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2009-3-30 TAX INCREMENT REINVESTMENT ZONE NO. 2 BOARD MEETING MINUTES Page 1 of 5 – 3/30/2009 – TIRZ No. 2 MINUTES 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, MARCH 30, 2009, AT 4:00 P.M., IN THE TEMPORARY MUNICIPAL COURT ROOM LOCATED AT THE CITY OF PEARLAND COMMUNITY CENTER, 3523 LIBERTY DRIVE, PEARLAND, TEXAS. Vice Chair Cook called the meeting to order at 4:01 p.m. with the following present: Vice Chair Gary Cook Secretary Mike Pyburn Boardmember Donna Coleman Boardmember Gary Davis Boardmember Jo Knight Boardmember Ron Castillo Absent: Chair Nigel Harrison, Boardmember Ken Phillips, Boardmember Larry Loessin. Others in attendance: Bill Eisen City Manager City of Pearland; Claire Bogard Director of Finance City of Pearland; Sonia Webb Deputy City Secretary City of Pearland; Lynne Humphries Allen Boone Humphries Robinson LLP; Sue Darcy March Darcy Partners; James Ross LJA Engineering; Drew Pelter Shadow Creek Ranch Development Company Ltd.. NEW BUSINESS BOARD ACTION – REGARDING THE APPROVAL OF THE SPECIAL MEETING MINUTES OF THE AUGUST 25, 2008, TAX INCREMENT REINVESTMENT ZONE NUMBER 2 (TIRZ NO. 2) BOARD OF DIRECTORS MEETING. TIRZ #2 Board of Directors. Boardmember Knight made the motion, seconded by Boardmember Coleman, to approve the minutes of the August 25, 2008, Tax Increment Reinvestment Zone Number 2 (TIRZ No. 2) Board of Directors Meeting. Voting “Aye” Boardmembers Cook, Pyburn, Coleman, Davis, Knight, and Castillo. Voting “No” None. Motion Passed 6 to 0, with Boardmembers Harrison, Phillips, and Loessin absent. BOARD ACTION – RESOLUTION NO. RTIRZ-2009-01 – A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PEARLAND TAX INCREMENT REINVESTMENT ZONE #2 (TIRZ #2) BOARD OF DIRECTORS, APPROVING THE 2008 ANNUAL REPORT FOR TAX INCREMENT REINVESTMENT ZONE #2. Mr. Gary Cook, Ms. Sue Darcy, Mr. Drew Pelter, Ms. Lynn Humphries, and Mr. James Ross. Page 2 of 5 – 3/30/2009 – TIRZ No. 2 Boardmember Coleman made the motion, seconded by Boardmember Davis, to approve Resolution No. RTIRZ-2009-01. Sue Darcy, March Darcy Partners, provided the Board with a detailed review of the 2008 Annual Report. Drew Pelter, Shadow Creek Ranch Development Company Ltd., provided the Board with an update of the status of the Shadow Creek Ranch Development. Boardmember Pyburn asked what foreclosure rate the development has experienced. Drew Pelter, Shadow Creek Ranch Development Company Ltd., stated in 2007, there were a total of 641 foreclosures in the City of Pearland of which, thirteen percent were located in Shadow Creek Ranch. The 2008 total for the City of Pearland was 695 foreclosures with nineteen percent located in Shadow Creek Ranch. Boardmember Cook stated that, even with the foreclosures occurring in the Shadow Creek Ranch, there has not been a decrease in the sale prices of homes in the development. Boardmember Davis asked if there had been any decrease in the rate of home sales. Drew Pelter, Shadow Creek Ranch Development Company Ltd., stated the rate of home sales has decreased to between five and ten homes per week. The Shadow Creek Ranch Development has remained in the top three for home sales in the Houston area. Voting “Aye” Boardmembers Cook, Pyburn, Coleman, Davis, Knight, and Castillo. Voting “No” None. Motion Passed 6 to 0, with Boardmembers Harrison, Phillips, and Loessin absent. BOARD ACTION – RESOLUTION NO. RTIRZ-2009-02 – A RESOLUTION OF THE PEARLAND TAX REINVESTMENT ZONE #2 (TIRZ #2), ACCEPTING THE TIRZ #2 INVESTMENT REPORT FOR THE QUARTER ENDING SEPTEMBER 2008. Ms. Claire Bogard, Director of Finance. Boardmember Davis made the motion, seconded by Boardmember Castillo, to approve Resolution No. RTIRZ-2009-02. Page 3 of 5 – 3/30/2009 – TIRZ No. 2 Claire Bogard, City of Pearland Finance Director, stated this item is the Quarterly Investment Report for the quarter ending September 2008. She stated the beginning book value on June 30, 2008 was $7,927,397.43 and the portfolio as of September 30, 2008 was $6,461,523.58. The change is due to a bond payment transferred to the Development Authority of Pearland. Ms. Bogard continued to provide the Board with a detailed summary of the Quarterly Investment Report. Voting “Aye” Boadmembers Cook, Pyburn, Coleman, Davis, Knight, and Castillo. Voting “No” None. Motion Passed 6 to 0, with Boardmembers Harrison, Phillips, and Loessin absent. BOARD ACTION – RESOLUTION NO. RTIRZ-2009-03 – A RESOLUTION OF THE PEARLAND TAX REINVESTMENT ZONE #2 (TIRZ #2), ACCEPTING THE TIRZ #2 INVESTMENT REPORT FOR THE QUARTER ENDING DECEMBER 2008. Ms. Claire Bogard, Director of Finance. Boardmember Coleman made the motion, seconded by Boardmember Knight, to approve Resolution No. RTIRZ-2009-03. Claire Bogard, City of Pearland Finance Director, stated this item is the Quarterly Investment Report for the quarter ending December 2008. The beginning book value was $6,461,523.58 which was a decline from the previous Quarterly Investment Report. A transfer of $3,200,000 was made to the Development Authority of Pearland pursuant to the agreement that all remaining funds are to be transferred at the end of each year. Ms. Bogard continued to provide the Board with a detailed summary of the Quarterly Investment Report. Voting “Aye” Boardmembers Cook, Pyburn, Coleman, Davis, Knight, and Castillo. Voting “No” None. Motion Passed 6 to 0, with Boardmembers Harrison, Phillips, and Loessin absent. BOARD ACTION – RESOLUTION NO. RTIRZ-2009-04 – A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PEARLAND TAX INCREMENT REINVESTMENT ZONE #2 (TIRZ #2) BOARD OF DIRECTORS, ACCEPTING THE FINANCIAL REPORT FOR THE PERIOD ENDING FEBRUARY 28, 2009. Ms. Claire Bogard, Director of Finance. Boardmember Castillo made the motion, seconded by Boardmember Coleman, to approve Resolution No. RTIRZ-2009-04. Page 4 of 5 – 3/30/2009 – TIRZ No. 2 Claire Bogard, City of Pearland Finance Director stated this item is the Financial Report for the period ending February 28, 2009, and supplied the Board with a detailed review of the Financial Report. Voting “Aye” Boardmembers Cook, Pyburn, Coleman, Davis, Knight, and Castillo. Voting “No” None. Motion Passed 6 to 0, with Boardmembers Harrison, Phillips, and Loessin absent. BOARD ACTION – RESOLUTION NO. RTIRZ-2009-05 – A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PEARLAND TAX REINVESTMENT ZONE #2 (TIRZ #2), APPROVING INVOICES FOR PAYMENT. Ms. Claire Bogard, Director of Finance. Boardmember Knight made the motion, seconded by Boardmember Pyburn, to approve Resolution No. RTIRZ-2009-05. Claire Bogard, City of Pearland Finance Director, stated the Board was provided copies of invoices totaling $15,755.74 that represent costs incurred from Allen Boone Humphries Robinson LLP, March Darcy Partners, and LJA Engineering. A revised Exhibit “A” was distributed that included an invoice which was recently received from Marsh Darcy Partners. The operating budget was originally $175,000 and after paying the current invoices the remaining balance will be $146,000. Voting “Aye” Boardmembers Cook, Pyburn, Coleman, Davis, Knight, and Castillo. Voting “No” None. Motion Passed 6 to 0, with Boardmembers Harrison, Phillips, and Loessin absent. BOARD ACTION – RESOLUTION NO. RTIRZ-2009-06 – A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PEARLAND TAX INCREMENT REINVESTMENT ZONE #2 (TIRZ #2) BOARD OF DIRECTORS, APPOINTING THREE MEMBERS TO SERVE AS AN INVOICE REVIEW COMMITTEE. Ms. Claire Bogard, Director of Finance. Boardmember Knight made the motion, seconded by Boardmember Coleman, to approve Resolution No. RTIRZ-2009-06. Claire Bogard, City of Pearland Finance Director, stated this item was included on a previous Agenda, but there was no formal vote for the record. At the previous meeting it was decided that Nigel Harrison, Mike Pyburn, and Larry Loessin were chosen to be appointed to the committee. The item has been placed on this Agenda to ask that a vote be taken to approve the appointment of three boardmembers to the Invoice Review Committee. Page 5 of 5 – 3/30/2009 – TIRZ No. 2 Lynne Humphries, Allen Boone Humphries Robinson LLP, asked if there were any problems being able to get the boardmembers together to review the invoices. Claire Bogard, City of Pearland Finance Director, stated the committee has met once and she met with committee members individually. The option of emailing the invoices to each committee member for their approval has also been discussed. Boardmember Castillo asked if it is necessary for all three committee members to be present for the invoice review. Claire Bogard, City of Pearland Finance Director, stated there were issues getting all three committee members to meet at one time, but the process can be handled in any manner the Board prefers. Boardmember Pyburn stated he would prefer to do the invoice review process by email since it is difficult to make time in a busy schedule to attend meetings. Lynne Humphries, Allen Boone Humphries Robinson LLP, stated it is possible to review the invoices by email because there would not be a quorum involved and the Board authorized action at the July called Public Meeting. Voting “Aye” Boardmembers Cook, Pyburn, Coleman, Davis, Knight, and Castillo. Voting “No” None. Motion Passed 6 to 0, with Boardmembers Harrison, Phillips, and Loessin absent. ADJOURNMENT Meeting was adjourned at 4:45 p.m. Minutes approved as submitted and/or corrected this the ____ day of ______________, A.D., 2009. _____________________________ Nigel Harrison Chair ATTEST: _____________________________ Mike Pyburn Secretary