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HomeMy WebLinkAbout04/10/2025 - Regular Minutes - Rock Prairie Management District No. 2ROCK PRAIRIE MANAGEMENT DISTRICT NO. 2 MINUTES OF PUBLIC MEETING OF BOARD OF DIRECTORS April 10, 2025 The Board of Directors (the "Board") of Rock Prairie Management District No. 2 (the "District") met in regular session, open to the public on April 10, 2025, at 4121 State Highway 6 South, College Station, Brazos County, Texas 77845, in accordance with the duly posted notice of meeting, and the roll was called of the duly constituted members of said Board of Directors, as follows: Uri Geva — President Hays Glover — Vice President Logan Lee — Assistant Vice President Mark Lindemulder — Secretary Samuel "Kit" Kerbel — Assistant Secretary and all of said persons were present, except Directors Glover and Lee, thus constituting a quorum. Also present were James Murr of College Station Downtown Residential, LLC (CSDR"); Denise Oppenheimer of Municipal Accounts & Consulting, L.P. ("MAC"); Robert Atkinson and Marcus Carrington of EHRA Engineering ("EHRA"); Stacy Vasquez and Wende Anderson of the City of College Station (the "City"); Avik Bonnerjee of B&A Municipal Tax Service, LLC ("B&A"); Brian Krueger of Forvis Mazars, LLP ("Forvis"); Debbie Drastata, a resident of the District; and Christina Cole of Schwartz, Page & Harding, L.L.P. ("SPH"). The President called the meeting to order and declared same open for such business as might properly come before it. Ms. Cole informed the participants that, in accordance with the requirements of the City's Resolution No. 07-09-15-02 consenting to the creation of the District, the meeting would be recorded, and requested that participants speak clearly, including when making or seconding a motion. PUBLIC COMMENTS The Board began by opening the meeting for public comments. Ms. Drasata introduced herself and addressed the Board regarding the 2024 tax rate and the status of development in Midtown. Following discussion, the Board concurred that no specific action was required of the Board in connection with said matters at this time. APPROVAL OF MINUTES The Board next considered approval of the minutes of its meeting held on February 13, 2025. After review and discussion, Director Geva moved that the minutes for said Board meetings be approved, as written. Director Kerbel seconded said motion, which unanimously carried. ENGAGE AUDITOR The Board considered the engagement of an auditor to prepare the District's audit report for the fiscal year ending May 31, 2025. Mr. Krueger presented to and reviewed with the Board an audit services proposal prepared by Forvis, attached hereto as Exhibit A. He advised that Forvis' fee for the preparation of said audit is $16,500, plus an administrative fee of $1,500 to cover items such as report production, copies, postage and delivery charges, and technology related costs. After discussion on the matter, Director Geva moved that Forvis be engaged to prepare the District's audit report for the fiscal year ending May 31, 2025, in accordance with the terms of the proposal presented, and that the Texas Ethics Commission ("TEC") Form 1295 provided by Forvis in connection therewith be accepted and acknowledged on behalf of the District. Director Kerbel seconded the motion, which unanimously carried. BOOKKEEPING REPORT AND QUARTERLY INVESTMENT REPORT Ms. Oppenheimer presented to and reviewed with the Board the Bookkeeper's Report dated April 10, 2025, a copy of which is attached hereto as Exhibit B, including the checks presented for payment from the District's various accounts, and the Quarterly Investment Report for the period ended February 28, 2025, a copy of which is included with Exhibit A. After discussion on the matter, it was moved by Director Geva that (i) the Bookkeeper's Report be approved, (ii) the checks identified in the Bookkeeper's Report be approved for payment, and (iii) the Quarterly Investment Report be approved and the District's Investment Officer be authorized to execute same on behalf of the Board and District. Director Kerbel seconded said motion, which carried unanimously. OPERATING BUDGET FOR FISCAL YEAR ENDING MAY 31, 2026 Ms. Oppenheimer next presented a draft budget for the District's fiscal year ending May 31, 2026, a copy of which is included with Exhibit A. In connection therewith, Ms. Cole advised the Board that, pursuant to Section 7(e) of the City Resolution No. 07-09-15-02 (which provided the City's consent to the creation of the District), the City shall have the right to review the District's annual budget. After discussion on the proposed budget, Director Geva moved that SPH be authorized to forward the District's proposed budget for the fiscal year ending May 31, 2026, to the City for its review and comment prior to adoption at the next Board meeting. Director Kerbel seconded said motion which unanimously carried. UNCLAIMED PROPERTY REPORT The Board next considered approval of an Unclaimed Property Report as of March 1, 2025, and the filing of same with the Texas Comptroller of Public Accounts (the "Comptroller") prior to July 1, 2025. In connection therewith, Ms. Oppenheimer presented to and reviewed with the Board a report reflecting that there was no unclaimed property in the District's operating accounts for the reporting period, a copy of which is attached hereto as Exhibit C. Mr. Bonnerjee then presented to and reviewed with the Board a report reflecting that there was no unclaimed property in the District's tax accounts for the reporting period, a copy of which is included with Exhibit C. After 4 784184v1 discussion, the Board concurred that MA&C and B&A be authorized to file the Unclaimed Property Reports with the Comptroller prior to July 1, 2025. ANNUAL MAINTENANCE FOR ARBITRAGE ANALYSIS REPORT FROM MUNICIPAL RISK MANAGEMENT GROUP, L.L.C.; APPROVAL OF ENGAGEMENT LETTER FOR ARBITRAGE REBATE CALCULATION Ms. Cole presented to and reviewed with the Board the Annual Maintenance for Arbitrage Analysis Report originally dated February 3, 2024 (the " Report"), prepared by Municipal Risk Management Group, L.L.C. ("MRMG"), in connection with the yield restriction and arbitrage rebate calculation analyses performed in connection with the District's outstanding bonds, a copy of which Report is attached hereto as Exhibit D. In connection therewith, she advised the Board that no Arbitrage Rebate Reports are recommended at this time. Ms. Cole then presented to and reviewed with the Board an evergreen engagement letter from Arbitrage Compliance Specialists, Inc. ("ACS") for preparation of future Arbitrage Rebate Reports, a copy of which is included with Exhibit D. After discussion, the Board concurred not to engage ACS at this time. TAX ASSES SOR/COLLECTOR'S REPORT Mr. Bonnerjee then presented to and reviewed with the Board the Tax Assessor -Collector Reports for the months ended Febraury 28, 2025, and March 31, 2025, prepared by B&A, including checks presented therein for payment. Copies of such reports are attached hereto as Exhibit E. Following discussion, Director Lindemulder moved that (i) the Tax Assessor/Collector Reports be approved, and (ii) that the checks identified therein be approved for payment. Director Kerbel seconded said motion, which unanimously carried. ADDITIONAL PENALTY ON DELINOUENT REAL PROPERTY TAXES The Board considered the adoption of a Resolution Authorizing an Additional Penalty on Delinquent Real Property Taxes. Ms. Cole advised that the Board is authorized pursuant to Section 33.07 of the Texas Tax Code, as amended, to impose an additional penalty not to exceed twenty percent (20%) of the total taxes, penalty, and interest due the District on taxes that remain delinquent as of July 1. Following discussion, Director Lindemulder moved that the Resolution Authorizing an Additional Penalty on Delinquent Real Property Taxes, attached hereto as Exhibit F, be adopted, and that the District's Delinquent Tax Attorneys be authorized to proceed with the collection of the District's 2024 delinquent real property tax accounts on July 1, 2025, subject to proper notice having been given as provided in said Resolution. Director Kerbel seconded the motion, which unanimously carried. ENGINEERING REPORT Mr. Atkinson presented to and reviewed with the Board a written Engineering Report for the month of April 2025, a copy of which is attached hereto as Exhibit G, relative to the status of various projects within the District, and discussed the matters contained therein. Following discussion, Director Geva moved to approve the Engineering Report and all action items listed therein, as recommended by EHRA, including: (i) authorization for EHRA to award construction 3 784184v1 contracts, subject to SPH's review of the payment and performance bonds and insurance certificates submitted in connection therewith to determine if said bonds and insurance meet the requirements of the bid specifications, the Texas Insurance Code, the rules of the Texas Commission on Environmental Quality and the provisions of the Texas Water Code, as applicable, for the construction of facilities within the District as may be listed therein, including Midtown Reserve Subdivision Phase 114 to the lowest qualified bidder, Greens Prairie Investors, Ltd., in the amount of $2,608,689.00; (ii) acceptance of any corresponding TEC Form 1295 required in connection with said contract, and authorization for SPH to acknowledge the District's receipt of same with the TEC; and (iii) approval and/or acceptance, as applicable, of all property by deeds and easements, as may be listed therein, subject to final review and approval by SPH, including : (a) acceptance of a Quitclaim Deed conveying a certain 0.103 acre tract from the City to the District; (b) approval of a Quitclaim Deed conveying said 0.103 acre tract from the District to College Station Town Center, Inc.; and (c) authorization for the President and/or Vice President to execute said Conveyances and Deeds on behalf of the Board and the District. Director Kerbel seconded the motion, which unanimously carried. DEVELOPER'S REPORT The Board considered the Developer's Report. Mr. Muff presented a verbal report on the status of development within the District. AUTHORIZE REQUEST TO CITY OF COLLEGE STATION FOR RE -APPOINTMENT AND/OR REPLACEMENT OF DIRECTORS Ms. Cole next advised the Board that pursuant to the City's appointment, the terms of office of Director Kerbel who serves in Position No. 4 on the Board and Director Lee who serves in Position No. 5 on the Board will expire on June 1, 2025, and that it is the Board's responsibility to nominate replacements or reappointments for those positions for the City's consideration. Following discussion Director Geva moved for the nomination of (i) Director Kerbel to Position No. 4 for a term expiring June 1, 2029, and (ii) Director Lee to Position No. 5 for a term expiring June 1, 2029. The motion was seconded by Director Lindemulder and carried by unanimous vote. Ms. Cole then advised the Board that with its consent, SPH will forward the nominations for Position Nos. 4 and 5 to the City for its consideration. Director Geva moved that SPH be authorized to provide the Board's nominations for appointment of Directors Kerbel and Lee to Position Nos. 4 and 5, respectively, to the City for its consideration. The motion was seconded by Director Lindemulder and carried by unanimous vote. ATTORNEY'S REPORT The Board considered the Attorney's Report. Ms. Cole advised the Board of a Public Notice received from the Brazos G Water Planning Group regarding the Initially Prepared 2026 Brazos G Water Plan, a copy of which is attached hereto as Exhibit H. Following discussion, it was noted that no specific action was required of the Board in connection with said matter. Ms. Cole noted that the next regular meeting of the Board will be held on Thursday, June 12, 2025, at 2:00 p.m. 0 7841841 FUTURE AGENDA ITEMS The Board next considered matters for possible placement on future agendas. There were no future agenda items to be discussed other than matters previously noted during the meeting. ADJOURNMENT There being no further business to come before the Board, on motion made by Director Lindemulder, seconded by Director Kerbel, and unanimously carried, the meeting was adjourned. �\,�����llll nnu►►�i� �AG£ME1VT���i�r (SEAL) " C-3= J% At> 11l111111111 Secretary 7841841 5 LIST OF ATTACHMENTS Rock Prairie Management District No. 2 Minutes of Meeting of April 10, 2025 Exhibit A Forvis Mazars, LLP Engagement Letter Exhibit B Bookkeeping Report Exhibit C Unclaimed Property Report(s) Exhibit D Annual Maintenance for Arbitrage Analysis Report Exhibit E Tax Assessor/Collector Report Exhibit F Resolution Authorizing an Additional Penalty on Delinquent Real Property Taxes Exhibit G Engineering Report Exhibit H Region H Water Planning Group Public Notice C 784184v]