainage improvements, including Resolution No. 2005-03 (A Resolution authorizing publication of notice of intention to issue Certificates of Obligation, etc.) 2) Matters relating to bonds for City parks and/or drainage improvements, including Ordinance No. 1788 (An ordinance calling bond election; making provisions for the conduct of such election, etc.) 3) Matters relating to expenditures and reimbursements, including Resolution No. 2005-04 ( A resolution expressing intent to finance expenditures to be incurred, etc.) d. Related matters. The City?s Financial Advisor, Frank Ildebrando with RBC Dain Rauscher, Inc. was present at the meeting. Tom Sage and Jonathan Frels with Vinson & Elkins were also present at the meeting. Mr. Thomas reported that during the February 14, 2005 Council meeting, Council directed staff to investigate possible offers for park property in the area east of Poor Farm Ditch. Staff has spoken with the representatives of potential sellers in this area, and it appears that the asking price for a workable park site will be in the range of $2 million to $2.5 million, depending on the final structure of a sale. Raising this much money will require the issuance of either bonds or certificates of obligation. The security for these two types of instruments is similar?the City would pledge ad valorem tax proceeds over the term of the debt, typically not longer than 20 years. The method of approving these two types of instruments is different. Bonds require advance approval at an election. The earliest election date is May 7, and there are post-election steps that must be followed, so bond proceeds could not become available before June. Certificates of obligation require approval at an election only if, after formal notice, a petition, signed by 5% of the qualified voters, is filed. Issuing either bonds or certificates of obligation will affect the City?s tax rate. A projection of debt service and tax rates was included in the 2005 Operating Budget. 4 City Council Regular and Workshop Session, February 28, 2005 This projection assumed the impact of the sale of $4 million in additional bonds to finance drainage improvements that would take place in 2006. Property values were projected to grow at rates beginning with 3% in 2005 and declining to zero percent by 2007. New construction was projected to add $25 million annually to assessed values. These estimates are staff?s ?best guess? about future events based on input from HCAD and prior years. Mr. Thomas stated that based on these assumptions the impact of selling additional debt (bonds or certificates) is about 1 cent of additional property tax rate for each $3 million in capital raised. Therefore, selling $7 million in additional debt ($4 million for drainage plus $3 million for parks) is estimated to increase the tax rate by about 1 cent. Assuming the average resident?s home is assessed at $500,000, each $3 million in added capital would add $50.00 to the tax bill. If Council proceeds with the steps necessary to issue debt for parks, there would be some cost savings if debt for other capital needs were included. As indicated above, the City?s drainage project was estimated at less than $4 million. Since that time, additional costs have been estimated that would include the over-sizing of underground storm sewer lines and possible detention for storm water. Additional studies are underway to further determine the excess capacity needed to accommodate the 100-year storm event. Staff feels strongly that these costs are more regional in nature and should be borne by the Harris County Flood Control District. Therefore, if Council proceeds with the issuance of debt, staff recommends that an authorization of $4 million be included to provide for the City?s share of the drainage project. The City?s ability to issue debt is limited by the City Charter to 5% of the assessed value. The current debt limit under this provision is $136 million. As of January 1, 2005, the City owed $90 million to bondholders, leaving $46 million additional debt that could be issued. Future projects that will possibly require debt financing include: Parks improvements recommended by the park task force. Drainage in Priority Area 2. Sewer plant renovations. These projects carry an estimated price tag of $10 to $15 million. Mr. Thomas stated that to proceed with bonds, adoption of an ordinance calling an election is required. To proceed with certificates of obligation, adoption of a resolution declaring intent is required. In either case, Council could adopt a separate resolution to allow the City to reimburse itself from debt proceeds, in case a particular transaction requires cash before the debt proceeds become available. At this point in the meeting, the Mayor publicly announced that a closed, executive session would be held and identified the section of the Open Meetings Law (Chapter 551.072 of the Texas Government Code) under which the meeting would be held. 5 City Council Regular and Workshop Session, February 28, 2005 After the announcement, the City Council conducted a closed, executive session beginning at 7:00 p.m. After the closed, executive session, the Mayor announced, in open session, that the City Council had concluded its closed, executive session at 7:50 p.m. The City Council took a short recess and reconvened at 7:55 p.m. Mayor Ballanfant asked if a Council Member would like to make a motion regarding an offer or acquisition of property. There was no motion at this time. The City Council continued their discussion of drainage and the issuance of bonds. The City Council agreed that this item would be considered at a later date and no action would be taken at this time. The City Council recessed the Regular Session at 8:14 p.m. and reconvened in Workshop Session in the Bill Watson Conference Room at 8:20 p.m. Workshop Session (in the Conference Room) Mayor Ballanfant asked if there was any objection to taking the agenda items out of order. There was no objection. Fire in the 2600 block of Werlein. Matters related to a fire on January 17, 2005 in the 2600 block of Werlein. Steve Ralls, Fire Chief reported that on January 17, 2005, there was a gas fire in the 2600 block of Werlein Street, which caused damage to houses on Werlein and Cason Streets. The information presented is only a summary of Public Works involvement both pre and post fire event. Significant events are listed as follows: Coventry Homes applied for a Tree Disposition permit at 2615 Werlein Street on September 30, 2004. Tree disposition permit granted October 11, 2004. Structure Demolition permit issued December 21, 2004. Demolition completed December 27, 2004. Building Permit for new home issued January 5, 2005. Gas line broken causing fire January 17, 2005 during site preparation. Building and Standards Commission (BSC) accident review hearing scheduled for March 3, 2005. 6 City Council Regular and Workshop Session, February 28, 2005 Ron Wicker, Assistant City Manager/Public Works Directorcommented that the Public Works records indicate that prior to the fire event all code/building requirements were in compliance. Based on available information, Staff agrees with the Fire Marshal?s assessment of accidental cause. Recently, the Chief Building Official met with the contractor involved and informed him that there will be a BSC accident review hearing to determine if this accident constitutes an ?aggravated violation? as defined by ordinance. Findings of the BSC will be forwarded to the City Council. Lauren Davatgar and Louis Barrangan of 2612 Werlein commented on the events of the fire. Council Member Farley left the meeting at 9:04 p.m. Foundations. Matters related to foundations including a discussion of a draft amendment to the Standard Codes Schedule with members of the Building and Standards Commission. Bryant Slimp, Chair of the BSC, reported that a 2004 City Council goal directed the Building and Standards Commission to review the City?s current building codes as they relate to foundation design and recommend amendments as appropriate. The commission established several goals to accomplish this task: Protect homeowners from poor construction. Discourage homeowners and developers from choosing a foundation design based solely on economics. Protect subsequent homeowners. Protect property values and tax base for the City. Simplify the permitting process for both the builder and the City Staff To accomplish these goals the proposed amendment contains provisions that: Set minimum standards for foundation design. Assign responsibility of the foundation design and installation to RLPE (licensed or registered professional engineer of the State of Texas) Require Errors and Omission insurance for both the RLPE and RLGE (registered professional geoscientist of the State of Texas or a licensed or registered professional engineer) Require RLPE to work for an engineering firm. Require the RLPE to file observation and certification reports with the City. Require the City to maintain permanent records of foundation observation and certification reports. Provide the commission the ability to grant variances under special circumstances. 7 City Council Regular and Workshop Session, February 28, 2005 Mr. Slimp stated that the draft Foundation ordinance is well constructed, has had massive input by all parties, has undergone public hearings, protects citizens of West University, raises the bar on home construction, reduces the work required by City Staff, is workable from the builder?s point of view and protects the West U tax base. The City Council asked numerous questions regarding the draft amendments. An ordinance will be presented to the City Council for consideration at a later date. Pre-construction and construction activity at 3936 Marlowe. Matters related to the new construction at 3936 Marlowe including compliance with the framed area and the 80% rule, right-of-way, yards, setbacks and height. The City Planner, Nes Tesno presented the following report: PNC Status for ?Framed Area?. The property at 3936 Marlowe is owned by Tom and Paula Peden. The Pedens are currently residing at 4136 Lehigh. On May 10, 2004 City Council set a public hearing concerning a ?framed area? amendment for June 14, 2004 and also set a temporary rule governing certain permits and approvals. The Peden?s attended the public hearing and subsequent Zoning and Planning Commission and City Council Meetings, voicing their concerns about these new amendments. They were informed that they could ask for PNC status if they complied with section 12-102 (c) of the Zoning Ordinance. This section and its implications were discussed in the July 12, 2004 City Council Meeting. Plans were submitted on June 22, 2004. Plans were rejected July 11, 2004, resubmitted August 24, 2004 and rejected again on August 31, 2004. A letter dated August 19, 2004 requested the plans be considered under section 12-102 (c); granting PNC status. The plans were resubmitted September 13, 2004 and approved. A Formal Decision of the Chief Building Official in regard to PNC status, dated February 22, 2005 is available. Height. The plans indicate that the height will not exceed the maximum allowable height of 35 feet. This is measured above the standard level base elevation. The standard base elevation is determined by the average of eight specific points on the building site. A surveyor is required to certify what is the base elevation. Normally, the height is confirmed before the framing inspection when the builder is required to submit a certified Height Certification (by a licensed surveyor) of the structure. The builder has submitted the Height Certification of the Structure. This certifies that the structure is 34.82 feet above the base standard elevation. Right-of-Way. As part of the application process for this permit, the permittee submitted a building site designation form claiming that the site is 50 feet wide. The permittee also submitted a site plan and a survey claiming a site 50 feet wide. The site plan indicated a 8 City Council Regular and Workshop Session, February 28, 2005 2.5-foot wide ?U.E.? along Weslayan Street. Staff believes that this meant there was a ?utility easement? along Weslayan, which is the western boundary of the site. The survey indicated a 2.5-foot wide ?right of way easement? along Weslayan. Most likely because of the way the site information was provided by the permittee, City staff was under the impression that the site was 50 feet wide, as claimed, and reviewed the plans accordingly. On August 15, 2004, a permit was issued for a new house at 3936 Marlowe, based upon the claimed 50-foot-wide site. After construction started, staff received a complaint that the new house appeared to be too big. Later, staff received a complaint that the house also appeared to be too close to Weslayan. Upon investigating, staff discovered that there was an old instrument granting an easement along Weslayan to Harris County. Staff obtained a copy of this instrument. It appeared to have been signed in the 1940?s to give permission for Harris County to pave Weslayan. During the investigation, staff contacted the construction contractor and the owner, who admitted that they knew about the easement, but they asserted that the easement had reverted to the property owner. They indicated that the issue had come up during the purchase of the property. They reported that their title company had assured them that they bought the full 50-foot width of the site, and that the easement was not valid. The owner indicated that this was the reason they had submitted the building site designation form to the City showing the full 50-foot width. The exact status of the easement is important. If it is valid; the 2.5-foot strip would be a ?common use area? that is excluded from the building site under Section 5-100(a)(3) of the Zoning Ordinance. Excluding it from the building site would reduce the width of the site and shift the boundaries of the western side yard 2.5 feet to the east. This would mean that the house is being built in the side yard, apparently in violation of the general rule in Table 7-2 of the Zoning Ordinance. Excluding the easement from the building site reduces the area of the site, so it also reduces the maximum amount of ?framed area? allowed by Table 7-4b. In this case, the house under construction exceeds the reduced maximum amount of ?framed area.? It is possible that the open area and pervious areas could also be affected. The reverter clause in the easement states that Harris County was to pave Weslayan, ?on or before April 15, 1949,? using ?reinforced concrete of thirty feet in width.? Failing which, the instrument says, ?this easement will automatically become null and void and the rights granted herein will, ipso facto, revert to grantors, their heirs and assigns.? However, from the instrument alone, it is not possible to determine if the easement reverted in 1949. Therefore, staff contacted Harris County officials to try to determine whether the easement had reverted and learned that Harris County officials do not believe that it did. 9 City Council Regular and Workshop Session, February 28, 2005 A Harris County official did indicate that some kind of abandonment by the County was possible. Reportedly, the permittee has now asked the County to abandon the easement. Staff has asked for proof of abandonment (or reverter) from Harris County. In the absence of such proof, it appears that the easement is valid and that the house now under construction violates both the yard and framed area regulations cited above. The building official has contacted both the permittee and the contractor to describe the allegations mentioned above, and they have been provided multiple opportunities to respond. In the meantime, the Chief Building Official has suspended the permit for construction at 3936 Marlowe until this conflict is solved. Stephen Pohl, 3928 Marlowe, presented a formal protest over the house under construction. City Attorney Jim Dougherty stated that if the decisions by the Chief Building Official are appealed the Zoning Board of Adjustment would take jurisdiction and decide the case. City Secretary. Matters related to the evaluation, employment and duties of a public officer or employee. Closed Executive Session to be held under Section 551.074, Texas Government Code. This agenda item will be considered at the next meeting. City Manager. Matters related to the evaluation, employment and duties of a public officer or employee. Closed Executive Session to be held under Section 551.074, Texas Government Code This agenda item will be considered at the next meeting. Adjournment. With no further business to come before the City Council at this time, a motion was made by Council Member Segal, seconded by Council Member Fogler, to adjourn. The Council meeting adjourned at 10:05 p.m. 10