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2018 07 05 MDD MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT July 5, 2018 The Board of Directors of the Baytown Municipal Development District (MDD) met in a Regular Meeting on Thursday, July 5, 2018, 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 Laura Alvarado Secretary Mary Hernandez Director Heather Betancourth Director Robert Hoskins Director David Himsel Director Dave P. Jirrels Director Rick Davis General Manager Ignacio Ramirez, Sr. General Counsel Leticia Brysch Assistant Secretary President DonCarlos convened the July 5, 2018, MDD Board Regular Meeting with a quorum present at 4:32 P.M., all members were present with the exceptions of Vice President Chris Presley, Directors Gary Englert and Charles Johnson who were absent. 1. MINUTES a. Consider approving the minutes of the Baytown Municipal Development District Regular Meeting held on May 3, 2018. A motion was made by Secretary Laura Alvarado and seconded by Director Robert C. Hoskins to approve the minutes of the Baytown Municipal Development District Regular Meeting held on May 3, 2018. The vote was as follows: Ayes: President Stephen H. DonCarlos, Secretary Laura Alvarado, Director Mary Hernandez, Director Heather Betancourth, Director Robert C. Hoskins, Director David Himsel, Director David P. Jirrels Nays: None Other: Vice President Chris Presley (Absent), Director Charles Johnson (Absent), Director Gary Englert (Absent) Approved b. Consider approving the minutes of the Municipal Development District Tour and Special Meeting held on May 16, 2018. A motion was made by Director Robert C. Hoskins and seconded by Director David P. Jirrels to MDD Board Regular Meeting Minutes July 5, 2018 Page 2 of 7 approve the minutes of the Baytown Municipal Development District Tour and Special Meeting held on May 16, 2018. The vote was as follows: Ayes: President Stephen H. DonCarlos, Secretary Laura Alvarado, Director Mary Hernandez, Director Heather Betancourth, Director Robert C. Hoskins, Director David Himsel, Director David P. Jirrels Nays: None Other: Vice President Chris Presley (Absent), Director Charles Johnson (Absent), Director Gary Englert (Absent) Approved C. Consider approving the minutes of the Baytown Municipal Development District Regular Meeting held on June 7, 2018. A motion was made by Director Heather Betancourth and seconded by Director Robert C. Hoskins to approve the minutes of the Baytown Municipal Development District Regular Meeting held on June 7, 2018. The vote was as follows: Ayes: President Stephen H. DonCarlos, Secretary Laura Alvarado, Director Mary Hernandez, Director Heather Betancourth, Director Robert C. Hoskins, Director David Himsel, Director David P. Jirrels Nays: None Other: Vice President Chris Presley (Absent), Director Charles Johnson (Absent), Director Gary Englert (Absent) Approved 2. 2018-19 MDD PROPOSED BUDGET a. Discuss the Baytown Municipal Development District's Fiscal Year 2018-19 Proposed Budget and budget process. General Manager Rick Davis presented the item and stated that he was going to give a brief overview of the proposed budget and staff would entertain any questions from the Board. Mr. Davis noted that there is a projected 2% increase in revenue from current year, which is an estimated 6 million dollars. He noted that the major expenditures in the budget deal with park improvements, economic development, and improvements to infrastructure, which are all in line with what this District is allowed to fund. The major capital items in the budget are listed in pages 2-5 in the proposed budget, but he wanted to touch upon two items: (1) the Bayland Island Dredging Project and the (2) Parks Operations Center. Mr. Davis noted that there is an opportunity to make a positive impact in the Marina area. He noted that with the help from FEMA monies related to Hurricane Harvey, staff is in a position to MDD Board Regular Meeting Minutes July 5, 2018 Page 3 of 7 take these monies and dredge a larger area that will make this a more usable area particularly for the upcoming convention center. Mr. Davis noted that the other items relates to the Parks Operations Center. He noted that this is the time to make Park staff and operations more efficient by addressing some of facility issues Mr. Davis noted that staff is recommending to continue the use of the land over on Park Street, but is recommending improvements to security, personnel spaces, and the addition of a light pedestrian bridge to connect the two parcels that are currently separated by a small canal. Mr. Davis further stated that staff would like to move the primary parks facility to the other parcel and build the new and more secure facility that would house Park's equipment, vehicles, trailers, etc. and then re -purpose the existing facility to serve as more storage space. Mr. Davis noted that this is a very high level overview of what staff hopes to do over there, and noted that staff will bring the Board back a master plan of the facility and the recommended improvements. Mr. Davis stated that the proposed budget includes the debt services transfers for the convention center and if all goes as planned, the Board will at their next meeting hold a public hearing and approve their budget. President DonCarlos opened the item for questions and discussion. Director David Himsel asked if the proposed dredging project will allow for bigger boats to enter into the Marina. Parks and Recreation Director Scott Johnson noted that the proposed dredging will be the same depth as it has in the past of six feet. He noted that currently there are some spots that are only a couple of feet deep and Hurricane Harvey placed a lot of sand in the Marina. Mr. Johnson noted that because of all the additional sand in the area, boats are hitting mounds of sand, and while some can push through, others have gotten stuck. Mr. Johnson stated that that staff is currently working on the dredging plan for the Marina, the space that will be dredged and what will need to be done to optimize the use of the Marina now and in the future. Mr. Johnson also noted that the biggest issue and expense that staff is encountering at this time is not knowing where the spoils are going to be placed as the location from 2012 is full. Therefore, the staff is negotiating with the Port of Houston to see where the dredging spoils can be placed. b. Consider a resolution setting a public hearing regarding the Baytown Municipal Development District Fiscal Year 2018-19 Proposed Budget. Finance Director Wade Nickerson presented the item and stated that this item allows the Board to set a hearing for the MDD Fiscal Year 2018-19 proposed budget for August 2, 2018, at 4:30 p.m. in the Council Chambers of the Baytown City Hall. A motion was made by Director Heather Betancourth and seconded by Director David P. Jirrels to approve Resolution No. 336, related to Item 2.b. The vote was as follows: Ayes: President Stephen H. DonCarlos, Secretary Laura Alvarado, Director Mary Hernandez, Director Heather Betancourth, Director Robert C. Hoskins, Director David Himsel, Director David P. Jirrels Nays: None MDD Board Regular Meeting Minutes July 5, 2018 Page 4 of 7 Other: Vice President Chris Presley (Absent), Director Charles Johnson (Absent), Director Gary Englert (Absent) Approved RESOLUTION NO. 336 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 2018-19 PROPOSED BUDGET; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 3. PROPOSED RESOLUTIONS a. Consider a resolution authorizing an interlocal agreement with the City of Baytown to fund the Brunson Theater Redevelopment Project. Mr. Davis presented the item and stated that this proposed resolution authorizes an interlocal agreement with the City of Baytown to fund the Brunson Theater Redevelopment Project up to $1,324,000. He further noted that the Council at their June 28, 2018, meeting, approved this same funding agreement and awarded the construction contact for this project to Crain Group, LLC. Mr. Davis stated that the completion date for this project is scheduled for December 3, 2018. He noted that there are no penalties if they run past the designated time, as he is more concerned with the project being completed in the highest quality and that no corners are cut. He noted that if the project runs over the deadline, staff can always plan another ribbon cutting. A motion was made by Director Robert C. Hoskins and seconded by Secretary Laura Alvarado to approve the Resolution No. 337, related to Item 3.a. The vote was as follows: Ayes: President Stephen H. DonCarlos, Secretary Laura Alvarado, Director Mary Hernandez, Director Heather Betancourth, Director Robert C. Hoskins, Director David Himsel, Director David P. Jirrels Nays: None Other: Vice President Chris Presley (Absent), Director Charles Johnson (Absent), Director Gary Englert (Absent) Approved RESOLUTION NO. 337 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE PRESIDENT TO EXECUTE AN INTERLOCAL AGREEMENT WITH THE CITY OF BAYTOWN FOR FUNDING THE BRUNSON THEATER REDEVELOPMENT PROJECT; AUTHORIZING PAYMENT OF AN AMOUNT NOT TO EXCEED ONE MILLION THREE HUNDRED TWENTY-FOUR THOUSAND AND MDD Board Regular Meeting Minutes July 5, 2018 Page 5 of 7 NO/100 DOLLARS ($1,324,000.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 4. DISCUSSIONS Discuss options for the redevelopment of the old Citizen's Bank Building located on W. Texas Avenue at the southeast corner of W. Texas Avenue and S. Jones Street. Deputy General Manager Ron Bottoms presented the item and stated that after the last Board meeting; staff took their comments and did some additional research, in order to bring back more options on how to move forward with the Citizen's Bank building. The options were noted as follows: Option 1 — Demolish everything except the originally discussed 3,000 square feet in order to make a box that someone could come in and develop in the future; the costs is an estimated $224,000; Option 2 — Keep the 3,000 square feet, and an additional 40 feet of the fagade, this option takes that piece back to the first column, and creates an additional 1,700 square foot store front; the costs is an estimated $570,000; Option 3- Keep the 3,000 square feet, the 40 feet of the fagade and creates it into a second smaller box; this is an estimated 508,000; Option 4 — Deals with Director Hernandez's open air concept idea, which is the most expensive option at an estimated three quarters of a million dollars. Mr. Bottoms noted that staff continues to suggest that whatever option is selected that the 3,000 square feet are maintained. He further noted that if the Board is going to go to incur the cost of keeping the 40 foot fagade, they should consider options three, which for an additional $60,000 difference will create the additional box, in order to have two (2) boxes: (1) 3,000 square feet and (2) 1,700 square feet. He noted that the remaining space to include the current green space and the demoed area could be turned into parking, which is in high demand down in the Texas Avenue area. The Board discussed the use of this additional area and directed staff to see how many parking spaces could be added if the current green space is turned into parking and noted that if it isn't a lot, they would be in favor of keeping some green space and turning it into a nice green space for the public. Director Hoskins noted that if there is a way to keep all three sections of the building and divide their improvements into different plans on a yearly schedule, he would be in support of keeping the entire building. He noted that he believed the building had historical value. Mr. Davis noted that the staffs primary objective is to stop the deterioration of the building and noted that without a roof the deterioration for those parts of the building will continue. Secretary Laura Alvarado asked is there are any safety concerns with the building. Director Hoskins stated that he believed the building to be structurally sound. Director Himsel asked what the planned use for the building is once it is rehabilitated, as this is a lot of money to spend MDD Board Regular Meeting Minutes July 5, 2018 Page 6 of 7 on a building that does not have a planned use. Mr. Davis noted that at this time there is no plan for the building, but hoped that there would be some interest in developing the space from private investors. Secretary Alvarado inquired if there had been any interest in this space. Mr. Bottoms noted that staff is not aware of any interest in the space. President DonCarlos requested that staff research Option 5, which is the cost to keep the 3,000 square feet and to roof the side 750 square feet on the side in order to preserve it, and demolish the back area. The Board discussed possibility of attaining historical designations for the Brunson Theater and the Citizen's Bank building. Mr. Davis stated that there are many complex and expensive items that have to be met in order to meet said designation. He noted that any historical designation would make this project exponentially more expensive; however, if that is the direction of the Board, staff would look into it. Mr. Bottoms stated that staff will look into the requested option and come back with a more detail plan. 5. MANAGER'S REPORT a. The next Baytown Municipal Development District meeting is scheduled for Thursday, August 2, 2018, at 4:30 p.m., in the Council Chamber located at City Ball, 2401 Market Street, Baytown, Texas, 77520. Mr. Davis reminded the Board that their next meeting is scheduled for Thursday, August 2, 2018, at 4:30 p.m. where they will be approving their budget. He also noted that following this meeting, the Council will hold a budget work session. A motion was made by Secretary Laura Alvarado and seconded by Director Mary Hernandez to adjourn the Baytown Municipal Development District July 5, 2018, Regular Meeting. The vote was as follows: Ayes: President Stephen H. DonCarlos, Secretary Laura Alvarado, Director Mary Hernandez, Director Heather Betancourth, Director Robert C. Hoskins, Director David Himsel, Director David P. Jirrels Nays: None Other: Vice President Chris Presley (Absent), Director Charles Johnson (Absent), Director Gary Englert (Absent) Approved With there being no further business to discuss, President DonCarlos adjourned the July 5, 2018, MDD Board Regular Meeting at 5:02 P.M. MDD Board Regular Meeting Minutes July 5, 2018 Page 7 of 7