Norman Forward Citizens Financial Oversight Board Meeting

NORMAN FORWARD CITIZENS FINANCIAL OVERSIGHT BOARD MINUTES August 15, 2016 The Norman Forward Citizens Financial Oversight Board (CFOB) of the City of Norman, Cleveland County, State of Oklahoma, met at 3:30 p.m. in the Municipal Building Conference Room on the 15th day of August, 2016, and notice and agenda of the meeting were posted in the Municipal Building at 201 West Gray and the Norman Public Library at 225 North Webster 24 hours prior to the beginning of the meeting. PRESENT: Members MacKenzie Britt, Anil Gollahalli, Andy Rieger, Tom Sherman, Chair Bill Nations, and Don Hiebert ABSENT: Members Bree Montoya, Cindy Rogers OTHERS PRESENT: Lynne Miller, Mayor Bill Hickman, Council Member Jeff Bryant, City Attorney Terry Floyd, Development Coordinator Jud Foster, Parks & Recreation Director Kyle Lombardo, ADG John Wolfe, Municipal Finance Services, Inc. Anthony Francisco, Finance Director (via video conference) David Hopper, Chair of Senior Citizens Ad Hoc Advisory Committee Tim Mauldin, Chair of Library Ad Hoc Advisory Committee CALL TO ORDER AND ROLL CALL Chair called the meeting to order at 3:30 pm. A quorum was present. * * * * ** * ITEM 1, being APPROVE MINUTES FROM MAY 23, 2016 MEETING After review and discussion of minutes of June 13, 2016 meeting, a motion was made by Member Sherman and seconded by Member Rieger to approve the minutes. Motion passed unanimously. ****** ITEM 2, being PRESENTATION, DISCUSSION AND POSSIBLE ACTION REGARDING NFST FINANCIAL PRO FORMA Anthony Francisco made a presentation of the Pro Forma and stated that we were asked to do an informal projection on Norman Forward for its entire 15 year life. Would we be able to pay for Norman Forward Citizens Financial Oversight Board Minutes August 15, 2016 Page 2 all of the projects and/or would we have any money left over? We have worked on this and want to make sure you understand the format. Fiscal year 2015-2016 (FYE 2016) actual collections and expenditures are shown in Column D, budgeted FYE 2017 revenue is shown in Column E. Future sales tax growth is projected at 4.25%. In FYE 2016, the expenditures for two Griffin Sports Complex soccer fields will be a pay as you go project even though the project as a whole will be done as a debt financed project. We can pay for all of these projects with the money we anticipate coming in. At the end, we think we might have about $5 million left over. But in the meantime, funds will be tight due to pay as you go projects and the cash flow issues that go along with those. State law requires that each year’s budget has a positive projected fund balance, so the lowest fund balance figure of $677,766 (projection for FYE 2020) is the critical figure of the amount of “available” funds for added projects. As we get to the preparation of each year’s budget, the pay-as-you-go projects for the year will be re-considered; if available funds are not adequate, some projects may need to be delayed in that year. But Francisco stated that he was excited by the adequacy of the Norman Forward funds to move ahead with pay-as- you-go projects. In the near term, significant progress can be made on such projects as the Ruby Grant, Saxon and new neighborhood parks. Member Britt asked if the Senior Center is in the Budget. Francisco says that there is no money in the budget for the Senior Center. There was a resolution passed by the City Council to explore funding options for a stand-alone Senior Center, but as of now there is no money in Norman Forward for the Senior Center except for the staffing money allocated to wherever the Senior Center ends up. Member Sherman asked for an update with actual numbers in subsequent years. Francisco says they will absolutely do this; the Pro Forma will be updated on at least a semi-annual basis. Member Gollahalli asked if we are paying out the Griffin Park land acquisition over 10 years. Francisco says he believes it is over 15 years but that is still being negotiated. Jeff Bryant says that it will be an interest free payment over 14 years. Member Sherman asked if 2.98% is the actual amount on the first debt tranche. Francisco said yes. Member Sherman moved to approve the Pro Forma as submitted. Member Rieger seconded. Motion passed unanimously. Items submitted for the record: 1. EXPLANATORY NOTES FOR NORMAN FORWARD FINANCIAL PRO FORMA 2. NORMAN FORWARD SALES TAX FUND, Pro Forma Financial Projections ****** Norman Forward Citizens Financial Oversight Board Minutes August 15, 2016 Page 3 ITEM 3, being DISCUSSION OF PREVIOUSLY-APPROVED COUNCIL ACTIONS AND POSSIBLE ACTION Francisco discussed the Council actions related to Norman Forward since the June 13th CFOB meeting. The only action highlighted for Committee discussion was the resolution on the Senior Citizen Center project (Resolution 1617-17). The options for the Senior Center have been narrowed down to the stand-alone site locations “AP” (in Andrews Park) and “L4” (north of Acres Street) in the Senior Center Study reviewed by the Council. The Council will review the options submitted to fund the Center over the next 90 days. Mayor Lynne Miller stated that the EL (Existing Central Library Building) option was not eliminated from consideration by the Resolution. The 2008 bond money will only be available for the EL option; they just asked the City Manager to look at both of those other sites and possible options to fund them. The 11 million dollars in authorized General Obligation Bond money is restricted to the remodel of the municipal buildings at that existed in 2008. Member Gollahalli asked if the money is authorized to issue debt, as opposed to money sitting in a bank. Francisco stated that yes it is and that General Obligation bond debt is repaid from property tax levies. Items submitted for the record: 1. RESOLUTION DIRECTING THAT THE CITY MANAGER FURTHER EXPLORE FUNDING OPTIONS FOR A “STAND ALONE” SENIOR CITIZENS CENTER 2. CONSIDERATION AND APPROVAL OF CONTRACT BETWEEN THE NORMAN MUNICIPAL AUTHORITY AND M&M WRECKING FOR THE WESTWOOD POOL DEMOLITION. 3. CONTRACT BETWEEN THE CITY OF NORMAN AND THE BANK OF OKLAHOMA TRUST COMPANY TO PROVIDE SECURITY CUSTODY SERVICES FOR THE CITY OF NORMAN INVESTMENT SECURITIES. 4. CONTRACT BETWEEN THE CITY OF NORMAN AND ENVIRONMENTAL ACTION FOR ASBESTOS REMOVAL AND DISPOSAL. 5. FINAL ACCEPTANCE AND FINAL PAYMENT OF CONTRACT K-1516-134 BETWEEN THE CITY OF NORMAN AND LADONCO, INC. FOR THE NORMAN FORWARD GRIFFIN PARK SOCCER FIELD REGRADING PROJECT. 6. CONTRACT BETWEEN THE CITY OF NORMAN AND BURNS AND MCDONNELL FOR COMMISSIONING SERVICES. Norman Forward Citizens Financial Oversight Board Minutes August 15, 2016 Page 4 7. AMENDMENT TO THE CONTRACT K-1516-83 BETWEEN THE CITY OF NORMAN AND MEYER, SCHERER, & ROCKCASTLE, LTD. FOR ADDITIONAL PROFESSIONAL DESIGN SERVICES FOR THE INTERSECTION OF JAMES GARNER AVENUE AND ACRES STREET. 8. RESOLUTION OF THE COUNCIL OF THE CITY OF NORMAN ADOPTING THE IMPLEMENTATION PLAN FOR PROJECTS TO BE FUNDED BY REVENUES COLLECTED FROM THE NORMAN FORWARD TEMPORARY SALES TAX. ****** ITEM 4, being AD HOC COMMITTEE LIAISON REPORTS Moved further down the list. (Actually discussed after item 6) Chair Nations mentioned that Andy Paden appointment to the Committee to replace former member Breea Clark is possible. Tim Mauldin said the Library Ad Hoc Committee most recent meeting was July 14 th and they approved the design development for the East Library while continuing to explore options on the raised floor and the design of the clear story saddle, flooring, and wall structure for the bathrooms. The meeting prior to that was June 13th in which the updates to the schematic design and the dark brick for the Central library were approved. The meeting on May 23rd they had their first report on the public art project. The art budget for the East branch was $39,000, $125,000 for the Central branch, and $105,000 for the Westwood Aquatic Center. The schematic design for the Central branch was approved excluding the exterior color design which would be presented at a future meeting. Chair Nations said in our next meeting we would appoint the new Library Ad Hoc Liaison. Member Sherman said that the Ad Hoc Committee has not met in several months for the Senior Citizens Center. Trying to find a viable funding source that the citizens will get behind is going to be critical to being able to have a free standing Senior Citizens Center. Items submitted for the record: 1. NORMAN FORWARD EAST AND CENTRAL LIBRARIES AD HOC ADVISORY GROUP Summary of Recommendations of May, June, & July 2016 ******* Norman Forward Citizens Financial Oversight Board Minutes August 15, 2016 Page 5 ITEM 5, being DISCUSSION OF FINANCE REPORTS-FINANCE DEPARTMENT Sales tax revenue for the month is down from the last month. Member Sherman said he sees no need for an updated sales tax projection as of yet. We need to keep on top of the issue, but not do anything drastic. Member Gollahalli wanted to know at what point we should be worried about sales tax collections. Francisco says he is worried right now; not specific to Norman Forward, but to the City’s sales tax collections as a whole, because the City is very dependent on sales tax for all operations and capital costs. The City won’t amend the budget as of yet, but he is concerned. We need to continue to monitor the situation and make sure the trend doesn’t continue. Member Gollahalli asked if Francisco had any pre-existing triggers for reductions in the City budgets. Francisco stated that there were no formal triggers, but as a matter of practice, recommendations for expenditure cuts would be made at the mid-year City Council Finance Committee meeting. Member Sherman asked if the August reporting was actually for sales during the month of June. Francisco said yes. Items submitted for the record: 1. NORMAN FORWARD Sales Tax Table 8-2016 ***** ITEM 6, being DISCUSSION OF PROJECT STATUS-PROJECT MANAGERS Terry Floyd said both the East and Central branches of the library are moving forward. Since the last meeting, the Council approved the design development plans for the East branch library. That is moving into the 95% design plan phase. The central branch is moving forward to the 65% design phase as well. We would like that to be in front of the Library Ad Hoc Committee in September and come to the Council for approval the following day. At that point they will move into the 95% plan phase as well. The projects are within budget. We are moving forward with those things. We have a contract for commissioning during and after the construction in order to obtain the LEEDs certification. Jud Foster said that the first Art Request for Qualifications (RFQ) for the Westwood projects has been released. Completion of this will be sometime in summer of 2017. The budget is just over $100,000. We have an Request for Proposal (RFP) out for the Westwood tennis project. We will have that to the Council by next month. Westwood pool project is underway right now. Norman Forward Citizens Financial Oversight Board Minutes August 15, 2016 Page 6 Demolition is underway. Construction drawings are 95% complete. Construction plans will be finished by the end of this month and out to bid by Sept. and construction to start in Oct. We have had two preliminary meetings with the Oklahoma Health Department for the pool. Westwood Swim Complex should be open next July. Member Rieger asked if the bidding for the East library would happen in September like it said in the last meeting minutes. Foster said he meant the Westwood pool and that it probably needed to be corrected in last meeting’s minutes. Member Gollahalli asked to see the operating budgets for the pool. Foster said yes. ****** ITEM 7, being MISCELLANEOUS DISCUSSION City Council Member Bill Hickman was looking at the schedule and was wondering if the pay- as-you-go projects had been pushed back. Francisco said that no they were not and explained that we don’t have to push back the pay-as-you-go projects, and that he had stated earlier in the meeting that he was actually excited about the ability to move pay-as-you-go projects forward rather quickly due to the budget having the projected cash available. ****** ITEM 8, being ESTABLISHMENT OF NEXT MEETING DATE / TIME After discussion, members agreed to meet again on Monday, October 17, 2016, at 3:30 pm in the Council Study Session Room. ****** ITEM 9, being ADJOURNMENT Motion was made by Member Britt and seconded by Member Rieger to adjourn. Motion passed unanimously. Board adjourned at 4:27 pm. ******