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2011 07 07 MDD MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT July 07, 2011 The Board of Directors of the Baytown Municipal Development District (MDD) met in a Regular Meeting on Thursday, July 07, 2011, 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 Ruben Linares David McCartney Reggie Brewer Brandon Capetillo Robert Hoskins Scott Sheley President Vice President Secretary Director Director Director Director Robert D. Leiper General Manager Kevin Troller Assistant General Manager Ignacio Ramirez, Sr. General Counsel Leticia Brysch Secretary President DonCarlos convened the July 07, 2011, 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 Hernandez, Navarre, Renteria, and Sain who were absent. 1. MINUTES a. Consider Approving Municipal Development District (MDD) Meeting Minutes for April 07, 2011- Assistant Secretary. A motion was made by Secretary Reggie Brewer and seconded by Director David McCartney approving the minutes of the April 07, 2011 MDD Board Regular Meeting. The vote was as follows: Ayes: Secretary Reggie Brewer, Vice President Brandon Capetillo, President Stephen H. DonCarlos, Director Robert C. Hoskins, Director Ruben Linares, Director David McCartney, and Director Scott Sheley Nays: None Other: Director Mary Hernandez (Absent), Director Dee Anne Navarre (Absent), Director Mercedes Renteria (Absent), and Director Terry Sain (Absent) Approved 2. DISCUSSIONS a. Discuss the Baytown Municipal Development District 2011 -12 Proposed Budget and Budget Process - Finance. General Manager Leiper presented the agenda item to discuss the Baytown Municipal Development District's 2011 -12 Proposed Budget and budget process in which he stated that the budget reflects the sales tax as being flat. General Manager Leiper reminded the District that any unexpended funds in each budget year, carry over to future years and then went on to outline the proposed projects included in the MDD 2011 -12 Budget being considered for approval and they are as follows: • $100,000 for development of new and expansion of existing businesses and industry; • Two contracts with Economic Development Foundation (EDF) (1) for basic services in the amount of $200,000 and (2) for special projects in the amount of $100,000; • $100,000 for property acquisition for economic development; • $500,000 for one time expenditure for the Baytown Little Theater; • $100,000 for land acquisition for new thoroughfares; • $200,000 for state infrastructure bank loan repayment; • $150,000 for the Texas Avenue Streetscape Project; • $100,000 for the Economic cost shares for developers for utilities; • NEWWTP debt service; • North Main /I -10 utility debt service; • West District Plant Expansion debt service; • Aquatic Facility debt service for Pirates Bay; • $25,000 for Little League improvements for; • $50,000 for land acquisition to build future parks for; and • $125,000 for the Sports Complex (parking, fields, and lighting). During discussion, General Manger Leiper indicated that the Baytown Little Theater is an eligible MDD project, and has not been added to Hotel/Motel budget. In further discussion, President DonCarlos inquired if the funds allocated for the Sports Complex will provide for future parking not only for the complex users, but also to accommodate the large number of vehicles for visitors to the Pirates Bay Waterpark. General Manager Leiper responded that these particular funds will not pay for a concrete parking lot; however, there is an additional gravel parking lot in the plans, which will be used for employee parking. General Manager Leiper stated that new items added to the budget were the following: • GLO /CMP Grant Match of $54,000; • $75,000 for basketball court cover for NC Foote Park; • $92,689 for Eddie Huron Park Phase II; • $8,030 for Duke Hill Quick Soccer field; • $61,000 for Phase I of the City Hall Courtyard Improvements; • $300,000 for project administration and overhead for the administration of the MDD; and • $100,000 for unforeseen /new initiatives. General Manager Leiper stated that the City received an $81,000 grant for the removing of the old pilings at the old Bayland Island that required a match of $54,000. He stated that the match is inclusive to the $81,000, and should commence in October 2011. President DonCarlos stated that the court located at NC Foote Park could be considered a pavilion; he inquired that if once the court is covered, would it be utilized for other events. General Manager Leiper stated that because the court is predominantly utilized by basketball players, and is constantly in use, staff would have to remove people from the court, in order to make it available for other users, which could be problematic. During the discussion of the Eddie Huron Parks Phase II line item allocation, General Manager Leiper stated that Phase II includes: 2200 feet of trail, park benches, two (2) picnic shelters, and four (4) picnic sites. Director Capetillo inquired if the disc golf would be funded through MDD or the general funds. General Manager Leiper stated that disc golf is funded through the Jenkins Park Grant. Director McCartney inquired if there was anything that could be done to improve the Ward Road Complex. General Manager Leiper also stated that the City has on multiple occasions met with the East League to discuss the maintenance and appearance of the complex, and recommended having a meeting with the East League at the Ward Road Complex and Director McCartney to discuss plans for improving the appearance of the facility. During the discussion of the Duke Hill Quick Soccer line item allocation, President DonCarlos inquired about the plans for the quick soccer being built close to Raccoon Drive and asked if there were any concern with the residents living near the park, as it relates to having members outside of their community visiting this complex for the quick soccer. Parks and Recreation Director, Scott Johnson stated that in reference to the Raccoon Drive concern, a four foot fence was built between each court to alleviate any issues and staff will put out signs to inform residents of the quick soccer locations, but also stated that city parks are open to any residents regardless of their residence within the city. Director Capetillo inquired about the status of the Bush Terrace Park in reference to a citizen's concern of activities at the park that conflicted with what the residents wanted and recommended that it be disbanded. Mr. Johnson stated the shelter that was located in this park has been removed, and a fence now blocks off the street, providing for some security when the park is closed. General Manager Leiper stated that residents have called and stated that there is a difference since the changes to the park. During the discussion of the Courtyard Improvement line item allocation, General Manager Leiper stated that the total of both phases of these improvements is an estimated $120,000. During the discussion of the Project Administration and Overhead line item allocation, General Manager Leiper stated that this item refers to the MDD Board partially reimbursing the City for staff services and it increased from $250,000 to $300,000. Director Brewer inquired as to how the staff is able to keep a record of how much is aided or administered to the Board in an effort to determine the reimbursement amount. General Manager Leiper stated that staff does not keep a record but gives a low estimated figure. Director Brewer inquired if the same rules and regulations that require justification for other expenses apply to this line item. General Manager Leiper stated that the detail is not required, but he can put an estimate together of the time staff spends on MDD projects. General Manager Leiper stated that the allocation amount proposed for approval is $5,347,197.00 and if approved the total funds available, carry forward and the new allocation will be $9,861,254.00. Director Brewer inquired of the anticipation of spending $500,000 for the Little Theater. General Manager Leiper stated that the funds will be spent this upcoming year. Director Linares inquired about the status of the land acquisition on John Martin Road realignment. General Manager Leiper stated that this is a TIRZ Project to align John Martin with Bush Road and make it five (5) lanes to the freeway and has been inactive for a number of years. Director McCartney inquired about prioritizing sidewalks. General Manager Leiper stated that sidewalks are not allocated in this budget. Mr. Chris Presley registered to speak before Council in regards to agenda item 2.a. and requested for Council to consider assisting him with the development cost to complete the final phase of the Avenue Loft Project he started in a soft funding amount of approximately $150,000. General Manager Leiper inquired if this assistance would be considered a grant or a loan. Mr. Presley indicated that the request would not be a cash grant but the Board would decide the stipulations of the soft funding. Director McCartney stated that the soft funding would be considered a loan and that Mr. Presley would repay it. Director Brewer asked Mr. Presley if he would provide the Board with a commitment from the lender prior to the Board committing to his request of the soft funding. Mr. Presley stated that he would get a commitment from the lender. With a consensus of the Board, an agreement was made to consider Mr. Presley's recommendation with more details. 3. PROPOSED RESOLUTIONS a. Consider Calling a Public Hearing for Baytown Municipal Development District 2011 -12 Proposed Budget - Finance. President DonCarlos presented the agenda item to consider a resolution calling a public hearing regarding the Baytown Municipal Development District 2011 -12 Proposed Budget. A motion was made by Secretary Reggie Brewer and seconded by Director David McCartney approving Resolution No. 164. The vote was as follows: Ayes: Secretary Reggie Brewer, Vice President Brandon Capetillo, President Stephen H. DonCarlos, Director Robert C. Hoskins, Director Ruben Linares, Director David McCartney, and Director Scott Sheley Nays: None Other: Director Mary Hernandez (Absent), Director Dee Anne Navarre (Absent), Director Mercedes Renteria (Absent), and Director Terry Sain (Absent) Approved RESOLUTION NO. 164 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 2011 -12 PROPOSED BUDGET; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. b. Consider Baytown Municipal Development District's Investment Policy and Strategy - Finance. General Manager Leiper presented the agenda item and Finance Director Louise Richman stated that Resolution No. 165 revises the Baytown Municipal Development District's Investment Policy in accordance with the Public Funds Investment Act Section 2256 -005 (e) and 2256 -005 (f) and Investment Strategy to update authorized investment officers, add broker dealers and financial institutions to existing approved counterparties, and include the requirement that all MDD funds be collateralized under terms and conditions of FIRREA (Financial Institution Reform, Recovery, and Enforcement Act) as amended. The changes to the policy are as follows: Authorized Investment Officials and Statement of Ethics and Conflicts of Interest with the names of the new authorized investment officials: • Louise Richman, City of Baytown Director of Finance • Carl C. Currie, City of Baytown Controller • Brent Yowell, City of Baytown Treasurer • Meghan Lair Reed, City of Baytown Financial Analyst Approved Broker/Dealers, Financial Institutions and Investment Pools: • Rice Financial Products Company F • Financial Services Inc. • Cantor Fitzgerald • Mutual Securities, Inc. A motion was made by Director David McCartney and seconded by Director Scott Sheley approving Resolution No. 165. The vote was as follows: Ayes: Secretary Reggie Brewer, Vice President Brandon Capetillo, President Stephen H. DonCarlos, Director Robert C. Hoskins, Director Ruben Linares, Director David McCartney, and Director Scott Sheley Nays: None Other: Director Mary Hernandez (Absent), Director Dee Anne Navarre (Absent), Director Mercedes Renteria (Absent), and Director Terry Sain (Absent) Approved RESOLUTION NO. 165 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. BUSINESS ITEMS a. Economic Development Foundation Second Quarterly Report for Fiscal Year 2010 -11- Administration. Mr. B.J. Simon presented the Baytown Area/West Chambers County Economic Development Foundation's Quarterly Report for the quarter ending March 31, 2011. The EDF continues to stimulate, encourage, market, and develop business and commercial activities and in doing so, responded to 22 prospects interested in locating in the Baytown West Chambers County service area with one of the prospects called Project Zebra, a $104 million project, expecting to provide 100 jobs. Mr. Simon stated that retail development is a critical component of the City's economic development and the recruitment for it is going well. Additionally, several meetings were held with another projected this month, to discuss the redevelopment and alignment of the San Jacinto Mall. Mr. Simon stated that the EDF has an approach referred to as the "incubator without walls" that provides a number of business assisted programs. An inquiry was made as to how a business owner would obtain information in regards to the business assisted programs. Mr. Simon stated that the SBDC is the primary point of contact for this information, but contacting the Chamber of Commerce or the Economic Development Foundation is an available option. Additionally, as micro lending is important plans are being developed to start an established series with Accion Texas, a small business lender. Mr. Simon stated that The Baytown Housing study which was focused on developing high -end housing is drafted and being edited by CDS Market Research with the projection of bringing forth their results before the MDD Board in August. During the discussion, President DonCarlos stated that at the ICSC, the City of Baytown were faced with many restaurant chains interested in doing business in Baytown but stated that there was no franchisee in the area and he recommended that the education efforts to the local residents about franchising and its opportunities need to be emphasized. An inquiry was made of the possibility of the EDF assisting with the promotion of downtown Texas Avenue through their website, or summit, or forum, or other programs. Mr. Simon stated that plans are being made in aspects of the inquiry with approval from the MDD Board. 5. REPORTS a. Receive MDD Revenue and Expenditure Report for the Quarter Ending June 30, 2011- Finance. Finance Director Louise Richman presented the update on the Municipal Development District's revenues, and expenditures flor the quarter ending June 30, 20l l and stated that the revenues are on target and noted that there will be a negative on the plants and lift stations due to as journal entry correction. b. Receive M DI) Q tiarterly Investment Report for Period Ending June 30,, 2011 - Finance. Finance Dircctor Louise Richman prcscnted the Baytown Municipal Development District's Quarterly Investment Report for the period ending June 30, 2011 art(] stated that statT is working on a detailed cash flow budget and new investment strategies for the City Funds. 6. AIANAGWER'S REPORT There was no report. 7. ADJOURN A motion was made by Director David McCartney and seconded by Director Robert C. Hoskins adjouniing the July 0,7, 2011 MDD Board Regular Meeting. The vote was as follows: Ayes: Secretary Reggie Brewer, Vice President Brandon Capetillor, President Stephen 14- DonCarlos, Dircclor Robert C. Hoskins, Director RUben Linares, Director David McCartney, and Director Scott Sheley Mays, None Other: Director Clary Hernandez (Absent), Director I)ce A1111C Navarre (Absent), Director Mercedes Renteria, (At)sent), and Director Terry Sain (Absent), Approved With there being no Further business to discuss, President DonCarlos adjourned the July, 07, 2011, MLIIIiCipal Development District (NI I)D) Board Regular Meeting at 6:05 P.M.