Public Facilities Municipal Property Corporation

MINUTES OF THE BOARD OF DIRECTORS OF THE TOWN OF GILBERT, ARIZONA PUBLIC FACILITIES MUNICIPAL PROPERTY CORPORATION, ANNUAL MEETING, THURSDAY, JANUARY 11, 2018, 5:00 P.M., GILBERT MUNICIPAL CENTER, CONFERENCE ROOM 233, 50 EAST CIVIC CENTER DRIVE, GILBERT, ARIZONA MEMBERS PRESENT: President Roy Schmidt, Vice-President Paula Hatch (via telephone), Secretary-Treasurer Nabeel Ebrahim, Director Timothy Smith MEMBERS ABSENT: Director Matthew Porter COUNCIL LIASON PRESENT: Councilmember Jared Taylor TOWN STAFF PRESENT: Kelly Pfost, Management and Budget Director Håkon Johanson, Finance & Management Services Director David Pock, Senior Accountant Susanna Struble, Assistant Town Engineer/ CIP Manager Jack Gierak, CIP Supervisor Christopher Scott, CIP Manager James Nelson, Fire Department Battalion Chief Gary Ehlers, Fire Department Captain Kim Leone, Management and Budget Specialist CALL TO ORDER President Schmidt called the meeting to order at 5:02 p.m. ROLL CALL Management and Budget Specialist Leone called roll and declared a quorum was present. COMMUNICATIONS FROM CITIZENS None received. 1. ELECTION – nomination and election of officers for 2018. Paula Hatch was nominated as President. A MOTION was made by President Schmidt seconded by Director Smith for the above nomination. Motion carried 4 – 0 Roy Schmidt was the nominated as Vice-President. A MOTION was made by Secretary-Treasurer Ebrahim seconded by Director Smith for the above nomination. Motion carried 4 – 0  Public Facilities Municipal Property Corporation January 11, 2018 Page 2 of 5 Timothy Smith was nominated as the Secretary-Treasurer. A MOTION was made by President Schmidt seconded by Secretary-Treasurer Ebrahim for the above nomination. Motion carried 4 -0 2. MINUTES – approval of the minutes of the meeting of November 9, 2017. A MOTION was made by Secretary-Treasurer Smith seconded by Vice-President Schmidt to approve the minutes of the meeting of November 9, 2017 as written. Motion carried 4 - 0 3. BOND SALE – update on the results of the bond sale. Budget Director Pfost mentioned the last time the Board met there was discussion of refinancing bonds with a portion of bond sales to go to the Fire station. Finance Director Johanson spearheaded the project and provided an overview on how the market went. Finance Director Johanson stated it was an interesting time in the market as we were uncertain what would happen because of the new tax laws. Total bonds sold for the year were on track to be below the previous year but in December bond sales increased three and a half times the normal average as everyone rushed to market. Budget Director Pfost commented because there were so many people rushing to sell in December and there were a lot of issuers who did not get full coverage on their bonds. However, because of our great credit we were able to get full coverage for all our bonds. Vice-President Schmidt asked if we received extra for each bond or just what was asked for. Finance Director Johanson confirmed the bonds were sold with a premium and stated because of where the market was we were able to borrow at a total interest cost of 2.13 percent. Budget Director Pfost provided a spreadsheet to the Board the Finance office keeps that reflects total bond savings since 2012. Total savings to tax payers was $21 million dollars of which $9 million came from interest savings and $12 million came from extra principal that was put towards the bond refinance. Over the last six years the Town has a very strong track record of paying debt early and refinancing to save interest to about more than $32 million dollars of saved interest and over $65 million of principal that was bought down. Both Budget Director Pfost and Finance Director Johanson thanked the board for their flexibility and participation which helped to save tax payers a lot of money. 4. CAPITAL PROJECTS – status report on capital projects. CIP Manager Scott provided a presentation on Fire Station #9 Project MF023 that is located on Ocotillo Rd just east of Higley Rd. The project is on a 2.5 acre site and will be a 12,100 sf single story structure with four bays. The total budget is $10 million garnered from System Development Fees with a $5.9 million construction budget which included required utility work. The project is using a Construction Manager at Risk delivery method and brought on a contractor during the design phase to help. The project team consists of the fire department, HAD Architects, Willmeng Construction, and CookDZ Project/ Construction Management. The project design began January 2017, construction began in November 2017, and completion projected for September 2018. Currently construction is approximately 20% completed and projected to finish $1 million under budget. A site plan was provided which showed a standard fire station lay out as well as displayed where the traffic signs and parking spaces would be.  Public Facilities Municipal Property Corporation January 11, 2018 Page 3 of 5 Photographs were provided that displayed what the construction looks like now as well as a rendering of what the project will look like when completed. Vice-President Schmidt asked if the station would be in any sort of danger caused by the amount of traffic that occurs on Ocotillo Rd. Fire Chief Nelson stated this station will be similar to other stations and will have a light in front of it so when a call occurs the team can trigger the light in front of the station to stop traffic to let the trucks out safely. Secretary-Treasurer Smith asked if there were any concerns from neighboring residents. CIP Manager Scott replied that the contractors have been proactive with contacting residents to ensure they are aware of when there will be noise and the residents have been really supportive about the project. Fire Chief Nelson mentioned that the project will be going vertical on Monday and will be getting noisy for a period of time while cutting blockwork. Residents (especially the residents along the fence line adjacent to the station) in the area have been notified. CIP Supervisor Gierak commented that fire station projects are usually well accepted by residents compared to other projects such as reservoirs. There were concerns about privacy for two story homes and during design phase the Town made as many provisions as possible to accommodate resident’s privacy and other aspects. One of which are the trees that will line the facility to buffer truck noises that may occur at any hour of the day and night. Fire Chief Nelson included that a really good job was done to educate the public around the station itself as well as walking door to door to ensure construction would not be a nuisance to the neighboring residents. Secretary-Treasurer Smith stated that the presentation reflects the project will be $1 million dollars under budget and asked if there were any plans to do any other enhancements on the property with those budget savings. Fire Chief Nelson remarked they have everything they need already included in the budget at this time. Budget Director Pfost stated when the Town completed the bond financing it was only done for $7.5 million in anticipation that the project would come in under budget and be able to use those savings. The Town did not want to get more than what was needed and the difference would be covered by system development fees that are in the bank. CIP Supervisor Gierak commented that the plan is to turn the savings back over to the Town. The project is not over yet and hopes to do better than the current projected savings. CIP Supervisor Gierak currently does not see any risks that could get in the way. Councilmember Taylor arrived at 5:14 p.m. CIP Manager Scott provided a brief project presentation review for Councilmember Taylor. CIP Supervisor Gierak commented previous fire departments have been developed on little more than an acre and why sometimes the building may require two stories to accommodate the department needs however; this project has more land so they were able to keep the project to a single story. Fire Chief Nelson remarked the project has a prototypical layout built for expandability within it so they can add if needed. Currently there are no needs for enhancements of this station when it is completed. Fire Chief Nelson stated that the budget also included a truck and full time employees. Assistant Town Engineer Struble arrived at 5:21 p.m. Director Ebrahim asked if the Fire Department plans to hire more people as we are getting more facilities. Fire Chief Nelson answered that hiring has been completed for this facility and there are several recruits who will be entering the academy in February. Budget Director Pfost added that the Fire Department has a long lead time to get individuals trained and ready. Additionally, the Fire Department has a Low Acuity Unit Pilot that is wrapping up and they plan to use the data from this pilot to see if sending smaller units to respond to smaller calls would be a viable option to help reduce cost in the future. Once this pilot is completed, staff who were involved will be able to switch and work at the facility.  Public Facilities Municipal Property Corporation January 11, 2018 Page 4 of 5 Vice-President Schmidt asked if there are any other capital projects that need to be discussed. Budget Director Pfost responded that the Fire Station Project is the only active project utilizing PFMPC money at the time and did not anticipating the need for any more PFMPC money in the coming year or even into the future but will keep the Board updated. 5. ANNUAL REPORT– approval of the annual financial report Vice-President Schmidt asked if the Board has had time to look at the report. Budget Director Pfost introduced Senior Accountant Pock to answer any questions the Board may have. President Hatch commented she had looked over the report and had no questions. A MOTION was made by Director Ebrahim seconded by Vice-President Schmidt to approve annual report as written. Motion carried 4 - 0 6. FINANCIAL UPDATE Budget Director Pfost explained this update reflects the last six months to current and the Town has been making the bond payments and doing well. FUTURE AGENDA ITEMS/MEETINGS 7. Identify future agenda items. None received. COMMUNICATIONS 8. From the PRESIDENT on current events. None received. 9. From the BOARDMEMBERS on current events. None received. 10. From the COUNCIL LIAISON on current events. None received. 11. From the STAFF on current events. None received. ADJOURN A MOTION was made by Vice-President Schmidt, seconded by President Hatch to adjourn the meeting. Motion carried 4-0.  Public Facilities Municipal Property Corporation January 11, 2018 Page 5 of 5 The meeting was adjourned at 5:25 p.m. Director Porter arrived at 5:27 p.m. ATTEST: _____________________________ ________________________________ Paula Hatch, President Timothy Smith, Secretary-Treasurer CERTIFICATION I, hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Annual Meeting of the Town of Gilbert, Arizona Public Facilities Municipal Property Corporation held on January 11, 2018. I further certify that the meeting was duly called and held and that a quorum was present. Dated this ________ day of ________. ________________________________ Timothy Smith, Secretary-Treasurer