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