2006-08-08 Development Authority of Pearland Minutes of the Board of Directors Meeting DEVELOPMENT AUTHORITY OF PEARLAND
MINUTES OF THE BOARD OF DIRECTORS MEETING
August 8, 2006
CITY OF PEARLAND §
STATE OF TEXAS §
DEVELOPMENT AUTHORITY OF PEARLAND §
Call to Order
A special meeting of the Board of Directors (the "Board") of the Development Authority
of Pearland (the "Authority"), a non-profit corporation organized to aid, assist and act on behalf
of the City of Pearland, Texas (the "City"), was held at City Hall, 3519 Liberty Drive, Pearland,
Texas, on Tuesday, August 8, 2006 commencing at 4:00 p.m. and a quorum was established.
Written notice of the meeting including the date, hour, place and agenda for the meeting, was
posted in accordance with the Texas Open Meetings Act. The following Directors were present
when the meeting was called to order: Chair Tom Reid, Henry Stanaland, Tom Pool and Ed
Baker. Director Bill Sloan was not in attendance. Also in attendance were Bill Eisen, Claire
Manthei, Gary Cook, Drew Pelter, Lynne Humphries, Frank Ildebrando, Ryan O'Hara, Rick
Witte, Pat Hall, Linda Canik, Sue Darcy and Charles Knight.
Approval of Minutes
Chair Reid presented the minutes of the Development Authority Board meeting held on
March 29, 2006 for approval. A motion was made by Director Pool and seconded by Director
Baker to approve the minutes. Chair Reid inquired as to whether the Board had completed the
necessary conflict of interest disclosure forms. Charles Knight and Lynne Humphries replied
that, to their knowledge, Directors Baker and Sloan were the only directors required to complete
such forms and that their forms had indeed been completed and submitted. Chair Reid also
asked whether the Board had completed the required training on the Texas Open Meetings Act.
He stated that he had completed the training. Directors Stanaland, Pool and Baker stated that
they had not yet completed the training. Charles Knight and Lynne Humphries stated that they
would provide the training information to the Board. There being no further discussion, the
motion passed unanimously.
Public Comments
ARIA. There were no public comments.
New Business
A. Linda Canik with ETI Accounting Services, Bookkeeper for the Authority, summarized
the June 30, 2006 Cash Management Report on page 1 of the Board packets, noting that the
Report shows the balances of the TIRZ No. 2 General Fund, as well as the balances of the
Authority's General Fund and Debt Service Fund.
Ms. Canik then reviewed the Authority's General Fund Report on page 2 of the Board
packets, noting the June 30, 2006 balance of$37,612.00.
Ms. Canik then directed the Board's attention to the Authority's Debt Service Fund
Report on page 3 of the Board packets, noting that as of June 30, 2006, the balance of this fund
stood at $2,146,203.06.
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Ms. Canik continued by reviewing the TIRZ No. 2 General Fund Report, the balance of
which stood at $4,535,832.00 as of June 30, 2006, as detailed on page 4 of the Board packets.
Ms. Canik directed the Board's attention to the Quarterly Investment Report, dated June
30, 2006, on pages 5 and 6 of the Board packets, noting that the Report illustrates the location of
assets and descriptions of the collateral. She also noted that the Authority's Investment Officer
had signed the Report and has completed the required training.
B. Ms Canik the presented the Board with outstanding invoices related to the Authority's
legal fees, bookkeeping fees and management fees, which totaled $13,683.29. Ms. Canik noted
that if the Board approves these invoices for payment, the Authority's General Fund Balance
would be reduced to $23,928.71. She also noted that the Board had been provided with copies of
,.` these invoices.
A motion was made by Director Baker and seconded by Director Stanaland to approve
the payment of the consultant invoices as presented and authorize the execution of checks for
same. The motion passed unanimously.
C. Claire Manthei, Finance Director for the City of Pearland, reported that due to the inter-
relationships between TIRZ No. 2, the Authority and the City, as well as the efficiencies and
benefits of the City performing the financial services for all three entities, it is the City's
recommendation that, beginning October 1, 2006, the City begin providing bookkeeping services
to the Board. If the Board agreed with the recommendation, the Board would terminate its
current contract with ETI Accounting Services, and consider executing a contract with the City
to provide such bookkeeping services. She noted that the City would charge a monthly fee of
$500.00. She noted that ETI currently charges $975.00 month. In response to a question from
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Director Pool, Ms. Manthei stated that the City's $500 monthly fee would consist of time spent
on these financials by the Finance Director, the Assistant Finance Director and the Bookkeeper.
The Board agreed to consider the bookkeeping services proposal from the City at a meeting to be
scheduled for September 2006.
D. Frank Ildebrando with RBC Capital Markets reviewed with the Board the tentative
schedule of events leading up to the sale of the Series 2006 Bonds. Specifically, he noted the
scheduled Bond sale date of September 25, 2006. He explained that the size of the sale would be
determined after the property values were more certain. He also stated that, if feasible, a
proposed cash reimbursement to the TIRZ No. 2 Master Developer would also be brought before
the Board in September. He also noted that the interest rate that the Master Developer is earning
on TIRZ project costs advanced to date is 8 or 6.5 percent, and the current bond rate is
approximately five percent. Mr. Ildebrando estimated that the bond sale could be as large as
$20,000,000.00. He noted that Assessments of the Southwest was working with the Brazoria
Central Appraisal District and the Fort Bend Central Appraisal District to certify the values
within the Zone as of August 1, 2006.
Director Pool made a motion to approve the tentative schedule of events for the sale of
the Series 2006 Tax Increment Revenue Bonds. Director Baker seconded the motion. The
motion was passed unanimously.
Chair Reid noted his appreciation for the work being done on behalf of TIRZ No. 2 and
the Authority, as well as the quality of the Shadow Creek Ranch development.
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Adjournment
There being no further business to come before the Authority, upon unanimous consent
by the Directors, the meeting was adjourned at 4:37 p.m.
ADOPTED and APPROVED this day of , 2006.
Tom Reid, Chair
Henry Stanaland, Secretary
O.
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