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2000-10-09 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 October 9, 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, October 9, 2000, at 4:30 p.m. The meeting was open to the public. Board Members in Attendance: Nigel Harrison, Chair Mike Pybum, Secretary Gary Cook, Vice Chair James McFeron Larry Loessin Bobby Verdine Jim DeShazer John Knox City of Pearland Representatives in Attendance: Mayor Tom Ried Alan Mueller Introduction. Board Members Not in Attendance: Sonny Corley Consultants in Attendance: Tom King — Huitt-Zollars, Inc. Trey Lary — Vinson & Elkins Patti Joiner - Knudson & Associates Charles Knight - Knudson & Associates 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 4:32 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 8. John Knox Board Member Sonny Corley was not in attendance. 3. Discuss and approve minutes of June 19, 2000 Board meeting. Following discussion, Board Member Pyburn moved that the Board approve the minutes of the June 19, 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. Alan Mueller circulated a summary of construction activity and discussed the report with the Board. A copy of the report is attached. 5. Project report from Developer; take appropriate action; Board Member Cook reviewed the status of ongoing development. Specifically, Mr. Cook noted that: the Master Drainage Plan had been approved by City Council; the Maintenance Association documents had been finalized; the design guideline manual had been completed; construction of the Primary Entry Monument was about 75 percent complete, with the proposed name change from McHard Road to Shadow Creek Parkway taking place upon completion of the Monument; and the first contract for the construction of Village 1, Phase IA lakes and channels, in the amount of approximately $1.3 million, was approved last week and was an estimated $150,000 below the original budget estimate. Construction is expected to begin in early November 2000. 6. Report from Interest Review Subcommittee. Subcommittee Chairman John Knox presented the Subcommittee report and explained that the Subcommittee met on September 14, 2000, reviewed the report prepared by the Zone Auditor, Null-Lairson and approved the year 2000 expenses as presented. 7. Discuss and take necessary action regarding Huitt-Zollars, Inc.'s request for work authorization for Village 1, Phase 111 Project (00-10-002). Tom King of Huitt-Zollars, Construction Auditor, presented a work authorization request for construction audit services related to the review of Village 1, Phase 1B. After a discussion Board Member Loessin motioned to approve the request. Board Member McFeron seconded the motion, and the Board unanimously approved the motion. 8. Discuss and take necessary action regarding construction of Village 1, Phase 1B, Project (00-10-002): a. Presentation by LJA Engineering, Zone Engineer. David Tinney with LJA Engineering, the Zone Engineer, reviewed the plans for paving streets and sidewalks, landscaping and irrigation, water and storm sewer systems, lakes and channels, entry monuments for Emerald Bay at Kirby and Discovery Bay at Kirby, 2 interim wastewater treatment plant and land costs in Village 1, Phase 1B, explaining that the proposed $10,318,290 project is included in the adopted TIRZ project plan. b. Report from Huitt-Zollars, Construction Auditor. Mr. King reviewed Huitt-Zollars' Construction Audit for Village 1, Phase 1B with the Board. Mr. King stated that his review compared the project plan to the master plan by infrastructure element: water, sanitary, drainage and paving. Concluding, Mr. King stated that all infrastructure items within the $10,318,290 are reasonable and consistent with the master plan approved by the Board. C. Approve letter finance agreement. Trey Lary of Vinson & Elkins, Zone Attorney, discussed the letter finance agreement with the Board. The letter, Mr. Lary explained, serves as the Board's formal consent to proceed with construction on the items included in Village 1, Phase 1B as defined by the Zone Engineer, and reviewed by the Zone Construction Auditor. After a discussion, Board Member McFeron motioned to approve the letter finance agreement as presented. Board Member Verdine 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. New Business. No new business was brought before the Board. 11. Any other matters which may properly come before the Board. No other business was brought before the Board. 12. Adjournment. Board Member Pybum moved that the meeting be adjourned. Board Member Verdin seconded the motion, and the Board unanimously voted to adjourn the meeting at 5:04 p.m. Approved: IAJ� 4Mlikeybum Board Secretary Tax Increment Reinvestment Zone Number Two City of Pearland, Texas 4