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2022 10 27 WS Minutes MINUTES OF THE REGULAR WORK SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN October 27, 2022 The City Council of the City of Baytown, Texas, met in a Regular Work Session on Thursday, October 27, 2022, at 5:35 P.M. in the Hullum Conference Room of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Laura Alvarado Council Member Chris Presley Council Member Charles Johnson Mayor Pro Tern Heather Betancourth Council Member Jacob Powell Council Member Mike Lester Council Member Brandon Capetillo Mayor Rick Davis City Manager Scott Lemond City Attorney Angela Jackson City Clerk John Stringer Sergeant at Arms Mayor Capetillo convened the October 27, 2022, City Council Regular Work Session with a quorum present at 5:35 P.M., and with all members present. 1. DISCUSSIONS a. Discuss Baytown Crossing Expansion Tract & MUD 213A Annexation with Friendswood Development Company. Mr.Michael Johnson with the Friendswood Development Company presented the item to Council. The company last visited the full Council in May in light of deteriorating market conditions. For the last several weeks,they revisited those discussions with City staff and a few Council Members. In his presentation, Mr. Johnson stated he would address what changed since May within their proposed Second Amendment to the Development Agreement and their proposed resolution for annexation. The annexation was for a 378-acre tract that they would like to add to Harris County Municipal Utility District ("MUD") 213A. On the market conditions, he reported interest rates doubled and inflation continued to rise. As Baytown Crossings provided a high quality of life, the company asked to expand and continue changing the landscape in their Extraterritorial Jurisdiction ("ETJ"). Mr. Johnson directed Council to the Second Amendment to the Development Agreement in their packets.The company's main focus was curtailing the life of the MUD and facilizing that transition period upon the completion of the build out and annexation. The addition was made to Section 2(j): "The Developer agrees that any reimbursement agreement the Developer enters with the District shall provide that the District's obligation to issue bonds to reimburse the Developer expires December 31, 2036, unless the City and District agree otherwise. "The current Agreement had a term approved for 2058, which Mr. Johnson noted was the only change to the Agreement. City Council Regular Work Session Minutes October 27,2022 Page 2 of 3 Next, Mr. Johnson discussed the changes to the proposed resolution for the annexation into Harris County MUD 213A. The changes were as follows: • Section 2(c)—Instituted a clause that read: "No series of bonds issued by the District shall have a final maturity date more than twenty-five years from its date of issuance. " • Section 2(k) — Instituted a clause that read: "No bonds shall be issued for the purpose of repairing, rehabilitating, maintaining, or replacing facilities previously financed or purchased with bond proceeds without City consent. " • Section 2(1)—The expiration date was introduced as December 31, 2036; • Section 2(m)—Buyers of property within the MUD would be notified of the MUD and of the plan for annexation by the City; and • Section 2(n)—The MUD would maintain a website with information of their elections. Mr. Johnson explained the changes addressed the concerns from the May Council Meeting, and then opened the floor to questions. As they were decreasing 2036 from 2058, Council Member Alvarado wondered how that debt would be paid by the residents. Specifically, would residents get a higher tax rate to pay that off with such a shorter time frame? Mr. Johnson replied they were changing the date the MUD could sell new bonds. The maturity of those new bonds would be set at twenty-five years; therefore, without additional consent from the City, the last bond could be issued on December 31, 2036. The bond would be paid over a twenty-five year schedule using tax revenues collected within the boundaries of the MUD. Council Member Lester noted that last date would push their ability to annex that area to 2060. Regardless, he believed that was better than the perpetual reissuance of bonds MUDs typically did and the City at least had an end date. Mr. Johnson additionally noted they were having discussions with the School District to bring in an elementary school within their proposed Development Agreement pending Council's decision on the annexation. Council Member Johnson had similar discussions with the School District and confirmed they were on board. He was glad to see that implemented as well as the other changes; however, he questioned what projects would the company not have to address to Council. City Manager Rick Davis replied that up to 2036, the company could issue debt. Following 2036, they could issue debt with Council's consent. Council's latitude to say yes or no was minimal. Council Member Johnson relayed he still liked the proposal. As Council continued their discussion, Mayor Capetillo requested an item to be placed on the November 22nd agenda for further clarification. b. Discuss possible revisions to Chapter 74 "Peddlers and Solicitors," of the City of Baytown Code of Ordinances. City Manager Rick Davis opened the item regarding the issue of temporary vending operations. As Council considered an appeal to their ordinance,he asked Health Director Tony Gray to review their current code and benchmark it against other communities. Staff had a proposal for Council, but Mr. Davis believed it was important to first discuss the impacts of those types of operations. Then, Mr. Gray would discuss what he found in benchmarking as well as present the proposal. As far as public safety, Police Chief John Stringer discussed what could occur if the City did not have regulations. He made note of the traffic impacts and other peripheral criminal activity that those operations would attract. On another note, Planning and Development Director Martin Scribner reflected on how things were before the ordinance.He understood the goal of the revisions City Council Regular Work Session Minutes October 27,2022 Page 3 of 3 were to add as much flexibility as possible. As Council allowed that flexibility, he cautioned the City may have business after business up and down Garth Road and other parts of town. Mr. Scribner added there would be issues with brick and mortar businesses as well. He gave the instance of a business that put in a million dollars into a building and provided the same services as a business without a building. The brick and mortar business could not compete with that. Before Mr. Gray relayed his findings,Mr. Davis commented Baytown's current ordinance was the most restrictive of all the cities they looked at. Staff would propose a moderate approach that would put Baytown in the middle of those other cities. Mr. Gray shared he researched ordinances for League City, Missouri City, Pasadena, Pearland, and Sugarland. Of those five cities, two allowed for a six-month permit for those types of vendors. The other three cities had up to a ninety- day permit. Baytown was the most restrictive on the amount of time they allowed property owners to have an Open Air Vendor permit with two months. The fees ranged from $350 per month for a permit to$55. Baytown's fees were at$100 which Mr. Gray believed should not be changed. With that, Mr. Gray recommended Baytown to have a three-month permit for the property owner. Therefore, property owners could have three Open Air Vendor permits within a twelve-month period. Mayor Capetillo inquired if there was a provision for vendors to have permission or a contractual agreement with the property owner. He additionally commented that he favored brick and mortar businesses a bit more. Mr. Gray confirmed that provision was still in the code and no change was recommended for that. Mayor Capetillo wished additional assurance from the Police Chief that, as written, it was something they could enforce. Chief Stinger confirmed, between the Baytown Police Department and Code Enforcement, that was something they could take action on. If a vendor operated illegally, Council Member Johnson wondered if they had to call a non- emergency number. Mr. Gray replied, as of a few weeks ago, Code Enforcement Officers were working on the weekends to see who and where vendors were setting up. The officers did and would continue to run vendors off. Chief Stringer suggested they also call their non-emergency number. Council asked additional questions to further clarify the process and the permit, itself. Among their questions,it was noted the permit was tied to a"person."City Attorney Scott Lemond explained that term meant an individual or entity.Mr. Davis questioned if Council wished to revisit the matter. Mayor Capetillo requested an item be added for either November 22nd or December 8tn 2. ADJOURN With there being no further business to discuss, Mayor Capetillo adjourned the October 27, 2022, City Council Regina 4„„;i; Cession at 6:11 P.M. ceue �� t.. (st4�4 *„ ,4o .,,, 0 Jr) W 0 n J " ,,, Angela Jackson, Ci Cock rv`! `-4 I co City of Baytown �''''' ,e. �,�- �= ; w *sue