2001-04-23 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
April 23 2001
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, April 23, 2001, 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
Sonny Corley
Larry Loessin
Bobby Verdine
James McFeron
John Knox
City of Pearland Representatives in Attendance:
Alan Mueller
1. Introduction.
Board Members Not in Attendance:
Jim DeShazer
Consultants in Attendance:
Tom King — Huitt-Zollars, Inc.
Lynne Humphries — Vinson & Elkins
John Havenstrite - Knudson & Associates
David Tinney - LJA Engineering & Surveying, 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 4:32 p.m. and took attendance. The
following Board Members were present:
1. Bobby Verdine
2. Nigel Harrison
3. Gary Cook
4. Sonny Corley
5. Larry Loessin
6. Mike Pyburn
7. Jim DeShazer
8. John Knox
Board Member James McFeron was not in attendance.
, 3. Discuss and approve minutes of October 9, 2000 Board meeting.
Following discussion, Board Member Pyburn moved that the Board approve the minutes of the
October 9, 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 reviewed city funding and the construction of Phase I and II projects. He
discussed obtaining bids on future development in Phases IA and IB. Mr. Mueller went on to
discuss the City's development activity, and the differences between the processes of creating
and managing PIDs and MUDS. He reported that the City's financial advisor believed that
MUD bonds would be more marketable than those of a PID, and would result in reduced interest
costs. He noted that some financing may be shifted from the TIRZ to the MUD and that the
TIRZ procedures have been amended to ensure that all TIRZ improvements are built and that
reimbursements are not paid twice. In response to a question from Director Loessin, Lynne
Humphries stated that the Plan did not need to be amended, and that the Zone was still obligated
to implement the Project Plan.
5. Project report from Developer; take appropriate action;
David Tinney reviewed the status of construction with the Board. Board Member Cook
projected that houses and lots would be in place by spring 2002, and that the initial home sale
process are expected to average from $200,000 to $250,000. David Tinney then reviewed
upcoming projects pending authorization, including Sapphire Bay, the extension of Kirby,
Discovery Bay, and interim drainage. Mr. Tinney also reviewed budget authorizations to date
and those pending approval.
6. Discuss and take necessary action regarding approval of letter financing agreement
related to TIRZ improvements constructed by a Municipal Utility District, revised form of
Auditor's Letter and revised Project Implementation and Reimbursement Process.
Lynne Humphries reported that a form of a Letter Finance Agreement allowed the Zone to be
notified if a MUD will implement a Zone improvement. She reported that the Auditor would be
asked to confirm that the TIRZ improvement is not being financed by another entity. She went
on to state that MUDs were considered because discussion with other developers revealed that
the local community has more confidence in MUDs than PIDs. After discussion, Board Member
Pyburn moved that the Board approve the form of the Letter Finance Agreement related to TIRZ
Improvements constructed by a MUD and the revised form of Auditor's Letter and revised
Project Implementation and Reimbursement Process. Board Member Knox seconded the
motion. The Board approved the motion, with Board Members Verdine, Harrison, Corley,
Pyburn, DeShazer and Knox voting in favor, Board Member Loessin voting opposed and Board
Member Cook abstaining.
Report on Invoices and take appropriate action including:
a. Report from Invoice Review Committee
John Knox reviewed the invoices approved in the sub committee meeting.
b. Report from Auditor
Patti Joiner reviewed the auditor's report noting that categories are under budget.
C. Letter financing Agreement 2001
Lynne Humphries reviewed the Agreement noting that additional invoices for
administrative expenses incurred since the invoice Review Committee meeting, for an
additional $6,000, have been submitted. She reported that this was incorporated into the
Letter Financing Agreement for the 2001 fiscal year budget of $175,000. After
discussion, Board Member Knox moved that the Board approve the Agreement. Board
Member Verdine seconded the motion. The Board unanimously approved the motion,
with Board Member Cook abstaining.
8. Discuss and take necessary action regarding Huitt-Zollars, Inc.'s request for work
authorization for Sapphire Bay Drive and additional Village 1, Phase 1B Public
Improvements (01-04-001).
Tom King of Huitt-Zollars, Construction Auditor, presented a work authorization request for
construction audit services related to the review of Sapphire Bay Drive and Village 1, Phase 113.
After a discussion Board Member DeShazer motioned to approve the request. Board Member
Corley seconded the motion, and the Board unanimously approved the motion, with Board
Member Cook abstaining.
9. Discuss and take necessary action regarding construction of Sapphire Bay Drive
and additional Village 1, Phase 1B, Public Improvements (01-04-001):
a. Presentation by LJA Engineering, Zone Engineer.
David Tinney with LJA Engineering, the Zone Engineer, reviewed the plans for Sapphire
Bay Drive at Kirby and additional Village 1, Phase 1B public improvements, explaining
that the proposed project is included in the adopted TIRZ project plan.
b. Report from Huitt-Zollars, Construction Auditor.
Mr. King reviewed Huitt-Zollars' Construction Audit for Sapphire Bay Drive and Village
1, Phase 113 public improvements with the Board. Mr. King stated that his review
compared the plans to the approved TIRZ Project Plan by infrastructure element: water,
sanitary, drainage and paving. Concluding, Mr. King stated that all infrastructure items
are reasonable and consistent with the Project Plan approved by the Board.
C. Approve Letter Finance Agreement.
Lynne Humphries of Vinson & Elkins, Zone Attorney, discussed the $1,967,061 Letter
Finance Agreement with the Board. The letter, Ms. Humphries explained, serves as the
Board's formal consent to proceed with construction on the items included in Sapphire
Bay Drive and Village 1, Phase 113 as defined by the Zone Engineer, and reviewed by the
Zone Construction Auditor. After a discussion, Board Member DeShazer motioned to
approve the Letter Finance Agreement as presented. Board Member Verdine seconded
the motion, and the Board unanimously approved the motion, with Board Member Cook
abstaining.
10. Presentation and discussion of TIRZ Project budget report;
Ms. Joiner reviewed the project's budget report with the Board Members. No Board action was
necessary.
11. Discuss and recommend 2000 Annual Report to be presented to City Council for
approval.
Ms. Joiner reviewed the Annual Report to be submitted to the City Council for approval. After
discussion, Board Member Corley moved that the Board approve the Report. Board Member
DeShazer seconded the motion. The Board unanimously approved the motion.
12. New Business.
No new business was brought before the Board.
13. Any other matters that may properly come before the Board.
No other business was brought before the Board.
14. Adjournment.
Board Member Cook moved that the meeting be adjourned. Board Member DeShazer seconded
the motion, and the Board unanimously voted to adjourn the meeting at 5:33 p.m.
Approved:
Mike burn, Bloard Secretary
Tax Increment Reinvestment Zone Number Two
City of Pearland, Texas