2000-06-05 TAX INCREMENT REINVESTMENT ZONE NO. 2 BOARD MEETING MINUTESMINUTES OF THE BOARD OF DIRECTORS' INVOICE REVIEW SUBCOMMITTEE
MEETING
Tax Increment Reinvestment Zone Number Two
CITY OF PEARLAND, TEXAS
June 5, 2000
The initial meeting of the Invoice Review Subcommittee ("Subcommittee") of the Tax Increment
Reinvestment Zone Number Two ("Zone"), City of Pearland, Texas, was held in the first floor
conference room of Pearland City Hall, located at 3519 Liberty Drive, Pearland, Texas, on
Monday, June 5, 2000, at 4:30 p.m. The meeting was open to the public.
Subcommittee Members in Attendance:
John Knox, Chair
Larry Loessin
Consultants in Attendance:
Charles Knight— Knudson & Associates
Mark McGrath — Null-Lairson
1. Introduction.
Subcommittee Members Not in Attendance:
Mike Pyburn
The Chair, John Knox, welcomed those in attendance.
2. Call the meeting to order, take attendance and verify that a quorum in present.
Chairman Knox called the meeting to order at 4:45 p.m. and took attendance. The following
Subcommittee Members were present:
1. John Knox
2. Larry Loessin
Subcommittee Member Mike Pyburn was not in attendance.
3. Discuss and take necessary action regarding approval and recommendation of the
TIRZ creation and organization costs, 1999 administrative costs and 2000 administrative
costs.
Mark McGrath of Null-Lairson, Zone Auditor, began by presenting and summarizing the
Auditor's Report on Developer Payments of Creation Costs. He explained that Null-Lairson
compiled the costs based upon invoices and cancelled checks incurred by the Developer. Null-
Lairson then reviewed the invoices to determine that they were related to the Zone's creation and
to ensure there were no duplicated charges. Null-Lairson also compared the costs to the Zone's
budget to ensure the costs did not exceed the budget. Mr. McGrath also stated that interest was
computed on creation costs only and reflected accrual through May 31, 2000.
Mr. McGrath then presented and summarized the Auditor's Report on Invoices Presented for
Services Rendered in 1999. He explained that Null-Lairson compiled the costs based upon
invoices submitted by Consultants to the Zone. Null-Lairson then reviewed the invoices to
determine that they were related to the Zone's administration in 1999 and to ensure there were no
duplicated charges. Null-Lairson also compared the costs to the Zone's budget to ensure the
costs did not exceed the budget. Mr. McGrath also compared hourly rates charged on invoices
with those rates set forth in the corresponding consultant contract. He then explained that the
amounts listed for Brazoria County, Southwest Securities and Winstead, Sechrist & Minick were
depicted as administrative expenses pursuant to separate Interlocal agreements between the Zone
and Brazoria County and the Zone and Alvin Independent School District. Subcommittee
Member Loessin questioned the depiction of these amounts as administrative, and requested that
a third party reevaluate the administrative classification. Charles Knight of Knudson &
Associates, Zone Administrator, responded that he would ask Vinson & Elkins, Zone Attorney,
to review the Interlocal agreements for the pertinent language.
Finally, Mr. McGrath presented and summarized the Auditor's Report on Invoices Presented for
Services rendered in 2000. He explained that Null-Lairson compiled the costs based upon
invoices submitted by Consultants to the Zone, reviewed the invoices to determine that they were
related to the Zone's administration in 2000 and checked for duplicated charges. Null-Lairson
then compared the costs to the Zone's budget to ensure the costs did not exceed the budget. Mr.
McGrath also compared hourly rates charged on invoices with those rates set forth in the
corresponding consultant contract. He stated that this schedule reflected invoices presented for
services rendered for the period ended March 31, 2000. As a result, Subcommittee Member
Loessin requested that the Report be dated as of March 31, 2000 instead of May 31, 2000, to
which Mr. McGrath agreed.
Following discussion, Subcommittee Member Loessin moved that the Subcommittee approve the
Auditor's Report on Invoices Presented for Services rendered in 2000 for payment and
recommend approval of it to the TIRZ Board. Subcommittee Chairman John Knox seconded the
motion and the motion was unanimously approved. No action was taken on the Auditor's Report
on Developer Payments of Creation Costs and the Auditor's Report on Invoices Presented for
Services Rendered in 1999. Pending an opinion by Vinson & Elkins on classification of certain
costs, the full TIRZ Board at its June 19, 2000 meeting would consider these two reports.
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4. Adjournment.
Subcommittee Member Loessin moved that the meeting be adjourned. Subcommittee Chairman
Member Knox seconded the motion, and the Subcommittee unanimously voted to adjourn the
meeting at 5:37 p.m.
Approved:
hn Knox, Chairman
Invoice Review Subcommittee
Tax Increment Reinvestment Zone Number Two
City of Pearland, Texas
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