2001-11-12 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
November 12, 2001
A regular 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 City Hall,
located at 3519 Liberty Drive, Pearland, Texas, on Monday, November 12, 2001, at 4:00 p.m.
The meeting was open to the public.
Board Members in Attendance:
Nigel Harrison, Chair
Gary Cook, Vice Chair
Mike Pyburn, Secretary
Larry Loessin
Bobby Verdine
James McFeron
John Knox
Charles Viktorin
Citv of Pearland Representatives in Attendance:
Mayor Tom Reid
Bill Eisen
Alan Mueller
Joe Wertz
1. Introduction.
Board Members Not in Attendance:
B.L. `Sonny' Corley
Consultants in Attendance:
John Perry — LJA Engineering & Surveying, Inc.
James Ross - LJA Engineering & Surveying, Inc.
Mark McGrath — Null-Lairson
Lynne Humphries — Vinson & Elkins, L.L.P.
Erin Smykay — Vinson & Elkins, L.L.P.
Steve Gardner —Huitt-Zollars, Inc.
Chris Johnson — Huitt-Zollars, Inc.
Bob DeForest — KGA/DeForest Design, L.L.C.
Patti Joiner — Knudson & Associates
Charles Knight — Knudson & Associates
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 4:03 p.m. and took attendance. The
following Board Members were present:
1. Nigel Harrison, Chair
2. Gary Cook, Vice Chair
3. Mike Pyburn, Secretary
4. Larry Loessin
5. Bobby Verdine
6. James McFeron
7. John Knox
8. Charles Viktorin
Board Member B.L. `Sonny' Corley was not in attendance.
3. Discuss and approve minutes of April 23, 2001 Board meeting.
Following discussion, Board Member Pybum moved that the Board approve the minutes of the
April 23, 2001 meeting without revision. Board Member McFeron seconded the motion. The
Board unanimously approved the motion.
4. Project report from the City; take appropriate action.
Alan Mueller, Deputy City Manager for the City of Pearland, reported that installation of the
Shadow Creek Parkway Sanitary Sewer Line Phase I is complete, with the City awaiting the
Contractor's Final Pay Estimate.
Design of the Shadow Creek Parkway Sanitary Sewer Line Phase II is 90 percent complete,
with the City awaiting additional environmental mapping information from Berg Oliver for
inclusion in the environmental information document.
Installation of EDA Project Number 2A, a 20 inch Water Line running along Shadow Creek
Parkway, is complete, with the City of Pearland awaiting acceptance by the City of Houston.
The contract for construction of EDA Project Number 2B, the Shadow Creek Water Plant, was
awarded to R &B Group, Inc. and a pre construction meeting was held on November 2, 2001.
The estimated construction time of 270 calendar days.
The contract for construction of the Shadow Creek Ranch Interim Wastewater Treatment Plant,
Phases I and II, was awarded to Aqua Utility Co. with an estimated construction time of 120
calendar days.
Mr. Mueller concluded his report by stating that Pearland City Council is expected to award the
contract for construction of the Far Northwest Waste Water Treatment Plant at tonight's City
Council meeting. The estimated construction time for this project is 460 days.
The Board took no action on the Report.
5. Project report from Developer and PowerPoint Presentation; take appropriate
action.
James Ross of LJA Engineering Surveying, Zone Engineer, reviewed the status of
construction with the Board. Specifically, Mr. Ross reported that construction of the Primary
Entry Monument was completed on July 17, 2001.
2
Installation of the Village 1, Phase lA Water and Storm Sewer Systems is complete, with street
paving substantially complete, pending sign installation and clean up. Installation of the
Landscaping and Irrigation, as well as construction of Entry Monuments for Kirby at FM 2234
and Miscellaneous Improvements along FM 2234, is expected to begin in November 2001, with
an estimated final completion in December 2002.
Construction of the Village 1, Phase 1B Lakes and Channels is approximately 90 percent
complete, and installation of the Water and Sewer Systems is approximately 75 percent
complete. Street paving is expected to begin later this month, with completion expected in
March 2002. Construction of the Landscaping Irrigation, Entry Monuments for Emerald Bay
at Kirby and Discovery Bay at Kirby and Interim Wastewater Treatment Plant are expected to
begin upon completion of the underground utilities and street paving. Final completion of all the
Village 1, Phase 1B improvements is expected in June 2002.
Construction of the Sapphire Bay Drive and Additional Village 1, Phase 1B Improvements,
specifically the installation of the Water, Wastewater and Storm Sewer Systems and Interim
Drainage Channel, began this month, with completion expected sometime in February 2002.
This concluded Mr. Ross' Report.
Board Member Gary Cook reported that the design work is underway for the traffic signals at the
intersection of McHard and Kirby. The Recreation Center is under construction, and he expects
it to be completed in May 2002. The Developer, Shadow Creek Ranch Development Co., Ltd.,
has hired David Goswick to assist with public relations and preparation of a master signage
program for the development. Coordination of service installation with local utilities is
underway and two water wells have been dug. Sales contracts have been executed with Perry
Homes, Legacy Homes and Emerald Homes for home construction in Village 1, Phases lA and
1B. It is anticipated that model homes will be available by May 2002. It is estimated that
approximately 250 homes will have been built and sold by the end of 2002. The Developer
continues to work with Alvin ISD regarding site location for both the initial elementary and
middle schools, with the anticipated opening of the elementary school to occur in the Fall of
2002. A total of approximately 533 lots are estimated to be available to builders in Village 1,
Phase 1, with an average home price of between $200,000 and $250,000. Multifamily and
commercial property is planned near the intersection of Kirby and Shadow Creek Ranch
Parkway, with the possibility of a First Community Bank being built. This concluded Mr.
Cook's Report.
The Board took no action on the Report.
6. Discuss and take necessary action regarding Resolution of Appreciation for Jim
DeShazer.
Following a discussion of the Resolution, Board Member Knox moved that the Board adopt the
Resolution of Appreciation for Jim DeShazer and his service to the Zone as a Director. Board
Member Loessin seconded the motion. The Board unanimously approved the motion.
3
7. Discuss and take necessary action regarding Auditor's Report on TIRZ Invoices
Presented for Payment and approval of outstanding administrative invoices to date.
Mark McGrath of Null Lairson, Zone Auditor, reviewed the Report with the Board, explaining
the procedures followed. Following discussion, Board Member Pyburn moved that the Board
adopt the Auditor's Report on PRZ Invoices Presented for Payment and approve the outstanding
administrative invoices. Board Member McFeron seconded the motion. The Board unanimously
approved the motion.
8. Discuss and take necessary action regarding Letter Financing Agreement for
Administration of the Zone for fiscal year 2002.
Lynne Humphries of Vinson Elkins, Zone Attorney, reviewed the Letter Financing Agreement
with the Board, and reminded the Directors that it is taken directly from the Master Developer
Reimbursement Agreement. Ms. Humphries also reminded the Board that the agreement
authorizes the reimbursement of $175,000 for the year 2002. Following discussion, Board
Member Loessin moved to approve the Letter Finance Agreement for Administration of the Zone
for fiscal year 2002. Board Member Verdine seconded the motion and the Board approved the
motion, with Board Member Cook abstaining.
9. Discuss and take necessary action regarding Huitt Zollars, Inc.'s request for Work
Authorization for Additional Village 1 and Village 2 Public Improvements, Project (01 -11-
002).
Chris Johnson and Steve Gardner of Huitt Zollars, Zone Construction Auditor, presented a work
authorization request for construction audit services related to the review of Additional Village 1
and Village 2 Public Improvements. Following discussion, Board Member Verdine moved to
approve the request. Board Member Knox seconded the motion, and the Board unanimously
approved the motion, with Board Member Cook abstaining.
10. Discuss and take necessary action regarding construction of Additional Village 1
and Village 2 Public Improvements, Project (01 -11 -002):
a. Report on upcoming construction by LJA Engineering, Zone Engineer.
James Ross reviewed the plans for Additional Village 1 and Village 2 Public
Improvements, explaining that the proposed project is included in the adopted TIRZ
Project Plan.
b. Report from Huitt Zollars, Construction Auditor.
Chris Johnson reviewed Huitt Zollars' Construction Audit for Additional Village 1 and
Village 2 Public Improvements with the Board. Mr Johnson stated that his review
compared the plans to the approved TIRZ Project Plan by infrastructure element: water,
sanitary, drainage and paving. Board Member Pyburn noted a discrepancy in the
4
Construction Audit Review Letter total of $19,167,924. Mr Johnson concurred and
confirmed the total should read $19,054,922, not including 15 percent engineering and 10
percent contingencies. Concluding, Mr Johnson stated that all infrastructure items are
reasonable and consistent with the Project Plan approved by the Board.
c. Approve Letter Financing Agreement for Additional Village 1 and Village 2
Public Improvements, Project (01 -11 -002).
Lynne Humphries reviewed the $23,412,925 Letter Financing 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 the Additional Village 1 and Village 2 Public
Improvements as defined by the Zone Engineer, and reviewed by the Zone Construction
Auditor. Mark McGrath confirmed that Null Lairson, as Zone Auditor, would review the
construction costs, once the project was completed. After a discussion, Board Member
McFeron moved that the Board approve the Letter Finance Agreement as presented.
Board Member Knox seconded the motion, and the Board unanimously approved the
motion, with Board Member Cook abstaining.
11. 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.
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 Pyburn seconded the
motion, and the Board unanimously voted to adjourn the meeting at 4:55 p.m.
Approved:
Igthe-gyba n, Board Swetary OWL_
Tax Increment Reinvestment Zone Number Two
City of Pearland, Texas
5