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Home My WebLink About12-15-07 BOT MinMINUTES OF THE TOWN OF WESTLAKE, TEXAS BOARD OF ALDERMEN / TRUSTEES SPECIAL MEETING December 15, 2007 PRESENT: Mayor / President Scott Bradley and Aldermen / Trustees Larry Corson, April Gallagher, Don Redding, Pete Steger, and Bob Timmerman. ABSENT: None. STAFF PRESENT: Interim Town Manager Joe Hennig, Town Secretary Kim Sutter, Facilities and Recreation Director Troy Meyer, Head of School Barbara Brizuela, DPS Director Don Wilson, and Building Official Eddie Edwards. OTHERS PRESENT: Mr. Holly C. Fisk, Fisk & Fielder, P.C., Dallas, Texas, Mr. W. Boyd London, Jr., Managing Director of First Southwest Holdings, Inc.; Mr. Leroy Grawunder of McCall, Parkhurst & Horton; Mr. Michael Bennett of Gideon Toal Architects (arrived 11:00 a.m.), Westlake Academy Foundation President Chris Noonan. 1. CALL TO ORDER. Mayor / President Bradley called the meeting to order at 9:02 a.m. With no objection from the Board, Mayor / President Bradley reordered the agenda to consider item #8. 8. DISCUSS AND CONSIDER TAKING ACTION TO CONDUCT CANDIDATE INTERVIEWS FOR CONSIDERATION OF APPOINTMENT TO AN UNEXPIRED TERM ON THE BOARD OF ALDERMEN. Mayor Bradley introduced the item. The Board of Aldermen discussed the impact of appointing an individual versus leaving the position vacant until the May 2008 election. lzj Town of Westlake Board of Aldermen / Trustees Special Meeting December 15, 2007 Page 2 of 7 MOTION: Alderman Timmerman made a motion to conduct interviews to consider an appointment to the unexpired term of Alderwoman Gallagher. Alderwoman Gallagher seconded the motion. Alderman Redding expressed his desire to allocate adequate time to discuss and make decisions regarding the Arts and Sciences Center building before conducting interviews and considering an appointment to the Board. VOTE ON MOTION: The motion carried by a vote of 5-0. 2. DISCUSS AND CONSIDER TAKING ACTION REGARDING WESTLAKE PERFORMING ARTS AND SCIENCES CENTER. Interim Town Manager Hennig introduced Holly C. Fisk, Esq., of Fisk & Fielder, P.C., Dallas, Texas. Mr. Fisk addressed the Board regarding the various construction techniques for constructing the Arts and Sciences Center building to be located at the Westlake Academy campus. Mr. Fisk outlined the following five methodologies: 1) Design, Bid, Build; 2) Competitive sealed proposal; 3) Construction Manager As Agent; 4) Construction Manager At Risk; and 5) Design Build. Mr. Fisk discussed in further detail the Construction Manager As Agent, Construction Manager At Risk, and the Design Build methods and outlined the pros and cons of each process. Alderman Corson expressed his concern with regard to the Design Build process due to issues of advocacy. Discussion ensued with regard to the processes, where the Town is currently in the construction process, and the feasibility of changing the method if the Board desires to do SO. Interim Town Manager Hennig reported on the available funding for the construction of the building. Cash on hand $181,617 Outstanding pledges over five (5) period $399,758 1L 1 Town of Westlake Board of Aldermen / Trustees Special Meeting December l5, 2007 Donation by Mr. Paul Spain $300,000 General Obligation Bonds approved by voters $2,500,000 Texas Student Housing Authority $500,000 Total $3,881,375 Page 3 of 7 Mr. Hennig reported that the current balance of the Hotel Occupancy Tax Fund (HOT) is $1.236 million, and the approved 2007-08 budget projected the revenue at $1.499 million. Mr. Hennig cautioned the Board on utilizing the HOT fund to provide additional funding for the building above the $250,000 he is recommending. Mayor Bradley advised that the Marriott, with the addition of rooms and meeting space is projecting an increase in revenue from the HOT and the sales tax revenue; However, Marriott management has also indicated that they will approach the Town requesting the use of some of the additional revenue for increased marketing of the hotel. Mr. Hennig recommended the Board discuss and come to a decision on what the Town can afford in the way of a building. Mr. Chris Noonan, President of the Westlake Academy Foundation, advised that the current cash on hand is $186,000, and total pledges equal $714,000, and includes the donation by Mr. Paul Spain. Interim Town Manager Hennig introduced Mr. Jason L. Hughes, First Southwest Company, and Leroy Grawunder, Esq., of McCall, Parkhurst & Horton. Mr. Hughes addressed the Board regarding 1) the Town's current outstanding debt; 2) future debt issuance, including the recently approved $2.5 million bond; and 3) potentially monetizing any pledges from a capital campaign. Mr. Hughes advised the Board that in order to monetize the pledges from the capital campaign, another type organization such as a 501(c)3 would be required. Mr. Hughes advised that, assuming the debt can be sold, the cost to capital would be much greater as opposed to a Certificate of Obligation (CO) or General Obligation (GO) issuance. Alderman Steger inquired if the monetization of the pledges could occur without a tax pledge. Mr. Hughes responded that it could be possible, but that further evaluation is needed. Discussion ensued with regard to the possibility of monetizing the pledges without pledging an ad valorem property tax. i19 Town of Westlake Board of Aldermen / Trustees Special Meeting December 15, 2007 Page 4 of 7 Mr. Hughes advised that another potential option would be to issue HOT revenue bonds. However, Mr. Hughes stated that he did not feel that the Town could acquire insurance or an investment grade rating on the bonds. Interim Town Manager Hennig asked the Board if they are comfortable with the issuance of a tax bond, as it is the most effective and efficient way to acquire the funds. Alderman Corson stated that feels the Board does not have enough information to make a decision regarding monetizing the pledges and he would like to review all sources of the Town's revenue and evaluate the Town's position in terms of debt service coverage before making a determination on the monetizing of pledges or issuing any additional debt. Interim Town Manager Hennig stated that in order to proceed with the construction of the building, it is necessary for the Board to make a decision regarding monetizing the pledges. Mr. Hughes suggested that First Southwest could review the past five years of audits, reconstruct the revenues paid out thus far and provide information regarding the debt service coverage to the Board by January 2008. Mr. Noonan, Westlake Academy Foundation President, advised the Board that the Foundation thinks it will be difficult to raise funds without a good faith consensus from the Board. Mayor Bradley raised the question for a motion and suggested the Board set a maximum dollar for construction. MOTION: A motion was made by Mayor Pro Tem Redding to set the maximum cost of construction for the Arts and Sciences Center building at $5.5 million, all inclusive, and that the January 14, 2008, regular meeting agenda include a report and discussion regarding the debt service coverage as is relates to the risk of an ad valorem property tax. Alderwoman Gallagher seconded the motion. VOTE ON MOTION: The motion carried by a vote of 5-0. Interim Town Manager Hennig requested that the Board identify the preferred method for the construction of the Arts and Sciences Center building. MOTION: Alderman Corson made a motion to select the Construction Manager At Risk process. Mayor Pro Tem Redding seconded the motion. Discussion ensued with regard to the benefits of the Construction Manager At Risk process. 11/ Town of Westlake Board of Aldermen / Trustees Page 5 of 7 Special Meeting December 15, 2007 VOTE ON MOTION: The motion carried by a vote of 5-0. 3. EXECUTIVE SESSION Mayor Bradley recessed the regular session of the Town of Westlake Board of Aldermen and Trustees meeting at 12:39 p.m., as he read the following item to be discussed in executive session: A. The Board will conduct a closed session under Texas Government Code section 551.074 to discuss personnel matters. Mayor Bradley convened the executive session at 12:41 p.m. The executive session adjourned at 1:51 p.m. 4. RECONVENE MEETING. Mayor Bradley reconvened the meeting at 1:58 p.m. 5. CONSIDER A RESOLUTION AUTHORIZING THE INTERIM TOWN MANAGER TO EXECUTE AN AGREEMENT WITH AN EXECUTIVE SEARCH FIRM FOR THE PURPOSE OF CONDUCTING AN EXECUTIVE SEARCH FOR A TOWN MANAGER. Mayor Bradley introduced the item and asked for a motion. MOTION: Alderman Steger made a motion to approve Resolution No. 07-82, authorizing the Interim Town Manager to execute an agreement with SGR, Inc., in the amount of $22,500.00. Alderwoman Gallagher seconded the motion. The motion carried by a vote of 5-0. 6. DISCUSS AND CONSIDER TAKING ACTION REGARDING PROCESS FOR APPOINTING A NEW HEAD OF SCHOOL. President Bradley introduced the item and asked for a motion. MOTION: Trustee Timmerman made a motion to form a Head of School selection committee consisting of the current Head of School, the Interim Town Manager, the MYP Coordinator, the PYP Coordinator, one Alderman, one parent, an alternate faculty member, and an alternate parent to be named by the Board of Aldermen to identify a minimum of two (2) and a maximum of four (4) candidates for consideration of appointment by the Board of Trustees. Trustee Steger seconded the motion. 110 Town of Westlake Board of Aldermen / Trustees Page 6 of 7 Special Meeting December 15, 2007 VOTE ON MOTION: The motion carried by a vote of 5-0. 9. CONDUCT INTERVIEWS FOR BOARD OF ALDERMEN APPOINTMENT. The Board conducted interviews with the following individuals for consideration of appointment to fill an unexpired term on the Board of Aldermen. - Ms. Laura Wheat - Ms. Rebecca Rollins - Mr. Kevin Maynard 10. CONSIDER A RESOLUTION TO FILL THE UNEXPIRED TERM OF APRIL L. GALLAGHER FOR THE POSITION OF ALDERMAN. Mayor Bradley introduced the item and asked for a motion. MOTION 1: Mayor Pro Tem Redding made a motion to nominate Laura Wheat to fill the unexpired term on the Board. Alderman Corson seconded the motion MOTION 2: Alderwoman Gallagher made a motion to nominate Kevin Maynard to fill the unexpired term on the Board. Alderman Timmerman seconded the motion. Discussion ensued with regard to the nominations. VOTE ON MOTION 1: The motion failed by a vote of 2 to 3. For: Aldermen Corson and Redding. Nay: Aldermen Gallagher, Steger, and Timmerman. VOTE ON MOTION 2: The motion carried by a vote of 3 to 2. (Resolution No. 07-83). For: Aldermen Gallagher, Steger, and Timmerman Nay: Aldermen Corson and Redding. Mayor Bradley announced that Mr. Kevin Maynard has been appointed by the Board to fill the unexpired term of April L. Gallagher. 7. DISCUSS AND CONSIDER TAKING ACTION REGARDING BOARD OF ALDERMEN/TRUSTEES 2008 MEETING SCHEDULE AND CALENDAR EVENTS. 11j Town of Westlake Board of Aldermen / Trustees Special Meeting December 15, 2007 Page 7 of 7 Discussion ensued with regard to the 2008 meeting schedule and the scheduling of workshops and pre -board meetings. The Board discussed the need to hold two meetings in the months of May and October. An item will be placed before the respective Boards to adopt the 2008 meeting calendar for the Board of Aldermen and the Board of Trustees. 11. TOWN MANAGER'S REPORT. Interim Town Manager Hennig addressed the Board regarding the following items: - Consider offering an invocation and the pledge as a part of the regular Board of Aldermen meeting; - Conducting executive session during the pre -board meetings; - Commencing the pre -board meetings at 5 p.m.; - Consider authorizing an employee spring holiday to be taken on Good Friday; - Consider moving all Board meetings to the Town Hall offices. 12. ADJOURNMENT. There being no further business, Mayor / President Bradley adjourned the meeting at 3:30 p.m. APPROVED BY THE BOARD OF ALDERMEN ON JANUARY 14, 2008. Scott Bradley, Mayor / Presid#ht ATT S . i utter, RMC, Town Secretary / Secretary