2000-06-19 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
June 19, 2000
The meeting of the Board of Directors ("Board") of the Tax Increment Reinvestment Zone
Number Two ("Zone"), City of Pearland, Texas, was held at City Hall, located at 3519 Liberty
Drive, Pearland, Texas, on Monday, June 19, 2000, at 4:30 p.m. The meeting was open to the
public.
Board Members in Attendance:
Nigel Harrison, Chair
Mike Pyburn, Secretary
Gary Cook, Vice Chair
James McFeron
Larry Loessin
Bobby Verdine
Sonny Corley
Jim DeShazer
City of Pearland Representatives in Attendance:
Alan Mueller
Michael Ross
Public in Attendance:
1. Introduction.
Board Members Not in Attendance:
John Knox
Consultants in Attendance:
Lynne Humphries — Vinson & Elkins
Patti Joiner - Knudson & Associates
John Havenstrite - Knudson & Associates
David Tinney - LJA Engineering & Surveying, Inc.
Mark McGrath — Null-Lairson, P.C.
Tom King — Huitt-Zollars, Inc.
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.
Mike Pyburn
7.
Jim DeShazer
S.
Sonny Corley
Board Member John Knox was not in attendance.
3. Discuss and approve minutes of the February 21, 2000 Board meeting.
Following discussion, Board Member Cook moved that the Board approve the minutes of the
February 21, 2000 meeting without revision. Board Member DeShazer seconded the motion.
The Board unanimously approved the motion.
4. Project report from the City; take appropriate action.
Alan Mueller circulated a summary of construction activity and discussed the report with the
Board. A copy of the report is attached.
Mr. Mueller also discussed the funding of certain costs associated with Brazoria County and
Alvin ISD legal and financial advisory services. Mr. Mueller explained that language in the
development agreement and the interlocal agreements suggests that such fees should be
reimbursed from the increment fund. However, Mr. Mueller further stated that the City has asked
the Developer to advance funds sufficient to pay these invoices in question, and that the
Developer has agreed.
5. Report from Zone Auditor.
Mark McGrath presented, and the Board reviewed three summary reports outlining reimbursable
expenses incurred and invoices paid from creation through 2000. Mr. McGrath explained that the
reports are prepared to assist in determining the amount to be included in future Letter Finance
Agreements, and that the review process associated with each included a review of the budget to
assure that aggregate costs have not exceeded budgeted amounts. The first report addressed
Developer payments of creation costs, $882,434. The second addressed financing and
administration costs for 1999, $117,876.95. Mr. McGrath pointed out that a portion of these fees
have not been paid; however, as mentioned in the City's report, the Developer has agreed to
advance these funds, $80,318.67. The third report addressed financing and administration costs
for 2000. Mr. McGrath explained that these expenses, $37,557.11, have not been paid by the
Developer, but will be paid by funds deposited in the increment account.
6. Report from Interest Review Subcommittee.
Larry Loessin presented the Committee report. Mr. Loessin explained that the Committee met
and reviewed the reports prepared by the Zone Auditor and approved the 2000 expenses as
presented. Mr. Loessin also said that the invoices associated with creation expenses and 1999
administration had been deferred pending further review.
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7. Discuss and take necessary action regarding
a. Letter financing agreement for creation and organization of the Zone;
b. Letter financing agreement for administration of the Zone for fiscal year
1999;
C. Letter financing agreement for administration of the Zone for fiscal year
2000;
d. Payment of all invoices;
Lynne Humphries reviewed the format of the financing agreements with the Board, and
reminded the Directors that it is taken directly from the Master Developer Reimbursement
Agreement. Ms. Humphries reviewed the issues raised with regard to 1999 financing and
administration expenses, and restated that the Developer intends to pay these fees. Ms.
Humphries also reviewed the 2000 administration expenses, reminding the Board that the
agreement authorizes the reimbursement of $175,000 for the year while only $37,557.11 has
been invoiced to date.
After a discussion, Board Member Loessin motioned to approve the three letter finance
agreements as presented and pay all associated invoices. Board Member Pyburn seconded the
motion and the Board approved the motion with Board Member Cook abstaining.
S. Discuss and recommend 1999 Annual Report to be presented to City Council for
Approval;
Patricia Joiner presented the Annual Report. Ms. Joiner explained that the report is a statutory
requirement of the Zone which must be prepared and presented to the governing bodies of the
participating entities. The report is a review of the agreements governing the relationship
between the Zone and the participating units, and their compliance with the schedules and
standards contained therein.
After a discussion, Board Member Pyburn motioned to approve the report. Board Member
Corley seconded the motion, and the Board unanimously approved the motion.
9. Presentation and discussion of TIRZ Project budget report;
Ms. Joiner reviewed the project's budget report with the Board Members. The budget, Ms. Joiner
explained, summarizes items listed in the Project Plan and the Finance Plan. The second, it was
noted, summarized costs associated with the approved letter finance agreements as they relate to
the entire TIRZ budget. No Board action was taken.
10. Project report from Developer; take appropriate action;
Board Member Cook reviewed the status of ongoing development. Mr. Cook noted that: McHard
Road, West of 288 has been renamed Shadow Creek Parkway; that the entry monument at
Shadow Creek Parkway and 288 is underway; that the water line extension from FM 518 to FM
521 is out for bid; that proposals were being developed for the first phase of the package sewer
treatment facility to serve the first phase of development; and, that the Shadow Creek Ranch
master drainage plan has been approved by the City of Pearland.
Board Member Loessin discussed a letter he had received from Brazoria County Drainage
District No. 4 and the concerns it raised related to regional drainage. Alan Mueller said that he
had seen the letter, and that the City has responded. Mr. Mueller further explained that the City is
responsible for drainage within the City limits, and that the Shadow Creek Ranch drainage plan
has been reviewed and approved by the City.
15. Adjournment.
Board Member Pyburn moved that the meeting be adjourned. Board Member Loessin seconded
the motion, and the Board unanimously voted to adjourn the meeting at 5:35 p.m.
Approved:
//"" P"' —
Mike Pyburnj3oard Secretary
Tax Increment Reinvestment Zone Number Two
City of Pearland, Texas
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TIRZ II Board Report
Shadow Creek Parkway
Project Summary
June 19, 2000
Shadow Creek Parkway - Phase I
• 100% Complete Design
• 0% Construction Phase
• Contractor awaiting T -Lock lining material
• City secured inspection and testing services
• Estimated construction date is July 5, 2000
• Estimated completion date is January 5, 2000
• $1.9 million construction cost
Shadow Creek Parkway — Phase II
• Received proposal from consultant for design service
• Reviewing environmental issues and funding requirements with TWDB
• Upon TWDB approval, Staff will request City Council approval.
EDA Project No. 2 — 20" Water Line
• 100 % Complete Design
• Final Plans and Specifications to be delivered to City Engineer week of 6119100
• Awaiting easement acquisitions
• All permits obtained by Consultant Engineer
Y 60 days for bidding process from completion of easement acquisitions
• 120 days for construction phase
• $525,000 estimated construction cost
EDA Project No. 3 — Water Plant
• 50% Complete Design
• Finalizing flood plain issues
• Incorporating comments from Flood Plain Administrator
• .Awaiting approval of Shadow Creek Master Drainage Plan
• All City of Houston issues resolved
• Estimated completion date for design is 60 days or September 1, 2000
• 60 days for bidding process
• 180 days for construction phase