1997-02-03 PEARLAND ECONOMIC DEVELOPMENT CORPORATION BOARD REGULAR MEETING MINUTESMINUTES OF A REGULAR MEETING OF THE PEARLAND ECONOMIC
DEVELOPMENT CORPORATION BOARD, OF THE CITY OF PEARLAND,
TEXAS, HELD MONDAY, FEBRUARY 3, 1997 AT 4:00 P.M., IN THE
COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND,
TEXAS.
I. The meeting was called to order at 4:03 p.m. with the following present:
BOARD MEMBERS
Chairman Dennis Frauenberger
Vice President
Secretary
Board Member
Board Member
Board Member
Not in attendance: Board member Bob Lewis.
EX -OFFICIO BOARD MEMBERS
Tritech
Chamber of Commerce
Tricia Holland
Susan Lenamon
Bill Berger
Stella Roberts
Connie Beaumont
John Knox
Billye Everett
Not in attendance: City Manager Paul Grohman and Mayor Tom Reid.
STAFF MEMBERS
Executive Director
Assistant Executive
Director
Marketing &
Events Coordinator
Administrative Assistant
Glen Erwin
John R. Bowman
Terrie Morgan
Perla N. Lehman
Also in attendance: Assistant City Manager Richard Burdine, City Engineer John
Hargrove, City Attorney Amy M. McCullough, Finance Director David Castillo, Chief
Accountant Janet Eastburn, and Clean Pearland Director Delores Fenwick.
1
Minutes of Regular Meeting
February 3, 1997
H. Approval of Minutes of January 6, 1997 - Secretary Susan Lenamon made the
motion, seconded by board member Stella Roberts to approve the minutes of the
Regular PEDC Board Meeting and Public Hearing held on January 6, 1997.
Motion Passed: 6 to 0
M. Board Member Reports - Board Member Bill Berger commented on how well
the PEDC Strategic Planning Session held on January 11, 1997. Mr. Berger said
he looked forward to another Planning Session the following year.
IV. Executive Director and Staff Reports - Executive Director Glen Erwin
introduced the new Financial Director, Mr. David Castillo and Ms. Janet Eastburn,
Chief Accountant to the board stating that the two would be working closely
together regarding PEDC's financial matters. Other items in Mr. Erwin's report
included a correction regarding sponsorship of the scheduled Old Town Site
Revitalization Bus Trip, the TEDC Conference on January 22, 1997 in Austin,
Texas, a business trip to Dallas with John Bowman on January 28, 1997 to meet
with site selectors, and a business meeting with Elizabeth Morris during his TEDC
Conference trip in Austin.
Ms. Billye Everett, President of the Pearland/Hobby Area Chamber of Commerce
gave an update on The Brazoria County Partnership.
Mr. Rick Witte with Mayor, Day, Caldwell & Keeton, L.L.P. and Mr. Frank
Illdebrando of Rauscher Pierce Refsnes, Inc. presented an overview of the
tentative schedule of events regarding the Sales Tax Revenue Bonds.
V. NEW BUSINESS
A. Excused absences - Board member Stella Roberts made the motion, seconded by
Secretary Susan Lenamon to excuse Vice President Tricia Holland for her absence
from the PEDC Board meeting of January 6, 1997 and to table taking action on
board member Bob Lewis' absence until the next scheduled board meeting.
Motion Passed: 6 to 0
2
B. Publication of Notice - Board member Stella Roberts made the motion, seconded
by board member Connie Beaumont to pass a resolution of the Board of Directors
of the Pearland Economic Development Corporation ("PEDC") authorizing
publication of notice of a proposed project; authorizing the engagement of
professionals and certain other actions in connection with the proposed issuance of
its sales tax revenue bonds, Series 1997, in a principal amount not to exceed
$5,000,000.00 pursuant to Article 5190.6, Texas Revised Civil Statutes, as
amended, (the Development Corporation Act of 1979) for the acquisition,
construction and improvement of certain public works; authorizing distribution of a
preliminary official statement relating to such bonds; and authorizing certain other
matters relating thereto.
Motion Passed: 6 to 0
C. Statement approval: Board member Stella Roberts made the motion, seconded
by Vice President Tricia Holland to approve the following statement:
The PEDC, recognizing Pearland's native vegetation, historically significant
landscape, and scenic green space as unique characteristics of the city that
distinguish it as a premier economic development community, advocates the
preservation and protection of these attributes through voluntary compliance,
regulatory efforts, and other methods deemed necessary by the Pearland City
Council.
Motion Passed: 6 to 0
VI. ADJOURNMENT
Board member Susan Lenamon made the motion, seconded by Board member
Stella Roberts to adjourn the meeting.
Motion Passed: 6 to 0
Time: 4:33 p.m.
Nfinut?s a prove assubmitted nd/or corrected this a of
A.D., 1997.
Dennis Frauenberger, President
ATTEST:
Perla N. Lehman, Administrative Assistant
TO ALL INTERESTED PERSONS AND PARTIES
Notice is hereby given that the Board of Directors of the Pearland Economic
Development Corporation (the "Corporation") proposes to do the following:
1 ) Undertake a project in the City of Pearland, Texas (the "City") to extend
McHard Road from State Highway 35 (Main Street) to Mykawa Road via
a new road and bridge over the existing railroad (the "Project"); and
2) Use a portion of the proceeds from the levy of the one-half of one
percent sales and use tax, approved by the voters of the City on
January 21 , 1995, for the benefit of the Corporation to pay the costs of
the Project, both as authorized under article 5190.6, Section 4B (a-1),
Texas Revised Civil Statutes, as amended.
If, within 60 days after the publication of this notice, the City receives a petition from
more than 10% of the registered voters of the City requesting that an election be held
before the Project is developed or the proceeds of such sales and use tax are used to
pay principal of and interest on bonds issued by the Corporation for such Project, then
the City will not develop the Project or use the proceeds of the sales and use tax to
pay bonds issued therefore unless and until approved at an election called and held by
the City for such purpose. Petitions may be submitted to the City Secretary, City of
Pearland, 3519 Liberty Drive, Pearland, Texas 77581 .
Wendy S n orf
Interim ity ecretary
City of Pearland
Posted this the 30 day of , 1997.
Removed this the c "i' day of/7 , 1997.
RESOLUTION
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PEARLAND
ECONOMIC DEVELOPMENT CORPORATION ("PEDC") AUTHORIZING
PUBLICATION OF NOTICE OF A PROPOSED PROJECT; AUTHORIZ-
ING THE ENGAGEMENT OF PROFESSIONALS AND CERTAIN OTHER
ACTIONS IN CONNECTION WITH THE PROPOSED ISSUANCE OF ITS
SALES TAX REVENUE BONDS, SERIES 1997, IN A PRINCIPAL
AMOUNT NOT TO EXCEED $5,000,000.00 PURSUANT TO
ARTICLE 5190.6, TEXAS REVISED CIVIL STATUTES, AS AMENDED,
(THE DEVELOPMENT CORPORATION ACT OF 1979) FOR THE
ACQUISITION, CONSTRUCTION AM) IMPROVEMENT OF CERTAIN
PUBLIC WORKS; AUTHORIZING DISTRIBUTION OF A PRELIMINARY
OFFICIAL STATEMENT RELATING TO SUCH BONDS; AND
AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO.
WHEREAS, the PEDC is authorized to undertake projects and to issue its sales tax
revenue bonds to pay the costs of such projects, all as authorized by Article 5190.6,
Texas Revised Civil Statutes, as amended, (The Development Corporation Act of 1979), (the
"Act"); and
WHEREAS, the PEDC has determined that it is in the best interests of the City and
otherwise desirable to issue its sales tax revenue bonds in a principal amount not to exceed
$5,000,000.00 styled "Pearland Economic Development Corporation Sales Tax Revenue Bonds,
Series 1997" ("Bonds") for the acquisition, construction, and improvement of certain public
works to be used for authorized needs and purposes; and
WHEREAS, pursuant to the Act and in connection with the Bonds, the PEDC intends
to publish notice (the "Notice") of its intent to extend McHard Road from SH 35 (Main Street)
to Mykawa Road by constructing a new road and bridge over the existing railroad at said
location (the "Project") in a newspaper of general circulation in the City; and
WHEREAS, in connection with the Bonds, the PEDC proposes to engage certain
professionals to assist the PEDC with the issuance of the Bonds; and
1
,
WHEREAS, for purposes of providing for the sale of these Bonds, the PEDC intends
to authorize the preparation of a Preliminary Official Statement to be used in the public offering
of the Bonds; and
WHEREAS, the PEDC has been presented with, and has examined, the proposed form
of notice and finds that the form and substance thereof are satisfactory, and that the recitals and
findings contained herein are true, correct, and complete; now, therefore,
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE PEARLAND
ECONOMIC DEVELOPMENT CORPORATION:
Section 1. Preamble. The facts and recitations contained in the preamble of this
Resolution are hereby found and declared to be true and correct.
Section 2. Authorization of Notice. The PEDC Secretary or her designee is hereby
authorized and directed to execute and deliver the notice set forth in Exhibit "A" hereto and to
publish such notice on behalf of the PEDC in a newspaper of general circulation in the City in
accordance with the Act.
Section 3. Engagement of Professionals. The PEDC hereby approves the engagement
of Rauscher Pierce Refsnes, Inc. as financial advisors and Mayor, Day, Caldwell & Keeton,
L.L.P. as bond counsel in connection with the issuance of the Bonds pursuant to agreements
with said firms in substantially the form attached hereto as Exhibit "B" and authorizes the
President, Secretary and other officers and agents of the PEDC to execute and deliver such
agreements on behalf of the PEDC.
Section 4. Authorization of Preliminary Official Statement. The PEDC hereby approves
the preparation and distribution by the Financial Advisor of a preliminary official statement, to
prospective purchasers of the Bonds, as the same may be completed, modified, or supplemented,
with the approval of the PEDC Board or other authorized officers and agents of the PEDC.
2
Section 5. Authorization of Other Matters Relating Thereto. The President, Secretary,
and other officers and agents of the PEDC are hereby authorized and directed to do any and all
things necessary or desirable to carry out the provisions of this Resolution.
Section 6. Effective Date. This Resolution shall take effect immediately upon passage.
Section 7. Public Meeting. It is officially found, determined and declared that the
meeting at which this Resolution is adopted was open to the public and public notice of the time,
place and subject matter of the public business to be considered at such meeting, including this
Resolution, was given all as required by the Texas Government Code, Chapter 551, as amended.
PASSED, APPROVED AND ADOPTED this J day of 4
A.D., 1997.
NNIS . FRAUENBERG
PRESIDENT
ATTEST:
till 1
gUSAN LENAMON
SECRETARY
APPRO AS TO FORM:
t\AC
A Y O ES McCULLOUGH
CITY A ORNEY
3
Exhibit "A"
TO ALL INTERESTED PERSONS AND PARTIES
Notice is hereby given that the Board of Directors of the Pearland Economic
Development Corporation (the "Corporation") proposes to do the following:
1 ) Undertake a project in the City of Pearland, Texas (the "City") to extend
McHard Road from State Highway 35 (Main Street) to Mykawa Road via
a new road and bridge over the existing railroad (the "Project"); and
2) Use a portion of the proceeds from the levy of the one-half of one
percent sales and use tax, approved by the voters of the City on
January 21 , 1995, for the benefit of the Corporation to pay the costs of
the Project, both as authorized under article 5190.6, Section 4B (a-1 ),
Texas Revised Civil Statutes, as amended.
If, within 60 days after the publication of this notice, the City receives a petition from
more than 10% of the registered voters of the City requesting that an election be held
before the Project is developed or the proceeds of such sales and use tax are used to
pay principal of and interest on bonds issued by the Corporation for such Project, then
the City will not develop the Project or use the proceeds of the sales and use tax to
pay bonds issued therefore unless and until approved at an election called and held by
the City for such purpose. Petitions may be submitted to the City Secretary, City of
Pearland, 3519 Liberty Drive, Pearland, Texas 77581 .
Wendy Standorf
Interim City Secretary
City of Pearland
Posted this the day of , 1997.
Removed this the day of , 1997.
ACCOUNT NO. PAGE BILLING DATE
The Chronicle WEEKLY INVOICE 080762905 1 + 02/05/97
P.O. BOX 4439
HOUSTON, TX. 77210-4439 u~"""x n 84LINOPERIOD
Flun•Pn,.oRewuMs
Moreton CM• a 02/05/97
.LED TERMS OF PAYMENT
COUNT
CO �'lassI I I DUE UPON RECEIPT
CITY OF PEARLANO
3 519 LIBERTY DR ACCOUNTS RECEIVABLE PHONE •
PEARLANO TX 77581-5416
(7 10)220-778 1
PH: 485-2411
DATE REFERENCE DESCRIPTION SAUO DAYS RATE
NUMBER DIMENSIONS UNITS RATE GROSS AMOUNT NET AMOUNT
)2/05/97 INV:222956006 1745 LEGAL NOTICES 51X1C 1 51L 7.33 373.83
NED ADS:3025548 . TO ALL INTERESTED PERS
SLS:630 BY:WENDY STANDORF
373.83
Code #
015-5000-5 SS- 0 7-00
For City of Pearland's
Finance Dept. Use Only
RECEIVED BY DA
AUTHORIZED BY DATE __,
•
APPROVED41�—
CHECK NUMBER _ DATE
TOTAL NET AMOUNT DUE
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HPViLHHpp $gTTppNN RRQQ zz
AV1 .HUFNY513[1LAI1UN
STATE OF TEXAS:
COUNTY OF HARRIS:
Before me, the undersigned authority, a Notary Public in and for the State of Texas,
on this day personally appeared: Rory Socco, who after being duly sworn, says that
she is the SUPERVISOR - ACCOUNTS RECEIVABLE of the HOUSTON CHRONICLE, a daily
newspaper published in Harris County, Texas, and that the publication, of
which the annexed is a true copy, was published to wit:
Date(s) ad published: 02/05/97 ad number: 3025548
customer: CITY OF PEARLAND
•
` \,�: T \ TO ALL INTERESTED
Rory Socco NonS
ce IsSONS AND erebb hereby That the
Supervisor-Accounts Receivable Board
Development erMtC":
poretlon(the"Corporation")pro-
poses to do Me follow incr.
1)Undertake a proiect In the CIN
Sworn and subscribed to before me, this the 6th ofthe
Pe)rtonextendxMCHard
Road from State Highway 35
(Main Street) to Mykawa
bRroIdaxd via a new road and
day of Febuary A.D. 1997 roed(ehe"Prolecover the t);en ra"
2)Use a portion of the proceeds
from the levy of the one-half of
one percent sales end use tax,
approved by the voters of the
City on January 21, 1995,for
�r/� theas
benefit o the under
_.
tion
to pay the costs of the Protect,
—— — both es authorised under artl-
!! cle 5190.6, Section 1B (a-I),
Texas Revised Civil Statutes,
Notarypublic in and for the St a of Texas as amended.
If,within 60 days after the publi-
cation o1 this notice,the City re-
ceives a petition from more than
10the
City requestiing the registered
an velects of be
held before the Protect Is devel-
oped or the proceeds of such sales
( and use tax are used to pay prin-
cipal of end Interest on bonds Is-
P ,-(,',a• • i 1,(+ i ';• sued by the Corporation for such
Protect,then the City will not de-
velop the Protect or use the pro-
�� ceeds of the sales and use tax to
pay bonds issued therefore unless
.........-,.. ._ ,- and until approved at an election
called end held by the City for
such purpose. Petitions may be
submitted to the City Secretary.
City of Pearland, 3519 Liberty
Drive,Peartend,Texas 77581.
/s/Wendy Standorf
Interim City Secretary
City of Pearlend
MAYOR, DAY, CALDWELL 8 KEETON, L.L.P
700 LOUISIANA, SUITE 1900
HOUSTON,TEXAS 77002-2778
(713)225-7000 100 CONGRESS AVENUE
TELECOPIER(713)225-7047 sEXA 1500
RICK A.WITTE AMIN,TEXAS 78701-4042
PARTNER (512)320-9200
225-7165 TE LECOPI E R(5121 320-9292
February 3, 1997
Board of Directors
Pearland Economic Development Corporation
do City of Pearland, Texas
P.O. Box 2068
Pearland, Texas 77588-2068
Re: Pearland Economic Development Corporation Sales Tax Revenue Bonds,
Series 1997
Dear Directors:
We are pleased to submit to you a proposed agreement for Mayor, Day, Caldwell &
Keeton, L.L.P. ("MDC&K"), Houston, Texas to serve as Bond Counsel with respect to the
authorization, issuance, sale and delivery of the captioned sales tax revenue bonds (the "Bonds").
When approved by you (the "Corporation"), this letter will become effective and will evidence
an agreement between the Corporation and MDC&K.
As Bond Counsel, we will prepare, or assist the appropriate Corporation officials and
staff in the preparation of, all required legal proceedings and will perform certain other
necessary legal work in connection with the Corporation's authorization, issuance, sale and
delivery of the Bonds. Our services as Bond Counsel will include the following Basic Services,
which we will carry out directly or in concert with Corporation officials and staff, as follows:
(1) Preparation of the resolution authorizing the issuance of the Bonds (the
"Resolution") and all other legal instruments which comprise the transcript of legal proceedings
pertaining to the authorization, issuance, sale and delivery of the Bonds;
(2) Attendance at meetings called by the appropriate Corporation officials and staff,
to discuss the sizing, timing or sale of the Bonds;
(3) Consultation with Corporation officials and staff and the Corporation's financial
advisor to review information to be included in the offering documents for the Bonds, but only
to the extent that such information describes the Bonds, the security therefor, its federal income
tax status and our opinion;
! AIM
Pearland Economic Development Corporation
February 3, 1997
Page 2
(4) Preparation and submission of a transcript of legal proceedings pertaining to the
issuance of the Bonds to the Attorney General of Texas to obtain an approving opinion and
registration of the Bonds by the Comptroller of Public Accounts of Texas;
(5) Supervision of the printing of the Bonds and the delivery thereof;
(6) At the closing of the Bonds, delivery of an approving opinion, based on facts and
law existing as of its date, generally to the effect that the Bonds have been duly issued, executed
and delivered in accordance with the Constitution and laws of the State of Texas, that the Bonds
constitute valid and legally binding obligations of the Corporation secured by a lien on and
pledge of certain sales tax system revenues of the Corporation pledged to their payment in the
Resolution (subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws
in effect from time to time relating to or affecting the enforcement of rights of creditors of
political subdivisions) and that, subject to certain restrictions, interest on the Bonds is excludable
from the gross income of the owners thereof for federal income tax purposes under then existing
law; provided that, after the closing, we do not undertake, unless specifically engaged by you
to do so an Additional Service described below, to provide continuing advice concerning any
actions necessary to assure that interest paid on the Bonds will continue to be excludable from
gross income for federal income tax purposes; and
(7) Prior to and in connection with the closing of the Bonds, giving advice to the
Corporation to enable appropriate officials to comply with the arbitrage requirements of the
Internal Revenue Code of 1986 as they affect the Bonds, including yield restrictions and rebate
requirements.
In addition to the foregoing Basic Services, as Bond Counsel, we are prepared to
undertake the following Additional Services, as directed by appropriate Corporation officials;
(1) Disclosure work or similar services (other than the limited review of certain
sections of the offering documents for the Bonds as described in paragraph (3) under Basic
Services above) to assist the Corporation or its financial advisor in the preparation of such
offering documents, on such basis and to such extent as shall be directed by the appropriate
Corporation officials and staff;
(2) Attendance at rating agency presentations, investor meetings or other presentations
relating to the marketing of the Bonds and consultation with Corporation officials, staff and
advisors to develop such presentations;
(3) Preparation of "Blue Sky" surveys or securities registration services;
w .M
Pearland Economic Development Corporation
February 3, 1997
Page 3
(4) Any other special services not ordinarily required in connection with the issuance
of obligations of the nature of the Bonds, including services rendered in connection with special
federal income tax issues, unusual issues arising in connection with the Corporation's financial
reports or audits, any documentation or related services for credit or liquidity facilities or
enhancements or other special structuring techniques or devices to be employed in connection
with the issuance of the Bonds; and
(5) After the closing of the Bonds, providing assistance to the Corporation concerning
questions and issues that may arise prior to the maturity of the Bonds.
For the Basic Services performed for the Bonds, MDC&K will be paid a fee of$10,500.
Such fee shall be paid from the proceeds of the sale of the Bonds or from other funds, as the
Corporation deems appropriate. Except as otherwise provided below, payment of the fee shall
be made after the issuance and delivery of the Bonds and within thirty (30) days after receipt
by the Corporation of an approved invoice therefor.
The fee for any Additional Services provided by MDC&K will be determined on an
hourly rate basis, using rates customarily charged by MDC&K to other clients for the same or
similar services and taking into consideration the time consumed in providing the services, the
level of expertise and ability of the attorneys performing the services and the difficulty and
complexity of the tasks involved. The total fee for Additional Services prior to and in
connection with the closing of the Bonds (other than fees for special services as described in
paragraph (4) above under Additional Services) will not exceed such amount as is agreed to in
writing by the Corporation.
MDC&K will be reimbursed for its reasonable and actual out-of-pocket expenses, such
as the cost of reproduction of documents, out-of-town travel, long-distance telephone, telecopy
and similar expenses, deliveries, filing fees and all items paid for by MDC&K on behalf of the
Corporation, incurred in connection with the performance of any services hereunder. All of
such expenses will be reasonable. Nothing herein shall be construed as creating any personal
liability on the part of any officer of the Corporation, and this agreement may be terminated by
the Corporation by giving 30 days' written notice.
Pearland Economic Development Corporation
February 3, 1997
Page 4
If this proposed agreement for the services of MDC&K as Bond Counsel is satisfactory,
please evidence your acceptance and approval by executing three copies in the space provided
below.
Very truly yours,
Rick A. Witte
APPROVED:
óir-
•.s man, P- . land Economic. a evelopment Corporation
ATTEST:
Secretary, Pearland Economic Development Corporation
0350873.01
029703/1040