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2016 07 14 MDD MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT July 14, 2016 The Board of Directors of the Baytown Municipal Development District (MDD) met in a Regular Meeting on Thursday, July 14, 2016, at 4:33 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 Gary Englert Director Mary Hernandez Director David McCartney Director Mercedes Renteria Director Rick Davis General Manager Ignacio Ramirez, Sr. General Counsel Leticia Brysch Assistant Secretary President DonCarlos convened the July 14, 2016, Municipal Development District (MDD) Board Regular Meeting with a quorum present at 4:33 P.M., all members were present with the exception of Director Renteria who arrived at 4:59 P.M., and Directors Capetillo, Hoskins, Jirrels, and Sain who were all absent. 1. MINUTES a. Consider approving the minutes of the Municipal Development District Board Special Meeting held on April 26, 2016. A motion was made by Director David McCartney and seconded by Secretary Reggie Brewer approving the April 26, 2016, MDD Board Special Meeting minutes. The vote was as follows: Ayes: Secretary Reggie Brewer, President Stephen H. DonCarlos, Director Gary Englert, Director Mary Hernandez, Director David McCartney, Vice - President Chris Presley Nays: None Other: Director Brandon Capetillo (Absent), Director Robert C. Hoskins (Absent), Director David P. Jirrels (Absent), Director Mercedes Renteria III (Not Present for Vote), Director Terry Sain (Absent) Approved MDD Board Regular Meeting Minutes July 14, 2016 Page 2 of 6 b. Consider approving the minutes of the Municipal Development District Board Special Meeting held on May 12, 2016. A motion was made by Secretary Reggie Brewer and seconded by Director Mary Hernandez approving the May 12, 2016, MDD Board Special Meeting minutes. The vote was as follows: Ayes: Secretary Reggie Brewer, President Stephen H. DonCarlos, Director Gary Englert, Director Mary Hernandez, Director David McCartney, Vice - President Chris Presley Nays: None Other: Director Brandon Capetillo (Absent), Director Robert C. Hoskins (Absent), Director David P. Jirrels (Absent), Director Mercedes Renteria III (Not Present for Vote), Director Terry Sain (Absent) Approved 2. DISCUSSIONS a. Discuss the Baytown Municipal Development District's 2016 -17 Proposed Budget and budget process. General Manager Davis presented the agenda item and stated that the overall anticipated revenue is $6.6 million, which is a 2.5% increase of the current year projections. He stated that the expenditures are focused primarily on economic development projects, parks projects and infrastructure, and project administration which includes: the development of new and expansion of existing businesses and industry ($150,000); Economic Development Foundation ($250,000); Economic Incentives -San Jacinto Mall ($500,000); Economic Incentives $(150,000); Property Acquisition for Economic Development ($100,000); Development Director ($180,000); Northeast Wastewater Treatment Plant (NEWWTP) -Debt Service ($743,890); Baytown Sports League Improvements ($50,000); Aquatic Facilities -Debt Service for Pirates Bay ($434,138); Pirates Bay Waterpark Expansion -Debt Service ($376,529); Aqua Loop at Pirates Bay ($250,000); Towns Square Ice Rink Operations ($50,000); Goose Creek Trail Phase VI ($205,000); Travis Park Playground ($50,000); Jenkins Park & Wayne Gray Restroom ($330,000); Goose Creek Stream Clean Up ($20,000); New Service Center ($650,000); Evergreen Clubhouse Remodeling ($500,000); Evergreen Park Land ($425,000); Evergreen Park Development ($165,000); Paint bridge overpass throughout the City ($50,000; Project Administration and Overhead $300,000; and Unforeseen Projects and New Initiatives ($1,375,000). General Manager Davis provided details of some of the projected expenditures and stated that the $150,000 incentive for HEB is the first of a ten year maximum payment of the approved total amount of $2.7 million incentive for the HEB project. He further noted that MDD's contribution for the ten year maximum may not need to be made if the $2.7 million is paid early. MDD Board Regular Meeting Minutes July 14, 2016 Page 3 of 6 General Manager Davis stated that the development director is a position for the City of Baytown and it does not replace the EDF personnel, but rather augments economic development capabilities. He stated that the role of the development director will be to have full authority over all of the entire development process that will inspire and encourage private investment in the community. He stated that the base salary of $125,000 and other benefits are associated with the funding total of the development director. During further discussion, Director Presley stated that typically a degree of independence is crucial in this role and someone in the prime of their career seeking to climb the ladder typically is not the best suited for this role; therefore, he inquired if particular attention will be considered to the individual, as well as, the position to be certain that the City's need is met. General Manager Davis stated that the recruitment is to hire the person that's right for the organization, that's at the right organizational level to speak with authority, and that has the capacity and experience to bridge the gap between the investors and the City. Director Presley further inquired if Council or MDD would have confirmation of the individual for this position or if it's strictly an administrative decision on the hire. In an effort to address Director Presley's inquiry, General Manager Davis stated that as with all positions, this will be brought before the board and he'd keep the board informed of a decision, in which currently there's no one in mind. Director Brewer inquired if the person hired would come from a professional whose qualifications are specific to the job or will someone from inside be moved up to this position. General Manager Davis stated that the individual person would likely come from the outside with experience in both development and administration of policies on the city level and that the position would reside in the administration office. Director Brewer further inquired if the employee would be that of the MDD or the City. General Manager Davis stated that MDD would fund the entire salary for this particular position, which will be an executive level position in alignment with other directors of the City of Baytown. Director Presley inquired if there'd be other duties assigned to this employee. General Manager Davis stated that this position will have authority over a variety of things. Mayor DonCarlos inquired if this position will have supervisory authority over any staff. General Manager Davis stated that no staff will be under the authority of this staff person at this time. Additionally, General Manager Davis stated that one of the recommendations of the completed audit of the development process is to install a position such as this one. During further discussion and in regards to the Aqua Loop, Director of Parks and Recreation, Scott Johnson stated that the original design was going to be a double aqua loop, but since then has changed. He stated that the design chosen actually has three (3) slides and although it will be designed to accommodate all three (3) slides, only two will be built at this time. He stated that there's approximately $2.5 million in aquatic funds that will be used and the $250,000 from MDD will assist with this project. Mr. Johnson further stated that to add the third slide would costs approximately $700,000. General Manager Davis noted that the $50,000 for the Towns Square Ice Rink is an annual commitment for the chiller and other equipment necessary to operate the ice rink. He stated that due to the significant increase on costs of concrete, additional funding is being requested from MDD for the completion of Phase V and for Phase VI of the Goose Creek Trail which will connect Bush Terrace Park to the Animal Control Facility under Hwy 146, as well as, the pedestrian crossing at Decker. He further noted that once the trail is complete it will connect Bayland Island to Baker at Hutto which is the entire length of the trail. MDD Board Regular Meeting Minutes July 14, 2016 Page 4 of 6 During further discussion, General Manager Davis stated that the funding cost for Travis Park includes the installation of special needs playground equipment for the park. He stated that this project is funded through the partnership with the Goose Creek school district and Service Clubs. He stated that the project for Jenkins Park and Wayne Gray includes the rebuilding of the restroom at Jenkins Park and the brand new prefabricated restroom at Wayne Gray. In regards to the new service center, General Manager Davis stated that there was property with a facility on it ideal for a new service center for the parks department, but it was sold. He further stated that the parks department is running out of space for storage: therefore, staff will continue to work on an alternate plan for a resolution to this issue. As it relates to the new service center, Director Presley inquired if the issue that the city ran into with regards to the large Harris County drainage ditch limiting the expansion without considerable expenditures to bridge the ditch could be resolved. In response to Director Presley's inquiry, Mr. Scott Johnson stated that staff considered bridging the ditch and noticed that it's more costly than anticipated, but further noted that bridging the ditch may be the resulting option. General Manager Davis stated that being that the full funding amount of $650,000 for the new service center is not needed; approximately $300,000 of that amount could be redirected to the remodeling of the Clubhouse at Evergreen and that the remaining balance of $350,000 be reallocated to the new initiatives line item. He further explained that after examining the inside of the Evergreen building, it was identified that more work is going to be needed which will surpass the $500,000, that was projected for the remodeling of the clubhouse initially. He stated that the exterior of the building already has been treated and he's confident that a great job can be done with the additional requested amount. Director McCartney inquired if this property could house the parks new service center. In response to Director McCartney's inquiry regarding the new service center being at Evergreen, Mr. Johnson stated that the problem with making this property the new service center is that logistically it's not a good location, but he also stated that some equipment will be stored there. General Manager Davis noted that the $425,000 for the Evergreen Park Land is the first of four (4) payments that MDD agreed to reimburse to the capital improvement fund for the acquisition of the property. He further noted that the $165,000 for the Evergreen Park Development is for 800 feet of connecting trail, an 18 hole disc and foot golf circuit, benches, trash cans, and drinking fountains. General Manager Davis stated that the balance of $350,000 reallocated from the new service center would bring the Unforeseen and New Initiatives line item to $1,725,000, and that the amount in this line item is recommended due to the level of activity and projections for the city in the future. During further discussion of the budget, Director Brewer requested more details on the Jenkins and Wayne Gray Parks restroomn project and inquired as to how many restrooms there would be for men and women at each park. Mr. Johnson explained more details and stated that there will be two men and women restrooms with two (2) stalls in each one at each park. Mr. Johnson stated that the one of the reasons that the amount of the project is expensive is because utilities would have to be brought to both areas. He stated that the utilities at Jenkins Park are being relocated to a different area of the park to coincide with the expansion project that's being done there also and requires utilities. Additionally, he stated that the utilities at the Wayne MDD Board Regular Meeting Minutes July 14, 2016 Page 5 of 6 Gray Complex will be new construction which is more expensive. Mayor DonCarlos stated that there were issues in the past with vandalism at Jenkins Park, and further inquired if the new restrooms would decrease vandalism in that regard. Mr. Dustin Schubert explained that the restrooms will be connected to a system that includes motion detection with alert notifications after hours, automatic water shut off if the sinks or toilets are obstructed, and automated door lock/unlock capability, which will assist with the vandalism concern. 3. PROPOSED RESOLUTIONS a. Consider a resolution setting a public hearing regarding the Baytown Municipal Development District 2016 -17 Proposed Budget. Resolution sets a public hearing on the 2016 -17 proposed budget for August 04, 2016, during the regularly scheduled Baytown Municipal Development District meeting, commencing at 4:30 P.M. in the Council Chambers of the Baytown City Hall. A motion was made by Secretary Reggie Brewer and seconded by Vice - President Chris Presley approving Resolution No. 283. The vote was as follows: Ayes: Secretary Reggie Brewer, President Stephen H. DonCarlos, Director Gary Englert, Director Mary Hernandez, Director David McCartney, Vice - President Chris Presley, Director Mercedes Renteria III Nays: None Other: Director Brandon Capetillo (Absent), Director Robert C. Hoskins (Absent), Director David P. Jirrels (Absent), Director Terry Sain (Absent) Approved RESOLUTION NO. 283 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 2016 -17 PROPOSED BUDGET; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 4. MANAGER'S REPORT a. Reminder that the next Baytown Municipal Development District meeting is scheduled for Thursday, August 04, 2016, at 4:30 P.M., in the City Council Chamber, 2401 Market Street, Baytown, Texas, 77520. General Manager Davis presented the agenda item and stated that the next Baytown Municipal Development District meeting is scheduled for Thursday, August 04, 2016, at 4:30 P.M., in the City Council Chamber, 2401 Market Street, Baytown, Texas, 77520. MDD Board Regular Meeting Minutes July 14, 2016 Page 6 of 6 5. ADJOURN A motion was made by Director David McCartney and seconded by Vice - President Chris Presley adjourning the July 14, 2016, MDD Board Regular Meeting. The vote was as follows: Ayes: Secretary Reggie Brewer, President Stephen H. DonCarlos, Director Gary Englert, Director Mary Hernandez, Director David McCartney, Vice - President Chris Presley, Director Mercedes Renteria III Nays: None Other: Director Brandon Capetillo (Absent), Director Robert C. Hoskins (Absent), Director David P. Jirrels (Absent), Director Terry Sain (Absent) Approved With there being no further business to discuss, President DonCarlos adjourned the July 14, 2016, Municipal Development District (MDD) Board Special Meeting at 5:09 P.M. Leticia Brysch, Assistant City of Baytown