2000-02-21 TAX INCREMENT REINVESTMENT ZONE NO. 2 BOARD MEETING MINUTESMINUTES OF THE BOARD OF DIRECTORS MEETING
Tax Increment Reinvestment Zone Number Two
CITY OF PEARLAND, TEXAS
February 21, 2000
The meeting of the Board of Directors ("Board") of the Tax Increment Reinvestment Zone
Number Two ("Zone"), City of Pearland, Texas, was held in the Council Chambers of Pearland
City Hall, located at 3519 Liberty Drive, Pearland, Texas, on Monday, February 21, 2000, at
4:30 p.m. The meeting was open to the public.
Board Members in Attendance:
Nigel Harrison, Chair
Gary Cook, Vice Chair
Mike Pybum, Secretary
James McFeron
Larry Loessin
Bobby Verdine
John Knox
City of Pearland Representatives in Attendance:
Alan Mueller
Michael Ross
Public in Attendance:
David Hamilton — Huitt-Zollars, Inc.
Tom King — Huitt-Zollars, Inc.
1. Introduction.
Board Members Not in Attendance:
Jim DeShazer
Sonny Corley
Consultants in Attendance:
Lynne Humphries — Vinson & Elkins
Patti Joiner - Knudson & Associates
John Havenstrite - Knudson & Associates
John Perry — LJA Engineering & Surveying, Inc.
David Tinney - LJA Engineering & Surveying, Inc.
Mark McGrath — Null-Lairson, P.C.
Bob DeForest — KGA/DeForest Design
The Chair, Nigel Harrison, welcomed those in attendance.
2. Call the meeting to order, take attendance and verify that a quorum in present.
The Chair, Nigel Harrison called the meeting to order at 4:30 p.m. and took attendance. The
following Board Members were present:
1.
Bobby Verdine
2.
Nigel Harrison
3.
Gary Cook
4.
James McFeron
5.
Larry Loessin
6.
John Knox
7.
Mike Pyburn
Board Members Sonny Corley and Jim DeShazer were not in attendance.
3. Discuss and approve minutes of the January 10, 2000 Board meeting.
Following discussion, Board Member Pyburn moved that the Board approve the minutes of the
January 10, 2000 meeting without revision. Board Member Cook seconded the motion. The
Board unanimously approved the motion.
4. Project report from the City; take appropriate action.
Michael Ross reported that design work for the far Northwest (Shadow Creek Parkway) sewer
trunk line project was largely complete. Bid opening is expected at the end of March. Mr. Ross
continued to say that construction of the 16" water line along FM 518 from Kirby to Chocolate
Bayou was complete. Design work on the 20" water line along McHard Road was 90 percent
complete, with bids expected to be opened in April 2000.
5. Discuss and take necessary action regarding engagement letter from Zone Auditor,
Null-Lairson.
Mark McGrath, Null-Lairson, presented an engagement letter for services related to the review of
Developer/sub-Developer information in accordance with the Zone's Final Plan and the Board's
project implementation and reimbursement process, as well as preparation of the Zone's Annual
Financial Report. The fee will be based on actual time spent, billed on an hourly basis, plus
expenses. Following a discussion, Board Member Pyburn motioned that the Board approve the
Zone Auditor's engagement letter. Board Member Cook seconded the motion, and the Board
imanimously approved.
6. Discuss and take necessary action regarding services agreement by and between the
Zone and the Zone Construction Auditor, Huitt-Zollars, Inc.
Tom King, Huitt-Zollars, presented a proposal for professional services related to the provision
of Construction Audit services. Ms. Joiner reminded the Board that these services would only be
employed when the Zone Engineer and the Developer/sub-Developer were one in the same.
Board Member Loessine motioned that the scope of services be expanded to include all
construction related projects within the Zone. Board Member McFeron seconded the motion.
After a discussion, the motion failed on a vote of three to four, Board Members Verdine, Cook,
Harrison, and Knox dissenting. In response, Board Member Loessine asked whether Board
Member Cook had a potential conflict of interest. Ms. Humphries responded, explaining that no
conflict existed, as Huitt-Zollars was selected and employed by the Zone, not the Developer.
Board Member McFeron then made a motion to approve the service agreement as presented.
Board Member Pyburn seconded the motion, and the Board unanimously approved.
2
7. Discuss and take necessary action regarding Huitt-Zollars, Inc.'s request for work
authorization for Village 1, Phase IA (Project 00-01-001).
Mr. King then presented a work authorization request for construction audit services related to
the review of Village 1, Phase 1A. After a discussion Board Member Knox motioned to approve
the request. Board Member Pyburn seconded the motion, and the Board unanimously approved.
8. Discuss and take necessary action regarding consultant invoice approval procedure.
Ms. Joiner reviewed the proposed procedures with the Board. Ms. Joiner explained that the
procedures were designed to allow a sub -committee of three Board Members and the Zone
Auditor to meet, review and approve payment of invoices presented by consultants from an
account funded by the Developer and administered by the City. The purpose of the
Subcommittee is to allow for approval to pay invoices when there is no regularly scheduled
Board meeting. After a discussion, Board Member Cook motioned to approve the procedure as
presented. Board Member Knox seconded the motion and the Board unanimously approved.
9. Discuss and take necessary action regarding selection of consultant invoice sub-
committee.
After a discussion of the role of the sub -committee, the Board appointed Board Member Knox as
Chair, and Board Members Pybum and Loessine as members, with Zone Auditor Null-Lairson,
as a resource consultant.
10. Discussion and take necessary action regarding construction of Village 1, Phase IA
(Project 00-01-001).
a. Presentation from Zone Engineer.
Bob DeForest, KGA/Deforest Design, reviewed the status of landscaping, irrigation,
entry monumentation, themes, and the incorporation of these standards planned within
Village 1, Phase 1A, and their extension into other areas of the project.
David Tinney, LJA Engineering, the Zone Engineer, then reviewed the status of paving,
water, storm sewer systems and detention in Village 1, Phase 1A, explaining that the
proposed $6,524,629 project is included in the adopted TIRZ project plan, as well as the
Development Agreement between Shadow Creek Ranch, and the City of Pearland. Mr.
Tinney also emphasized that project costs include land and easement acquisition, design,
construction and contingencies.
b. Presentation from Huitt-Zollars, Construction Auditor.
Mr. King reviewed Huitt-Zollars' Construction Audit for Village 1, Phase lA with the
3
Board. Mr. King stated that his review compared the project plan to the master plan by
infrastructure element: water, sanitary, drainage and paving; but did not review parks or
major infrastructure items being constructed by the City. Concluding, Mr. King stated
that all infrastructure items within the $6,524,629 are reasonable and consistent with the
master plan approved by the Board.
C. Approve letter finance agreement.
Ms. Joiner discussed the Letter Finance Agreement with the Board. The letter, Ms. Joiner
explained, serves as the Board's formal consent to proceed with construction on the items
included in Village 1, Phase I as defined by the Zone Engineer, and reviewed by the
Zone Construction Auditor. Board Member Cook reminded the Board that once approved
in the form of a Letter Finance Agreement, costs and reimbursables are capped, with any
over runs borne by the Developer. After a discussion, Board Member McFeron motioned
to approve the agreement as presented. Board Member Verdine seconded the motion, and
the Board approved it with Board Members Cook and Pyburn abstaining.
11. Presentation and discussion of TIRZ Project budget report.
Ms. Joiner and Mr. Tinney reviewed the project's budget report with the Board Members. The
first budget, Ms. Joiner explained, summarizes items listed in the Project Plan and the Finance
Plan. The second, it was noted, summarized costs associated with Village 1, Phase lA as they
relate to the entire TIRZ budget. No Board action was taken.
12. Project report from Developer; take appropriate action.
Board Member Cook reviewed the status of ongoing development within Shadow Creek Ranch.
No Board action was taken.
13. New Business.
Ms. Joiner discussed the need to begin formulating an annual report to be presented to all
participating entities. The report should include descriptions of the status of the development's
compliance with the Development Agreement, as well as the Tri -party Agreement, drawing on
reports generated by the Auditor and the Construction Auditor. No Board action was taken.
14. Any other matters which may properly come before the Board.
The Board discussed the various relationships and responsibilities the Brazoria County Drainage
District No. 4 has with the entities that underlay it and are adjacent to it. Ms. Humphries stated
that the District only has authority over property they own or maintain. Mr. Mueller further
stated that the District has no authority within the City, and that since Shadow Creek is within
the City, the District has no authority over any contemplated Shadow Creek facilities or
approvals. No Board action was taken.
4
After a discussion, no Board meeting was scheduled for March. The next regular meeting of the
Board will be in April. The Board did agree that the Invoice Sub -committee should meet in
March, however no date was set, and no Board action was taken.
15. Adjournment.
Board Member McFeron moved that the meeting be adjourned. Board Member Verdine
seconded the motion, and the Board unanimously voted to adjourn the meeting at 5:39 p.m.
Approved:
Mike Pfbum, Band Secretary
Tax Incrementreinvestment Zone Number Two
City of Pentland, Texas
5