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2012 07 05 MDD MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT July 05, 2012 The Board of Directors of the Baytown Municipal Development District (MDD) met in a Regular Meeting on Thursday, July 05, 2012, at 4:30 P.M., in the Council Chamber of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Stephen DonCarlos Scott Sheley Reggie Brewer Brandon Capetillo Robert Hoskins David McCartney Dee Anne Navarre President Vice President Secretary Director Director Director Director Robert D. Leiper General Manager Ignacio Ramirez, Sr. General Counsel Leticia Brysch Assistant Secretary President DonCarlos convened the July 05, 2012, Municipal Development District (MDD) Board Regular Meeting with a quorum present at 4:30 P.M., all members were present with the exception of Directors Hernandez, Linares, Renteria and Sain who were all absent. 1. MINUTES a. Consider Approving the Minutes of the Baytown Municipal Development District Board Meeting for June 07, 2012 - Assistant Secretary. A motion was made by Director David McCartney and seconded by Secretary Reggie Brewer approving the minutes of the June 07, 2012, MDD Board Meeting. The vote was as follows: Ayes: Secretary Reggie Brewer, Director Brandon Capetillo, President Stephen H. DonCarlos, Director Robert C. Hoskins, Director David McCartney, Director Dee Anne Navarre, Vice President Scott Sheley Nays: None MDD Board Regular Meeting Minutes July 05, 2012 Page 2 of 6 Other: Director Mary Hernandez (Absent), Director Ruben Linares (Absent), Director Mercedes Renteria III (Absent), Director Terry Sain (Absent) Approved 2. DISCUSSIONS a. Discuss the Baytown Municipal Development District 2012 -13 Proposed Budget and Budget Process - Finance. General Manager Leiper presented the agenda item to discuss the Baytown Municipal Development District's 2012 -13 Proposed Budget and budget process. He stated that the sales tax revenue for the next year is anticipated to increase to about $4.8 million with an estimated income of $4,852,000. General Manager Leiper presented the new and the expansion of existing businesses proposed projects for the budget. He stated that some of the other projects in the budget are at the same level as last year or if there is debt service payments are in line with the debt service schedule. He indicated that the new and developed expanded businesses fund was typically at $100,000 yearly, but has been built up to $650,000. Because of the mixed use development on Hwy 146 and I -10 and to alleviate depleting this fund, he recommended adding an additional $200,000 to it. In regards to the Pirates Bay Waterpark Expansion, General Manager Leiper stated that because of the strength of the water and sewer funds, the debt service payment previously made by MDD was moved to the water and sewer funds and replaced with a debt capacity for S4.5 million for the expansion of Pirates Bay with the debt services being approximately $400,000. He stated that the $400,000 would be budgeted for next year to a cash fund design as debt would not be ready for sale. Director McCartney inquired if revenue was increased from the park would it allow for the debt service to decrease faster. General Manager Leiper stated that the debt is completely separated from the park, so it would not decrease the faster. In regards to the Baytown Sports League Improvement, General Manager Leiper stated that $25,000 was allocated to make improvements to the Ward Road location in which MDD is responsible for the capital improvements and the league is responsible for the maintenance. In regards to the Basketball Court Cover, General Manager Leiper stated that McElroy Park would be provided a roof cover and lighting improvements similar to the NC Foote Park improvement. He also stated that other parks were requested for this improvement and would be considered in order to give fairness to all districts. MDD Board Regular Meeting Minutes July 05, 2012 Page 3 of 6 General Manager Leiper stated that $120,000 was added for a median beautification crew to accommodate the maintenance needs of the upcoming projects and would be a two person crew which includes equipment. General Manager Leiper presented additional projects and listed them as follows: Phase III of Eddie Huron Park off of Bush Road - $175,000 City Hall Courtyard Improvements Phase II - $42,000 Roseland Park Improvements - $100,000 Hutto Greenway Median - $500,000 Jenkins Park Disc Golf - $25,000 Irrigation System for Soccer Fields - $40,000 General Manager Leiper stated that there were major project decreases from the current year which are not allocated for in the proposed budget and are listed as follows: Baytown Little Theater ($500,000) - one time project N. Main/I -10 Utility ($345,541) - payments moved to water and sewer fund Unforeseen/New Initiatives ($100,000) - carry over from FYI 1 -12 of $502,021 During further discussion of the budget, there were recommendations to review the possibility of lowering the speed limit on Hutto for the median project and to review the park signs for replacement. General Manager Leiper stated that there is funding in the general funds for these signs and staff would do a follow up on getting the signs replaced beginning with the worst ones first. Director Brewer inquired if this was the first time that the MDD has underwritten a beautification crew because to his understanding the MDD would pay for the project and the City would be responsible for paying for the personnel. General Manager Leiper stated that the general funds could not support the personnel for beautification. Director Brewer stated that he was not comfortable with this because it opens the door to underwrite all the personnel when the City builds out more than what they can maintain. General Manager Leiper stated that if the MDD could not fund the crew, then there would need to be adjustments made to the budget that may possibly decrease the number of projects to be done. Additionally, General Manager Leiper stated that if the decision is made to not fund the beautification crew through the MDD and if the crew can not be funded through the general funds, he recommended not doing the Hutto landscape project because he does not want to put something in that would not be maintained. Director Sheley stated that there was a crew hired to the do the Decker Road Project which belonged to the State, and inquired if there was any reimbursement from the State for maintaining that service. General Manager Leiper stated that a reimbursement would be received annually for the maintenance of Decker and Hwy 146. Director Sheley inquired as to why the reimbursement could not be applied towards the funding of the beautification crew. General Manager Leiper stated that the City is already spending approximately $80,000 for mowing services for that. General Manager Leiper stated that the reimbursement from TXDOT would be revenue into the general fund for next year's MDD Board Regular Meeting Minutes July 05, 2012 Page 4 of 6 budget to help offset the funding for the personnel hired to mow the area that TxDot was already responsible for. General Manager Leiper indicated that the personnel consisted of one person and included a tractor but that person was responsible for only mowing which is different than what the median crew would be responsible for. Director McCartney inquired if there was something in the general fund that would be MDD appropriate so that they could switch out the funds and recommended reviewing the general fund for options. President Don Carlos stated he agrees with the sediment to look at the general fund to see if MDD can fund an economic development project, if not he's ok with funding the beautification crew, especially since MDD just transitioned debt for the North Main sewer project back to the general fund. During the conclusion of the discussion, the recommendation was to look into the general fund for an option that that is appropriate for MDD funding. Additionally, among the majority of the attending directors, there was an agreement to a one time funding of this crew. Director McCartney inquired about the projects that were on the wish list but didn't make the fund. General Manager Leiper stated that those projects are in the general fund budget. 3. PROPOSED RESOLUTIONS a. Consider Setting a Public Hearing for Baytown Municipal Development District 2012 -13 Proposed Budget - Finance. City Manager Leiper presented the agenda item and stated that Resolution No. 182 sets a public hearing for the 2012 -13 Proposed Budget on August 02, 2012, during the regularly scheduled Baytown Municipal Development District meeting, which commences at 4:30 P.M. that's held in the Council Chambers of the Baytown City Hall. A motion was made by Vice President Scott Sheley and seconded by Director David McCartney approving Resolution No. 182.The vote was as follows: Ayes: Secretary Reggie Brewer, Director Brandon Capetillo, President Stephen H. DonCarlos, Director Robert C. Hoskins, Director David McCartney, Director Dee Anne Navarre, Vice President Scott Sheley Nays: None Other: Director Mary Hernandez (Absent), Director Ruben Linares (Absent), Director Mercedes Renteria III (Absent), Director Terry Sain (Absent) Approved MDD Board Regular Meeting Minutes July 05, 2012 Page 5 of 6 RESOLUTION NO. 182 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 2012 -13 PROPOSED BUDGET; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 4. REPORTS a. Receive the Baytown Municipal Development District's Revenue and Expenditure Report for the Quarter Ending June 30, 2012 - Finance. Finance Director, Louise Richman presented the update on the Baytown Municipal Development District's Revenue and Expenditure Report for the 3rd Quarter ending June 30, 2012 and stated that revenue was ahead at 11% as compared to the same time from last year. She also stated that the sales tax was ahead 10% as compared to prior period. Additionally, she stated that the expenditures to date that have either been encumbered or spent is at 42 %. b. Receive the Baytown Municipal Development District's Investment Report for Quarter Ending June 30, 2012 - Finance. Finance Director, Louise Richman presented the Baytown Municipal Development District's Investment Report for the Quarter Ending June 30, 2012 and stated that the MDD currently has $5.7 million. 5. MANAGER'S REPORT General Manager Leiper stated that the city is close to an agreement with a developer to build Baytown' 2nd Super Wal -Mart at the corner of 146 and [ -10. He indicated that this is a limited purpose annexation and although it would not directly benefit the MDD, it would help the general fund, CCPD, FCPEMSD, and street maintenance. The store is projected to be up by the end of 2013. 6. ADJOURN A motion was made by Director Robert C. Hoskins and seconded by Director David McCartney adjourning the July 05, 2012, MDD Board Meeting. The vote was as follows: Ayes: Secretary Reggie Brewer, Director Brandon Capetillo, President Stephen H. DonCarlos, Director Robert C. Hoskins, Director David McCartney, Director Dee Anne Navarre, Vice President Scott Sheley Nays: None MDD Board Regular Meeting Minutes July 05, 2012 Page 6 of 6 Other: Director Mary Hernandez (Absent), Director Ruben Linares (Absent), Director Mercedes Renteria 111 (Absent), Director Terry Sam (Absent) Approved With there being no further business to discuss, President DonCarlos adjourned the July 05, 2012, Municipal Development District (MDD) Board Regular Meeting at 5:11 P.M.