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 15, 2019, 5:30 P.M., GILBERT MUNICIPAL CENTER, CONFERENCE ROOM 233, 50 EAST CIVIC CENTER DRIVE, GILBERT, ARIZONA MEMBERS PRESENT: President Paula Hatch (via telephone), Vice-President Roy Schmidt, Secretary-Treasurer Timothy Smith, Director Steve Bentz, Director Nabeel Ebrahim MEMBERS ABSENT: None COUNCIL LIAISON PRESENT: Councilmember Jared Taylor TOWN STAFF PRESENT: Kelly Pfost, Management and Budget Director Håkon Johanson, Finance & Management Services Director Chris Payne, Town Attorney Susanna Struble, Assistant Town Engineer/ CIP Manager Jack Gierak, CIP Supervisor Anthony St. George, Accounting Supervisor Patti Hageman, Management and Budget Specialist OTHERS PRESENT: None CALL TO ORDER Vice-President Schmidt called the meeting to order at 5:30 p.m. OATHS OF OFFICE Councilmember Taylor gave the Oath of Office to Roy Schmidt, renewing his term for another three years, and to new board member, Steve Bentz. ROLL CALL Management and Budget Specialist Hageman called roll and declared a quorum was present. COMMUNICATIONS FROM CITIZENS None received. AGENDA ITEMS 1. ELECTION – nomination and election of officers for 2019. Nabeel Ebrahim was nominated as President. A MOTION was made by Vice-President Schmidt seconded by Secretary-Treasurer Smith for the above nomination. Motion carried 5 - 0  Public Facilities Municipal Property Corporation January 15, 2019 Page 2 of 4 Steve Bentz was the nominated as Vice-President. A MOTION was made by Vice-President Schmidt seconded by Secretary-Treasurer Smith for the above nomination. Motion carried 5 - 0 Paula Hatch was nominated as the Secretary-Treasurer. A MOTION was made by President Ebrahim seconded by Director Schmidt for the above nomination. Motion carried 5 - 0 2. MINUTES – approval of the minutes of the meeting of January 11, 2018. A MOTION was made by Director Schmidt seconded by Director Smith to approve the minutes of the meeting of January 11, 2018 as written. Motion carried 5-0 3. CAPITAL PROJECTS – status report on capital projects. CIP Supervisor Gierak provided an update on Gilbert Fire Station #9, Project MF023. Fire Station #9 is located on a 2.5 acre site on the SE corner of Higley Rd. and Ocotillo Rd. It is the last piece of the puzzle in terms of public safety fire protection infrastructure for the Town, and the last fire station planned for build out. CIP Supervisor Gierak said that Fire Station #9 is a product typical design. It is a one level structure, approximately 12,000 square feet, with four bays. The total budget was $10 million with a $5.9 million construction budget. The station has been operational since September, and the project looks to close out around $8 million, which is $2 million under budget. The project used a delivery method called CM@R (Construction Manager at Risk), which allowed the Town to pick the contactor based upon qualifications. This helped to increase the quality of the product and provided more flexibility in construction. Willmeng Construction was the CM@R, while the design was provided by HDA Architects. The Town utilized CookAZ for management of the project and construction. The Fire Department, as always, was instrumental in the process. They were often onsite and provided comments at every design meeting. CIP Supervisor Gierak mentioned that CIP worked closely with nearby property owners to address any privacy issues and that the public was very inviting and happy to have a fire station at this location. Most of the $2 million in savings came from construction with about $600,000 coming from professional fees. A site plan and photos of the completed station were provided. President Ebrahim asked if there was anything else as far as capital that needed to be discussed. Management and Budget Director Pfost reiterated that the Town was excited to have the project come in under budget and that we didn’t get more bond funding or borrow more money than what was actually needed. In the end, we only issued $7.5 million in bonds and made up the gap with SDF cash. 4. ANNUAL REPORT– approval of the annual financial report  Public Facilities Municipal Property Corporation January 15, 2019 Page 3 of 4 Accounting Supervisor St. George briefly went over the financial report. For comparison purposes, there were two sets of financial statements provided in the agenda packet, one as of June 30, 2018 and one as of December 31, 2018. Each set included a Statement of Net Position and a Statement of Revenues, Expenses, and Changes in Net Position. Essentially, the Statement of Net Position is the balance sheet for the Corporation. It shows the fund balance of assets and liabilities and is a good indicator of how the Corporation is doing at a specific point and time. The Statement of Revenues, Expenses, and Changes in Net Position, which is equivalent to an income statement for the fiscal year, shows the Corporation’s revenues and expenses. These financial statements allow one to see the data for the Corporation in total. At the end of each financial statement, there is a report showing the individual issuances and their activity separate from the corporation as a whole. Accounting Supervisor St. George asked if there were any questions. Vice-President Bentz asked about the timing of the lease payments that are made, particularly those referenced on the December 31 statement. Accounting Supervisor St. George responded that it is primarily based on when the payments are due. Typically, there is only interest due for the January 1 bond payment, so it is generally a lot smaller than the bond payment made in June for July 1st, which includes principal and interest. Vice-President Bentz asked how lease payments are structured. Management and Budget Director Pfost answered that the lease payments from the Town to the MPC match the bond payments. President Ebrahim asked if there were any further questions. There were none. A MOTION was made by Director Schmidt seconded by Director Smith to approve annual financial report as written. Motion carried 5 - 0 FUTURE AGENDA ITEMS/MEETINGS 5. Identify future agenda items. None received. COMMUNICATIONS 6. From the PRESIDENT on current events. None received. 7. From the BOARDMEMBERS on current events. None received. 8. From the COUNCIL LIAISON on current events. None received.  Public Facilities Municipal Property Corporation January 15, 2019 Page 4 of 4 9. From the STAFF on current events. None received. ADJOURN A MOTION was made by Director Schmidt seconded by Director Smith to adjourn the meeting. Motion carried 5 - 0 The meeting was adjourned at 5:49 p.m. ATTEST: Nabeel Ebrahim, President Paula Hatch, 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 15, 2019. I further certify that the meeting was duly called and held and that a quorum was present. Dated this day of , . Paula Hatch, Secretary-Treasurer