2017-07-25 CEDC Minutes CITY OF
SOUTHLAKE
SOUTHLAKE COMMUNITY ENHANCEMENT AND DEVELOPMENT CORPORATION
BOARD MEETING MINUTES: July 25, 2017
LOCATION: Southlake Town Hall
1400 Main Street, Room 4A
Southlake, Texas 76092
TIME: 6:00 p.m.
COMMUNITY ENHANCEMENT AND DEVELOPMENT CORPORATION BOARD MEMBERS
PRESENT: Board President Martin Schelling, Board Vice-President Brandon Bledsoe, Board
Secretary Suzanne Maisto, Bob Mundlin, and Jeff Wang.
COMMUNITY ENHANCEMENT AND DEVELOPMENT CORPORATION BOARD MEMBERS
ABSENT: John Thane
STAFF PRESENT: Assistant City Manager Alison Ortowski, Assistant City Manager Ben
Thatcher, Chief Financial Officer & Board Treasurer Sharen Jackson, Director of Community
Services Chris Tribble, Deputy Director of Community Services Candice Edmonson, and
Deputy Director of Community Services Kate Meacham.
1. CALL TO ORDER:
Board President Martin Schelling called the meeting to order at 6:01 p m.
2. Consider approving the minutes from the June 27, 2017 Community
Enhancement and Development Corporation meeting
A motion was made to approve the minutes from the June 27, 2017 meeting as
presented
Motion: Mundlin
Second: Maisto
Ayes: Maisto, Mundlin, Schelling, & Wang
Nays: None
Abstain: (Bledsoe was not yet present for this item)
Vote: 4-0
Motion Carried —APPROVED
3. Consider approval of amended Fiscal Year 2017 Southlake Community
Enhancement and Development Corporation Operating Budget and adoption of
Fiscal Year 2018 Southlake Community Enhancement and Development
Corporation Operating Budget and Multi-Year Capital Improvement Plan
City of Southlake Values:
Integrity♦ Innovation ♦Accountability♦ Commitment to Excellence ♦ Teamwork
Minutes of the July 25, 2017 Community Enhancement and Development Corporation Board Meeting
Page 2 of 4
Chief Financial Officer and Board Treasurer Sharen Jackson gave the Board a FY 2018
budget preview of proposed Marq and economic development expenditures The
proposed operating budget includes projected sales tax revenue of$5,619,000,
charges for services $409,000 and interest $25,000. Total personnel and operating
expenditures of $462,398 for Phase 1 and $1,435,012 for Phase 2 are proposed. There
are also transfers out of$3,692,360 for indirect charges ($242,120), capital
improvement project ($1,000,000) and debt service ($2,450,240)
CFO Jackson also led a follow-up discussion with the Board regarding their June
meeting discussion of escalations in the construction costs related to Phase 2 These
cost increases are attributed to the subsurface issues encountered earlier in the year
as well as significant costs due to design completion issues. As a result, the current
construction budget status is:
• Total Unforeseen Cost Impacts $3,391,642
• Contingency in Budget Now ($2,566,381)
• Current Budget Shortfall $ 825,261
CFO Jackson explained that these impacts have depleted the current budgeted
contingency, leaving $825,261 for additional funding necessary just to cover current
expenditures. In addition, as the project is moving into the vertical construction phase,
moving forward with zero contingency dollars is not recommended.
To address the monetary needs, staff identified a number of items that can be
reallocated from the capital budget to the operating budget. These items are FF&E
expenditures for purchases that do not have a capital-item useful life. The proposed
budget includes this transfer as a recommendation in the amount of$1,865,406.
In addition, to provide an option to ensure adequate contingency reserves, staff has
identified items related to scope that can either be deferred or eliminated such as a dry
sauna and a generator.
The Board asked questions and held a lengthy discussion noting their displeasure with
the current situation that BRS (project architect) put the City in with this project. Director
Tribble and Chris Squadra from Peak Performance Value answered questions as to
how these design issues occurred. Assistant City Manager Ortowski informed the Board
that the City will be pursuing any legal recourse available.
The Board agreed to staff's recommendation on how to fill the short fall. Director Tribble
let the Board know that in order to affect staff's recommendation a change order will
need to be approved by the Board as well as City Council. Assistant City Manager
Ortowski also stated that this same discussion will be held with City Council at their next
meeting.
Deputy Directors Edmonson and Meacham also presented the proposed fee schedule
for both Legends Hall and Champions Club.
City of Southlake Values:
Integrity♦ Innovation ♦Accountability♦ Commitment to Excellence ♦ Teamwork
Minutes of the July 25, 2017 Community Enhancement and Development Corporation Board Meeting
Page 3 of 4
A motion was made to approve amending the Fiscal Year 2017 Southlake Community
Enhancement and Development Corporation Operating Budget and adopting the Fiscal
Year 2018 Southlake Community Enhancement and Development Corporation
Operating Budget and Multi-Year Capital Improvement Plan as presented.
Motion. Wang
Second: Bledsoe
Ayes. Bledsoe, Maisto, Mundlin, Schelling, &Wang
Nays: None
Abstain: None
Vote: 5-0
Motion Carried —APPROVED
4. STAFF REPORTS:
4A. Sales tax report
Chief Financial Officer and Board Treasurer Sharen Jackson asked the board if
there were any questions regarding the report that was in the packet. She
informed the Board that the Corporation has brought in under $4m ($3,734,364)
in revenue which is $217,864 over the budgeted amount for the year
4B. Development activity report
Assistant City Manager Alison Ortowski informed the Board that a representative
of Methodist Southlake Hospital should be in attendance at next month's
meeting.
4C. Construction management report
Director Chris Tribble provided an update on the construction status of the
Champions Club and presented new construction photos of the project.
6. ADJOURNMENT
Meeting adjourned at 8.13 p.m.
F.vf
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Martin Schelling, President
Community Enhancement and Development Corporation Board
City of Southlake Values:
Integrity♦ Innovation •Accountability♦ Commitment to Excellence ♦ Teamwork
Minutes of the July 25, 2017 Community Enhancement and Development Corporation Board Meeting
Page 4 of 4
Suzan Maisto, cretary
Community Enhance -nt and Development Corporation Board
City of Southlake Values:
Integrity♦ Innovation ♦Accountability♦ Commitment to Excellence ♦ Teamwork