2007-08-13 Development Authority of Pearland Special Meeting Agenda AGENDA
DEVELOPMENT AUTHORITY OF PEARLAND
Special Meeting of Board of Directors
Monday, August 13,2007
4:00 P.M., 1st Floor Conference Room
Pearland City Hall
3519 Liberty Drive
Pearland,Texas 77581
I. CALL TO ORDER.
II. APPROVAL OF MINUTES—Special Meeting of July 16, 2007.
III. PUBLIC COMMENTS,
IV. NEW BUSINESS:
A. CONSIDERATION AND POSSIBLE ACTION TO: Approve Preliminary
Official Statement of the Series 2007 Contract Revenue Bonds; Appoint
Paying/Agent Registrar and Trustee, Ryan O'Hara with RBC Capital
Markets, Lynne Humphries with Allen Boone Humphries Robinson, and
Rick Witte with Andrews&Kurth;
V. ADJOURNMENT.
This site is accessible to disabled individuals. For special assistance,please call Young
Lorfing at 281-652-1655 prior to the meeting so that appropriate arrangements can be
made.
I,Sonia Blair,Deputy City Secretary of the City of Pearland,Texas, do hereby certify
that the foregoing agenda was posted in a place convenient to the general public at City
Hall on the 9 day of August, at 5:30 p.m.
Sonia Blair
Deputy City Secretary
Agenda removed day of August 2007
DEVELOPMENT AUTHORITY OF PEARLAND
MINUTES OF THE BOARD OF DIRECTORS MEETING
July 16, 2007
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 Monday, July 16, 2007 commencing at 4:15 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, Bill Sloan and Ed Baker. Also in
attendance were Bill Eisen, Frank Ildabrando, Rick Witte, Trey Lary, Rick Overgaard, Sue
Darcy, and Dana Townsend.
Approval of Minutes
Chair Reid presented the minutes of the Development Authority Board meeting held on
October 2, 2006 for approval. A motion was made by Director Sloan and seconded by Director
Reid to approve the minutes. There being no further discussion, the motion passed unanimously.
Public Comments
There were no public comments.
New Business
A. Rick Overgaard with the City of Pearland reviewed the May 2007 Financial Report. Mr.
Ildabrando inquired regarding fund balances in relation to debt service payment that will be due
in October. Sue Darcy with Knudson & Associates, LP responded that Brazoria County, Ft.
Bend County and the AISD Reserve fund revenue is received in August and will be available for
debt service payments. Director Sloan made a motion to approve the May 2007 Financial
Report. Director Baker seconded the motion. The motion was passed unanimously.
B. Rick Overgaard recommended the establishment of an Invoice Review Committee so
invoices can be paid without waiting months for payment. Trey Lary with Vinson & Elkins
mentioned that only two Board Members could be on the Invoice Review Committee due to the
fact that if three Board Members were together, that would in fact be a quorum of the Board.
Bill Eisen with the City of Pearland suggested a cap of$25,000 per invoice the Invoice Review
Committee could approve. Director Reid agreed and suggested he and Director Baker be the
Invoice Review Committee with Director Sloan as an alternate when needed with a cap of
$25,000 per invoice approval authority. Director Sloan made a motion to approve the
establishment of the Invoice Review Committee as such. Director Baker seconded the motion.
The motion was passed unanimously.
Director Pool arrived during the Invoice Review Committee discussion at 4:30pm.
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C. Frank Ildabrando with RBC Capital Markets reviewed the Schedule of Events for the
upcoming Bond Sale, specifically mentioning the Board meetings that will be required and the
timing for each, the dates on which Estimated Taxable Values will need to be provided by
Assessments of the Southwest, and the date of the actual Bond sale. Mr. Ildabrando stated that
this was the fourth bond sale to reimburse the developer and there was nothing new to the
process. It was noted that this was an information item with no Board approval required.
D. Rick Overgaard reviewed the Public Funds Investment Act, which requires the
Development Authority to review its investment policy and strategies not less than annually.
The last approved Investment Policy was in March of 2006. Since that time, the City has
assumed the financial functions related to the Authority, including investments. The investment
officers of the City are also acting as investment officers of the Authority. As such, it was
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recommended that the Authority adopt the City's investment policy and strategy as its own for
ease and efficiency of the administration of all investments. Following a brief discussion,
Director Baker made a motion to approve this Investment Policy for the Development Authority.
Director Reid seconded the motion. The motion was passed unanimously.
E. Rick Overgaard reviewed the IRS regulations that state an entity cannot earn more
interest on the bonds than it is paying. If an entity does, this is called arbitrage, and an entity is
required to report and pay the gain to the IRS. Arbitrage calculations are compiled over 5-year
periods until there is no outstanding debt; payments related to arbitrage are payable at the end of
the 5-year period. The Finance Department recommended tracking and calculating arbitrage
annually versus every 5 years so that the Board could be better informed of any potential
liability. As such, an annual contract with Arbitrage Compliance Specialists, Inc. was presented
to the Board for consideration with the fees not to exceed $6,105 to bring current all rebate
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• reports through 9/30/08 or applicable filing dates through 9/30/08 for all tax-exempt debt issues
of the Authority. Annual contracts will be presented for approval hereafter. Director Pool made
a motion to approve this Arbitrage Compliance Contract for $6105 to bring current all rebate
reports through 9/30/08 and authorize Chair Reid to sign the contract. Director Sloan seconded
the motion. The motion was passed unanimously.
Before the close of the Board meeting, Director Reid mentioned the plan for the
University of Houston to build another campus in Pearland, stating the acreage set aside and the
use of the land for the City as well.
Adjournment
There being no further business to come before the Authority, upon unanimous consent
by the Directors, the meeting was adjourned at 5:07 p.m.
ADOPTED and APPROVED this day of , 2007.
Tom Reid, Chair
Henry Stanaland, Secretary
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