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SO I'LL CALL THIS, THIS MEETING OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT SPECIAL MEETING TO ORDER.
IT IS 6:15 PM WE ARE IN BAYTOWN CITY HALL COUNCIL CHAMBERS.
[1. MINUTES]
ITEM ONE A IS CONSIDERED APPROVAL OF THE MINUTES.ACTUALLY, CAN WE TAKE ITEMS ONE, A, B, AND C TOGETHER? I'LL ENTERTAIN A MOTION FOR ITEMS ONE A, B, AND C, UH, FOR THE JANUARY 7TH, JANUARY 14TH, AND JANUARY 21ST.
MOTION TO APPROVE ITEMS ONE A, ONE B, AND ONE C.
ANY QUESTIONS, COMMENTS, OR ABSTENTIONS? ALL THOSE IN FAVOR OF THE ITEMS AS WRITTEN, PLEASE SAY, AYE.
ALL THOSE OPPOSED DIDN'T GET A OH, SECOND.
THE MOTION AND SOME SECONDS IN THERE.
ALL THOSE IN FAVOR, PLEASE SAY AYE.
[a. Consider a resolution repealing Resolution No. 389 and adopting a revised budget for the Baytown Hotel Convention Center Project under the terms of the Development Management Agreement.]
ALRIGHT, WE'LL MOVE ON TO ITEM TWO A.CONSIDER A RESOLUTION, REPEALING RESOLUTION NUMBER 3 89 AND ADOPTING A REVISED BUDGET FOR THE BAYTOWN HOTEL CONVENTIONS, UH, PROJECT UNDER THE TERMS OF THE DEVELOPMENT MANAGEMENT AGREEMENT, PLUS MAYOR, EXCUSE ME, MAYOR AND BOARD MEMBERS.
WE HAD DISCUSSED, UH, BEFORE THE NECESSITY OF, EXCUSE ME, IT DOESN'T HAPPEN VERY OFTEN OF, UH, ADJUSTING THE BUDGET TO, UH, TO ACCOMMODATE THE, UH, COSTS ASSOCIATED WITH, UH, THE PROJECT.
UH, ESPECIALLY DURING THE LAST YEAR.
WE TALKED ABOUT SOME OF THE, UH, UH, DIFFERENT ELEMENTS THAT NEEDED TO BE ADJUSTED TO ACCOMMODATE A 2021 SCENARIO VERSUS A 2020, UH, SCENARIO.
WE HAVE WITH US STEVE GALBRATH FROM, UH, GARFIELD.
AND, UH, HE'S GONNA TAKE YOU THROUGH THIS, UH, TY SPLIT.
UM, SO, UH, WHAT WORK WAS ALLUDING TO, UM, WE'VE HAD SOME COST ESCALATIONS AND YOU'VE SEEN IN THE, IN THE BUDGET.
UH, WE'VE ALSO ADDED, UH, THREE PIECES OF SCOPE TO THIS PROJECT THAT WEREN'T INITIALLY ON THIS, ON THIS ITEM ONE IS THE LIFT STATION.
AND THEN THE NEXT TWO ARE, ARE, IS ONE CALLED UTILITIES, MOSTLY FOR POWER, BUT ALSO FOR SOME ADDITIONAL UTILITIES THAT THE CITY MIGHT WANT TO, UH, WANNA PUT IN THAT AREA.
AND THEN THERE'S A CONTINGENCY, UH, OF ABOUT $298,000 FOR THOSE UTILITIES.
SO, UM, THAT'S, UH, THE AD OF THOSE PIECES.
THE, THE TOTAL ADD TO THE HOTEL PROJECT IS ABOUT $3 MILLION.
AND SO LET, LET ME TALK ABOUT SOME CONVERSATIONS THAT, THAT RICK AND I HAVE HAD.
AND I, AND I THINK MAYBE I HAD SAID THIS ON, ON A ZOOM CALL MAYBE A YEAR AGO.
UM, WE WERE INITIALLY THINKING WHEN WE DECIDED TO KIND OF PAUSE THIS BECAUSE OF COVID, THAT, THAT WE MIGHT BE SEEING ESCALATIONS OF BETWEEN FIVE AND 10% WHEN WE CAME BACK A YEAR LATER.
UM, SO WE ARE PRETTY PLEASED THAT WE CAME BACK AND HAVE ESCALATIONS OF 4.7%.
WE THINK THEY'RE, THEY'RE, THEY'RE VERY REASONABLE.
UM, I ALSO HAVE NICK HULL HERE WITH DPR, WHO HAS BEEN OUR LIAISON AND OUR, HE'S OUR, OUR DESIGN BUILDER CONTRACTOR.
UM, AND HE'S BEEN CONNECTED TO THE SUB TRADE MARKET AND THAT'S REALLY WHAT'S BEEN ABLE TO KEEP THOSE PRICES DOWN.
SO I'M GONNA GO, DOES ANYBODY HAVE ANY QUESTIONS ON JUST THAT IN GENERAL? SO I WAS GONNA GO THROUGH THIS REAL QUICK JUST TO, JUST TO KIND OF LET YOU KNOW WHERE SOME OF THE COSTS, UH, HAVE GONE UP.
ABOUT, UH, 1.8 MILLION OF THAT 3 MILLION IS IN THE HARD CONSTRUCTION COSTS.
THAT'S ACTUALLY, UM, HIGHER BIDS FOR, UH, SIMILAR SCOPE OF WORK THAT IS JUST NOW WE'RE 13 MONTHS LATER.
UM, IT'S THAT MUCH MORE EXPENSIVE, BUT THAT'S, THAT'S $1.8 MILLION RAISE ON A $44 MILLION, UH, SORRY, $43 MILLION.
FOUR OTHER PIECES THAT YOU'LL SEE, UH, FF AND E, UH, OPERATING SUPPLIES AND EQUIPMENT, IT AND KITCHEN, THOSE CHANGES ARE MOSTLY DUE TO INCREASES IN FREIGHT AND WAREHOUSING.
SO WE'RE SEEING, SO AS YOU CAN IMAGINE, WE, WE SEE HOW, HOW EVERYBODY'S BUYING EVERYTHING ON AMAZON AT THEIR HOUSE, THE MASSIVE AMOUNT OF GOODS THAT ARE COMING OVER IN CONTAINERS.
UM, WE'RE SEEING A A, A COST, UH, INCREASE IN, IN FREIGHT RIGHT NOW.
AND SO MUCH OF THIS, OF THESE GOODS COME FROM OVERSEAS.
UM, WE SEE, UM, ON THE ARCHITECTURAL FEES, LET ME, LET ME ZOOM THIS DOWN, MOVE THIS DOWN A LITTLE BIT FOR YOU.
ARCHITECTURAL FEES, THOSE FEES WENT UP BY ABOUT $184,000.
TWO LARGE ITEMS. UM, ONE ITEM WAS ADDITIONAL, UH, UTILITY DRAWINGS THAT WERE REQUIRED BY THE CITY.
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UH, OUTFALL FOR WATER AND SEWER, UH, I'M SORRY, WATER AND STORM, UM, THERE.AND THEN, UH, ANOTHER $81,500 OF ADDITIONAL SCOPE CHANGES.
THERE'S ALSO, UH, THE CONTRACTUAL PIECE OF OUR DEVELOPMENT FEE, UH, WHICH IS A, A, A PRODUCT OF A CALCULATION IN THE, UM, IN OUR AGREEMENT.
OUR AGREEMENT IS OUR FEE IS, UH, THIS, UH, TOTAL, UH, DEVELOPMENT COST MINUS THESE COSTS AT X PERCENT.
AND SO THAT'S A, A DELTA THERE AS WELL AS, UM, SOME ADDITIONAL COSTS FOR CONSTRUCTION MANAGEMENT.
AND IT ALSO, UH, THERE WAS, THERE WAS AN INCREASE OF ABOUT $40,000 OF PROJECT CONTINGENCY.
SO, UM, THAT'S JUST KIND OF A QUICK RECAP ON THE, ON THE BUDGET.
IF ANYBODY HAS ANY DETAILED QUESTIONS OR YOU WANNA JUST ASK ANYTHING, FEEL FREE TO ASK MYSELF OR, OR NICK HALL.
I JUST WANNA SAY BOARD THAT, UH, THAT THESE INCREASES AND, AND, UH, WE HAD DISCUSSED, THEY'RE COMING TO YOU, UH, IN THE FUTURE.
ALL OF THESE HAVE BEEN VETTED BY, UH, BY OUR STAFF, OUR LEGAL COUNSEL, ET CETERA.
SO, UH, AND WE'VE DISCUSSED THESE ALMOST AD NAUSEUM, RIGHT? BUT, UH, UH, AS WE'VE, FOR THE LAST SEVERAL MONTHS AND WE FEEL VERY COMFORTABLE THAT, UH, THESE REPRESENT TRUE AND, AND HONEST COSTS THAT ARE, ARE ASSOCIATED WITH, WITH THE PROJECT.
I'M HERE AFTERWARDS IF ANYBODY HAS ANY QUESTIONS.
OKAY, IS THERE ANY OTHER INFORMATION, UH, MR. CITY MANAGER ON ITEM TWO A OR DO WE MOVE FORWARD WITH THE RESOLUTION AND A MOTION IN A SECOND? IS THERE ANYONE ELSE PRESENTING ON THAT, MR. CITY MANAGER? IS THAT IT? IS THAT ALL THE PRESENTATIONS, UH, FOR THIS ITEM? YES, MAYOR.
OKAY, SO, UH, THERE'S ITEM TWO A.
UM, I'LL ENTERTAIN A MOTION FOR APPROVAL.
MOVE TO APPROVE ITEM TWO, A SECOND.
ANY QUESTIONS OR COMMENTS BEING NONE THEN? UM, I, I'LL, UH, ALL THOSE IN FAVOR? ITEM TWO A IS PRESENTED, PLEASE SAY AYE.
[b. Consider a resolution authorizing the First Amendment to the Funding Agreement with the Baytown Hospitality Public Facilities Corporation and the City of Baytown to fund the costs of the Pre-Construction Agreement with DPR Construction and a portion of the costs of the Development Management Agreement with Garfield Public/Private LLC, for expenses associated with the Baytown Hotel and Convention Center Project.]
SO ITEM TWO B, CONSIDER RESOLUTION AUTHORIZED IN THE FIRST AMENDMENT TO THE FUNDING AGREEMENT WITH THE BAYTOWN HOSPITALITY PUBLIC FACILITIES CORPORATION AND THE CITY OF BAYTOWN TO FUND THE COST OF THE PRE-CONSTRUCTION AGREEMENT AND WITH DPR CONSTRUCTION AND A PORTION OF THE COST OF THE DEVELOPMENT OF MANAGEMENT AGREEMENT WITH GARFIELD PUBLIC PRIVATE LLC FOR EXPENSES ASSOCIATED WITH THE BAYTOWN HOTEL AND CONVENTION CENTER PROJECT.ANY WORDS ON THAT, MR. MAYOR? UH, FOLLOWING ON FROM YOUR APPROVAL OF THE BUDGET, UH, THIS ITEM PUTS INTO EFFECT SOME OF THE DETAILED WORK THAT NEEDS TO, UH, BE CARRIED OUT FROM NOW TO, UH, TO BRING THE PROJECT TO FRUITION, UH, RELATING TO THE COST OF DPR, UH, UNDER FRIENDS WITH, UH, GARFIELD.
SO THIS IS THE PRACTICAL APPLICATION, THE DECISION YOU'VE JUST MADE TO APPROVE THE BUDGET.
SO I GUESS ONCE AGAIN, I'LL ENTERTAIN A MOTION FOR ITEM TWO B.
UH, ANY QUESTIONS OR COMMENTS? IF NOT ALL THOSE IN FAVOR OF ITEM TWO B AS PRESENTED, PLEASE SAY AYE.
[3. REPORTS]
RIGHT.UH, THREE A REPORTS RECEIVED BASED ON MDD QUARTERLY FINANCIAL AND, AND INVESTMENT REPORTS.
INDEED QUARTER ENDING DECEMBER 31ST, 2020.
UH, WELL YOU JUST SPENT SOME MONEY
UH, IN THE FIRST QUARTER, UH, OF THE CURRENT FISCAL YEAR, UH, WE'VE TURNED IN ABOUT 350 TO 400,000 EXCESS DOLLARS IN TERMS OF OUR SALES TAX COLLECTIONS.
UH, YOU'VE HEARD ME SAY THIS A NUMBER OF TIMES.
I REMAIN ASTOUNDED BY THE ROBUSTNESS OF, UH, SALES IN THE CITY.
UH, WE HAD BEEN EXTREMELY CAUTIOUS LAST YEAR.
IF YOU REMEMBER, WHEN WE PUT THE BUDGET TOGETHER FOR THE MDD, UH, I'M GLAD TO SAY WE ARE RIGHT, PERFORMING NOT JUST THE BUDGET, BUT LAST YEAR'S SALES TAX.
UH, IF WE CONTINUE AT THIS RATE BY THE END OF THE CURRENT YEAR, WE WILL HAVE TURNED IN A SURPLUS OF SOMETHING APPROACHING $1.5 MILLION ON THE EXPENDITURE SIDE.
UM, GLAD TO SAY THAT MANY OF THE PARKS PROJECTS ARE ALMOST FULLY COMMITTED.
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UH, EITHER SPENT OR ENCUMBERED.UH, THE OTHER MAIN, UH, ITEMS OF EXPENDITURE, ONE IS FOR THE CONVENTION CENTER.
YOU HAVE $1.6 MILLION IN YOUR BUDGET IN RESPECT OF THAT.
SO, AS I SAY, YOU JUST SPENT SOME MONEY, BUT THANKFULLY YOU'VE BID A LITTLE BIT EXTRA MONEY.
UH, THE OTHER PROJECTS, UH, THAT ARE STILL, UH, TO COME TO, UH, TO PASS ARE THE, UH, ITEM FOUR, THE I 10 LIFT STATION.
YOU'VE GOT ABOUT $250,000 IN THERE, WHICH IS, REMAINS IN THE BUDGET, BUT IS UNCOMMITTED, AND YOU HAVE SOME CONTINGENCIES AND OTHER PROJECT COSTS.
SO, UH, ALL IN ALL, YOU'RE IN EXCELLENT SHAPE.
ANY QUESTIONS OR COMMENTS REGARDING THE REPORT? ALRIGHT, UH, WE'LL
[5. MANAGER'S REPORT]
MOVE ON TO OUR MANAGEMENT REPORT.DO YOU HAVE ANYTHING IN COMMENT? I THINK, UM, YOU CAN AT LEAST TELL US WHEN THE NEXT MEETING IS.
I'M PRETTY SURE IT'S THE NEXT MEETING'S, NOT MARCH 4TH.
UH, YEAH, I, I DON'T HAVE ANYTHING ELSE TO ADD EXCEPT FOR THAT.
WELL THEN BEING THAT THIS, UH, THIS BOARD, UH, HAS ADDRESSED ALL POSTED AGENDA ITEMS, THIS MEETING IS NOW ADJOURNED OF THE BAYTOWN MDP.