2015-09-14 DEVELOPMENT AUTHORITY OF PEARLAND REGULAR MEETING MINUTESMINUTES OF A REGULAR MEETING OF THE DEVELOPMENT AUTHORITY OF
PEARLAND, CITY OF PEARLAND TEXAS, HELD ON MONDAY, SEPTEMBER 14, 2015,
4:00 P.M., IN THE FIRST FLOOR CONFERENCE ROOM AT PEARLAND CITY HALL,
3519 LIBERTY DRIVE, PEARLAND, TEXAS.
Mayor Reid called the meeting to order at 4:00 p.m. with the following present:
Chairman Tom Reid
Secretary Ed Baker
Boardmember Tony Carbone
Boardmember Bill Sloan
Boardmember Tom Pool
Others in attendance: Claire Bogard, Finance Director; Maria E. Rodriguez Deputy City
Secretary; Carrie Ditta Accounting Supervisor; Lynne Humphries Allen Boone Humphries
Robinson; John Robuck BOSC Inc.; Drew Pelter Shadow Creek Ranch Development
Company.
Board Action — Approval of the Development Authority of Pearland Board of Directors
Meeting Minutes for November 10, 2014, Regular Meeting held at 4:00 P.M. DAPBoard of
Directors.
Boardmember Reid made the motion, seconded by Boardmember Sloan, to approve
Meeting Minutes for November 10, 2014, Regular Meeting held at 4:00 P.M.
Voting "Aye" Boardmembers Reid, Pool, Sloan, Carbone and Baker.
Voting "No" None.
Motion Passed 5 to 0.
Board Action — Resolution No. RDAP- 2015-02 — A Resolution of the Development
Authority of Pearland (DAP), accepting the 2014 Annual Financial Report for the Fiscal
Year ending September 30, 2014.
City of Pearland Director of Finance Claire Bogard provided the Board with a detailed
overview of the Annual Financial Report for the fiscal year ending September 30, 2014.
Boardmember Baker made the motion, seconded by Boardmember Pool, to approve
Resolution No. RDAP-2015-02.
Voting "Aye' Boardmembers Reid, Pool, Sloan, Carbone and Baker.
Voting "No" None.
Motion Passed 5 to 0.
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Board Action — Resolution No. RDAP- 2015-03 — A Resolution of the Development
Authority of Pearland (DAP), accepting the Financial Reportfor the period ending August
31, 2015.
City of Pearland Director of Finance Claire Bogard stated this item is to accept the
Financial Report and provided the Board with the details of the report.
Boardmember Baker made the motion, seconded by Boardmember Sloan, to approve
Resolution No. RDAP-2015-03.
Voting "Aye" Boardmembers Reid, Pool, Sloan, Carbone and Baker.
Voting "No" None.
Motion Passed 5 to 0.
Board — Resolution No. RDAP- 2015-04 —A Resolution of the Development Authority of
Pearland (DAP), ratifying checks 1126 through 1141 totaling $23,496.93.
Cityof Pearland Director of Finance Claire Bogard stated this item is far the Board to ratify
checks that have been issued to pay for expenses incurred by the Development Authority
of Pearland. The invoices were reviewed and approved by the invoice review committee.
Discussion ensued between the Board and City of Pearland Director of Finance Claire
Bogard regarding the Wells Fargo Credits to offset fees.
Boardmember Pool made the motion, seconded by Boardmember Carbone, to approve
Resolution No. RDAP-2015-04.
Voting "Aye" Boardmembers Reid, Pool, Sloan, Carbone and Baker
Voting "No" None.
Motion Passed 5 to 0.
Board Action — Resolution No. RDAP- 2015.05 — A Resolution of the Development
Authority of Pearland (DAP), accepting the Investment Report for the Quarters ending
September 2014, December 2014, March 2015, and June 2015.
City of Pearland Director of Finance Claire Bogard provided the Board with a detailed
review of the Investment Report for the quarters ending September 2014, December 2014,
March 2015, and June 2015.
Discussion ensued between the Board and City of Pearland Director of Finance Claire
Bogard regarding the Investment Report.
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Boardmember Reid made the motion, seconded by Boardmember Carbone, to approve
Resolution No. RDAP-2015-05.
Voting "Aye" Boardmembers Reid, Pool, Sloan, Carbone and Baker.
Voting "No" None.
Motion Passed 5 to 0.
Board Action — Resolution No. RDAP- 2015-06 — A Resolution of The Development
Authority of Pearland (DAP), Adopting an Amended Investment Policy, Investment Strategy
and Approved Brokers in accordance with Chapter 2256 of the Government Code ("Public
Funds Investment Act").
City of Pearland Director of Finance Claire Bogard stated each year the Board is required
to approve an Investment Policy, Investment Strategy, and Approved Dealers. According to
State Legislation there are just a few changes to the Policy. One is the training hours for a
training investment officer is has changed from 10 hours to 2 two required every 2 two
years. The initial training hours when taking office, or assuming duties still remains at 10
hours. Another minor change being proposed is increasing the number of approved
investment/brokerage firms selected from the top six/seven firms to up to ten firms. The
Development Authority of Pearland investment policy states that the City will prepare a
request of investments services every two years. The Development Authority of Pearland
received eleven completed request for proposals, with five being from new broker/dealers.
Staff evaluated and selected the broker/dealers based on several factors, including
completeness of proposals, proper registrations, financials, and references. Staff has
chosen two new broker/dealers in addition to the six current broker/dealers that submitted
proposals. An updated approved broker/dealers list is attached as Exhibit C in the Board's
packet. The Board is being asked for consideration and approval of Resolution RDAP
2015-06 of the Development Authority of Peariand, Texas, adopting an amended
investment policy, investment strategy and approved Brokers dealers.
Boardmember Sloan made the motion, seconded by Boardmember Pool, to approve
Resolution No. RDAP-2015-05.06.
Voting "Aye" Boardmembers Reid, Pool, Sloan, Carbone and Baker.
Voting "No" None.
Motion Passed 5 to 0.
Board Action — Resolution No. RDAP- 2015-07— A Resolution of the Development
Authority of Pearland (DAP),Texas approving a contract with Arbitrage Compliance
Specialists, INC. for Arbitrage Compliance Services.
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Director of Finance Claire Bogard stated this item is a contract with Arbitrage Compliance
Specialist, Inc. to calculate the annual arbitrage. The total amount of the contract is not to
exceed, $7,535.00 and covers five bond Series; 2005; 2009; 2012; 2013 and 2014 that
have been sold. They do the calculations, provide annual reports, and inform us of the
positive and negative arbitrage.
Boardmember Baker made the motion, seconded by Boardmember Carbone, to approve
Resolution No. RDAP-2015-07.
Voting "Aye" Boardmembers Reid, Pool, Sloan, Carbone and Baker.
Voting "No" None.
Motion Passed 5 to 0.
Board Action — Resolution No. RDAP- 2015-08 — A Resolution of the Development
Authority of Peariand (DAP), Texas Authorizing a Developer Reimbursement to Shadow
Creek Ranch Development Company LTD to reimburse for TIRZ Infrastructure
Improvements in the amount of $6,840,000.
Director of Finance Claire Bogard stated this item is to approve a cash reimbursement to
the Developer for infrastructure improvements within Tax Increment Reinvestment Zone
No. 2 (TIRZ). As of June 2015, there is $153 million approved for infrastructure in actual
costs, excluding interest, that have been approved for reimbursement, of which $83 million
has been paid through a combination of issuing bonds or using cash on hand, leaving a
balance of $69 million yet to be reimbursed, excluding interest cost that accrues on the
construction amounts. As of August the balance sheet shows the Cash and Cash
Equivalents in the amount of $7.7 million because the money market account with Regions
Bank can only be used fordebt service. There is $130,000 additional monies coming from
the TIRZ No. 2 making the total monies available $7.8 million. The Bonds outstanding do
not require a debt service reserve nor do they require a surety policy in place. After
retaining $1 million for reserve, there is $6,840,000 available for reimbursement to be paid
to the developer reimbursement to Shadow Creek Ranch Development Company LTD. to
reimburse for TIRZ infrastructure improvements.
Discussion ensued between the Board and City of Pearland Director of Finance Claire
Bogard regarding the $1 million reserve.
Boardmember Carbone requested the total balance calculated in with the interest rates,
along with a list of developers awaiting reimbursement.
Boardmember Sloan made the motion, seconded by Boardmember Carbone, to approve
Resolution No. RDAP-2015-08.
Voting "Aye" Boardmembers Reid, Pool, Sloan, Carbone and Baker
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Voting "No" None.
Motion Passed 5 to 0.
Board Action — Discussion and Approval to Proceed with Private Placement of Bond Sale
— Series 2015 in the estimated amount of $17,905,000.
No action taken by the Board. The item has been postpone to a future meeting.
ADJOURNMENT
Meeting was adjourned at 5:25 p.m.
Minutes approved as submitted and/or corrected this the 12TH day of October 12, A.D.,
2015.
P"
TOM REID
Development Authority of Pearh and
Chairman
ATTEST: e
4T
ED BAKER
Development Authority of Pearland
Secretary
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