Norman Forward Citizens Financial Oversight Board Meeting

NORMAN FORWARD CITIZENS FINANCIAL OVERSIGHT BOARD MINUTES September 11, 2017 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 11th day of September, 2017, 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, Cynthia Rogers, Anil Gollahalli, Andy Rieger, Tom Sherman, and Chair Bill Nations ABSENT: Members Don Hiebert, Bree Montoya, and Andy Paden OTHERS PRESENT: Robert Castleberry, City Council Member Terry Floyd, Development Coordinator Anthony Francisco, Finance Director Jud Foster, Director of Parks & Recreation David Hopper, Chair Senior Citizens Center Ad Hoc Group Leslie Taber, ADG Kyle Lombardo, ADG Montgomery Johnston, Citizen Robert Huskey, Citizen CALL TO ORDER AND ROLL CALL Chair Nations called the meeting to order at 3:37 p.m. A quorum was present. ****** ITEM 1, being APPROVE MINUTES FROM JULY 10, 2017 MEETING After review and discussion of minutes of July 10, 2017 meeting, a motion was made by Member Gollahalli and seconded by Member Sherman to approve the minutes. Motion passed unanimously. Items submitted for the record: 1. Norman Forward Citizens Financial Oversight Board Minutes July 10, 2017. Norman Forward Citizens Financial Oversight Board Minutes September 11, 2017 Page 2 ****** ITEM 2, being DISCUSSION OF FINANCE REPORTS-FINANCE DEPARTMENT Anthony Francisco gave the presentation. He stated we are continuing on the same track as we have been which is negative. We continue to hope this will turn around. We currently have a significant amount of expenditures being made due to the Westwood Pool and Central Library projects construction progress. Member Sherman asked if the “paid” on the report was monthly paid out. Francisco stated that this was from conception and not monthly. The total is total encumbrances and not the total from conception. Member Gollahalli asked if the budget numbers are budgeted to date per project. Francisco stated these are the total budgeted amounts for projects that have been put on the City’s books, but they do not include any projects that are planned but have not been budgeted for. Member Rieger asked what was paid out for James Garner on the report. Francisco stated that the line item was for some survey work done on the project. Items submitted for the record: 1. Norman Forward Expenditure Report 2. Norman Forward Sales Tax Revenue Report 3. Norman Forward Sales Tax Fund Annual Sales/Use Tax Growth Factor (FYE 2018) 4. Norman Forward Sales Tax Fund Annual Sales/Use Tax Growth Factor (FYE 2019- 2031) 5. City of Norman Norman Forward Sales Tax, Versus Projection ****** ITEM 3, being IMPLEMENTATION PLAN UPDATE Norman Forward Citizens Financial Oversight Board Minutes September 11, 2017 Page 3 Francisco gave the presentation. He stated the project timing in the Implementation Plan is where there have been a few changes. Leslie Tabor stated that projects in white have had some sort of update which may have caused the timelines to change slightly. These changes have been reflected on the “in progress” projects in the updated Implementation Plan. Member Rogers asked if the land acquisitions for all the projects have been completed. Francisco stated that for Griffin Park, the land acquisition is ongoing but has not been completed as of yet. The Griffin Park Master Plan process just states what we plan to use the land for. Member Rogers asked how certain we are of the land acquisition. Francisco stated he believes it is 90-95% certain. The negotiations are not about whether we will purchase the land, but what the seller will use the proceeds for and what the payout schedule will be. Member Sherman stated that he has reservations about investing so much capital in something that we wouldn’t own. Francisco stated that nothing on the Master Plan will be implemented until the land acquisition is settled. Member Rogers asked about the land acquisition for the indoor aquatic facility. Francisco stated that this should be completed by the end of this calendar year. Member Rieger asked about the land acquisition for the adult football/softball facility. Francisco stated that this acquisition is expected to be completed by the end of this calendar year as well. Member Gollahalli asked if there was anything in the updated Implementation Plan that was giving ADG any pause. Kyle Lombard stated that ADG feels good about the updates and the progress with the projects. Items submitted for the record: 1. Memo from ADG on Norman Forward project timeline update No. 1 ****** ITEM 4, being UPDATED PRO FORMA FINANCIAL PROJECTION Francisco gave the presentation. He stated that column D now has the actual expenditure from 2016. The expenditures are a little bit behind what we thought they would be for fiscal year 2017, but overall they are about where we thought they would be. The third financing was originally projected to be completed in fiscal year 2018, but that has now been moved to fiscal year 2019 projections. The overall conclusions are pretty much the same as the last financial projection. Some of the years will run kind of thin, but overall we still believe we will have money to complete all of the promised projects. Francisco stated he used a 3.5% rate for the projections for the third financing package. Norman Forward Citizens Financial Oversight Board Minutes September 11, 2017 Page 4 Member Rogers asked if this budget is using the same percentage as the City budget. Francisco stated we used 4.5% for Norman Forward, where they City used 4%, but at the time that we adopt the annual budgets it will revert to the adopted sales tax rate. Member Sherman stated that the Ad Hoc Committee has done a good job of staying within the budgets and completing the projects promised. Member Rieger asked why we were pushing the third round of debt issuance. Francisco stated that it was because the expenditure rate for project costs did not require it at this time. Member Sherman asked what rate was being used for this updated projection. ****** ITEM 5, being DISCUSSION OF ANNUAL REPORT TO COUNCIL Francisco gave the presentation. He asked if someone on the Committee would like to draft an annual report and have the rest of the Committee go over that report, or would they like to have staff draft a report and present it to the Committee for change/approval. Chair Nations asked what the due date would be. Francisco stated that would be up to the Committee as well. Chair Nations stated that he thinks a 3 person Committee could be chosen to work with staff to draft the annual report. Member Sherman stated that the report should be done by fiscal year and the staff should help. Member Britt stated that he thinks staff could put together the report for the Committee to approve. Member Gollahalli stated that he agrees there should be a 3 person Committee to work with staff on the report. He would recommend Members Rogers, Sherman, and Paden to work on this Committee. Chair Nations stated that he will double check with Member Paden about joining the 3 person Committee. ***** ITEM 6, being Norman Forward Citizens Financial Oversight Board Minutes September 11, 2017 Page 5 DISCUSSION OF PREVIOUSLY APPROVED COUNCIL ACTIONS AND POSSIBLE ACTION Francisco gave the report. He stated that all of the actions taken at the last City Council meeting are included in the packet. There was an increase in a contract for the Central Library as well as the Final Plat for the Central Library. The most significant action was the resolution adopting the Master Plan for the Griffin Park Sports Complex. Member Rogers stated that she is a little upset that the Committee didn’t get to see the final Master Plan or the budget for the Griffin Park Sports Complex before it was approved by City Council. She then asked about the wording in the Master Plan that states there will be 22 full sized fields in addition to the northeast corner field. Then on page 9 and 10 it says there will be 21. She believes that the wording stating 22 should include the northeast corner field. Member Gollahalli stated that the differential is about a soccer field that is where the indoor facility will go, so when the indoor facility goes from Phase I to Phase II it drops from 22 fields to 21. Jud Foster stated that the soccer field will eventually go away when the funding becomes available to build the proposed park. Member Rogers asked why things will be done in Phases. Member Gollahalli stated that Phase II is not funded through Norman Forward. It will be funded via a private development if there is a desire to do additional projects. Member Sherman stated that he agrees that the wording for this Phase II future facility should state “will have”. Member Gollahalli stated that he believed the expectation of Norman Forward was to use extra money to fund originally planned items on projects or to use the extra money to put toward other projects within Norman Forward. Member Sherman stated that he believes there is a commitment within Norman Forward that projects will be completed as was originally proposed as soon as enough funds were available over time. Member Gollahalli stated that we should put the “will”/”shall” issue in the annual report in order to get more clarification. Member Sherman stated that the Master Plan dictates what is spent on a project; maybe not all at once, but as funds become available. Chair Nations stated that we need clarification on how future available funds should be used on these programs. Items submitted for the record: 1. Contract K-1516-83 AMD #2 increasing contract amount between City of Norman and Meyer, Scherer & Rockcastle, LTD. 2. Final Plat FP-1617-16 Norman Public Library Central Addition 3. Resolution R-1718-22 Adopting the Griffin Park Sports Complex Master Plan and Directing City Staff to Implement the Recommendations of the Plan ****** Norman Forward Citizens Financial Oversight Board Minutes September 11, 2017 Page 6 ITEM 7, being AD HOC LIAISON REPORTS Jud Foster gave the report on the Griffin Park and Westwood Pool projects. He stated that the consultant team for Griffin is working on grading plans and a lighting project. We hope this is ready to bid around the end of November. Member Gollahalli stated that portions of Griffin Park will be under construction during the project, but they cannot take the whole park out of commission. Foster then stated that he believes there is about 60 days left on construction for the Westwood Pool. The art piece is fabricated and will be powder coated soon. Installation should be somewhere around the end of October. He then stated that the consultants for the Westwood Tennis project are working the numbers to try to get the project back within the budget. Member Britt asked how far out of budget the Westwood Tennis project is. Foster stated that it was about $200,000 over the original budget. Member Rieger gave the report on the Reaves Park project. He stated that the plan was presented to the Parks Board recently. Foster stated that the Park Board voted to approve the plan and send it on to City Council for consideration. Member Rieger stated that this project will also be done in stages since the entire park cannot be under construction at the same time. Member Gollahalli asked which plan was put forward to the Parks Board. Foster stated it was the plan with the new entry drive. Member Gollahalli asked if this plan was available on the website. Foster stated it wasn’t up as of yet, but it would be soon. Member Sherman gave the report for the Senior Citizens Center. He stated that there has been no meeting of this Committee in several months and the next step is up to the City Council. Terry Floyd gave the report on the Library Projects. He stated that the East Branch Library would soon be boxed in since all of the steel support beams were now in place. There is a contract with the artist for the art project that will go at the East Branch Library, which will be presented to Council to approve. This will be completed by the end of May 2018. The Central Library has a lot of site work going on, including utilities and fiber optic lines. The RFP for the Central Library art projects is being developed now. ****** ITEM 8, being DISCUSSION OF PROJECT STATUS-PROJECT MANAGERS Norman Forward Citizens Financial Oversight Board Minutes September 11, 2017 Page 7 Anthony Francisco stated that some of the “pay-as-you-go” projects, such as Oakhurst Park, will be on the upcoming City Council agenda. Jud Foster stated that there will be two on the agenda, Oakhurst and Sonoma playgrounds. Member Gollahalli asked if there was a single vendor for these types of projects, or do we piece it out. Foster stated that we do not have a single vendor and we bid out every project. Member Gollahalli stated that it might be financially beneficial to have a preferred contractor bid. ****** ITEM 9, being MISCELLANIOUS DISCUSSION Member Rieger asked if the use tax was continuing to trend upwards. Anthony Francisco stated that it was continuing to climb, but it would not balance out the down trend of sales tax. ****** ITEM 10 being ESTABLISHMENT OF FUTURE MEETING TIME(S) The next meeting of the Norman Forward Citizen’s Financial Oversight Board will be on November 6 at 3:30 pm. ****** ITEM 11 being ADJOURNMENT Motion was made to adjourn. Motion passed unanimously and the meeting adjourned at 4:45 pm.