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2014 07 24 MDD MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT July 24, 2014 The Board of Directors of the Baytown Municipal Development District (MDD) met in a Regular Meeting on Thursday, July 24, 2014, at 4:32 P.M., in the Council Chamber of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Stephen DonCarlos Chris Presley Brandon Capetillo Gary Englert Mary Hernandez Robert Hoskins Dave Jirrels David McCartney Terry Sain Robert D. Leiper Ignacio Ramirez, Sr. Leticia Brysch President Vice President Director Director Director Director Director Director Director General Manager General Counsel Assistant Secretary President DonCarlos convened the July 24, 2014, Municipal Development District (MDD) Board Regular Meeting with a quorum present at 4:32 P.M., all members were present with the exception of Directors Brewer and Renteria who were both absent. L MINUTES a. Consider approving the minutes of the Baytown Municipal Development District Board Regular Meeting held on May 01, 2014. A motion was made by Director Terry Sain and seconded by Director Robert C. Hoskins approving the May 01, 2014, MDD Board Regular Meeting minutes. The vote was as follows: Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos, Director Gary Englert, Director Mary Hernandez, Director Robert C. Hoskins, Director David P. Jirrels, Director David McCartney, Vice - President Chris Presley, Director Terry Sain Nays: None Other: Secretary Reggie Brewer (Absent), Director Mercedes Renteria III (Absent) MDD Board Regular Meeting Minutes July 24, 2014 Page 2 of 8 Approved 2. DISCUSSIONS a. Discuss the Baytown Municipal Development District's 2014 -15 Proposed Budget and budget process. General Manager Leiper presented the agenda item and stated that the proposed budget includes the following: $250,000 for the Economic Development Foundation (a $50,000 increase for added workload), $150,000 for the City Gateway Project (Hartman Bridge) to complete funding of the project, $15,000 for Garth Road Traffic Engineering for outside engineering for congestion mitigation projects, $100,000 for the Baytown Sports League Improvements, 5315,000 for the Goose Creek Trail Phase VI to connect Hutto Trail to Goose Creek Stream Trail, $575,000 for the East Road Girls Fields (Sports Complex) to replace lighting and wiring, GLO /CMP Grant Match ( Tabbs Bay and Goose Creek Cleanup) $66,400 Tabbs Bay GLO Match; $20,000 Goose Creek Stream tire and debris, $42,000 for the Roseland Spray Park Renovations to update equipment and replace electronic valves, and a Special Needs Park (Bowie Elementary) for $25,000 (Joint Venture with GCCISD and HGAC). General Manager Leiper stated that the Gateway Project at the Hartman Bridge was sent out for bid and the 100% drawings were attached and submitted for permitting, but was informed by TxDOT that it could not be built; therefore staff stopped the bid process. He stated that TxDOT signed off on the 60% and the 90% drawings which were similar to the 100% drawings, but stated that they were only looking at drainage. He stated that some of TxDOT's rejections were that the monument was too big, too tall, and couldn't have flag poles. He further stated that one of the City's current monuments is larger than the one being proposed for the Hartman Bridge which also has flag poles. He further stated that a meeting has been scheduled to resolve the issue and that he is confident that the project will be approved to move forward. Additionally, he stated that budget includes $315,000 for the Goose Creek Stream Trail that is supplemented by $150,000 coming from the City's capital improvement fund. General Manager Leiper stated in regards to the Texas Avenue Streetscape, that the development included a town plaza to be located across the street from the Dirty Bay facility. He stated that the plaza would include space available for food truck, a centerpiece with a water feature, a ticket/storage facility building, a restroom facility, open space for future development, and signs on the front street corners. Additionally, he stated that the Texas Avenue Streetscape and Town Plaza budget proposal was $1,750,000 which included $600,000 for additional block of Streetscape construction (Gaillard to Ashbel), $650,000 for Phase One of Town Square Construction, $300,000 for the water feature (fountain), and $200,000 for the West Pearce Parking Lot. General Manager Leiper stated that the budget funding plan includes $500,000 in new MOD funding, $764,967 in carry- forward MOD funding which includes $350,000 that was allocated last year to the Quiet Zone, $290,000 in GO bonds for downtown water feature, and $250,000 of the Street Maintenance Sales Tax towards the Texas Avenue reconstruction. Additionally, he stated that the plan is to get Phase I built next year. MDD Board Regular Meeting Minutes July 24, 2014 Page 3 of 8 General Manager Leiper stated that the budgets estimated beginning Working Capital is $868,643 with an additional $5.7 million in revenues. He stated that if all of the items were expended it would be about $6.4 million leaving an ending working capital of about $202,000. He further stated that the proposed budget is scheduled for a public hearing on the budget and to consider adoption of the budget on Thursday, August 07, 2014 at 4:30 P.M. During further discussion, Mayor DonCarlos recommended that the water feature is a unique design for Baytown. 3. PROPOSED RESOLUTIONS a. Consider a resolution setting a public hearing regarding the Baytown Municipal Development District 2014 -15 Proposed Budget. General Manager Leiper presented the agenda item and stated that Resolution No. 232 sets a public hearing on the 2014 -15 proposed budget for August 07, 2014, during the regularly scheduled Baytown Municipal Development District meeting, which commences at 4:30 P.M. and is held in the Council Chambers of the Baytown City Hall. A motion was made by Director David McCartney and seconded by Director Robert C. Hoskins approving Resolution No. 232. The vote was as follows: Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos, Director Gary Englert, Director Mary Hernandez, Director Robert C. Hoskins, Director David P. Rucls, Director David McCartney, Vice - President Chris Presley, Director Terry Sam Nays: None Other: Secretary Reggie Brewer (Absent), Director Mercedes Renteria III (Absent) Approved RESOLUTION NO. 232 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT, ESTABLISHING THE DATE, TIME AND PLACE FOR A PUBLIC HEARING ON THE 2014 -15 PROPOSED BUDGET; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. It. Consider a resolution authorizing an interlocal agreement with the City of Baytown for funding inspection fees associated with the Traffic Signal and Mitigation Agreement with TRAAZ Properties, LLC, and BCHPW Development LP. MDD Board Regular Meeting Minutes July 24, 2014 Page 4 of 8 General Manager Leiper presented the agenda item and stated that Resolution No. 233 authorizes an interlocal agreement with the City of Baytown for funding of half of the inspection fees associated with the Traffic Signal and Mitigation Agreement with TRAAZ Properties, LLC, and BCHPW Development LP, in an amount not to exceed $50,000. General Manager Leiper stated that there are plans to add subdivision along Rollingbrook Road next to the Citgo Gas station and there are also plans for Hutto Road to extend pass Rollingbrook and connect to Decker Drive. He stated that the City requested the developer to provide access from the subdivision to the Hutto extension, which the developer is not required to do. He stated that in order to get to the Hutto extension the developer would have to cross over ExxonMobil pipelines. General Manager Leiper stated that in order for the City to be allowed to build a road over the pipelines, ExxonMobil would have to determine the condition of the pipelines. He further stated that ExxonMobil decided to make upgrades to the pipelines it would be at their costs, but the City would pay the costs for them to go in to make that determination, in which the developer has agreed to split that costs. General Manager Leiper stated that ExxonMobil would not waive the costs and that the actual cost would not exceed $100,000. During further discussion, Mayor DonCarlos inquired if the street would be concrete. General Manager Leiper stated that the road would be concrete and built to the City's standard. Director Presley inquired if the developer would have still met the code and been able to develop the subdivision with one entrance onto Rollingbrook and did not agree to provide the requested access to Hutto and if the developer agreed to pay $50,000. General Manager Leiper stated that the developer would have met the code and did agree to pay $50,000. Director Presley inquired if the City could keep the inspection fee and develop the road at its own risk. General Manager Leiper stated that ExxonMobil would not approve the road crossing over their pipelines without the inspection. Director Capetillo inquired if there was enough Right -of -Way for a sidewalk or walking trail. There was confirmation that there was enough Right -of -Way for a sidewalk, but it wasn't analyzed for a wide trial yet. A motion was made by Director Robert C. Hoskins and seconded by Director Terry Sam approving Resolution No. 233. The vote was as follows: Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos, Director Gary Englert, Director Mary Hernandez, Director Robert C. Hoskins, Director David P. Jirrels, Director David McCartney, Vice-President Chris Presley, Director Terry Sain Nays: None Other: Secretary Reggie Brewer (Absent), Director Mercedes Renteria III (Absent) Approved MDD Board Regular Meeting Minutes July 24, 2014 Page 5 of 8 RESOLUTION NO. 233 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE GENERAL MANAGER TO EXECUTE AND THE ASSISTANT SECRETARY TO ATTEST TO AN AGREEMENT WITH THE CITY OF BAYTOWN FOR FUNDING INSPECTION FEES ASSOCIATED WITH THE TRAFFIC SIGNAL AND MITIGATION AGREEMENT AMONG THE CITY OF BAYTOWN, TRAAZ PROPERTIES, LLC, AND BCHPW DEVELOPMENT LP; AUTHORIZING PAYMENT OF AN AMOUNT NOT TO EXCEED FIFTY THOUSAND AND NO /100 DOLLARS ($50,000.00); AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. C. Consider a resolution authorizing the First Amendment to the Agreement for Funding of Picnic Shelters at Pelly Park and Central Little League Park, in order to change the construction site of the proposed picnic shelter from Pelly Park to the Eddie V. Gray Wetlands Center. General Manager Leiper presented the agenda item and stated that Resolution No. 234 authorizes the First Amendment to the Agreement for Funding of Picnic Shelters at Pelly Park and Central Little League Park (the "Agreement ") in order to construct the proposed picnic shelter at the Eddie V. Gray Wetlands Center instead of Pelly Park. General Manager Leiper stated that the Board of Directors of the Baytown Municipal Development District ( "MDD ") approved $25,000 for the construction of two large picnic shelters to be built at Pelly Park ($10,000) and at Central Little League Park ($15,000) in the 2014 MDD Budget. He stated that after review of the site at Pelly Park, there isn't a need for another large picnic shelter, as there are already two picnic shelters there. He stated that the Wetlands Center is in need of a shelter as they hosts several school field trips each year and has very limited space when it comes to lunchtime. A motion was made by Vice - President Chris Presley and seconded by Director Robert C. Hoskins approving Resolution No. 234. The vote was as follows: Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos, Director Gary Englert, Director Mary Hernandez, Director Robert C. Hoskins, Director David P. Jimals, Director David McCartney, Vice - President Chris Presley, Director Terry Sam Nays: None Other: Secretary Reggie Brewer (Absent), Director Mercedes Renteria III (Absent) Approved MDD Board Regular Meeting Minutes July 24, 2014 Page 6 of 8 RESOLUTION NO. 234 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE PRESIDENT TO EXECUTE THE FIRST AMENDMENT TO THE INTERLOCAL AGREEMENT WITH THE CITY OF BAYTOWN FOR FUNDING OF PICNIC SHELTERS AT PELLY PARK AND CENTRAL LITTLE LEAGUE PARK; MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 4. REPORTS a. Receive an update regarding the Baytown Little Theater project Mr. Jim Wadzinski presented an update and proposed timeline regarding the Baytown Little Theater (BLT) project. He stated that in 2007 the old building was destroyed and in 2008 an agreement was made with the City to rebuild it. He stated that they began the capital campaign in 2009, fundraising in 2010 -2011, and the architectural work in 2011 for a new building. Mr. Wadzinski stated that the building cost was estimated at $6.5 to $7.5 million. He stated that three (3) years into the project in July 2012, the Wilkenfield's family local attorney contacted him stating that the family offered to donate a piece of contiguous property, specifically a small lot next to Team Outfitters, to the land that the City had exchanged with the theater. He stated that he later spoke with the attorney and accepted the donation of the property, but also inquired about another Wilkenfield property for parking. Mr. Wadzinski stated that in September of 2012, the attorney contacted him and stated that the family was willing to donate the other property also, but that they were dealing with the insurance company about some recovery from hurricane IKE and wanted to clear that up first. He further stated that in December of 2012, Sharon contacted him and stated that they were settled with the insurance company and wanted to donate the building. Mr. Wadzinski stated that in February of 2013, he went into the building with an appraiser and they noticed that the building wasn't as bad as they thought it would; therefore that he contacted the President of the Board of the theater and gave his recommendation to stop and reevaluate the project because it appeared that what they wanted to do with a new building could be done in the Wilkenfield existing building with renovations for less money. He stated that they contacted their structural engineer to do a survey of the building and both the engineer and appraiser agreed that the building was capable of being renovated. During further discussion, Mr. Wadzinski stated that in March of 2013, they did a structural engineering survey to determine if the project was viable. He stated that the architect and general contractor agreed that the project was okay to move forward in the existing building. He stated that preliminary contacts were made with the major donors to transfer funds to the existing building. He stated that in April of 2013, the appraisal was complete, the architect began with the preliminary drawings, all donors were contacted and approved the transfer, and the titling process began. He further stated that during . the titling process it was discovered that there were two (2) liens on the property. He stated that by June 2013 both liens were cleared and in July 2013 the BUT signed ownership papers for the property. He stated that in July, they commissioned for the land survey to be done and the preliminary drawings were complete; MDD Board Regular Meeting Minutes July 24, 2014 Page 7 of 8 however in August the survey results revealed that the building was two feet over the property line. He stated that the owner of the adjacent property was contacted and negotiations began. He further stated that in October of 2013 the owner agreed to donate five feet of the property to BLT. He stated that in December of 2013 the titling process with the additional property was complete and the architect finalized the drawings. He stated that in March of 2014 the project went out for bids and in May the first bids were received with the bid amount of $4.6 million. He stated that they expected the bids to come in at around $2.5 and $3 million; therefore it was recommended by their architect and general contractor to do a second bid around September. Additionally, Mr. Wadzinski stated that the plans could be viewed at dtconstruction.com. Director Presley inquired as to why would the project be stopped completely and lose money and if there was an issue with raising the $6 million for the original planned project. Mr. Wadzinski stated that it was better to lose $150,000 and save $5 million and that there was no issue with fundraising for the initial project. Mr. Wadzinski stated that he has plans to come before the board with options of sharing parking space of the BLT. b. Receive the Baytown Municipal Development District's Revenues and Expenditures Report for the Quarter Ending June 30, 2014. Finance Director, Louise Richman presented the Baytown Municipal Development District's Revenues and Expenditures Report for the Quarter Ending June 30, 2014, and stated that the sales tax revenues were at 77% of budget. She stated that there was a large increase in the June receipts which were 19% over the prior period as compared to last year. She further stated that there was a $28,000 audit adjustment and with the taken away the increase was quite large at 12 %. She stated that in regards to the expenditures, the bigger projects included the Wal -Mart traffic signal, Bu -tees sewer line upsizing, the park trails, and the monthly transfers for debt services. C. Receive the Baytown Municipal Development District's Quarterly Investment Report for the Quarter Ending June 30, 2014. Mr. Richman stated that at the end of the quarter the investment amount was at $6.4 million and the return weighted average was .18 %. 5. MANAGER'S REPORT General Manager Leiper stated that the next meeting is scheduled for Thursday, August 07, 2014, at 4:30 P.M. for the public hearing and consideration of adoption of the 2014 -2015 budget. 6. ADJOURN MDD Board Regular Meeting Minutes July 24, 2014 Page 8 of 8 A motion was made by Vice - President Chris Presley and seconded by Director Robert C. Hoskins adjouming the July 24, 2014, MDD Board Regular Meeting. The vote was as follows: Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos, Director Gary Englert, Director Mary Hernandez, Director Robert C. Hoskins, Director David P. Jirrels, Director David McCartney, Vice - President Chris Presley, Director Terry Sam Nays: None Other: Secretary Reggie Brewer (Absent), Director Mercedes Renteria III (Absent) Approved With there being no further business to discuss, President DonCarlos adjourned the July 24, 2014, Municipal Development District (MDD) Board Regular Meeting at 5:42 P.M. 'Leticia Brysch, AssiAaht Secretary:. < �� City of Baytown