2005-08-29 TAX INCREMENT REINVESTMENT ZONE NO. 2 BOARD MEETING MINUTESMINUTES OF THE BOARD OF DIRECTORS MEETING
TAX INCREMENT REINVESTMENT ZONE NUMBER TWO
CITY OF PEARLAND, TEXAS
August 29, 2005
A special meeting of the Board of Directors ("Board") of the Tax Increment Reinvestment Zone
Number Two ("Zone"), City of Pearland, Texas, was held in the Council Chambers of City Hall,
which is located at 3519 Liberty Drive, Pearland, Texas, on Monday, August 29, 2005, at 4:00
p.m. The meeting was open to the public.
Board Members in Attendance:
Gary Cook
Mike Pyburn
Larry Loessin
Gary Davis
Ron Castillo
Jo Knight
Donna Coleman
Ken Phillips
Board Members Not in Attendance:
Nigel Harrison
City of Pearland Representatives in Attendance: Consultants in Attendance:
Hon. Tom Reid Lynne Humphries — Allen Boone Humphries
Bill Eisen Robinson, LLP
Andrea Gardner James Ross — LJA Engineering & Surveying, Inc.
Sue Darcy — Knudson & Associates, LP
Charles Knight — Knudson & Associates, LP
Mark McGrath — Null-Lairson
1. Call the meeting to order, take attendance and verify that a quorum is present.
Director Cook called the meeting to order at 4:00 p.m. and took attendance. The following
Directors were present:
1.
Gary Cook
2.
Mike Pyburn
3.
Larry Loessin
4.
Gary Davis
5.
Ron Castillo
6.
Jo Knight
7.
Donna Coleman
8.
Ken Phillips
Board Member Nigel Harrison was not in attendance.
2. Welcome new Director.
Director Cook introduced Ken Phillips as the newest City appointee to Position Five on the
Board.
3. Discuss and approve the minutes of the March 28, 2005 Board meeting.
Director Pyburn moved that the Board approve the minutes of the March 28, 2005 Board
meeting. Director Castillo seconded the motion. Following discussion, the Board unanimously
approved the motion.
4. Project report from the Developer and PowerPoint Presentation; take appropriate
action.
Drew Pelter with Shadow Creek Ranch Development Co., Ltd. reported that projects related to
eight Letter Financing Agreements (LFA's) are complete, with projects related to the remaining
LFA's expected to be complete by the end of 2006. The project is currently 28 percent below the
cost estimates outlined in the TIRZ Project and Financing Plan. Approximately 2006 homes
have been sold to date, and the Waterford Place Apartments are under construction. A CVS store
is due to be open by the end on 2005, and the slab for the HCA Medical Office was recently
poured. Lynne Humphries with Allen Boone Humphries Robinson LP, Attorney's for the Zone,
noted that Brazoria County Municipal Utility District No. 26 (MUD No. 26) bond issue within
the Zone recently received a BBB rating from Standard & Poors, a rating which MUD's rarely
receive. The Board took no action on the report.
5. Project report from the City; take appropriate action.
Bill Eisen, City Manager, reported on the possibility that Alvin Community College (ACC) may
wish to participate in the Zone and is considering the purchase of property for construction of a
new campus. Mr. Eisen also noted that the Development Authority of Pearland (DAP) is
scheduled to meet August 30, 2005 to review the schedule for the next bond issue. Mr. Eisen
confirmed that only the TIRZ, City Council and Alvin Independent School District (AISD) have
authority to approve participation of ACC in the Zone per the various interlocal agreements. The
Board took no action on the report.
6. Quarterly financial report from the City.
Andrea Gardner, Director of Finance for the City of Pearland, reviewed with the Board the TIRZ
Income Statement, Balance Sheet and AISD Suspense Fund for the period ended July 31, 2005.
Ms. Gardner confirmed that the payment from the AISD Suspense Fund to the DAP should read
"Proposed". She also confirmed that the $199,458.80 listed on that same report had been
transferred to the TIRZ Revenue Find. The Board then reviewed the DAP and TIRZ No. 2 Cash
Management Report from April 1, 2005 through July 31, 2005, as well as the TIRZ 2 General
Fund Report for the same period. The Board took no action on the report
7. Report on current TIRZ lobbying activities in the legislative session.
Sue Darcy with Knudson & Associates, LP, Administrators for the Zone, reported that the State
Legislature did neither harm nor good to the Zone in the latest Special Session. The
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grandfathered status of TIRZ No. 2, as it relates to school district funding, was maintained. The
Board took no action on the report.
8. Discuss and take necessary action regarding approval of Joint Construction and
Reimbursement Agreement with Brazoria-Fort Bend County Municipal Utility
District No. 1.
a. Construction of water, sanitary sewer and drainage facilities to serve Shadow
Creek Ranch, Village 3, Phase 7.
a. Construction of water, sanitary sewer and drainage facilities to serve Shadow
Creek Ranch, Village 4, Phase 4.
Lynne Humphries reviewed both agreements with the Board. Director Pybum moved that the
Board approve the Joint Construction and Reimbursement Agreements with Brazoria-Fort Bend
County Municipal Utility District No. 1. for construction of water, sanitary sewer and drainage
facilities to serve Shadow Creek Ranch, Village 3, Phase 7 and Village 4, Phase 4. Director
Castillo seconded the motion. Following discussion, the motion passed unanimously, with
Director Cook abstaining.
9. Discuss and approve the Auditor's Report on Developer Reimbursement No. 2 and
make recommendation to the City for reimbursement.
Mark McGrath with Null-Lairson, Auditors for the Zone, reviewed the Report with the Board
and confirmed that projects contained in the three LFAs were completed under the budgets stated
in the LFAs. Director Castillo moved that the Board approve the Auditor's Report on Developer
Reimbursement No. 2 and recommend to the City that the projects contained therein be
reimbursed. Director Coleman seconded the motion. Following discussion, the Board
unanimously approved the motion.
10. Discuss and take necessary action regarding approval of Auditor's Report on TIRZ
Invoices Presented for Payment and approval of outstanding administrative invoices
to date.
Mark McGrath reviewed the Report with the Board, noting the total amount of invoices
presented for payment is $47,653.99. He also noted that, should these invoices be approved for
payment, the total 2005 invoices approved to date are $99,257.45 under budget for the year.
Director Knight moved that the Board approve the Auditor's Report on TIRZ Invoices Presented
for Payment and approve the outstanding administrative invoices for payment. Director Loessin
seconded the motion. Following discussion, the Board unanimously approved the motion.
11. Discuss and take necessary action regarding updated standard billing rate schedule
for Knudson & Associates, LP.
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Sue Darcy explained that Knudson & Associates, LP had not had a standard billing rate increase
since they began work for the Zone on November 8, 1999. As such, she requested that the Board
consider approving an increase in their standard billings rates, with the caveat that her rate would
remain $175/hour. Director Pyburn moved that the Board approve the standard billing rate
increase for Knudson & Associates, LP, while keeping Sue Darcy's rate at $175/hour. Director
Davis seconded the motion. Following discussion, the Board unanimously approved the motion.
12. Discuss and take necessary action regarding updated standard billing rate schedule
for Allen Boone Humphries Robinson, LP.
Lynne Humphries explained that Allen Boone Humphries Robinson, LP had not had a standard
billing rate increase since they began work for the Zone on October 7, 2003. As such, she
requested that the Board consider approving an increase in their standard billings rates, which she
then described for the Board. Director Phillips moved that the Board approve the standard
billing rate increase as presented. Director Pyburn seconded the motion. Following discussion,
the Board unanimously approved the motion.
13. New Business.
The Board was alerted that there may be a need for a meeting before the end of the year to
consider an additional five LFAs.
14. Any other matters which may properly come before the Board.
No other matters were brought before the Board.
15. Adjournment.
Approved:
Mike Pyburn l
Board Secretary
Tax Increment Reinvestment Zone Number Two
City of Pearland, Texas
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