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1999-03-22 SOUTHLAKE PARKS DEVELOPMENT CORPORATION MEETING March 22, 1999 MINUTES Board Members Present: President Scott Martin; Members: Ralph Evans, Ronnie Kendall, Norm Lyons, Rick Stacy, and Bethann Scratchard Board Members Absent: Robin Jones Staff Present: City Manager Curtis E. Hawk, Assistant City Manager Shana Yelverton, Director of Community Services Kevin Hugman, Park Planning and Construction Superintendent Ben Henry, Director of Finance Lou Ann Heath, Deputy Director of Community Services Steve Polasek, Administrative Assistant John Eaglen, and Secretary to the City Manager Kim Bush. Agenda Item No. 1, Call to order. The meeting was called to order by President Scott Martin at 6:05 p.m. Agenda Item No. 2, Executive Session. President Martin announced that the Board would be going into Executive Session pursuant to the Open Meetings Act, Chapter 551 of the Texas Government Code, Section 551.072, land acquisition. SPDC adjourned for Executive Session at 6:05 p.m. SPDC returned to open session at 6:55 p.m. Agenda Item No. 3. Reconvene. There was no action necessary as a result of the Executive Session. Agenda Item No. 4. PUBLIC FORUM. There were no comments from the audience during Public Forum. CONSENT AGENDA. 5A. Approval of regular SPDC meeting minutes for March 22, 1999. Motion was made to approve consent agenda item #5A. Motion: Stacy SOUTHLAKE PARK DEVELOPMENT CORPORATION MEETING MINUTES March 22, 1999 Page 1 of 4 Second: Evans Ayes: Evans, Martin, Kendall, Lyons, Scratchard, Stacy Nays: None Approved: 6-0 REGULAR AGENDA. Agenda Item No. 6. Consider: No items for consideration. Agenda Item No. 7A. SPDC Five-Year Capital Improvement Program. Finance Director Lou Ann Heath discussed with the Board the five-year SPDC Capital Improvement Plan (CIP). Ms. Heath stated that staff has met with financial advisor Jim Sabonis with First Southwest to discuss how the purchase of properties will fit in with the CIP. She stated that each year an additional $500,000 has been appropriated from the operating fund and transferred to the SPDC project fund. Mr. Sabonis has suggested that the Board add to the project fund by issuing additional bonds and use the bond monies for projects and set aside the $500,000 for future debt service. Ms. Heath commented that the Board could look at revising the estimate and the timing of additional proceeds depending on how much sales tax is collected from month-to-month. Ms. Heath suggested that, on the larger tract of land being considered for purchase, that the Board apportion some of the property for park use and then have the City issue a C.O. on the purchase of the rest of the property. In this way, the Board could budget for that particular portion of the property rather than have SPDC handle all the debt. Jim Sabonis explained that there are general constraints that allow this corporation to issue investment grade bonds, long-term debt that has low cost. Mr. Sabonis explained that the type of bond suggested by Ms. Heath is called the "coverage" which is based on historical revenues (sales tax collection). He explained that SPDC must maintain 1.4 times its maximum annual debt service for "coverage" to protect against the volatility of sales tax collection. Based on the current projection, issuance of bonds could be looked at every two years. Mr. Sabonis stated that previously SPDC did a "subordinated" issue for initial funding because there were things identified that needed to be funded quickly. This meant that we did a private placement of sales tax bonds that was subordinate and only had to have 1.0 coverage. He explained that the plan was that as the City grew, and we knew that our next funding would come in about three years, SPDC could refund with senior indebted, additional bonds, which is the current situation now. As an example, the Board could look at the $500,000 currently available multiplied by 12 for a total of $6 million, which is roughly what would be available on a 20-year bond. Ms. Heath explained that the Board adopted a policy (when the corporation first began) requiring that when setting the budget, 15% of sales tax collection would be left in the operating fund, and any funds above that amount would then be available for appropriation for capital projects. She explained that in this case instead of going to a capital project fund to pay for a capital project, we are going to use it to pay for additional debt service. (Board Member Kendall had to leave at 7:20 p.m.) SOUTHLAKE PARK DEVELOPMENT CORPORATION MEETING MINUTES March 22, 1999 Page 2 of 4 Board member Evans commented that because of the low interest rates at this time, he thinks SPDC needs to take advantage of this type of funding for as much as possible so that the Board will be able to purchase the land before the cost on land rises any higher. Members Stacy and Scratchard agreed. Mr. Martin stated that he is starting a campaign to "Shop Southlake." He believes that this is a way the Board can communicate to the citizens the need to shop our own community first in order to be able to fund projects that are wanted by the citizens. Board member Stacy commented that one thing to keep in mind is that sales tax on some purchases outside of the Southlake will apply to Southlake sales tax if it is the point of delivery for the product. Agenda Item No. 7D. Status Report of SPDC Projects. (Board member Stacy asked that item 7D be next because he was going to have to leave the meeting.) Staff member Ben Henry gave a brief update on the status of projects: (1) tennis courts should be complete within the next three weeks; (2) inline hockey association met and agreed on recommending Ron Hobbs as the consultant; (3) Larry Abernathy has indicated there will be enough money to build a 4"' pavilion near the pond; and (4) if the City is interested in pursuing, the contractor for the basketball courts will honor the amount submitted on the alternate bid for a fence around the courts. Mr. Henry commented that he is looking at options. Scott Martin suggested looking into some type of vegetation fence. (Board member Stacy had to leave the meeting at 7:40 p.m.) Ben Henry confirmed that the Cottonbelt trail, as made possible through the ISTEA Grant, will not be complete until the year 2001 primarily due to TxDOT's schedule. Agenda Item No. 7B. Quarterly SPDC/Park Board meetings. Staff member Kevin Hugman stated that at the Park Board's annual retreat, members expressed the desire to more closely work with the SPDC to plan the future of Southlake's park systems and amenities. Mr. Hugman commented that the Park Board was concerned, that since pending land acquisition plans are often unknown to them, they may move in a direction counter to the SPDC's desire in planning for park land uses. He stated that since SPDC can discuss potential land acquisitions in executive sessions, staff has been reluctant to discuss these pending land acquisitions because they do not hold executive sessions. He explained that a joint meeting with an executive session could allow for periodic briefings of the Park Board on such issues. President Martin commented that SPDC needs to be able to inform the Park Board because they are the Board that works more closely with the citizens. Kevin Hugman commented that the CIP report and the SPDC status report have both been very helpful to the Park Board. SOUTHLAKE PARK DEVELOPMENT CORPORATION MEETING MINUTES March 22, 1999 Page 3 of 4 Board member Scratchard suggested semi-annual meetings. Mr. Hugman commented that a joint meeting could be held when it comes time to revise the CIP and then six months later hold a joint meeting to discuss where we are now in the plan. Mr. Hugman suggested that given everything that has been going on recently it might be appropriate to have a joint meeting at the next regular meeting in April. SPDC concurred with biannual meetings, roughly in April and September Agenda Item No. 7C. Financial Report/Budget. Staff member Heath commented that sales tax collections are coming in very close to what was projected. Agenda Item No. 8. Adjournment. Board member Ralph Evans commented on Lou Ann Heath leaving the City of Southlake. He expressed his appreciation for her service and wished her well. He stated that a lot of the success of the SPDC program is due to the good planning that Lou Ann has provided. President Martin also expressed his appreciation of Lou Ann's professionalism and her stewardship of the funds. All members thanked Lou Ann and expressed their appreciation. Motion was made and carried to adjourn the meeting at 8:40 p.m. cx President Scott Martin ATTEST: ,M~&Jh Kim ush Secretary to the City Manager SOUTHLAKE PARK DEVELOPMENT CORPORATION MEETING MINUTES March 22, 1999 Page 4 of 4