2019 05 02 MDD MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT
May 2, 2019
The Board of Directors of the Baytown Municipal Development District (MDD) met in a
Regular Meeting on Thursday, May 2, 2019, at 4:33 P.M., in the Council Chamber of the
Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance:
Bandon Capetillo
President
Chris Presley
Vice President
Laura Alvarado
Secretary
Suhey Rios -Alvarez
Director
Charles Johnson
Director
Robert C. Hoskins
Director
David P. Jirrels
Director
Gary Englert
Director
Rick Davis General Manager
Ignacio Ramirez, Sr. General Counsel
Leticia Brysch Assistant Secretary
President Brandon Capetillo convened the May 2, 2019, MDD Board Regular Meeting with a
quorum present at 4:33 P.M., all members were present with the exception of Directors Mary
Hernandez, Heather Betancourth, and David Himsel who were absent and Director Suhey Rios -
Alvarez who arrived at 4:34 P.M.
1. PROPOSED RESOLUTIONS
a. Consider a resolution authorizing payment to Bracewell LLP, for services as bond
counsel and other legal services in connection with the Hotel/Convention Center Project.
b. Consider a resolution authorizing payment to Winstead PC for services as bond
counsel and other legal services in connection with the Hotel/Convention Center Project.
Assistant General Counsel Karen Horner requested to present agenda item l.a. and l.b. together
and stated that Bracewell LLP and Winstead PC were originally contracted to provide services as
bond counsel and to provide other legal services in connection with the Hotel Convention Center
Project and that Bracewell LLP services are no longer going to be utilized and any future
services will be provided by Winstead PC. As such Ms. Horner stated that Resolution No. 374
closes out the services provided by Bracewell LLP and Resolution No. 375 allows services to
continue with Winstead PC.
President Brandon Capetillo questioned if this will be the final payment for Bracewell LLP and
Assistant General Counsel Horner responded that Bracewell LLP will continue with work with
MDD Board Regular Meeting Minutes
May 2, 2019
Page 2 of 4
City bonds, but nothing through the Baytown Municipal Development District. Vice President
Chris Presley questioned the motive and reason to this change and Assistant General Counsel
responded that it was a good opportunity to make the change with the new changes in the
Project.
A motion was made by Secretary Laura Alvarado, and seconded by Director Charles Johnson
approving Resolution No. 374 and 375, regarding agenda item La. and l.b. The vote was as
follows:
Ayes: President Brandon Capetillo, Vice President Chris Presley, Secretary Laura
Alvarado, Director Suhey Rios -Alvarez, Director Charles Johnson, Director
Robert C. Hoskins, Director David P. Jirrels, Director Gary Englert
Nays: None
Other: Director Mary Hernandez (Absent), Director Heather Betancourth (Absent),
Director David Himsel (Absent)
Approved
RESOLUTION NO. 374
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING PAYMENT TO
BRACEWELL LLP, FOR SERVICES AS BOND COUNSEL AND OTHER
LEGAL SERVICES IN CONNECTION WITH THE HOTEL CONVENTION
CENTER PROJECT IN AN AMOUNT NOT TO EXCEED ONE HUNDRED
SIXTY-FIVE THOUSAND AND NO'100 DOLLARS ($165,000.00); MAKING
OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
RESOLUTION NO. 375
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING PAYMENT TO
WINSTEAD PC, FOR SERVICES AS BOND COUNSEL AND OTHER
LEGAL SERVICES IN CONNECTION WITH THE HOTEL/CONVENTION
CENTER PROJECT IN AN AMOUNT NOT TO EXCEED ONE HUNDRED
THOUSAND AND NO/100 DOLLARS ($100,000.00); MAKING OTHER
PROVISIONS RELATED THERETO; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
MDD Board Regular Meeting Minutes
May 2, 2019
Page 3 of 4
2. REPORTS
a. Receive the Baytown Municipal Development District's Quarterly Financial and
Investment Reports for the Quarter Ending March 31, 2019.
Finance Director Wade Nickerson presented the Baytown Municipal Development District's
Financial Report and Investment Report for the Second Quarter ending March 31, 2019, and
stated that total revenues are currently at 490 0 of the projected budget, which is 12.6% lower than
the previous year due to the Harvey effect and a lower than expected Christmas spending season.
He further noted that November and December sales tax collections were at a negative 24° o and
negative 14.9° o for those months and that going forward staff is looking for it to come in at 10° o
under compared to the prior year.
Mr. Nickerson stated that expenditures are at 90% of the projected budget but noted that
expenditure funds are mostly project oriented funds and that the Brunson Theater Improvements
Project is a bulk of the expenses. He further stated that the project is near completion and that the
funds are to be mostly expended at this point of the project and that both line items are expected
to come within the budget. Mr. Nickerson further noted that the administrative cost line item is
showing low at 300o of the budget which is just below where it is to be expected this time of year
because the contingency funds have not been expended thus far.
President Brandon Capetillo asked if Mr. Nickerson can elaborate on the sales tax receipts
reduction compared to last year's numbers and Mr. Nickerson responded that in the previous
fiscal year the sales tax receipts were up 11 ° o higher than expected due to the Hurricane Harvey
spending and a strong Christmas Season and that based on the expected projections of an average
year, excluding the Harvey piece, an increase of 20.o was included in the current budget.
Therefore, the numbers are coming in close to projected numbers for this time of year, but lower
if compared to the previous fiscal year numbers. Director Robert C. Hoskins questions if the
2017 numbers could be included in the report so that the Board can have a comparison and Mr.
Nickerson made note of the Board's request.
Lastly, Mr. Nickerson presented the Investment Report and stated that at the end of the quarter
there was 3.5 million dollars in TX Pool account, earing 2.50% interest, for a total earnings of
$24,220 for the quarter.
3. EXECUTIVE SESSION
a. Conduct an executive session pursuant to Section 551.071 of the Texas Government
Code to seek the advice of the District's attorneys on legal matters related to the Baytown
Hotel and Convention Center Project.
Agenda Item 3.a. was not taken.
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May 2, 2019
Page 4 of 4
4. MANAGER'S REPORT
a. The next Baytown Municipal Development District meeting is scheduled for
Thursday, June 6, 2019, at 4:30 p.m., in the Council Chamber located at City Hall, 2401
Market Street, Baytown, Texas, 77520.
General Manager Rick David stated that the next Baytown Municipal Development District
meeting is scheduled for Thursday, June 6, 2019, at 4:30 p.m. in the Council Chamber, unless a
Special Meeting is needed before such date.
5. ADJOURN
With there being no further business to discuss, President Capetillo adjourned the May 2, 2019,
MDD Board Regular Meeting at 4:42 P.M.
Leticia Brysch, Assis nt Secretary =
City of Baytown o