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2015 07 02 MDD MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT July 02, 2015 The Board of Directors of the Baytown Municipal Development District (MDD) met in a Regular Meeting on Thursday, July 02, 2015, 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 President Chris Presley Vice President Reggie Brewer Secretary Brandon Capetillo Director Robert Hoskins Director Dave Jirrels Director David McCartney Director Terry Sain Director Ron Bottoms Deputy General Manager Karen Horner General Counsel Leticia Brysch Assistant Secretary President DonCarlos convened the July 02, 2015, 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 Englert, Hernandez, and Renteria who were all absent. 1. MINUTES a. Consider approving the minutes of the Municipal Development District Regular Meeting held on May 07, 2015. A motion was made by Director Robert C. Hoskins and seconded by Director David McCartney approving the May 07, 2015, MDD Board Regular Meeting minutes. The vote was as follows: Ayes: Secretary Reggie Brewer, Director Brandon Capetillo, President Stephen H. DonCarlos, Director Robert C. Hoskins, Director David P. Jirrels, Director David McCartney, Vice - President Chris Presley, Director Terry Sain Nays: None Other: Director Gary Englert (Absent), Director Mary Hernandez (Absent), Director Mercedes Renteria III (Absent) Approved MDD Board Regular Meeting Minutes July 02, 2015 Page 2 of 7 2. PROPOSED BUDGET FY 2015 -16 a. Discuss the Baytown Municipal Development District's 2015 -16 Proposed Budget and budget process. Acting General Manager Bottoms presented the Baytown Municipal Development District's 2015 -16 Proposed Budget and budget process. He stated that the proposed revenues were anticipating a 3% increase resulting in an approximately $6 million budget for the next fiscal year. He stated that the expenditures included $150,000 for development of new and expansion of existing businesses and industry; $250,000 for the Economic Development Foundation; $500,000 for economic incentives; $100,000 for property acquisition for economic development; $148,957 for the last payment for the state infrastructure bank loan; $600,000 for the Town Square Project - Phase II; $250,000 for the 1 -10 Lift Station upgrade; .$1,256,535 for the Northeast Wastewater Treatment Plant - Debt Service; $426,713 for Aquatics facilities - Debt Service; $376,079 for the Pirates Bay Waterpark Expansion - Debt Service; $50,000 for the Baytown Sports League Improvements; $500,000 for the Golf Course - Debt Service; $300,000 for project administration and overhead; and $500,000 unforeseen projects and new initiatives. During further discussion, Mr. Scott Johnson, Director of Parks and Recreation stated that the proposed budget also included $226,940 for the Town Square Ice Rink; $100,000 for land acquisition for future parks; $111,000 for Pelly Park loop; $50,663 for Westwood Park fence enclosure; $12,000 for Lincoln Cedars Park fence; $135,000 for Roseland Parkrestroom replacement; $33,625 Fire Fighters Memorial repairs (50% funding); $67,830 for the Community Center path improvements; $70,000 for the Kayak launches at Roseland and Bayland Parks; and $50,000 to paint bridge overpasses throughout the City. Acting General Manager Bottoms further stated that the proposed ending working capital was $400,242. Director McCartney requested for fencing at Roseland Park to assist with the issue of four wheelers being driven on the property. Director Member Capetillo recommended a future park to be placed north of Interstate 10 and to put a signal light along Busch Road to accommodate the traffic coming out of the Quailhollow and Country Club Manor subdivisions. President DonCarlos recommended putting a water feature at one of the parks in the Bayway Drive area and inquired about the status of the grant cycle for removing pilings from Tabbs Bay. In response to President DonCarlos's inquiry of Tabbs Bay, Mr. Johnson stated that they will start the bid process this month to complete the removal of the pilings. Director Presley inquired if the paving and median program was still operable. In response to Director Presley's inquiry, Mr. Johnson stated that they have exceeded the funds for beautification. MDD Board Regular Meeting Minutes July 02, 2015 Page 3 of 7 b. Consider a resolution setting a public hearing regarding the Baytown Municipal Development District 2015 -16 Proposed Budget. Acting General Manager Bottoms presented the agenda item and stated that Resolution No. 252 sets a public hearing on the 2015 -16 proposed budget for August 06, 2015, during the regularly scheduled Baytown Municipal Development District meeting at 4:30 P.M. A motion was made by Director David McCartney and seconded by Director Robert C. Hoskins approving Resolution No. 252. The vote was as follows: Ayes: Secretary Reggie Brewer, Director Brandon Capetillo, President Stephen H. DonCarlos, Director Robert C. Hoskins, Director David P. Jirrels, Director David McCartney, Vice - President Chris Presley, Director Terry Sain Nays: None Other: Director Gary Englert (Absent), Director Mary Hernandez (Absent), Director Mercedes Renteria III (Absent) Approved RESOLUTION NO. 252 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 2015 -16 PROPOSED BUDGET; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 3. PROPOSED RESOLUTIONS a. Consider a resolution approving the Baytown Municipal Development District's Investment Policy and Strategy Statement in accordance with the Public Funds Investment Act. Finance Director, Ms. Louise Richman presented the agenda item and stated that there wer changes to the Investment Policy which included: 1) increasing the training of 10 hours for the investment officers to an annual requirement instead of every two years; 2) adding Carl Currie as an investment officer; and 3) adding Credit Suisse as a broker /dealer. A motion was made by Secretary Reggie Brewer and seconded by Director Robert C. Hoskins approving Resolution No. 253. The vote was as follows: Ayes: Secretary Reggie Brewer, Director Brandon Capetillo, President Stephen H. DonCarlos, Director Robert C. Hoskins, Director David P. Jirrels, MDD Board Regular Meeting Minutes July 02, 2015 Page 4 of 7 Director David McCartney, Vice - President Chris Presley, Director Terry Sain Nays: None Other: Director Gary Englert (Absent), Director Mary Hernandez (Absent), Director Mercedes Renteria III (Absent) Approved RESOLUTION NO. 253 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT ADOPTING THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT'S INVESTMENT POLICY AND INVESTMENT STRATEGY IN ACCORDANCE WITH THE PUBLIC FUNDS INVESTMENT ACT; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 4. a. Receive presentation regarding a market study for a proposed hotel and conference center in Baytown, Texas. Mr. B.J. Simon presented the agenda item and stated that in 1996, the City engaged PKF Consulting USA, to conduct a market analysis for the feasibility of a hotel and conference center at Bayland Park and that a follow up feasibility analysis was conducted by a separate consultant afterwards. He stated that PKF Consulting representative, Patrick McCaslin would present their updated analysis. Mr. McCaslin stated that Baytown has a strong economic presence and the overall results from surveys support development of a new hotel and conference center. He stated that the recommendations for the facility should include full- service and a number of guestrooms ranging from 180 to 220 with a minimum square footage of approximately 12,000 for a ballroom, meeting room, or board room space. Mr. McCaslin stated that as of 2014, Baytown was close to 78% occupancy which is typically normal for a corporate market during the week as the weekends tend to have lower occupancy. However, he stated that adding this type of facility will allow for a better weekend occupancy with the variety of events it is capable of holding. He stated that they estimate that this facility would open at 70% occupancy and stabilize at about 76 %. He further stated that this facility would also create jobs and add tax revenue to the City of Baytown. In conclusion of the discussion, President DonCarlos recommended having more discussion in this regard at the August 06, 2015, meeting. MDD Board Regular Meeting Minutes July 02, 2015 Page 5 of 7 5. ECONOMIC DEVELOPMENT a. Recess into and conduct an executive session pursuant to Section 551.087 of the Texas Government Code to deliberate the offer of a financial or other incentive to a business prospect that the District seeks to have locate, stay, or expand in or near the District and with which the governmental body is conducting economic development negotiations. At 5:47 P.M., President DonCarlos recessed into and conducted an executive session pursuant to Section 551.087 of the Texas Government Code to deliberate the offer of a financial or other incentive to a business prospect that the District seeks to have locate, stay or expand in or near the District and with which the governmental body is conducting economic development negotiations. At 6:02 P.M., President DonCarlos reconvened the Open Meeting of the Baytown Municipal Development District City Council Regular Meeting and announced that in accordance with Section 551.102 of the Texas Open Meetings Act, no action was taken in the Executive Session. b. Consider a resolution authorizing an interlocal agreement with the City of Baytown for funding a development project. A motion was made by Director David McCartney and seconded by Vice - President Chris Presley approving Resolution No 254 as it relates to the Kroger Project. The vote was as follows: Ayes: Secretary Reggie Brewer, Director Brandon Capetillo, President Stephen H. DonCarlos, Director Robert C. Hoskins, Director David P. Jirrels, Director David McCartney, Vice - President Chris Presley, Director Terry Sain Nays: None Other: Director Gary Englert (Absent), Director Mary Hernandez (Absent), Director Mercedes Renteria III (Absent) Approved RESOLUTION NO. 254 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE PRESIDENT TO EXECUTE AND THE ASSISTANT SECRETARY TO ATTEST TO AN AGREEMENT FOR FUNDING AN ECONOMIC DEVELOPMENT PROJECT WITH THE CITY OF BAYTOWN; AUTHORIZING PAYMENT IN THE AMOUNT NOT TO EXCEED ONE MILLION FIVE HUNDRED THOUSAND AND NO1100 DOLLARS 1, 500,000.00); AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. MDD Board Regular Meeting Minutes July 02, 2015 Page 6 of 7 C. Consider a resolution authorizing an interlocal agreement with the City of Baytown for funding a development project. A motion was made by Director Terry Sain and seconded by Director Robert C. Hoskins Mall approving Resolution No. 255 as it relates to the San Jacinto Mall Project. The vote was as follows: Ayes: Secretary Reggie Brewer, Director Brandon Capetillo, President Stephen H. DonCarlos, Director Robert C. Hoskins, Director David P. Jirrels, Director David McCartney, Vice - President Chris Presley, Director Terry Sam Nays: None Other: Director Gary Englert (Absent), Director Mary Hernandez (Absent), Director Mercedes Renteria III (Absent) Approved RESOLUTION NO. 255 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE PRESIDENT TO EXECUTE AND THE ASSISTANT SECRETARY TO ATTEST TO AN AGREEMENT FOR FUNDING AN ECONOMIC DEVELOPMENT PROJECT WITH THE CITY OF BAYTOWN; AUTHORIZING PAYMENT IN THE AMOUNT NOT TO EXCEED SIX MILLION ONE HUNDRED SIXTY -SIX THOUSAND SIX HUNDRED SIXTY -SIX AND 66/100 DOLLARS ($6,166,666.66); AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 6. REPORTS a. Receive the Baytown Municipal Development District's Revenues and Expenditures Report for the Quarter Ending June 30, 2015. Ms. Richman presented the Baytown Municipal Development District's Revenues and Expenditures Report for the Quarter Ending June 30, 2015. She stated that the sales tax revenues were at 78% of the budget and although there was a negative amount for collection in June, the collection amount is almost 8% ahead of last year. As it relates to expenditures, she stated the larger amounts included the following projects: the Economic Development Foundation quarterly payment, the land acquisition for San Jacinto Boulevard, the Texas Avenue Town Square, the Kroger property purchase, the Hutto /Rollingbrook Traffic Signal, the City Gateway Monument at the Fred Hartman Bridge, and the East Road girls' softball field. MDD Board Regular Meeting Minutes July 02, 2015 Page 7 of 7 b. Receive the Baytown Municipal Development District's Quarterly Investment Report for the Quarter Ending June 30, 2015. Ms. Richman presented the agenda item and stated that MDD had $4.37 million in its portfolio and the interest rate was .0566 %. MANAGER'S REPORT a. Reminder that the next Baytown Municipal Development District meeting is scheduled for Thursday, August 06, 2015, at 4:30 P.M., in the City Council Chamber, 2401 Market Street, Baytown, Texas, 77520. Acting General Manager Bottoms stated that the next Baytown Municipal Development District meeting is scheduled for Thursday, August 06, 2015, at 4:30 P.M. 8. ADJOURN A motion was made by Director Terry Sain and seconded by Director Robert C. Hoskins adjourning the July 02, 2015, MDD Board Regular Meeting. The vote was as follows: Ayes: Secretary Reggie Brewer, Director Brandon Capetillo, President Stephen H. DonCarlos, Director Robert C. Hoskins, Director David P. Jirrels, Director David McCartney, Vice - President Chris Presley, Director Terry Sain Nays: None Other: Director Gary Englert (Absent), Director Mary Hernandez (Absent), Director Mercedes Renteria III (Absent) Approved With there being no further business to discuss, President DonCarlos adjourned the July 02, 2015, Municipal Development District (MDD) Board Regular Meeting at 6:06 P.M. Leticia Brysch, Assistant City of Baytown