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2018-09-27 PEARLAND ECONOMIC DEVELOPMENT CORPORATION REGULAR MEETING MINUTESMINUTES OF A REGULAR MEETING OF THE PEARLAND ECONOMIC DEVELOPMENT CORPORATION ("PEDC") BOARD OF DIRECTORS OF THE CITY OF PEARLAND TEXAS HELD THURSDAY, SEPTEMBER 27, 2018, 5:00 P.M., BOARD ROOM, PEDC OFFICE 3519 LIBERTY DRIVE, SUITE 350 PEARLAND, TEXAS. CALL TO ORDER The meeting was called to order at 5:00 p.m. BOARD MEMBERS Chair Brandon Dansby Vice -Chair Hugh Patton Secretary Mona Chavarria Board Member Rushi Patel Board Member Chad Thumann Board Member Reid Wendell Board Member Celeste Jefferson EX-OFFICIO MEMBERS PEDC Matt Buchanan City of Pearland Tom Reid City of Pearland Clay Pearson PEARLAND ECONCOMIC DEVELOPMENT STAFF MEMBERS Melissa Black Roxanne Luna -Larsen Brian Malone Valerie Marvin CITY OF PEARLAND Tony Carbone Darrin Coker Rhonda Daugherty Jai McBride Minutes of a Regular Meeting September 27, 2018 Page 2 II. APPROVAL OF MINUTES Board Member Patel made a motion, seconded by Board Member Wendell, to approve the minutes of the Regular Meeting of August 23, 2018 and Special Meeting of September 17 2018 Motion Passed: 7-0 111. PUBLIC COMMENTS None IV. FINANCIAL REPORT A. Monthly Financial Report —July and August 2018 President Buchanan presented the June 2018 Financial Report. Rhonda Daugherty, City of Pearland Finance Assistant Director, was present to address any questions. Board Member Patel, made a motion, seconded by Secretary Chavarria, to approve the July and August 2018 Financial Reports Motion Passed: 7-0 V. NEW BUSINESS A. Excuse the absence of Board Member Jefferson from the Special Meeting on September 17, 2018. Board Member Patel, made a motion, seconded by Secretary Chavarria, to excuse the absence of Board Member Jefferson from the Special Meeting on September 17, 2018 Motion Passed: 7-0 B. Economic Alliance Houston Port Region — Annual Report and Contract Renewal Chad Burke President/ CEO and Fred Welch, presented a yearly update and contract renewal for economic development service agreement between EAHPR and the PEDC. Board Member Patel made a motion, seconded by Board Member Jefferson, to approve the President enter into a new three year Economic Development Services Agreement with the Alliance for a period beginning September 1, 2018 and ending August 31, 2021 for an amount not to exceed $30,000 and appoint Mayor Reid as our voting member of the Economic Alliance Board of Directors. Motion Passed: 7-0 C. Business Retention and Expansion Program — Contract Renewal for Services with the Pearland Chamber of Commerce PEDC Staff requested a three month extension of the Business Retention and Expansion Program Contract to finalize the program evaluation and to make revisions to the contract. The Board requested staff sit down with the Chamber to negotiate a new contract before considering any extension No Action Taken D. Reimbursement Agreement with the City of Pearland for Lower Kirby Beltway 8 Waterline Board At the June 28, 2018 meeting, the Board approved entering into a loan and infrastructure agreement that included public infrastructure to connect to existing waterlines on Hooper Road and Kirby Drive via Beltway 8 Per the Agreement, the water line extension will need to be complete within one year of execution of the agreement. A reimbursement agreement between PEDC and the City was proposed for PEDC to provide the City all of the necessary funds to finance the costs of the LKPMD implementing the project. PEDC will reimburse by the City once the LKPMD refunds the cost of the project to the City via a Letter Financing Agreement. Minutes of a Regular Meeting September 27, 2018 Page 3 Secretary Chavarria made a motion, seconded by Board Member Thumann, to approve the Chairman execute a Reimbursement Agreement with the City of Pearland to fund the design and construction of Lower Kirby Beltway 8 Water Line Connection in an amount of $240,000 or the actual cost. Motion Passed: 7-0 E. FY 2018-19 Budget An error in the meeting date was made on the Special Board meeting agenda of September 17, 2018. To remedy and satisfy posting requirements, this item has been added to this agenda for reconsideration Board Member Patel made a motion, seconded by Board Member Thumann, to approve revising the FY 2018-19 budget to reflect payoff of outstanding debt approximately $12.9M and to change interest income accordingly. Approved: 7-0 F. Defeasance of the Pearland Economic Development Corporation sales tax revenue refunding bonds, series 2016 PEDC Staff has been working with financial advisors and bond counsel on the steps necessary for the Corporation to pay off our existing debt. Bond Counsel discovered that state law requires corporations to have outstanding debt in order to continue to collect sales tax. Secretary Chavarria made a motion, seconded by Board Member Patel, to have the financial advisor come back next month with a partial payoff that left annual principal payment of $250,000 to 2026. G. 20/20 Community Strategic Plan Progress Update The 20/20 Steering Committee meets quarterly and receives updates on 2-3 of the nine strategies from the plan as well as providing written updates for each strategy every six months. President Buchanan shared these updates with the Board. N o Action Taken H. Monthly Activity Report — President Buchanan summarized ongoing activity. N o action taken. The meeting went into recess at 6:29 p.m. The meeting reconvened and went into Executive Session at 6:40 p.m. VI. OTHER BUSINESS Executive Session Under Texas Government Code 1. Section 551.087 — DELIBERATIONS REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS — Update on Business Attraction/Retention Projects 2. SECTION 551.087 — DELIBERATIONS REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS — Project #1808 The Board reconvened into Open Session at 7:19 p.m. VII. NEW BUSINESS CONTINUED: G. Economic Development Negotiations — Business Attraction/Retention Projects N o action taken. Minutes of a Regular Meeting September 27, 2018 Page 4 H. Economic Development Negotiations — Project #1808 No action taken. VIII. ADJOURNMENT: The meeting was adjourned at 7:19 p.m. Minutes approved as submitted and/or corrected this (D A.D., 2018. ATTEST: Mona Chavarria, Secretary i� day of Hugh Patton, ice -Chair