2016-08-08 TAX INCREMENT REINVESTMENT ZONE NO. 2 BOARD MEETING MINUTESMINUTES OF A REGULAR MEETING OF THE TAX INCREMENT REINVESTMENT
ZONE NUMBER TWO (TIRZ # 2), ALSO KNOWN AS SHADOW CREEK RANCH, CITY
OF PEARLAND TEXAS, HELD ON MONDAY, AUGUST 8, 2016, AT 4:00 P.M., IN THE
COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
Vice Chairman Gary Cook called the meeting to order at 4:00 p.m. with the following
present:
Vice Chair Gary Cook
Boardmember Tommy King
Boardmember Herb Fain
Boardmember Mike Pyburn
Boardmember Ali Hasanali
Boardmember Larry Loessin
Absent: Boardmembers Phillips, Coleman, and Knight
Others in attendance: Tom Reid Mayor of the City Jon Branson, Deputy City Manager
City of Pearland, Claire Bogard retired City Finance Director; Cynthia Pearson, Director
of Finance City of Pearland; Rick Overgaard, Assistant Director of Finance City, Maria E.
Rodriguez Deputy City Secretary, City Lynne Humphries Allen Boone Humphries
Robinson LLP, Taylor Baumgartner LJA Engineering, Allen Crosswell, NewQuest
Crosswell.
CALL TO ORDER AND ROLL CALL
PURPOSE OF THE MEETING:
Board Action — Regarding The Approval of the Regular Meeting Minutes of the June 22,
2015, Tax Increment Reinvestment Zone Number 2 (TIRZ No. 2) Board of Directors
Meeting. TIRZ No. 2.
Boardmember Pyburn made the motion, seconded by Boardmember Hasanali, to
approve the Regular Meeting Minutes of June 22, 2015.
Voting "Aye" Boardmembers, King, Fain, Cook, Pybum, Hasanali and Loessin
Voting "No" None.
Motion Passed 6 to 0, with Boardmembers Phillips, Knight, and Coleman absent.
Board Action — Resolution No. RTIRZ 2016-02 — A Resolution of the Tax Increment
Reinvestment Zone No. 2 (TIRZ), accepting the 2015 Annual Financial Report for the
Fiscal Year ending September 30, 2015.
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Boardmember Pyburn made the motion, seconded by Boardmember King, to approve the
Resolution No. RTIRZ 2016-02.
Rick Overgaard stated per State law, the City shall have its records and accounts audited
annually and shall have an annual financial statement prepared base on the audit. He
provided the Board with an overview of the City's Financial Report for the period ending
September 2015 as prepared by the accounting firm of Whitley Penn, L.L.P.
Voting "Aye" Boardmembers, King, Fain, Cook, Pyburn, Hasanali and Loessin
Voting "No' None.
Motion Passed 6 to 0, with Boardmembers Phillips, Knight, and Coleman absent.
Board Action — Resolution No. RTIRZ 2016-03 — A Resolution of the Tax Increment
Reinvestment Zone No. 2 (TIRZ), Adopting an Amended Investment Policy, Investment
Strategy and Approved Brokers in accordance with Chapter 2256 of the Government
Code ('Public Funds Investment Act').
Boardmember Loessin made the motion, seconded by Boardmember Fain, to approve
the Resolution No. RTIRZ 2016-03.
Rick Overgaard Assistant Finance Director stated the Public Funds Investment Act
requires that the Board review their investment policy, strategy and broker dealers
annually. The investment policy contains one proposed change as a result of the State
Legislature approving a change to the PFIA this past session. The hours of training that
an investment officer is required to attend every two years changed from 10 hours to 8
hours. The initial training when taking office or assuming duties still remains at 10 hours.
The Board typically approves the City of Pearland Investment policy and the changes are
made to reflect the Tax Increment Reinvestment Zone No. 2 in the document. There are
no changes from the policies from the previous year.
Discussion ensued Rick Overgaard noted Section 4.01 of the Investment Broker/Dealers
minor change from the top six to seven firms shall be selected to appear on the TIRZ
approved list has been changed to up to ten firms shall be selected to appear on the
TIRZ approved list.
Voting "Aye" Boardmembers, King, Fain, Cook, Pyburn, Hasanali and Loessin
Voting "No" None.
Motion Passed 6 to 0, with Boardmembers Phillips, Knight, and Coleman absent
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Board Action - Resolution No. RTIRZ 2016-04 - A Resolution of the Tax Increment
Reinvestment Zone No. 2 (TIRZ), accepting the Financial Report for the period ending
May 31, 2016.
Boardmember Hasanali made the motion, seconded by Boardmember Pybum, to
approve the Resolution No. RTIRZ 2016-04 as presented.
Rick Overgaard Assistant Finance Director provided the Board with a detailed report of
the Annual Financial Report for the period ending May 31, 2016.
Voting "Aye" Boardmembers, King, Fain, Cook, Pybum, Hasanali and Loessin
Voting "No" None.
Motion Passed 6 to 0, with Boardmembers Phillips, Knight, and Coleman absent
Board Action - Resolution No. RTIRZ 2016-05 - A Resolution of the Tax Increment
Reinvestment Zone No. 2 (TIRZ), accepting the Investment Report for the Quarters
Ending June 2015, September 2015, December 2015 and March 2016.
Boardmember King made the motion, seconded by Boardmember Pybum, to approve
the Resolution No. RTIRZ 2016-05.
Rick Overgaard Assistant Finance Director provided the Board with a detailed report of
the Investment Report for the Quarters Ending June 2015, September 2015, December
2015 and March 2016.
In response to a question from Boardmember Hasanali Rick Overgaard said the EMS
payments and the Health Claims shown on the March 31, 2016 report have nothing to do
with TIRZ No. 2, it is only part of the City's report.
Discussion ensued between Boardmembers and Lynne Humphries Allen Boone
Humphries Robinson LLP, regarding a possible option to do a Depository Pledge
Agreement with the bank in order to invest all or portions of the Alvin Independent School
District suspense fund for under one year, and the Financing and Cash Reimbursements
to be placed on the next TIRZ No. 2 meeting agenda for discussion.
Voting "Aye" Boardmembers, King, Fain, Cook, Pybum, Hasanali and Loessin
Voting "No" None.
Motion Passed 6 to 0, with Boardmembers Phillips, Knight, and Coleman absent
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Board Action - Resolution No. RTIRZ 2016-06 - A Resolution of the Tax Increment
Reinvestment Zone No. 2 (TIRZ), Ratifying Invoices that were paid from June 2015
through May 2016 and approving invoices for payment.
Boardmember Fain made the motion, seconded by Boardmember Hasanali, to approve
the Resolution No. RTIRZ 2016-06.
Rick Overgaard Assistant Finance Director provided the Board with a detailed report
stating since the last meeting the invoice committee has reviewed and approved for
payment invoices totaling $22,386.46. At this time the Board also has four invoices
pending payment approval totaling $5.740.97 bringing the total operating expenses for
FY2016 to date will total $28,127.43.
Discussion ensued between the Board and Lynne Humphries regarding placing an item
for consideration at the next TIRZ No. 2 agenda meeting to appoint a new Invoice
Committee.
Voting "Aye" Boardmembers, King, Fain, Cook, Pyburn, Hasanali and Loessin
Voting "No" None.
Motion Passed 6 to 0, with Boardmembers Phillips, Knight, and Coleman absent.
Board Action - Resolution No. RTIRZ 2016-07 - A Resolution of the Tax Increment
Reinvestment Zone No. 2 (TIRZ), approving the 2015 Annual Report.
Boardmember Pyburn made the motion, seconded by Boardmember King, to approve
the Resolution No. RTIRZ 2016-07 subject to table "E" amendment to include all debt
service.
Claire Bogard reviewed the Pearland Tax Increment Reinvestment Zone 2015 Annual
Report as required by State law. She stated the Report is in the same format and style
as seen in the past. Ms. Bogard stated that after the Board's approval this evening the
Report is being presented to Council, and then to Brazoria County, the Alvin Independent
School District, and Fort Bend County. Mrs. Bogard stated Table E will be corrected
and replaced in the 2015 Annual Report. The Board is being asked to approve the Report
contingent upon Staff correcting and replacing Table E to reflect the total debt
outstanding, and to also include the interest.
Discussion ensued Consultant Claire Bogard and Boardmember Hasanali regarding the
drop in revenue to the City of Peariand in Table C and the timing of Tax Payments.
Discussion ensued Boardmembers and Lynne Humphries Allen Boone Humphries
Robinson LLP regarding development in the District.
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Voting "Aye" Boardmembers, King, Fain, Cook, Pyburn, Hasanali and Loessin
Voting "No" None.
Motion Passed 6 to 0, with Boardmembers Phillips, Knight, and Coleman absent.
Board Action - To discuss and take necessary action regarding acceptance of
Engineering Report and approval of Letter Financing Agreement for Roadway to Serve
Reserve at Shadow Creek.
Boardmember Pyburn made the motion, seconded by Boardmember Fain, to approve
and accept the Engineering Report and approval of Letter Financing Agreement for
Roadway to Serve Reserve at Shadow Creek.
Lynne Humphries Allen Boone Humphries Robinson LLP stated James Ross could not
attend this meeting but Taylor Baumgartner LJA Engineering Inc., is attending on his
behalf. This is a Letter of Finance Agreement for CCAC Reserve Holdings, Inc., which is
developing commercial property between Shadow Creek Proper and 288 for roadways
that serve Reserve at Shadow Creek. She stated this is the same Letter of Finance
Agreement format that the TIRZ No. 2, has used in the past, but there is no third -party
agreement because this is the developer's first and only project. There is a report from
the Engineering firm establishing the Budget for this project.
Taylor Baumgartner LJA Engineering Inc., stated it is a collector street. Which matches
the City of Pearland standards and requirements. The street is 36 feet wide it will be good
for traffic, and it will have a center tum lane and a connection onto 288 and it does fit
within the TIRZ budget and Project and Financing Plan.
Allen Crosswell, NewQuest Crosswell stated he purchased these 45 acres in the TIRZ
several years ago. Currently in this area there is a medical office building being planned.
The traffic that will be generated will need a collector street to run through the middle and
divide the property properly. Discussions with TxDot are underway for the curb cut to
allow for more circulation.
By building this road it will provide relief on Business Center Drive, help economically,
and help with traffic circulation.
Voting "Aye" Boardmembers, King, Fain, Cook, Pybum, Hasanali and Loessin
Voting "No" None.
Motion Passed 6 to 0, with Boardmembers Phillips, Knight, and Coleman absent
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Tom Reid, Chairman of the Development Board, and the Mayor of the City entered the
meeting and reminded everyone that the City Council will be renewing expiring terms of
all Boards and Commissions in November 2016. He reminded the Boardmembers to
check with their appointing authority to see if they will be getting reappointed to the TIRZ
No. 2, Board. The Board asked Lynne Humphries to provide them with information on
terms.
ADJOURNMENT
Meeting was adjourned at 5:00 p.m.
Minutes approved as submitted and/or corrected this the 26th day of September, A.D.,
2016.
ATTE T:
MIKE PYBURN
SECRETARY
ARYCO K
VICE C R
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