City Council - Regular Meeting

Welcome to the City of Pearland City Council regular meeting on this August 24, 2026. I'll call this meeting to order at 6.37 p.m. At this particular time, I would ask everyone to please stand for the invocation. I'll give the invocation, followed by the pledge given by Councilmember Cade. If you could, at this moment, would you please just bow your heads? Heavenly Father, We come before you today with humble hearts, recognizing that we are imperfect people entrusted with the important responsibility of serving our community. Your word reminds us through the Apostle Paul that even in the midst of hardship and weakness, your grace is sufficient. You told Paul, my grace is sufficient for you, for my power is made perfect in weakness. Lord, there are times when we may feel weary, frustrated, are uncertain. There are times when our differences may seem greater than the things that unite us. But remind us that we do not have to carry these burdens alone. Your grace is sufficient. Grant all of us the wisdom to listen before we speak, the humility to acknowledge when we're wrong, and the courage to stand with one another, not against. And your grace is sufficient for every challenge we face. Lord, in your presence and in your grace, which is sufficient to mend what is broken and to heal what is wounded, help us to remember why we're here. We're here to serve the people of this city. We're here to make decisions that will improve the lives of the community we have been entrusted to lead. And Father, with that as our focus and service as our purpose, in the presence of your grace, I want to take this moment to apologize to any council member who I may have offended through my words, my actions, or the manner in which I've expressed myself. That never was my intention. And I ask for your grace and forgiveness as we move forward together. Help us to give one another the benefit of the doubt Help us to disagree without being disagreeable, to debate without division, and to remember that we can have different perspectives while sharing the same commitment to the people of Pearland. Lord, let us work together for the betterment of our city and to help improve the lives of all our residents in the manner you see fit. Give us wisdom for the decisions before us, patience with one another, compassion for those we serve, and the humility to recognize that our authority is temporary. but our responsibility to serve is significant. May everything we do today be guided by wisdom, integrity, unity, and your grace, which is sufficient. In your name we pray. Amen.

one nation, under God, indivisible, with liberty and justice for all.

And now, I pledge allegiance to the flag of the greatest state in the nation.

Honor the Texas flag. I pledge allegiance to thee, Texas, one state, under God, one and indivisible.

Thank you.

All right. Madam Secretary, I certify that we do have a quorum present. All council members are present. Moving on to citizens' comments. I believe there are some comments that were submitted. I'll just want to make this statement that to comply with the provisions of the Texas Open Meetings Act, the city council may not deliberate on any item not listed on the agenda. However, the city council will listen to public comment. And during this comment, public comment, the public shall comply with council's rules of decorum. Everyone desiring to present comments should have completed. The comment cards are the papers in the foyer, and turn them back in. And the rules allow for three minutes for a individual comment and five minutes for a group. And at this particular time, I'll hand it over to Mayor Pro Tem Chavarria to help facilitate.

Thank you, Mayor. So we do have quite a few, so I will be calling you up in sets of three. So when I call your name, if you would proceed to the podium and you'll get three minutes, and please state your name. Dina Abdelheim, F.J. Jones, and Laura Myers. Thank you.

Hello, my name is Dean Abdul-Haleem. I live at 2817 Los Maples Drive. Today I'm here to talk about one great individual, one great man and his effort, and our community's hardship on voter suppression. What happened during the election was voter suppression. The city limited early voting hours, making it... impossible for many working residents to vote. But still we rose and still we prevailed. This time we have another type of voter suppression occurring. When we elected someone to represent us who won by majority vote, now the City Council has come to hold his hand back in giving our community their rights. In turn, you are suppressing our voice and our choice. We as a community elected Mayor Quinton Wilt by majority vote. We stand with Mayor Quinton Wilt. We stand with his rights to be a part of every city organization. We stand with his right to call for a meeting when needed and not to have another city council member undermine his authority. By withholding his ability to participate fully in city governance, you are suppressing both our voice and our choice. City council members, are you elected to serve this community, not suppress an individual representing our voices? I stand here for injustice that is occurring here in our city. I am saddened. We ask for you to reconsider your actions and rescind your previous vote, giving back our beloved mayor his rights. No mayor in the past has had any of these stipulations, and I don't see why that should take place now with an African-American mayor whom we fully support wholeheartedly. Once Mayor Wilts' term has ended, will you rescind this for another mayor? If so, do you need to check yourself and your power? America is governed by majority vote, and we elected Mayor Wilts to serve our community and be our voice. We are Pearland residents. Our interests should be solely for Pearland and through election we picked our leader and we picked Mayor Quinton Lewis by majority vote. Why didn't you do this with the previous mayor? What is your intention? Will you keep the new definition as it is or change them back if a new mayor is elected? Do you as city council members only get five hours to look over the agenda versus the usual five days? Are we living in a dictatorship or a democracy here in Pearland? Thank you so much.

Thank you. Mr. Jones? Or Mrs. Jones?

Good evening, everyone. My name is F.J. Jones, and I am the chair of the Brazoria County NAACP. Although I do not live in Pearland, I do represent a large number of people who do. And I'm going to read a statement from one of those people tonight who was unable to make it. Good evening, Mayor Wills, council members, and fellow residents. My name is Andrew Earls, and I am here, well, he's not here, but I am here tonight because I am concerned about the tone and treatment surrounding our elected Mayor Quentin Wills. The people of Pearland have spoken through the democratic process, and the choice deserves respect. Disagreements over policy are a normal and healthy part of government, but personal attacks, public disrespect, and efforts that appear petty and intended to undermine the mayor do not serve our city well. Your callous treatment towards Mayor Wiltz translates to you not listening to the voices of the community. It is not noise. The residents of Pearland elected leaders to work together, solve problems, and move Pearland forward. We did not elect division. We did not elect conflict. And we hope that we elected councilmen that can act fairly and treat the elected mayor, even if you did not vote for him, with dignity and respect. Apparently, we were wrong. Leadership is not measured by how you treat those who agree with us. It is measured by how you treat those with whom we may have differences. Pearland deserves a city council that demonstrates unity of purpose, even when opinions vary. I respectfully ask that each member of council to recommit to fairness, collaboration, and mutual respect for both Mayor Wilts and the majority population of Pearland. Our community is watching. Our young people are watching. And they should see leaders who place the interest of Pearland above politics and personal personalities. Thank you.

Thank you so much.

Ms. Laura? Hi, my name is Laura Myers and I live at 1202 Pine Street at Alvin. I don't know exactly everything that's going on. I just came to voice my support for Quentin. I have known him and his wife for over ten years. I have drove from Alvin to Blockwalk numerous times for him when he was running. I don't think you could have a better mayor. Very well read up on issues. He knows what's going on. I just came. I didn't even know I was going to even come tonight. I didn't even prepare any written remarks. I just wanted to, like I said, voice my opinion for Quentin that he is a very, very nice man, and I wish I would cut him a little slack and treat him a little nicer. That's all.

Thank you. So the next three will be Dylan Hill, Robina Sproul, and Jay Daggett. Dylan, you'll be first. Thank you so much.

I can just start. OK. OK. How we doing? My name's Dylan. President of the Youth Committee for this chapter's NAACP. I'm real active in South Bee County. I do a lot with the residents here in the area. I do a lot at the schools. But my first interaction at this city council meeting was kind of brought up with a whole lot of smaller issues, I felt personally. It doesn't seem right or even reasonable to go about placating on the job title or the job responsibilities of the mayor and then to turn around and talk about issues like setting up a complex and having folks come and take pictures with the mayor and then we're still not too sure what his job is. But this was my first interaction with city council. I've been in this area for a long time. I've done a lot of work in this area. So my whole reason for coming up here and speaking was to kind of speak on that. It's a bit of a, I guess I'd say a Disappointment. As active as I am in the community, I feel like a goal of mine would be to reach a station of mayor or even council member. So it becomes disheartening to see that we're minimizing things as soon as people like me or people who tend to favor people like me, once they get in that seat. You know, I'm not gonna take the whole three minutes. I just wanna say, as somebody that is youth, representing the youth active in the area, went to Turner High School, you know, it's a little disheartening. So, that's all. Thank you.

Thank you so much. Ms. Robina?

Good evening, everyone. My name is Robina Spruill, and I am the Assistant Secretary for the Brazoria County NAACP. Mayor Wilkes, I would like to say I appreciated their prayer tonight, the opening. It just resonated throughout this building here. I'm here because I have been attending the meeting and watching online both before and after Mayor Wynn's election. I can see that I have never ever seen a council disregard and undermine the mayor in the way that I have seen in the last few months. I am here to ask that whatever the circumstances are, please work with, please work it out and create a Pearland that is beneficial for all of the residents here. Thank you very much. Thank you, ma'am. Mr. J?

Good evening. Good evening, Mayor and Council. Wow. Full house. I am coming to speak not so much on the relationship that has been tenured with Mayor Wiltz, but on a different topic.

State your name.

Absolutely. Absolutely. Jay Daggett. a Pearland resident, 11601 Shadow Creek Parkway. I've been here since 2007. So... What I'm here to speak on is the continued conversation around this residential increase that we're continuing to confront. Whether it's combating SB 840 or the developer or whoever it is, what I keep seeing, what I keep hearing, and what keeps drawing us into this room is that the developers are coming back again and again to reapply and asked to be reconsidered for something that they have presented before. And if nothing has changed except the amount of money that's being applied to coming to be a part of the Paraland community, eventually we won't be able to stop the flood. You can only put so many thumbs in the dike. So whether we cross 150 now, we cross 150 in five years, or whatever, my argument would be, What are we doing to mitigate the tide? What are we doing to stop what is coming? This isn't anything that I think council can address, but more public awareness. We recently had a meeting around Senate Bill 840 and the outcome of that. And I understand that some of the comments that were made during that misrepresented actual facts. And so that is something that is yet to be addressed. But I think that as the community deserves to know what it means for a developer to be here pre-by-right and to be here post-by-right. So if there is an information conduit or a way that we can disseminate that information to the people that are giving of their free time to come here and argue with developers about about where they're putting what. I know that after we reach 150,000 in counties that have more than 300,000 residents, that they can put anything they want on a commercial spot. And so let's have a different argument. Let's have an educational session that is explaining to people what's happening versus rattling the cage and saying we're going to have lots of cars on a street that doesn't have the proper easement or any of those things. I think that we as residents deserve to know more. We deserve to know exactly what's happening and why it's happening and not bang on each other for it. Let's just get the information out and know what we're supposed to do. I thank you for your time and I look forward to more information.

Thank you, sir. So the next three, Monica Morgan, Lynette Patterson, And Dr. Kadisha Rapp. And just a reminder, you have three minutes, and state your name, please.

My name is Monica Morgan and I'm here not on an agenda item topic because the agenda item that was on the last meeting isn't being approved. The minutes for the July 27th meeting I think is what's being approved tonight. But the August 10th meeting is what I actually wanted to discuss and I'll just have to come back next time. But I am going to say what my concern is I don't know what the interaction of the personnel, the city council, the city staff, whatever is going on, but if you're gonna put something on an agenda that says you're gonna change the rules and then change what you're actually gonna do in the midst of the meeting, I don't know that that fully complies with the Texas Open Meetings Act because what was submitted on the agenda for August 10th is not what was discussed. at the meeting and there were prepared slides that were not representative of what was put into that agenda. And my disappointment isn't that you have fully the right to discuss and change rules, but those are public items when you're gonna take action. And then there was action taken that was inconsistent with what was published. and then there was action considered that was against the city charter. So if city council is getting advice from someone that is against the city charter, I have a problem with that. That shouldn't be what's being presented for consideration by city council. City council needs to get better advice. The discussions and conversations that present that for a public topic to take action by city council needs to be vetted through what's legal and what's not legal before it has to be brought up by someone on the dais to say, we can't even do that, it's against our city charter. So I'll be back because August 10th was not in compliance, and we will have this discussion again. But even if it's regarding changing the rules, please follow the state law and the rules that already apply to you in making those discussions and decisions.

Thank you. Thank you, Monica.

Ms. Lornette? Good evening. Again, my name is Learnette Patterson, and I'm a resident here in Pearland. And I have been at this podium three times now. or lack of response from city council members. I have taken my time to write to you all regarding concerns that I had. I stated the last time that I stood behind this podium that my confidence in my city council was diminishing, and it is falling further into diminished state because people don't respond. I heard a gentleman here this afternoon talking to one of the council members or somebody saying, hey, I sent you an email. You didn't respond. Well, I heard somebody also say that they get over 100 emails a day. I'm an administrator. I'm a pastor. I get hundreds of emails a day, and I have to weed through them, and I have to respond. It is inconsiderate. for citizens to ask questions and not get a response. How would you like it if somebody, if you were asking someone a question and they didn't respond to you? That's rude. I really wish that our city council would adhere to Kindness, cohesiveness, love, fruits of the spirit. Read Galatians chapter 5. Fruits of the spirit. Not everybody gets along with everybody, but we're to love one another. It's what the word says. It just makes me just sad that I have to come here and keep begging you to respond to my email. Superintendent of Pearland said, hey, email me. I'll email you back. I appreciate those that did respond to me. Your comments were well received. The city attorney responded to me and gave me links that I could go and read and educate myself on how the city council actually runs. That's all I want to know. Why can't we just put bygones behind us? And I appreciate you all looking at me. I do. Because I've been here before and you guys have not looked in this direction. I appreciate that. That's a start. Let's keep it going. Let's make this a community that people are proud of. I don't want to see my community in the news talking about the dysfunction and the chaos that is happening in Pearland. We're better than that. Rise above that. Be great. Fight behind the scenes. When you come in the public, be united. Please.

Thank you so much. Thank you so much, ma'am. Dr. Katisha?

Good evening, everyone. Well, again, my name is Dr. Kadisha Rapp. I'm a board-certified emergency medicine physician. I've been one for 26 years, 10 of which I have served treating the people of Pearland. And as an emergency medicine physician, everyone knows we are required to treat everyone who comes through our doors, regardless of race, politics, wealth, or personal beliefs because our duty is to protect life and serve the entire community. I might have treated some of you in this room. I might have to treat some of you in the near or distant future. I am the senior physician at one of the leading freestanding emergency departments in Pearland. I've been working for Pearland, treating the people of Pearland longer than I've lived in this area. I live in Manville only for four years, I've been working for the people of Pearland for the last 10 years. And this city deserves to be led by that same principle. The voters chose this mayor for a reason. The voters called for him to contribute and to lead. And they may expect to disagree, but certainly without silencing the leader that they chose. The voters made their choice, and as a community, we should respect it, uphold fairness, and allow this fairly elected mayor the same opportunity to serve as anyone else. I know when folks come into the exam room and they see me come in and introduce myself as Dr. Rapp, they're not always happy to see me, but they still expect to be treated fairly regardless of how they feel about me. Why can't we expect the same as a community of people? Thank you.

Thank you so much. So the next three and final three, Robert Perales, David Dickinson, or Dixon, and our former council member and our mayor for several months was Derek Reed. So Mr. Robert, you're first.

My name is Robert Perales. I'm a retired deputy with Brazoria County and Harris County, and I've lived on this street It used to be called County Road 555. It's now called Wagon Trail. I've been here since 1983. And since my time here, that road has only been paved one time. And that was when the city annexed us from the county. If you drive down my street now, I invite all of y'all, all city council, bring your Mercedes, your Lexuses, all your brand new cars, Teslas, and come down my street. I guarantee you, you'll be picking up pieces off the roadway. This street has been a big pothole. And I've made complaints to the new annex over there, the new annex over there by the old vet clinic or whatever you want to call it. And I've made two complaints every year for the last three years. And we got one little O, three holes filled, and now there are holes again out of the whole street. I got pulled over by the city of Pearland because I was weaving down the roadway. They thought I was drunk. He asked me, he said, have you been drinking? And I said, no, have you? Because you're swerving too. You know, that's just the way it is. These complaints need to be answered. We voted for all of y'all, all of y'all. I'd like to go down y'all's streets in my fancy car, see how smooth your street is versus mine. The supervisor that we've filed complaints with, he don't return calls. They don't even give us a time of day. All they do is take our name and says, I'll have him call you. But they never call. This is something that needs to be taken care of. We pay our taxes every year. Road, bridge, everything else. It needs to be taken care of. Thank you.

Thank you, sir.

One second. Would staff just speak with Mr. Perales? Because when he submitted the contact card, there's no way for us to get back in touch with him because the number is not correct and there's no email address listed. So just if someone could get with him. I want to make sure someone follows up with you, sir.

Thank you. Mr. David, you're next.

Mr. Mayor, City Council, my name is David Dixon. I live right next door to Robert. I live at 3233 Wagon Trail. And I guess he was reading my mind because he took all of what I was going to say. But it's terrible, our road, that we have to sometimes drive on the grass off the road because the holes are so big. We got grass growing up in our street because it's so out of level. And the part that really the people of Waggon Trail complain about every year, we pay our taxes. But we can't get nothing done to our street. Like me and Mr. Robert, we go over there, we complain. They give us the supervisor's card. He never calls us back. We leave him text messages. I called the city secretary. She said someone was going to call me. They come out and talk to us. Nobody never came. And I've been on that road for 10 years. And it's been like that the 10 years I've been there. Just like Robert said, I invite anybody just from 518, come all the way down Wagon Trail until you get to the dead end. And you tell me, would you want to drive that road every day? I see a lot of streets in Pearland get prepared and redone and everything, but a lot of people that use those roads don't even live in Pearland. But we go on our street every day, and we try to drive nice vehicles, but they be tearing up under the car because you got to come see it for yourself. Video of this here or pictures is not going to justify it. Somebody need to come drive down that road from 518 all the way to the dead end. And I guarantee you, you say, this road need to be pulled up completely and redone. Fixing potholes, all they do is wash out after a couple of months. The road need to be completely, completely pulled up and redone. And I just want to know why. We pay our tax money. Every year, every year, we can't get nothing from the city. That's all I have to say. Thank you very much.

Thank you, sir. Mr. Derrick?

Council, Mayor, or Mayor, Council, Derrick Reed. Do I need to get my address? I'm a city of Pearland resident, former city council member here in Pearland, former mayor pro tem, and former mayor, interim mayor for two months. I never was elected mayor, but interim mayor. Mayor Reed was, he had some surgery, and so he had to step away for a few months. This was in 2017. I'm here as a citizen, not here as anything else, but as a citizen of Pearland. One thing I realized over the last few months is service never stops. It doesn't stop when you're up there. It continues on if you did a good job, right? Some people may never call y'all again, but for me, I get a lot of calls. Over the last few months, I've gotten a lot of calls, and I'm not talking about five. I'm not talking ten. I'm not talking 20, right? And they've not just come from Shadow Creek. That's where I live. They've come as far as Green Tea, Shady Crest, all over the city of Pearland because that's where we live. I just want to make sure everybody remembers that. I want to give you an example, give y'all counsel an example. And I see I only have a minute and 48 seconds. If you don't mind giving me at least another minute and a half after that runs out. There's a Starbucks on the corner of Kirby and Shadow Creek Parkway. When I first saw that Starbucks, it was when I moved to Pearland. But I imagine it was built probably about two years before that. So I moved here in 2013. And that Starbucks, I'm sure it was managed by somebody, had employees, staff, all the things that a typical business would have, right? Right now, I'm sure that Starbucks is under new management, but let's assume that it's under new management, right? I walked into that Starbucks. When I first walked into that Starbucks, it looked one way. And I'm speaking to you now, Mayor. When you walked into this situation, it looked one way, right? One of the things as a new manager is you have to... Assess the way that it looks. You have to assess what's going on around you. You have to listen, learn, humble yourself. Those are things that it takes when you first get into a position, right? It's like riding a bike. Your first time riding a bike, you weren't as good as you are right now, right? And I'm sure you're a pro at it now. First time walking, everything. There's always a first time. And so when you get into a position like this, not first time as mayor, but first time on council, first time governing people, right? You have to sit back, listen, learn, and humble yourself. I'm saying all of this with the utmost respect. One of the things I heard yesterday, I was listening to a sermon, and the guest pastor said, you have to sit in silence before you stand in service.

Sitting in silence doesn't mean. But I'll allow an additional minute as well.

Sitting in silence doesn't necessarily mean that you have to sit for three, six, a year, but it means that you have to sit in silence until you learn, and then you stand in service. So these folks were here before you, you owe it to the city of Pearland and to them to sit and listen to what's going on, and then move, make moves. Conversely, that same staff at that Starbucks It's up to them to teach that new manager how things have done. If that new manager comes in and moves the coffee pot from here to over there, they're going to be like, wait a minute. It was more efficient over here. It's up to you all as counsel to teach him. And not one time. Not say, well, I tried to talk to him. No, that stuff doesn't work. One time? How many of us in this room that have been married or that are married, it's a constant work. It's a constant work. The one time in two months, and can I have one more minute, please? I'm sure all these folks would.

That's at your discretion, Mayor. You can always leave it to the body, but.

Please proceed, another minute. So one time in two months, two times, that's weak. That's weak. The move that you made last week, whoever put that on the agenda, because I know it was put on the agenda by one of y'all, and I actually know who it was, but whoever put it on the agenda was a weak move. It was a weak move. It wasn't working. It was weak. One of the best things about serving, like I said, is if you did a good job, it continues on. One of the main things that I see that's missing here is you all aren't talking to each other outside of this place. I don't see, I guess I don't see anything, but it's apparent that you're not talking to each other outside of this place. When I served, I served with one of the most opinionated people in this city. One of the most opinionated people in this city. I couldn't stand him when he first got elected. It took a while. And all y'all are laughing because you know who I'm talking about. I talked to Trent so many times now, and he knows this. I talked to him so often. Mr. Reid, you have... One more minute. One more minute. One more minute. I talk to him so often. The friendship that we formed, it wasn't up there. It was after there. We didn't agree up there. But like a coach would always say, leave it on the court. We didn't have to agree up there. It wasn't important to agree up there. I'll say this in my last minute left. It makes no sense that over 10 people got up here to talk about this, talk about every single last one of y'all arguing like schoolgirls or schoolboys. It makes no sense that only two people got up here to talk about real business that matters to the city of Pearland. We shouldn't be talking about this. I shouldn't be here. I didn't come for the Democratic Party. I got calls from the Democratic Party. I didn't come for the Republican Party. I got calls from them. I didn't come from, I see it. I didn't come for black, white, Shadow Creek. I came for the entire city of Pearland. I urge you, council, to reconsider what you did because that would not happen had that been Tony up there. It would not happen had it been Mayor Reed up there. And it wouldn't have happened if it would have been Kevin up there. Thank you very much. God bless you.

Thank you.

Seeing no additional comments or minutes remaining, I would next move on to the consent agenda. Are there any items being removed? I hear that there are items D, E, and F are going to be removed from consent agenda.

Are there any other items being removed?

Seeing no other items being removed, Member Koza, would you please present consent agenda moving, please?

Certainly, Mayor. Consideration possible action on consent agenda items A through F, with the exception of D, E, and F. So moved.

Second.

Motion was made by Member Koza, second by Member Cade. Madam Secretary, would you call for the vote?

Member Koza? Aye. Member Echols?

Aye.

Mayor Pro Tem Chavarria? Aye. Member Byrum? Aye. Member Cade? Aye. Member Fernandez?

Aye.

Member Patel? Aye. The motion passes 7-0. All right.

Now, before I proceed to matters removed from consent, I just want to offer a thank you, and I apologize, everyone, for coming here today, for offering their testimony and for potholes or concerns. So thank you all for taking the time to be here, submitting, standing before us, and providing some comment for future deliberation. So thank you. Moving on to items removed or matters removed from consent agenda. We have D, items D, E, and F. Member Patel, would you mind presenting item D, please?

Yes, Mayor. Considering possible actions, second and final reading of ordinance number 1121-4. So moved. Second.

Motion made by Member Patel, second by Member Fernandez. Mr. Epperson, would you mind presenting the information?

Thank you, Mayor. This is the second reading of an ordinance that updates and clarifies our retiree health care benefits. The main items in this is there's a clarification that it is only for retirees, not their dependents. Clarifies the premium versus portable options with only the portable option for anyone that leaves the plan and comes back. And it creates a process for confirming continued eligibility for the program. Summary of the changes have the potential to lower our long-term financial impacts to the city through the portable option, and it maximizes flexibility for our retirees that qualify, which is a help with the traction in retaining employees. So with that, we recommend approval, Mayor.

Thank you for that.

Member Patel. Thank you, Mayor. Trent, I guess when I read this, there's 12 currently retirees that use this benefit, correctly?

Currently, I think there's... I mean, that's what it says in here.

I don't have it in my head. And I guess there's a liability of $5 million for future retirees, and we haven't really put those funds on our, I guess, as an obligation. Victor, maybe you can answer that. Is that right, that there's $5 million liability that's not really booked yet, and we're going to start booking it?

You're looking at great.

Is that in the write-up, or what are we asking?

I was just trying to understand that. And I guess the other question I had was when someone – I was trying to understand the 75 and 80 rule, right? So is it when they have 20 years of work and then they're, I guess, 55 years old, or I guess – I'm trying to do the math here.

The rule of 80. Rule of 80 is your tenure plus your age, and you have to have that 20 years. And then that is 100% coverage for the employee only. And then if they hit the rule of 75, it's 50%. Okay.

And I guess what I was trying to understand is what's the stress point where in the next five or 20 years, what does it look like and how many employees do you think are going to be on this where the liability will obviously increase, right? I know earlier you said it's only 6% in healthcare costs this year, but again, going in the future, have you guys done a stress test to say, hey, we have X number of employees who are going to retire, and they may be taking advantage of this 100% because they qualify for it, and we may be on the hook on their health insurance? And then the question would be, if they turn 65, are they automatically going to be pushed to Medicare?

Yes.

So this is only for someone who's not 65?

Yes, this is only for people that are under 65. And so we did analyze that when we first adopted this, and the actual tweak and change here is to get more people on the portable subsidy, which has a much smaller cost to the city long term.

Okay, thank you so much.

Any other questions from council, discussion? Seeing none, Madam Secretary, would you call for the vote?

Member Patel?

Aye.

Member Koza?

Aye.

Member Echols?

Aye.

Mayor Pro Tem Chavarria? Aye. Member Byrum?

Aye.

Member Cade? Aye. Member Fernandez?

Aye.

The motion passes 7-0.

Member Patel, would you mind presenting Item F, please?

Yes, sir. I think E was pulled, too. Oh, sorry. Yeah. Considering possible action, resolution number R2026-147, so moved.

Second.

Motion was made by Member Patel, seconded by Member Cade.

Member Byrum, did you have a question, or you wanted to just stop it?

Thank you. I didn't have a question. We can do staff report if you want to. The main reason that I asked to pull this item was just, this is an example of our community organization, the Maryland Education Foundation, working to support our schools, working with our city. I wanted to say thank you to Jennifer and Kerry for jumping on this and getting it moved up so it can get done and communicated out. And I just wanted to say thank you. This is a great example of our community working together as a whole. I don't have any issue with it. I just wanted to appreciate our staff for the efforts they put in to make it happen.

I don't think any staff report is needed other than a thank you.

I just also want to recognize the director that's here, and thank you for all your hard work, Kim, and I'm actually one of the founding board members, so appreciate everything that you do for the foundation.

Sorry, Kim, I didn't see you.

Thank you.

Any other comments or discussions from council? Seeing none, Madam Secretary, would you call for the vote?

Member Patel?

Aye.

Member Koza?

Aye.

Member Echols?

Aye.

Mayor Pro Tem Chavadilla? Aye. Member Byrum?

Aye.

Member Cade? Aye. Member Fernandez?

Aye.

The motion passes seven to zero.

Member Byrum, would you mind presenting? Oh. Would you mind presenting item F, please?

Certainly, Mr. Mayor. Consideration of possible action, resolution number R2026-119. So moved. Second.

Motion made by Member Barham. Second by Member Fernandez. Mr. Epperson, would you mind presenting?

Thank you, Mayor. This is an engineering design contract to design the repairs for the erosion we have at the Pearland Parkway Bridge over Clear Creek. The design is scheduled to take about 11 months, with construction anticipated to start around October of 2027, and we recommend award to GC Engineering for this contract.

Okay. Questions? Member Patel? Yes, sir. Thank you so much, Mayor. So, Trent, one of the things, can we go to this, I guess, the cost estimates that you guys did? When I read this, I guess you guys missed this by almost part of it. I guess you guys are going over $1.4 million total cost now, and you guys are going to have to issue bonds of $600,000. Can we go to the deck where the cost breakdowns are? Thank you so much. So when you guys budgeted this, I mean, it was kind of, you know, the total cost was $800,000, and you guys budgeted almost 30% of design fees, which was kind of shocking to me to say, hey, construction was only half of that, or, you know, $470,000 and then you're paying $300,000 in design. And as I read this further, it looks like we're going to issue bonds on this project of $600,000 additional cost. So my trigger point was, is there a way EDC could pick up these bonds? Because again, this project can, I would think it would justify under the EDC project. And if we can go back and have EDC pick up the remaining costs of the $600,000.

So it's not in their budget as of now.

They have plenty of money, though. I mean, it's not in our budget in the sense, I know we put in a capital expense, but you guys missed this by $600,000.

Well, I think the estimate was done with limited information of what the issue is with the bridge, and as that was further evaluated, that's when the estimate was changed. There hasn't been any engineering done on this yet. We basically got a BRNSAP report from TxDOT as to what the What the condition is, I believe, is what started this, and then we started evaluating it. So, I mean, it's the city's infrastructure, so I don't know if it's appropriate for the EDC to pick that up, but if that's something the entire council wants to look at, we can.

I mean, this is going to go towards, again, hopefully lowering our tax rate, right, in the future years. So, that was one reason I was looking at this to say, hey, is there any way we can, like we talked about last, I guess, meeting, said, hey, if we could get more funds allocated towards the EDC and pick up costs that basically are relevant, let's put it on the EDC's, you know, balance sheet.

I think we'd like to do that through the longer-term budgeting process instead of as each project comes along trying to, as we're moving the projects forward, trying to pay for them one-offs that way. So I think we can look at it, but I think we need to look at it in a broader perspective. But however council wants to take a look at that.

And then is the engineering firm here?

Yes, they're here.

Would you go to the podium real quick, sir? So I'm gonna tell you a story I read, and it was an interesting story. I recently. One second, so first. Sorry.

No, it's okay.

I wanna make sure that I call them up. What was your name, sir? Please provide your name. Mahendra Rodrigo with GC Engineering. And then before we start, there was a concern earlier about the time of our council meetings. I remember Patel had asked you to be direct and get to the issue and the challenge that you're making.

Thank you, Mayor. I appreciate that. Mahendra, when I was looking at your cost breakdown of all the engineering fees, are you guys subsidizing or, I guess, are you guys offshoring any of this engineering to a foreign country, sending it to India or somewhere else, and then it's coming back to you guys? Or every single manpower that you have listed here is in your office in the U.S.?

Yes, all the work that we have in this proposal, engineering services, is going to be done in Pearland, our office in Pearland. We have two subs for geotechnical and for surveying. They are located in Houston.

Okay, so none of it is being farmed out somewhere else and then coming back here? We have never done that. Okay, I just want to make sure. Okay, thank you so much. Sure. And I would ask council to see if you guys have appetite to kind of say, because this costs are over 600,000 and budgeted, I think it's well worth it for EDC to pick up this cost.

Member Koza?

Thank you, Mayor. I would be interested in doing that proposal, so I'm in support of it.

Member Echols?

It was in my Friday morning meeting having with staff on gender review, I'd asked the question, because this has to do with Clear Creek, and Clear Creek being part of the Harris County flood control. I'd asked and gotten the answer why Harris County flood control did not pitch in on this, since this was a bridge. that goes over a controlled waterway by the Harris County Flood Control. And I was told because Pearland put it in, we're responsible. And so if we're responsible, we've got to buy the enchilada. I understand that. And Jennifer, thank you very much for your candid remarks. Let me know where we were. And so where we are is where we are. We have a bridge that's deteriorating because of the occurrence of the water flow, and we need to make sure that this bridge is secured for our citizens. And so if it takes EDC, if it takes buckling our belt a little tighter on some other projects to get it done, one thing I don't think we want to do as a city council is not do anything when the bridge comes tumbling down with a vehicle crossing it. So Whichever thing we have to do, I'm in favor of using whatever funds we can designate. If it's EDC, if it's more road funds, or if we can somehow petition Harris County Flood Control about co-sharing this expense, that would be great as well. But I don't think that's going to be as likely as right now. Thank you. Mayor Pro Tem Chavarria?

Yeah, thank you so much. I would be in favor in looking at EDC funding, but I think holistically, I think we need to stop, I don't say piece milling, but maybe looking at the bigger picture when we start working on strategic priorities. Thank you.

Member Byron?

Thank you, Mr. Mayor. Member Echols, I had the same question, and how could we get other entities involved? I'll share for the public that response I got was that we did reach out to Harris County Flood Control in 23, And we were the ones that built this bridge, and we are the maintainer of the bridge. So Harris County Flood Control said, not our problem. You guys go fix it. So it's definitely something we need to deal with. If you didn't see in the news as recently a couple weeks ago, we had a city of Beaumont had a roadway collapse where a vehicle just drove into a gigantic hole. We don't want to see city of Pearland in the news because we had a roadway collapse. So we definitely want to address it sooner rather than later. Member Patel, I have no problem looking at where the EDC can get involved in taking on some of these projects. I would just urge council to approve the design contract so we can keep this project moving while we look at, or staff looks at the potential of EDC picking up a project like this. I just don't want us to hold it up while we look at how we fund the construction. This design is going to take a while. So I would say let's move forward with the design tonight. One question I did have is I see Raj over there, and one of the responses I got was, I remember our first conversation on this, that the volume of the water flowing through there was what was causing the erosion because of the size of the inlet under Pearland Parkway was undersized. Too much water's hitting there, so a response I got was a hydraulic jump will be created in the proposed design. What is that?

Oh, that is when we create difference of elevation, we let the water fall into the little depressions, so the water pressure goes down and velocity goes down. So that's the jump that kills the energy of the water. Then water can slowly go downstream. So that is a part that's going to be designed as a part of it. Apart from that, almost 80 liter feet of the channel will be a concrete rectangular channel that will help to protect the bottom. And the side slope would be very, very mild compared to what it is right now.

Okay.

Thank you, sir. Member Cade? Member Fernandez?

Thank you, Mayor. I would agree with looking into the EDC to look at it, but I also think and agree with Member Byram that we do need to move forward with this proposal of the design and then see what we can do. That way we don't slow down the process. Thank you.

So I want to come back to Member Kaye because I know we've got pretty much a consensus of moving forward with the project with seeking other funds. And I know EDC was mentioned. So, remember, Kate, I'm going to add one more time.

I would be all right with soliciting money from the EDC for that.

So, I think we've got a distinction.

Just, you know, we do have the resolution where EDC is putting 20 percent of their funds annually towards these types of projects. So, if we, you know, if there's additional things we want to do beyond that, we can work through that through the strategic priority process as well as the budgeting process for both the EDC and ourselves before we get to construction.

So I think, just to kind of reiterate, there was a consensus to move forward with the design regardless of EDC funds. I just want to make sure we're clear, we're all clear with that. And so, outside of that, I just want to reiterate that, what you mentioned, Mr. Epperson, that while these projects do come up, and they are significant, they provide an impact to the community, I just think that our ability to manage holistically and strategically, we should evaluate these in the future meeting to understand which projects we can offset while we look at a holistic budget for both EDC and our general fund. But nonetheless, I think we, I don't see any other discussion or comments. And with that being said, Madam Secretary, would you call for the vote?

Member Byron?

Aye.

Member Cade? Aye. Member Fernandez?

Aye.

Member Patel?

Aye.

Member Koza?

Aye.

Member Echols?

Aye.

Mayor Pro Temchamadia? Aye. The motion passes seven to zero.

Next item on the agenda I'll now open this public hearing on a request by Justin Brumley of EAN Holdings LLC DBA Enterprise Rent-A-Car applicant on behalf of Hummingbird Trading LLC owner or approval of a conditional use permit for auto rental use within the general business district, approximately 1.915 acres of land.

Good evening, everyone. Thank you, Mayor. The proposal is to construct an enterprise rent-a-car facility. And this is basically a relocation of an existing business that's located about one-fourth mile west due to the TxDOT widening project. And the request is going to encompass approximately 3,500 square feet of an auto rental use, including office, accessory-enclosed car wash, and a vacuum canopy. Proposed site plan that will be on a later slide will show 77 off street parking spaces and 36% of the site is dedicated towards landscaping. Let's look at the surrounding area. To the north, we have Broadway Street and some GC zoning, which is general commercial with a dental office and appliance repair. To the south, we have a single family residential neighborhood. To the east, we have general business zoning and auto repair minor. And to the west, we have also GB zoning with a vacant lot and a dedicated airstrip. Looking at our comprehensive land use plan, this area is designated as the commercial center place type. And public notices were sent to all property owners within 200 feet and a public notification sign was placed on the property by the applicant. So far today, we have received six written comments in support and one phone call in opposition. Let's look at the site plan shown on the on both sides are the identical site plan the slide on the left shows these bubbles essentially that indicate where a tree is going to be located and essentially shows a hatching that. is going to be grass and vegetative cover. And then on the right side of the screen is a little bit more of a clear site plan. You can see where they're going to be trees and shrubs as well as where their buildings are placed. We have the rent-a-car facility closer to Broadway Street and the proposed accessory car wash towards the rear of the property. I also want to note that there is proposed to be no access off of Afton Drive. And there's a 60-foot landscape buffer from the single-family neighborhood to the south to where their first parking stalls are. And on the screen here are renderings provided by the applicant. We have the north elevation that's going to face Broadway. We have the east and west elevation, which is that car wash. And then we have the north elevation, which is going to show where the cars are dropped off and where their car wash facility is. So with that, the request met all seven of the Unified Development Code criteria for conditional use permits, and staff recommended approval with three conditions. One, landscaping installed in substantial conformance with submitted plan. Two, central vacuum system required if multiple vacuums are utilized to reduce noise. Three, car wash building and dumpster enclosure shall utilize integrally colored light beige CMU to match the primary structure. And the Planning and Zoning Commission voted six to zero to recommend approval of the proposed conditional use permit with staff conditions at the August 24th, well, actually, it should be August 10th meeting. And with that, I'll pass it back to you, Mayor. Thank you.

You're very welcome, thank you for that. So is the applicant here? If you could, please approach the podium. And when you do, just state your name.

Good evening, Mayor, good evening, Council. My name is Chuck Brown, and I'm here on behalf of Enterprise Holdings.

Thank you. Is there a presentation that you want to present, or no?

I do have one ready. Have you got it queued up for me?

Perfect.

All right, well, again, my name is Chuck Brown. I'm with Enterprise Holdings. I opened this location back in 1994 when I moved from the rental side of the business over to the real estate and property side. As I told PNZ last time, I am retiring on August the 31st. So whether I go out with a bang or a whimper is solely in your hands tonight. So thank you for your time. So a little bit about Enterprise Mobility. We are the parent company of Enterprise, Alamo, and National Car Rental, along with a myriad of other mobility providers. And our mantra is we advance the world one journey at a time. What's up? Just a little bit about who we are. What started as a fleet of just seven cars in 1957 by our founder Jack Taylor has grown for more than six decades now into a global network of mobility services including car rental, fleet management, flexible vehicle hire, car sharing, van pooling, car sales, truck rental, vehicle subscription, luxury rental, technology solutions, and more. And today we are on a journey to evolve and innovate to meet the rapidly changing mobility needs of our customers. We're embracing new technologies and solutions that draw us closer to a more meaningful, efficient, and sustainable future. So a little bit about our history. I talked about this earlier. We moved into the building. If you're familiar with the site, there's two buildings that are on there. The first one we moved into in 1994 was the small metal building. And we were there for quite a while in 1999, excuse me. In 2014, we leased the entire site and moved into the larger building that is more on the central part of the property. And in 2022, we purchased the site as our forever home. And TxDOT came along and said, well, good luck with that. We've got to get you moved. We want to expand FM 518, which is what got us moving to where we are today. So as we talked about earlier, the widening of the 518 project, they're taking essentially 30% of our site, which is our entire front parking area, almost up to and including our front door on the middle building. The front door access was effectively eliminated, and it does render the property unimprovable in the future. So we could probably stay put for a little while, but if something came along that caused us to have to pull a permit, we'd have to go through the redevelopment process, and at that point in time, the site no longer works for us. We opened our location, as I noted earlier, in 1999. We've been at this location for over 27 years. We have 12 employees that work there with an annual payroll of almost $390,000, just south of $400,000. We collect and contribute over $400,000 to the motor vehicle tax per year and a property on the property tax rolls with a contribution of about $11,000 per year as well. And we're confident that number will go up as we move into the new space. Just a little bit about who we are and who we serve in this area. If you know a little bit about Enterprise, yes, we are part of the leisure industry, but at the same time, we are part of what we, our forte has always been insurance replacement business. You wreck your car, you come rent one from us, is always kind of where we started from. The area we service down here are generally within the 521 to the west. Beltway 8 to the north, 35 to the east, and Bailey Road to the south. So a huge geological or geographic footprint for what this branch takes care of. We service 82 insurance agents, State Farm 15, Farmers 10, Allstate 12, and a total of 45 independent agents within this area. We also service 39 automobile repair facilities, 10 of those being multi-shop collision centers, 15 independent collision shops, and 10 all-type shops, and four large dealerships in this same area. Last year at this location, we provided rental cars to just under 11,000 Pearland area customers during those 12 months. And we are also considering an essential service and provide transportation solutions during emergency events. And we're proud to say that Pearland PD does rent cars from us as well. Our new location, as we noted, is about 800 feet to the east of our existing site. It is going to be 1.680 acres post-taking. It is adjacent to Galaxy Automotive, and it is zoned general business, and we're applying for a CUP for auto rental. Here's some renderings. You saw some black and whites. Here's some with a little bit of color. Realizing we're not 100% of the way there, we have been working diligently with your planning department to get these renderings and our plans to a place where we know it will align with the 518 corridor. So in the picture on the left, you can see what we'll be facing 518. And the two pictures on the right show the ends of the building, both the car wash and the side door of the building. So some site plans and notes, as Kachi went over earlier, we are utilizing the existing driveway onto West Broadway with no access onto Afton Drive. The site was designed, and we'll talk about this in one of the next slides, with the concerns of the Afton Oaks residents in particular as we develop the site. The car wash building, as noted, was moved off the Afton Drive side and positioned behind the rental car building. And as talked about earlier, it's a 1,500-square-foot office building, 722 square feet of sexery car wash building, plus 1,271 square feet vacuum canopy. And it should be noted we have come up with 77 off-street parking spaces, and we can get more on there if we need to, but we don't want to do that. Landscaping, as was noted earlier, we've got 24,712 feet of landscaping, which is about 36%. That's roughly .57 acres of landscaping. The landscaping plan is 225% above the 15% requirement. So we've really focused on making sure that we beautify this piece of property, including that 60-foot setback from the neighborhood that's directly behind us. And just a fun fact, the plan calls for 903 plantings on this site, 34 of those being trees. And I told PNZ last time, if this doesn't work out as an automobile rental business, we'll just sell plants. So we're gonna have a lot here. We were very concerned about civic engagement as we rolled into this project. And so we began talking to Afton Oaks very early in May We had a number of telephone calls, Zoom calls, and quite frankly, dozens of emails between us to make sure we were addressing the concerns of the people by us. The car wash was deemed an accessory use that is part of our business model. We relocated it behind our primary building and screened it with landscaping. The Afton Oaks residents were concerned about it being adjacent to or on Afton Drive. We moved that. They asked for no fuel. We have no fuel on site. They talked about landscaping and screening, and if you'll see the previous slide, we absolutely listened to their concerns. Lighting, we will follow all city requirements, and we will share our photometrics with the POA for feedback while we go in for permit. We, too, believe in dark sky requirements. We want to make sure we don't over-light their neighborhood. The shared access will be through Galaxy Automotive only. This is how it's designed, and it will remain. There is no road connection to Afton Drive. There is adequate on-site parking. At one point, the residents of Afton did ask for a traffic analysis and a stoplight, but the city informed us that that did not align with what TxDOT was trying to do, and that airstrip also put height requirements in place and FAA regulations which would have prevented a traffic light at that corner. We have agreed to and will make an ongoing contribution to the retention pond that is behind this space where our site will drain onto directly. And we have agreed to an amount that is actually above our allotted percentage. We just wanted the neighbors to know that we were aligned with what they wanted. And lastly, we contributed to a landscaping and beautification around the detention pond where our site will drain and the sites next to us. We are pleased to share that we are offering a substantial contribution to the POA that they can use as they deem necessary for beautification around the pond. So we are asking for a conditional use permit tonight for our site and hope that the city of Pearland sees the future the way we do and we can get this project underway. I've got time for questions if you've got any.

At this time, council members.

Member Kozen. Excuse me, Mayor, it is a public hearing.

I'm sorry. No, I got it, I got it, yep. Are there any, is there anyone that would like to speak on this?

Thank you, Mayor.

Seeing none, I'll now ask Member Byron.

Thank you, Mr. Mayor. Sorry, Member Koza. I want to make sure I say this correctly, so I've got it written. I do have a relationship with the applicant. It does not rise to the level of conflict regulated by state law or by city ethics ordinances, but in an effort to maintain transparency and avoid the perception of a conflict of interest, I will be abstaining from the discussion and the vote on this item. And I'm going to step out. I appreciate it.

Member Koza.

Thank you, Mayor. First off, I have been a customer of your current facility and what you're posing here. I think it's a great asset upgrade to the city of Pearland, so I like what I see here. I appreciate that. One question that I had looking at that picture that you just put up right there. Looking at the rendering here and then the layout as far as the site plan, it looks like are the windows, is that part of the car wash that I'm looking at there?

Yes, sir. That's the back part of the building there? Yes, sir.

At first, I was like, is it hidden by the front building or not? So that hides it fairly well right there. Question that I have is staff, as far as I know auto uses require CUPs, is this just because it is an auto use or because of the car wash, just out of curiosity?

I can answer that great question. So the conditional use permit is for the auto rental and the car wash facility is considered an accessory use to the auto rental. It's not going to be open to the public. It's not going to be even sized to the car washes that we see across town. It is only for the enterprise rental cars that are dropped off and cleaned for the next user.

Okay, but I mean, I guess my question was the CEP predicated just because it has cars or because it has a car wash?

The auto rental requires a conditional use permit in the general business zoning district.

Yeah, that's all one clarification on, so I appreciate that. And also, thank you for working with the neighbors in the area because sometimes we get folks that do, sometimes we don't. It does go a long way to work with the neighbors to make sure that they're comfortable with what it is and what it's going to be. And it sounds like y'all have made some adjustments to accommodate some of their requests, so I do appreciate that. Thank you. Thank you very much.

Thank you, Mayor. Thank you, sir, for bringing this to us tonight. I only have one question, and that is on your car wash. I understand it is for cleaning cars that come in from rentals, are making ready for it to go out. I am familiar with another rental agency in another city that put in a rental place in a strip center, and they had to come in and make about $500,000 worth of improvements to their sewer system. And I just wanted to make sure that the sewer, and it will meet code, and that if it passes muster, you won't have extra expense that this other gentleman had because of the car wash. So that's my only question to you.

So that's a good question and I will tell you we've got 100 locations in the greater Houston area and tens of thousands around the country where we've got washes. We understood years ago and we do now the way to properly plumb these. They've got sand oil separators in them. They're tied into the sanitary sewer where necessary. Capacity is confirmed before we do it. But most importantly, we maintain them after they're put in. We've got a very diligent process to make sure that they're pumped properly, that it's disposed of properly by a licensed company. So to your point, we learned a very long time ago that if it's worth doing, it's worth doing right the first time.

Thank you much. No further questions.

Mayor Pro Tem Chavarria.

Thank you, Mayor. So thank you so much for being here, and thank you for 27 years of doing business in Pearland. So I have one question. The staff has three conditions. Are you comfortable meeting all three conditions?

Yes, ma'am. Absolutely.

Member Cate? You said there's no gas there?

No gas station? No fueling on site, no, ma'am.

Do you usually have fueling on site?

Not at a store this size. It was a consideration, but when the POA approached us on it, we took it off the table immediately.

Thank you.

Member Fernandez?

Thank you, Mayor. I echo my members of council that spoke about 27 years. Member Chavarria, you know, thank you for continuing to do business, wanting to continue just to move sites. I'm going to be in favor with this. Thank you.

Member Patel? Thank you, Mayor. I read that you guys are putting a CMU wall. Can you show me where you guys are putting that wall?

So you can go back to one of the renderings that shows it. There was another side. It's essentially the backside of the car wash wall is where that CMU wall will be.

That's what I assumed. And I guess, and this is the only concern I have, not only, but when the residents are coming out, they're going to be able to see the car wash tunnel. Is that fair to say because your wall is only along the detention pond?

The wall is actually, the tunnel runs perpendicular to Afton Drive. Sure. So as they come out, you will essentially see the back. As they make that bend to the left and turn to the north, yes, you'll be able to see the tunnel. It was originally parallel to Afton Drive up by 518. Okay. Which essentially you could see it from 518. We moved it at their request. And then if you look at the landscaping plan, it's very heavily landscaped as well.

And I guess my ask, if it's possible, is to continue that CMU wall around the curve, because as the residents come out, and they go, I guess, bend a 90 and a bend 90 again, just up to, I guess, up to where that, I mean, it's hard to tell. I know I'm pointing here, but I know you can't see it. I guess it's a number three that's written in that parking spot, or five, right across the, yep, right there. So if you could hide that, right? Because we do require a lot of the car washes in our city for the tunnel to be hidden or some kind of, and correct me if I'm wrong, Trent, don't we have some kind of barrier that they had to put in front of these tunnels?

It's got to be glass, and we are designing it. There's actually a rendering of that where we are making the door translucent. I can't think of the word of it offhand. You can see the tunnel door there. That is actually beautified, if you will. And that is at the request of your planning department.

And I guess that glass is going to be open during business hours. Yes. And so that was my point, just to hide it, right, from the residents not being able to see it as they leave a car wash tunnel and the noise coming out of there as they're driving by.

Good questions. I will tell you it is one of the concerns the constituents had was noise. And I actually went out with a decibel meter to one of our locations that has these. We do not use the typical car wash equipment like you have in a Mr. Car Wash. We don't have the loud blowers. We don't have the loud mechanized equipment. We use a product that comes out of Seattle, Washington. It was noisier three feet outside the tunnel than it was up against the door, and I sent those pictures to the POA. It's very, very quiet, so I'm not concerned about noise. I am more than willing, as we explore this project at your behest, to figure out how we might screen that. I just don't want to make sure we explore turning radiuses and how cars go in and out and what the traffic flow is on the parking lot.

Yeah, and so the only thing I would ask you, if you could consider putting a CMU, since you can carry it over, it'll be just, I think, aesthetically better.

So you're just talking about carrying it out a few feet?

I guess from wherever you are, just along that curve, at least to hide that driveway, right? If you can give us a detail on that, that would be great. We'll explore that for you. Okay. And I know in your current location, you guys put a bar at night to close from people coming in and out. Are you guys proposing something like this on your driveway to lock it at night? Because it just kind of doesn't look that great.

No, we do not close it off any longer. We have a drop box at these locations where our customers come and drop cars off after hours. and that will remain open during.

So the driveway won't have a gate or anything?

There is no fencing at all on this site.

Okay, all right, thank you so much, I appreciate it.

You're very welcome. Any additional questions from council? All right. Seeing.

Pardon me, Mayor. Prior to the item being placed on the agenda for action under new business, I would just encourage if council wants the three staff proposed conditions that the applicant had said to include in your motion, amending it to include those three staff conditions.

Yeah.

Could you reiterate those staff conditions for clarity, please? It's in there.

They're put on the screen for whoever may be making that motion at that time.

All right. If there be no one else to speak, I'll now close this public hearing. Councilmember Echols, could you present new business item number one, please?

Consideration and possible action resolution number R2026-CUP2026-0224 with the three conditions. We recommend approval by the staff.

So moved.

Second.

Motion with consideration made by Councilmember Echols, second by Member Cade. Any additional comments or questions, discussion? Seeing none, Madam Secretary, could you call for the vote?

Member Echols? Aye. Mayor Pro Tem Chavarria? Aye. Member Cade? Aye. Member Fernandez?

Aye.

Member Patel?

Aye.

Member Koza?

Aye.

The motion passes six to zero.

Thank you. I'll now open the second public hearing. on a request by Preston Cunningham, applicant on behalf of Vey Rakin LLC, owner for approval of a zone change of approximately 10.49 acres of land from the suburban residential 15, SR 15 district to the general business district. And I'll turn it over to staff for some additional context.

Thank you, Mayor. As stated, this is a proposed rezoning of 10.49 acres from SR 15 to GB. The applicant proposes to develop a business park with a combination of buildings with offices and warehouses in the back, along with professional freestanding and multi-tenant office spaces. That is directly from their letter of intent. However, I do want to note that office warehouse is not a permitted use within the GB zoning district. Additionally, sanitary sewer is not available to serve this site. A legal ad was posted in the Pearland News Reporter, and we sent out seven notices to all property owners within 200 feet, and a notification sign was placed on the property by the applicant. And so far today, we've received one written comment in support of the zoning request. Let's look at the surrounding area. To the north is also zoned SR-15 with undeveloped land. To the south is zoned neighborhood service with a Dollar General. To the east is a single family estate with a Pearland ISD bus barn and elementary school. And to the west is also zoned SR-15 with undeveloped land and low density. Looking at the future land use plan, the place type is traditional residential. So I wanted to showcase on the screen the approval criteria for zoning changes and the conformity to the criteria. The proposal does not meet the future land use criteria because it's in the traditional residential. And then we are worried about the zoning change impacting the immediate area, seeing as a lot of the surrounding zoning is SR-15. And then whether the proposed changes in accordance with existing proposed plans, providing public schools, street water supply, sanitary sewer, and other public services, The applicant would be required to extend sewer to their location to have this development. And so that's in May, as right now there is no sewer to serve the site. And then finally, substantially affecting the public health safety and morals of general welfare. We said yes, because if approved, the development would be required to adhere to Unified Development Code buffer requirements due to being adjacent to single family zoning. And with that, the request meets one and may meet one out of the four approval criteria. And staff recommends denial of the zone change from SR-15 to the General Business District. The Planning and Zoning Commission met on August 3rd. Excuse, there is a typo in the slide. And the vote was unsuccessful with a vote of one to five. And with that, that means a supermajority vote by City Council is required tonight. Thank you, Mayor. I'll pass it back to you.

Thank you for that, and I do see someone at the podium, so I'm assuming that someone is a representative. Is that correct? Yes, I am. I'm Travis Vargo. And if you have a presentation, please, by all means. Okay, thank you.

I don't think I can get your IT.

Am I allowed to unplug this?

I'm Doug McCrickin, landowner.

Zoning should have sent all this over here to you guys, right?

OK, they told me .

We do not have them loaded. Reviewing the email that my team sent you, we did confirm to bring a USB stick for tonight. Thank you.

One second, sir. One second, sir. One second, sir. Hold on. Just let us, if you wouldn't mind, just allow them to pull up.

the information, please.

Just wait until they pull up the information, please.

Yes, sir, thank you.

Are you able to present? Okay, no problem.

Sorry for the brief delay.

No, no worries.

Wonderful. Okay, so as I was saying, I'm Travis Vargo. This is Doug McCreakin. We're here on behalf of Verica and LLC. Preston Cunningham was under the weather and couldn't make it tonight. So as the young lady to the side here was saying, this is a fabulous tract of land. It's 10 acres. It's behind the Dollar General on Bailey. And obviously everyone's familiar with the southern end of Pearland. But from a zoning perspective, it's our understanding that SR-15 was somewhat of a placeholder insofar as the city was very focused on other more bustling areas of development, 518, 35, et cetera. Historically, this area of town was larger acre tracks, 5, 10, 15 acre tracks, and historically, Folks were running businesses out of there. For example, our track was previously a golf cart repair facility for many years with an elderly gentleman living there. It has a really nice driveway up the side with oaks lining it, really pretty oaks on the property. But going back to our map, what you'll notice is that it's immediately next to the Pearland ISD bus barn. And as much as planning and zoning would like to say that the area is residential, we would have to respectfully disagree because a bus barn, as will be shown in a moment, is actually an M2 heavy industrial usage on our fence lines. The property has two entrances. One entrance is the Oaks. It's a little bit to the Coca-Cola truck that you see in the distance to the right. And then the other one is an easement that's paved to the left of the existing Dollar General. As I was stating a moment ago, this is where the heavy industrial comes in, and it talks about bus and truck storage. Yet again, we're marked for SR 15 residential. It's very subjective, but I would venture to say that there are probably not many people in this room, nor in Pearland, that find the Dollar General and the bus barn being their immediate fence line neighbors to be very desirable. This is a shot of the buses in the distance. It's in current usage, it's in frequent usage, and it's persistent. General business is prevalent in the area. And candidly, it's our position that the area could really use more. There's general business on the corners. There's neighborhood services in front of us. But an increase in neighborhood services wouldn't really do anything for our track or provide any additional amenities for the nearby residences and or residents. Neighborhood services is extremely narrow. It's for the types of businesses that you think of when you think of retail. And those types of businesses also require street frontage. Our property has no street frontage. We have an easement, we have a driveway, and then it balloons out to the back. The types of development and amenities that we would like to provide to the residents of Pearland, the community, and provide tax dollars to the city. At this point, it's kind of a chicken or the egg scenario. It's hard to come here and say what exactly you're going to develop because that's extremely expensive to do. You've got to get plans. Obviously, you've got to get the utility plans, et cetera, as well. But we're thinking flex warehouses. There's a lot of trades, electricians, plumbers, et cetera, that are residents. And it would be an extraordinary amenity to them to have some flexible warehouse where they could have an office, have some interior warehouse, and some exterior parking and yard for their parking for either their company vehicles, et cetera. Another potential usage would be some medical office-type condos. You could have lawyers' offices, insurance offices, et cetera. But again, under a SR-15 residential, none of this would be possible. up and down Bailey. It's a beautiful street. It's got very nice concrete. It's got nice speed limits, and people can traverse east to west fairly quickly and get around town to their businesses and service the construction in the area or service the other residents. We believe this would be a tremendous asset to Pearland. That concludes my presentation.

Thank you for that. Is there anyone, as this is a public hearing, anyone willing or wanting to speak on behalf of themselves, organization, with respect to this particular zone change request? Seeing none, I'll now bring the attention up to council for discussions, questions, comments. And I'll start to my left, Member Patel.

Thank you, Mayor. You know, I have a hard time changing this to completely a GB. And I think as much as you may disagree with PNC, I think they got it right. Just because I'm not sure if I give you this right to do GB, there's a lot you can do with it away from what your intentions were. And that's what worries me. And so I'm not going to be in favor of the changing of the GB. Sorry.

Thank you, Mayor.

I would happen to agree. I think that the GB is not the proper fitting. If anything, a GC, GB is going to require so many CUPs that are going to be required depending on what businesses come in there. Possibly even looking at a PD, maybe something to that effect may work out a little bit better. I agree with Member Patel that Um, I, I think the PNZ got this right regarding the way it was proposed. Um, so that's all I have to say. Thank you. Member Kate.

Thank you, Mayor. Um, I, I think a PD would have been good here. Is, is Vance, are you over there?

I can't find him. He's there.

He's there. Um, did, uh, What is that? I can't think, I'm sorry. An option, yeah.

I would say a PD is an option. In this particular case, it would appear to be more of a land use variance than it is something to get something above and beyond special, is what I would say. But a PD is always something we can talk about.

You said a land use?

Yeah, so in a situation where the GB or the GC may be inappropriate, the applicant can ask to do a planned development. Planned developments are supposed to get us superior products that are above and beyond what we would get anyways. In this case, it's just to get around the fact that the zoning doesn't allow it.

Oh, I understand what you're saying. And you said that the, I believe, Katia said there's no sanitary sewer?

Yes, ma'am, that is correct.

And so who would run that? Who would get that? They would? Okay. All right, thank you.

Thank you, Mr. Mayor. As Member Fernandez said, office warehouse flex use, that would be by right under GC, under GB. That's going to create a ton of headaches for you guys because you're going to have to get a CUP every time you have a tenant that wants to come in here. I will say we've been talking about a UDC rewrite, and this is the exact kind of situation I was referring to when we talk about a PD light where we don't have that elaborate PD process that we currently have. We have a kind of quicker process, but as we deal with infill on these kinds of projects, as our community builds out, I think having that PD light option within our UDC to be a little bit more specific with these kind of things, I think is the direction that we need to be going. So based under what I'm hearing is that you wouldn't be in favor of the No, not under this. I mean, I know it takes a supermajority. We don't have a supermajority to overturn P&Z at this point, but I would want to look at it in a PD. Mayor Pro Tem Chavarria?

Thank you, Mayor. So, yeah, I would like to see it as a PD as well, but Vance, under M2, are you permitted to do office warehouse?

M2, yes, ma'am.

Thank you.

Member Echols?

Thank you, Mayor. Thank you for bringing this to us and looking at this. I don't see this as SR 15 applicable. I believe it should be something else. I think GB you're putting yourself in a hole, because anything that you're mentioning, especially with electric plumber, put a warehouse, you're going to have to get a CUP, and that gets expensive. GC or the PD, I think, is probably the best route to go. And if, as Councilman Byrum said, if we could possibly with our UDC rewrite, put in a mini-PD or something applicable that would be for a small commercial development. I think that would be icing on the cake for us in rewriting our UDC. But with Not having supermajority, it really doesn't matter on which way I go. I just, I can understand SR-15, really not very applicable in this spot. So anyway, we can reach out and help, let us know, and we can work with the community development and with the people there to get something that can be used. Thank you. For what you need.

Member Kozen.

Thank you, Mayor. One question that I had for the applicant. As far as getting the sewer to the property, are you all aware of that issue and the expense?

We had the phone call with them, yes.

Okay. So that's all. Could you bring up the slide that had the zoning? Yeah. So when we look at the bus barn there on the right, It is zoned RE, which is a residential use, yet there sits a bus barn there. So I guess there was another photo where it had, I think that's Massey, that's above where the bus barn is. So it's my understanding that that the reason the bus barn was allowed there is because the school district and schools are allowed to build on any type of zoning they want to pretty much.

Yes, sir, that is correct. So with Massey Elementary, we would consider this bus barn an accessory use to the elementary school, and that's why it's allowed in the RE zoning district. Thank you.

Yeah, so I just wanted to make sure that you understood why a bus barn is here It's not zoned M2. It is zoned RE, as it states right here. And the reason the bus barn is there is because it's a school.

Yeah, I'm not contesting that they can obviously do what they've been doing. I just think it's changed the characterization of the area.

Right, but when you made the comment that an M2 was in the area, that's kind of a special part of zoning with a school being able to be put in there. So I just want to make sure that you understood that. As far as the comments with the previous council members where GB would require a lot of CEPs, I could see that happening. So from my perspective, as far as if you were to bring this back, a PD with the uses that you're looking for will accommodate, one, a better development for the city as far as the different avenues that we have, as well as being able to kind of help the area have a better development as well. So I would be in favor of a PD for this property.

Thank you.

Thank you.

All right. Just making sure you give them as much information. And I see someone going to speak. Representative, if you could just stand at the podium and say your name if there's something you'd like to say.

Doug McCreakin, owner. I want to thank everybody up there, mayor, council member, women. I've learned more in the 10 minutes that we've had this discussion from each one of you that I have with planning and zoning the entire time we've been going through this with consultants and money and emails and such. So GC, PDs, everything I've learned right now has been incredibly valuable. I hope PNC works better to Maybe do a little more hand-holding when you're a new applicant, you're trying to figure out which zoning to go to, which is applicable to the city and, in general, your plans there. So, but thank all y'all on the dais up there. You're welcome.

Thank you very much for the feedback.

No problem. As long as we have some direction going forward and give them the information, I would say, staff, I thank you for working with them. And as always, I know we can probably collectively improve the process. So, noted. And so, seeing no further discussion, I'll now close the second public hearing. Mayor Pro Tem Chavarria, would you present new business item number two, please?

Yes, thank you, Mayor. Consideration possible action, first reading of ordinance number 2000M-285, so moved. Second.

Motion made by Mayor Pro Tem Chavarria, second by Member Byram. I don't believe there's any additional discussion. Madam Secretary, would you call for the vote?

Mayor Pro Tem Chavarria? No. Member Byrum?

No.

Member Cade? No. Member Fernandez?

No.

Member Patel?

No.

Member Coza?

Nay.

Member Echols? No. The motion fails zero to seven.

Member Byrum, would you present New Business Act number three, please?

Certainly, Mr. Mayor. Consideration of possible action, first and only reading of ordinance number 2026-1657. So moved. Second.

Motion made by Member Byrum, second by Member Fernandez. Mr. Epperson, would you?

Thank you, Mayor. This item and the next item are the ordinances for the outcome of this year's debt sell, and I'm going to hand it off to our financial advisor, John Roebuck, to present the results.

Mr. Epperson. Mayor, council members, John Roebuck, BOK Financial Securities. We had the honor of selling bonds for you guys this morning. I'm going to go through, we have three, well, two items on the agenda tonight, but we actually sold the permanent improvement bonds today also. Those were done as payment orders, so those have been approved already, but I'm going to give you the results of those. I will start off by telling you that we did pull the refunding portion of the permanent improvement bonds. The market was a little off from where we showed you back in July. And the present value savings is a little less than 3%, which is what our threshold was. When I showed you the refunding back in July, it was a 3.2% PV savings. It's a little off. Decided to pull it and hopefully come back at a later time with a greater savings than we would generate today with the market. That being said... Start off with the Bond Buyer Index. This is the weekly average of municipal bonds across the country. If you see in the far right there, the municipal average for general obligation bonds, which all three of these series were, was a 4.76. Back in July, when I showed this to you, it was at a 4.71 percent. So, it's gone up a little bit. We've seen a lot of volatility in the market, obviously, with the Iran conflict going on. concerns about the economy, the national debt hitting $40 trillion earlier last week, late last week, and then just midterm elections coming up in November. Have the market a little volatile right now. I will tell you that during pre-marketing, the underwriters were able to generate a lot of interest from investors, specifically one large one, a state farm. They are hard to get them qualified to purchase bonds that aren't AAA rated. They came in and put a significant order in for your bonds, so we're excited about that. But the results of the bonds... For the permit improvement bonds, again, this is just a new money portion. We sold 19,995,000 bonds to generate 20,375,000 proceeds for the city. On the far left, you have your current debt service requirements paid for by property taxes. then your principal and interest in the total for the 2026 permanent improvement bonds, and then your resulting debt service on the far right. We did sell 30-year debt to match the useful life of the projects that are being financed or built with these funds. And then for the sources used as funds, again, we sold $19,995,000 in bonds. Investors paid us a premium of $614,000. Last year, issuance expenses of $234,000. Generates us proceeds of $20,375,000 for the city. All cost to interest rate was a 4.807. Average life was 18.34 years. And then for the Certificate of Obligation Series 2026A, which we're gonna ask you to approve during this agenda item, the far left you have your current debt service requirement, which includes the permanent improvement bonds. And then you have your principal and interest in total for the Certificate of Obligation. And these are for the general government projects. And these were sold in a 25-year debt service structure to match the useful life of those projects. But we sold 3,635,000 bonds to generate $3,635,500 in proceeds for the city. And the source and uses of funds, again, 3,635,000 in principle, premium 70,000, excuse me, cost of issuance of 70,000 generates the proceeds of $3,635,500 for the city. All cost search rate was at 4.727%, average life of 15 years even. I'll stop there. If you want to go ahead and do this agenda item, we'll go to the next agenda item for the Bs.

Thank you for that. Council, are there any questions, concerns? Member Byron.

I just had one question. John, thank you for being here again. At the very beginning, you commented that savings wouldn't produce 3.02%. So you pulled back. So does that mean you didn't sell some?

We did sell the refunding portion. We just stuck with the new money portion to generate the $20 million. Yes, sir. We have a parameter in place, so hopefully later, when the market conditions get better, we can come back and show you some significant savings.

So when do you anticipate looking at that again?

Well, probably November after the election, when things kind of settle down.

Fair. Okay. Thank you, sir.

You say when things settle down. That's an assumption, but remember Patel.

Thank you, Mayor. I guess there's a $9.7 million that's remaining on this bond. Is that correct?

What do you mean 9.7? What do you mean?

I guess item number three, when we were looking at it, I guess there's a – can you pull up that item that we got on our agenda package? It was showing like there's some bonds that are still left for projects.

Are you talking about authorization?

Yeah. One second, John. One second. Let me – In our package, I guess there are some projects here that weren't.

I know what you're talking about. The notice to reimburse initial project.

Yeah, page 2 of 36, sorry. Yeah, right there. So I guess we still have these other projects that we're going to have to sell these bonds on, correct?

Yes, sir, these are COs. And so based off of the project schedule, they're either delayed or reduced. So they should be expecting to come back probably in fiscal year 27.

Okay, so I guess, and John, correct me if I'm wrong, I guess when I was looking at it, it's costing us 75 bibs, right, when I did my calculation for underwriting and financial advising. So that's 150 bibs that we're paying for costs on this. Is it true that the larger the bonds, the cost would go down?

Yes, sir. I mean, the larger the bond issue in total, yes, sir.

Okay, so when we're doing these small bonds and the rate may be a little bit better, would that be true?

Depends on the market. Historically, yes. They're smaller, yes, but not now. Right now, investors want larger block sizes.

Sure. And I guess the question that I ask is, do we need to sell 3.6 million, right? All we're doing is funding, adding it back to our fund balance. And I guess my point is, we're doing these small sales of bonds Instead, I mean, 3.6 million is not, our fund balance is pretty healthy. I think our cash investment, Rachel, correct me if I'm wrong, how much is our overall cash investment portfolio?

I'm sorry, I don't know that number off the top of my head.

Okay, would you say it's over 200 million?

Victor's nodding.

Yes, it is. Yeah, okay. So to me, what I'm saying is when we keep doing these small bonds, we're not getting the best bang for our buck. So would it be better to kind of defer these and wait till the other bonds are ready and kind of go to the market at one time and get, you know, and the cost would go down and the larger... And again, you can educate me on this, but when you go on a larger bond sale, you get more investors who are interested. Like you said, State Farm may not be, but when you're going out to selling $50 million bond compared to $4 million bond, there's going to be a lot more buyers out there.

So I will say this. One of the benefits of selling all three series together, which we did this morning, is that we attract a lot more attention because they look at the total size of all three together. And then the underwriter... with our help, determine where these orders are going to go and who's going to get those bonds based on which series they went in for. Yields have been a little bit different. Historically, yields have usually been the same for all three bond issues when you sell them. But again, now that investors are looking at more, again, each maturity have a larger block size, they're putting in for the specific block size they want. These were a little bit smaller, but we got the benefit of investors who were probably putting in for the permanent premium bonds. They actually moved over to these bonds to buy these bonds. So we got the benefit of that. Had this been sold by itself, I agree 100% with you. We probably should have waited, but together it actually, it makes sense.

But we're not seeing any cost benefits from the cost side, right? I mean, to me, we're paying quite the cost I don't know. In my world, I come in, hey, if I can buy down my cost because I'm spreading out that, you know, even if you save 50 bibs, that's a lot, right? Like everything counts. And so that's just my point to say, hey, would it be better? Because all we're doing is we've already spent this money and all we're doing is replenishing our economy. you know, our balance sheet. And so it's like, hey, we're not gonna be really hurting for three and six million if we can wait for another year and kind of go for bigger. That's just my point. I mean, again, I appreciate it.

I agree 100%. So what you're saying makes sense. But this is, I think it's the first small bond issue we've done since, gosh, by the last 10 years. The smallest one besides this is about eight million. And that's not small. So, I mean, but it made sense because it is a part of a larger scheme.

Member Fernandez, questions? Member Kaye, questions? Member Byrum? I see shaking heads. All right. With no additional... Member Echols? Gotcha, not a problem. Madam Secretary, would you call for the vote?

Member Byrum?

Aye.

Member Cade? Aye. Member Fernandez?

Aye.

Member Patel?

Aye.

Member Koza?

Aye.

Member Echols? Aye. Mayor Pro Tem Chavarria? Aye. Motion passes seven to zero.

Member Cade, would you present new business item number four, please?

Yes, Mayor. Thank you. Consideration impossible action first and only reading of ordinance number 2026-1658. So moved.

Second. Motion made by Member Cade, second by Member Fernandez.

That's right. No further report. I believe John covered everything. Gotcha.

All right. Got a couple more slides left. And I completely forgot to do this when I started, but Mr. Witte, Jackson Walker, your bond counsel's here. He's the one who drafted the documents we're asking you to approve tonight. So on to the next agenda item. This is for the Certificates of Obligation Series 2026Bs. These are for the water sewer-related projects. Again, we went in the market with the other two bond issues today and sold 58,465,000 bonds. We generated $59,516,171 in proceeds for the city. Again, these are, although they're issues of general obligation debt, CEOs, they are gonna be paid for, the city intends to pay for them with water and sewer revenues. So there on the far left is your current water and sewer debt outstanding, and then you add your principal interest of the new certificate of obligation, and then the far right is your resulting debt service requirements for the water and sewer side. The sources and uses of funds, again, we sold 58,465,000 bonds, generated a premium of $1.6 million, less cost of issuance, about $600,000. Generated total proceeds of $59,516,171. The true cost interest rate was a 4.818%, and the average life was 20.68 years. The last two slides are scheduled events. We've hit every date on this scheduled event except for the last two. Tonight we're here to ask you to approve the sales, which you've done the first two. We're just asking you to approve the third sale, the Series 2026B, Certificate of Obligation. If you do so, then we'll work with AG or Rick Whitty's office. We'll work with AG's office to get the bonds approved, and we'll close on September 24th, and you'll receive your funds. If you have any questions on the financing, and I'm sure Mr. Whitty will answer any questions you have on the documents, we're asking you to approve tonight.

Member Patel.

Thank you, Mayor. John, just out of curiosity, between the enterprise and the general obligations we have, what is our total outstanding debt for this city? What do you say? It's $1.6 billion?

Let's see. We look. It's $1.134 million for the water sewer and then $583 million for the... $1.6 billion? Yeah, about $1.6. Yes, sir. Okay.

And Trent, if we can go to that, that's on your side, thank you. If we can go on the projects listed real quick, that they're from the water and sewer side, please. There were a few things, one, and I apologize, I know this is regarding the bonds, but just to understand, the Makawa Water Transit Pipe and Water Line Replacement, project WA2505, I know we spent $130,000 or $170,000, and I would ask if we can, please pass that to EDC. We talked about this. So that would actually help bring this bond from this side down. The Southwest Quadrant for an old town site transit water line replacement. I forgot to write the project number down. um which is south if you can oh my gosh i'm sorry is it at the top yeah is that two point two point five million again uh keep in mind 1.6 billion is what we owe so anything we can pass this on to the edc i think we should and then uh the shady crest uh creek and uh rehabilitation it was half a million dollars over budget do we yeah right there uh 2405 uh please remind me why was that i was just looking at this i noticed this over two and a half or half a million dollars over budget so i believe the left-hand column is what we had in our intent to reimburse um which would have been last fall that gets updated based on our final

construction estimates, but that's the one we actually awarded at the last meeting, and I think it actually came in under that number. So what we don't use there will get allocated to another project, so we would sell less debt next go-around.

Okay. And I would, again, urge Trent to find some of these projects to be moved off to EDCs on capacity. Thank you.

Member Costa.

Thank you, Mayor. Trent, on this last tranche of money right here, is this the final payment on the Barry Rose Longwood?

No, sir. I believe that one, we've got that extended out into at least the next fiscal year. I'm looking at Rachel and maybe the following. We're spreading that out as long as, basically to run as long as the project runs.

We expect to sell the final amount in fiscal year 28. So if there are any cost savings, we can recognize it at that time in conjunction with the project concluding in, I believe, April of 2028.

Okay, so that'll be it in that time. Yes, sir. So there's more to sell for Barry? Yeah, I just wanted to clarify. Thank you.

Mr. Barrow? Thank you, Mr. Merritt. John, the total... debt service of $1.6 billion. That's over what time frame? 30 years. 30 years?

I thought it might have been 20 years.

Do we have anything or can we get anything, if council agrees, because I don't want staff to go do a bunch of stuff just because I asked for it, something that shows us not just the total debt service but the defeasance over that same 30 years so we can see how things are getting paid off over time? really so the general public can see how things are getting paid off.

Is that the chart you basically showed?

We can do it. We put together a debt book every time we close a bond issue, and in there it shows each series of bonds. It shows the principal being paid off each year and how much is drawn down each year. You say defeasances, I think like refunding or paying off bonds early. Those are kind of opportunistic, depending on the market. Every bond issue we sell has a call date or call provision of 10 years, sometimes nine, depending on the market. But this one has a 10-year call. So every time a bond hits 10 years old, we look to see if we can refund that at a lower interest rate to save money on interest costs for the city. So I don't want to plan those because, again, like we had this earlier, we had to pull it because the market wasn't there.

Fair enough. And I appreciate that, that you guys watch out for the dollar. I guess what I'm looking at is, I know we got two accountants on the dais, and so big charts with massive amounts of numbers on them, they love them. For other people, maybe a different presentation style that we can maybe better understand or digest might be a little easier for those of us that don't have that degree.

We can definitely, if we do that already, we'll get that over to you.

I appreciate it. Thank you.

John, real quick, based on, sorry, I apologize. Based on what's outstanding, right, because there's no, I know what Member Byram is saying is kind of in your deck, right? I mean, on both of them, you can see 1.39 billion and then 588, and you see the payments, but then there's also the other component, which is we're gonna be adding on more debt each fiscal year, right? Yes, sir. And so what we're paying down I think we're going to be adding more debt on than we are paying down. Is that fair to say in the next five years?

Next five years, we're hopeful to reduce the amount of debt we're issuing. That's something we're working on right now. Rachel and I have been talking about trying to reduce some of that so that we aren't adding so much to debt to this current total right now. It depends on the projects we already have in the CIP. So it's kind of a balancing act between what projects you have going, what projects you have coming up, what those costs are, and how you're going to finance them.

I just want to make sure you answered your question, because I don't think you answered his question. You asked about a defeasance rate, but you asked if it would be an overage based on the number. And I know you said that there's a rate that you're going to show, but he never answered whether it would exceed the borrowing rate. I think that was your question, correct?

No, I was, I guess I was trying to make a point, Mayor, what Member Byrum asked for. I think it's kind of in there, Member Byrum, what he's saying, what you're saying about how much is the debt being reduced, how much principal are we paying down over the next 30 years or 15? It's a combined, you know, it's combined for 30 years, but obviously we're going to pay some of it off in 15 years. But I guess at the same turn, I think in my calculation or from my perspective, I'm seeing, hey, for the next short period, next three years, with the Barry Rose project coming online, we have a lot of big debt still outstanding that we're going to issue. And so the principle that we're going to be paying on these bond payments are not going to be greater than what we're issuing. So that debt overall will still continue to rise. Yes, sir.

We're adding to this as we issue more debt. That's correct. Yes, sir. We're trying to reduce that amount, though. We're adding. And I will point out, on that water and sewer, because I think this is important to know, I want to say, and Trent corrected me, how much money did we sell to the Texas Water Development Board through the clean water? I want to say it was like $200 million.

I think we did the surface water plant mostly with that. There was... And then did we also do the Jayhack plant as well? So those projects in total were $175 million and $95 million, but not all of that was TWDB, so that number you said is probably about right.

So the reason I'm bringing it up is because although it's shown that large amount of debt outstanding, those two projects, most of those projects were funded with Texas Water Development Board at less than 1% interest back at the time. So... I don't think we'll get that again, but it's nice to show that we all were fiscally responsible by the large project for almost $200 million.

How long was that period for, 30 years?

30 years, yes, sir.

Thank you, Mr. Mayor. Member Patel, I think we may be saying the same thing from a couple different directions. I was just kind of looking at a visualization that might be easier for the public to digest on how our debt is changing over time as we pay things off, but also as we add, and what does the long-term picture look like?

On your website, don't you do the annual, put it on your website, don't you, what's the House Bill 1378 report we generated here? On their website, there's a, it's called, I guess, debt obligation reporting. I think that's what it's called. It's a requirement under House Bill 1378 where we actually slice and dice your debt a lot of different ways. You can see graphically what you have outstanding. What was that house bill? 1378. I can't remember what it's called, though. Transparency presentations. Should be under transparency portion.

So on our transparency page, we do have the annual report of certain debt, local debt information.

That would be the debt obligations one? Okay. I'll look at our website.

And most recently updated, September 30th, 2025, so we'll be getting this year soon.

I'm marching next year, yeah, 2027.

To add. We'll send a link out as well.

Any other questions or comments from council? Seeing none, Madam Secretary, would you call for the vote?

Member Cade? Aye. Member Fernandez?

Aye.

Member Patel? Aye. Member Koza?

Aye.

Member Echols?

Aye.

Mayor Pro Tem Chavarria? Aye. Member Byron? Aye.

Mr. Aye.

Ms. Motion passes seven to zero. Mr.

Thank you for your presentation.

Ms. Joel, appreciate it.

Mr.

Thank you. Mr.

Member Fernandez, would you present new business item number five, please?

Thank you, Mayor. Consideration of possible action, resolution number R2026-129. So moved.

Second. Motion made by Member Fernandez, second by Member Cade. Mr. Epperson, would you present?

Thank you, Mayor. This item is a contract for Engineering Design Services for two of the projects included in the 2023 bond package. One included three different roads, East La Drive, North Galveston Street, and Cheryl Drive, and then the second project was East Plum. The scope for Isla, Galveston, and Sherrill is to construct new underground storm sewer system and reconstruct the roadways as concrete curb and gutter. And then on Plum, the scope is to make drainage improvements to the south side ditch as well as looking at the bus barn ditch. All these result of the drainage analysis that was done subsequent to Hurricane Harvey. And so the design is scheduled to take approximately nine months with construction scheduled to start approximately September 2027. So we recommend award to CONSOR North America in the amount indicated in your packet of just a little over $879,000. Thank you, Mayor.

Member Patel, any questions?

Thank you, Mayor, I appreciate that. I love your grin as you look at me. I have three letters I know you're about to say. Is the engineering firm here? Sir, would you go to the podium? State your name. While you're walking up there, I do appreciate you coming out here today. And I just have a real quick question on this. Is all the work being done here, since your name is, I guess, what's the company's name? I forgot. It's Consor. Okay. Are you guys doing all the work, design work, in the U.S., or do you guys use any outsourcing engineering firms?

No, sir.

It's all here in the U.S. Where is it done?

most of the Houston office.

Okay, so you guys, I just want to make sure, that's really important to me now. Recently I've read something about a lot of engineering firms outsourcing their work in a foreign country, and then they're charging the American taxpayers, right? So it's really important when I look through your, because your rates definitely aren't at the foreign rate. So I just want to make sure, I don't know, Trent, if there's anything legally in our contracts that states that, but certainly something we should consider. Because I think it's important as taxpayers that if we're going to fund these engineering firms, that the work is being done here in the U.S.

Member Cade?

Thank you, Mayor. Are y'all working on anything else in Pearland right now?

Yes, ma'am. Working on two other projects.

Where are they? Do you know where they are?

So what are the projects we got you guys working on right now?

No one of them. Shank Road is Shank Woody Road, and then the other one is Broadway.

I'm not sure what.

No.

Thank you. Just really quickly, just for the record, could you state your name again? I'm sorry. David Sulkey with Consor. Thank you. Any other questions for Council? Member Koza?

Thank you, Mayor. Just out of curiosity, if this is approved tonight, approximately how long before we get the plans back to where we can go to the next stage?

I believe it's nine months with the construction expected to start approximately September of next year. Thank you very much.

There are no other questions or comments. Madam Secretary, would you call for the vote, please?

Member Fernandez?

Aye.

Member Patel?

Aye.

Member Koza?

Aye.

Member Echols?

Aye.

Member Tim Chavarria? Aye. Member Byrum?

Aye.

Member Cade? Aye. The motion passes seven to zero.

City Council will now recess the open portion of this meeting and move into Executive Session under the Texas Government Code, which allows City Council to discuss items listed on the agenda. But the Council cannot make a decision or take action during Executive Session. After Executive Session, Council will return to Open Session. And we will now recess the open portion of our meeting at 8.49 p.m. and enter into Executive Session. City Council is returning from executive session at 9.32 p.m. with no action. Seeing no other items on the agenda, I will adjourn our City Council meeting at 9.33 p.m.