SPECIAL MEETING - February 8, 2016
BE IT REMEMBERED, that on this 8th day of February A.D., 2016, there was begun and held a SPECIAL MEETING of the Honorable Commissioners’ Court of Hidalgo County, Texas, wherein the following members thereof were present, to-wit:
| HONORABLE RAMON GARCIA HONORABLE A.C. CUELLAR, JR. HONORABLE JOSEPH PALACIOS |
HIDALGO COUNTY JUDGE COMMISSIONER, PRECINCT NO. 1 COMMISSIONER, PRECINCT NO. 4 |
and ARTURO GUAJARDO, JR., COUNTY CLERK & EX-OFFICIO CLERK OF THE COMMISSIONERS’ COURT of Hidalgo County, Texas, wherein the following proceedings were had, to-wit:
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AGENDA CC REGULAR HIDALGO COUNTY COMMISSIONERS COURT MEETING February 8, 2016 9:30 A.M. |
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NOTICE is hereby given in accordance with Chapter 551, Texas Government Code, that a SPECIAL MEETING of the Commissioners' Court will be held at the Edinburg Council Chambers 415 W. University Drive, Edinburg, Hidalgo County, Texas. Discussion and possible action relating to the following business will be transacted:
1.
Roll Call
Commissioners Joe M. Flores and Eduardo "Eddie" Cantu were the only absentees.
Commissioners Joe M. Flores and Eduardo "Eddie" Cantu were the only absentees.
2.
County Judge's Office:
A.
AI-53274
1. Discussion regarding the County of Hidalgo New Courthouse Project
Judge Garcia gave a short review of the history of Hidalgo County. He reminded the public that Hidalgo County was incorporated by the Legislature in 1852. The construction of the first courthouse took time to built in the meantime meetings were being held at a general store in the City of Hidalgo. The first courthouse was constructed in the early 1860’s and was utilized up until the early 20th century. The construction of a better and updated courthouse followed between 1906 and 1908. Most recent, the construction of the current courthouse began in 1954.
Presently the construction of a new courthouse is being discuss and consider, Hidalgo County along with the City of Edinburg are considering all possibilities to properly and adequately fund the construction of a new courthouse. Both parties have in consideration the safety and security of all constituents.
2. Presentation by ERO Architects regarding the New County of Hidalgo Courthouse
Eli Ochoa Architect for ERO Architects presented the new updates being considered for the new Hidalgo County Courthouse. The architect commented on the request to increase the number of courtrooms, the new design provides 6 courtrooms per floor instead of 4 as previously presented.
Mr. Ochoa presented the blue prints for the 1st floor of the building. The 1st floor will house the County Clerk’s Office taking most of the North East side of the building, including a Secure Holding area. The main entrance to the courthouse will face north. There will also be a Jury Selection Assembly Hall that will also function as high visibility courtroom. The back portion of the building will serve for the DA’s Office and the defenders in custody. The portion set for the defenders in custody is all design to judicial and jail standards and is not intended to hold anyone for more than 24 hrs.
The District Clerk’s Office will occupy the second floor along with the Appellate Court, Bar Association and the Law Library. The third floor showcases the courtrooms, establishing 6 courts per floor. The Indigent Defense and Public Defender offices are also set to be on the 3rd floor. There after every floor will display 6 courtrooms, each of them will have individual circulation to avoid crossing paths with the defenders.
Mr. Ochoa spoke about the previous design and although the previous scheme was in line with other similar designs, the architects considered the coldness it conveyed. The design was altered and injected warmness, the architects worked on a newer design that is native to the Valley and emphasized on the culture.
They based the new drawing on 12 metaphors. First the Orange Groves, the groves and all the planting is design around City of Edinburg’s downtown. The square sketch proposes the idea of having people walk through downtown and create vibrancy in order to boost Edinburg’s retail. The accessibility to the handicap parking area will be available right off the orchard square. The second metaphor presented was the river, tying the City of Edinburg along with the University of Texas Rio Grande Valley onto the avenida leading to the courthouse. All of these create a unified urban area. The City of Edinburg’s City Hall serves a third metaphor, showcasing the contrast in materials from brick to metal and glass. The South Texas Museum of History plays part of the 12 metaphors. The architects extracted the more earth colors from the building to have them reflect in the design for the new courthouse.
Another concept taken into consideration by the architects was the water jets or “ojo de agua” these provide a recharge zone and continues to feed the river. The fifth metaphor presented by the architect was the concept of Talavera tile. The tile is to be incorporated not only in the interior of the building but, as well as on the outside of the building. Mesquite wood serves a reflection of the natural color pattern and will also be integrated into the design, along with the “Jacal” as seen on the sally port’s lattice. Additionally a covered pedestrian walkway or “avenida” will be able to provide a walkway straight into the courthouse. The porch serves as another metaphor into the design creating a cover for the main entrance. The architects created a 25 ft cantilever towards the front of the building, in this way creating a shading area. The final element is the Rio Grande Valley as a Jewel; this will create the building as the center of the city.
The entrance will create a one way St. all around the courthouse going counterclockwise. The entrance to the courthouse is to be through the main driveway becoming all utilize as a drop off area. The design proposes having the current north parking lot all the way up to the old Robert Chevrolet building lead the way to the avenida. The main public area will be angled perpendicular to the avenida as people are approaching the building, in a way providing a front and not approaching it from the side. The service entrance will be set in the back and the sally port will serve as a two story parking for judges and others. The defenders in custody are to have their own separate entrance on the south of the sally port. The north 1/3 of the building is set to be all public access area, the center 1/3 and the center core is where all the courtrooms will exist. The back side is where the judicial courtrooms and suites will be set.
Once more, Mr. Ochoa emphasized on the warmth of the new design as to give it a more human scale and have it be a welcoming facility. He also pointed out that the materials being proposed are as much maintenance free as possible. As part of their cost efficiency plan, they are proposing facing the building north. Doing so, will secure and harvest daylight for the building. Reducing the amount of electricity and allowing some savings.
The jacalito area is being constructed out of anodized aluminum in order to avoid oxidation. Right behind the wall, all the service courts will be placed along with judges and the defendants in custody making it a highly secured area. The current memorial that sits in front of the courthouse is to be relocated and elevated. In keeping with the importance of all monumental facilities such this building, the entire facility is to be elevated almost 4 ft. notwithstanding the elevation also serves as a protection wall to shield the building from any vehicles. Most important the entire facility is design to meet blast protection requirements.
To complete the presentation, the architect reviewed the esthetics of the courthouse the designers depicted three different samples of the talavera tile and created one unified pattern. The large canopy design and the earth tone colors are inspired by the University of Texas Rio Grande Valley. The avenida path is to include bubbler holes, these are to provide a cooling effect through the walkway. The design provides open space to allow for future opportunities.
Mr. Ochoa reinstated to Judge Garcia that this floor plan is the same as the two other previously presented. He also cleared to the judge that the Indigent Defense Department is to be set on the 3rd floor, along with the Public Defender Department. Judge Garcia commented that in taking into consideration future expansion they are being provided with at least one extra courtroom. However, if they were to move the offices of the Public Defender and Indigent Defense these could allow for three more courtrooms. Additionally, the judge discussed the possibility of adding a 7th floor creating 4 more courtrooms. In regards Mr. Ochoa informed the judge that if a 7th floor was added the building it could actually generate 6 courtrooms in addition to the 4 other courtrooms for a total of 10 courtrooms.
The additional shell floor would have a cost of $5 million dollars. The six additional courtrooms could function for civil and criminal courtrooms in order to have easy access to the defendents in custody and to the elevators. Judge Garcia questioned if this additional floor would bring the total price to $155 million dollars for the entire project. Mr. Ochoa commented to that currently they have a Construct Cost Limitation of $113 million dollars, if the 7th floor was to be constructed it would add an additional $5 million to that limitation bringing it up to about $118 million. The difference to get to the $150 million would be the soft costs that are associated with developing the project. If the CCL and the Soft Costs are considered then they no longer would be looking at a max of $150 million but instead a max of $155 million. On that account, judge reiterated the importance of weighing down the cost for that additional 7th floor.
Mr. Ochoa indicated to Commissioner Palacios that not the entire District Attorney’s Department would be placed on the courthouse. The design is putting aside a portion of the building for those attorneys who would be working at the courthouse all day. The Court of Appeals is to be set on the 2nd floor and it houses the entire program.
Mr. Alden Talley informed both parties that as far as soft costs, they have taken into consideration all the fees and permits, including about $3 million for the demolition cost for existing facilities on the side and over $5 million in contingencies for the county. All these become part of the $150 million fund that is currently estimated as far as the overall budget.
City of Edinburg Mayor Pro Tem Homer Jasso Jr. questioned the space being constructed for the Criminal Defense Office, questioning if that space could later be used as fully functional courtrooms. In regards Mr. Ochoa mentioned that “fully functional” could take many aspects however, the space could serve as a fully functioning civil court. The reason they would utilized the space for civil court is because it would not provide a way to get to the defenders in custody into the courtrooms without crossing the judicial staff or the general public. Judge Garcia commented that any future courts they could request from the ligature would have to be civil courts.
All things considered Judge Garcia gave the opportunity to the rest of the members to discuss the potential for a 7th floor. Commissioner Palacios stated his concerns about the financial aspect of the investment, indicating that it is best to have what is needed and not what they want. Commissioner Palacios and Judge Garcia suggested analyzing the cost for the future investment and what the cost would then be if they decide to wait another 20 or 30 years until it might be needed.
Mayor Richard Garcia commented on those courtrooms that would be set aside for the civil courts. He commented that County Courts at Law and District Courts could be serve double function. These don’t need access to the back elevators because they don’t deal with high crime defendants. Mr. Ochoa agreed with the mayor and restated that these won’t have access to the defendants in custody area. The mayor commented that as far as the city side is concern in regards to the esthetics, location, layout and blueprint they are happy and satisfy with it. However, as far as the cost goes the agreement was that the City of Edinburg would contribute a total of $30 million dollars. The amount is to be provided over a period of time and that is the base amount, the decision to add an additional floor and the rest of the $5 million is up to the county and does not affect the city.
Judge Garcia invited the City Commissioners to include their input into the discussion. Council member Daniel Torres stated that as long as they’re all in agreement as to what was presented the only other point to be address is the timeline. Council member Richard Molina accentuated on the importance of the timeline for the construction, being that the longer they wait, they run the possibility of higher cost. He also emphasized on the $30 million cap they’re allowed to contribute to the project. Therefore, any additionally construction would be up to the county to finance. The council member placed emphasis on the arena and soccer filed projects that the city is currently working on, in addition to the courthouse.
Judge Garcia welcomed their input and their assistance on trying to get the courthouse constructed. He emphasized that the courthouse would benefit the City of Edinburg as well, and all the Hidalgo residents. Mayor Pro Tem expressed his satisfaction with the design and recognized the concerns addressed by Mr. Ochoa.
Lastly Mayor Richard Garcia announced that they were ready to sign the Memorandum of Understanding. The rest of the desires to expand or add would be up to the county to finance. On that note, Judge Garcia indicated his desire to wait until they can a full court and decide whether or not to spend the additional $5 million. Commissioner Palacios openly thanked the City of Edinburg for all their contribution. He also acknowledged the impeccable design by ERO and once more appreciated the partnership between the two parties. He also made clear that the real work has just begun and the numbers are still a theory and will not be realized until they go through the process.
Mr. Ochoa explained to the members that they can incorporate a Construction Manager at Risk. The CMAR is able to provide relief in relation to most of the concerns being communicated. Before moving forward he presented on objective timeline to complete the project. The schedule contemplates March 1, 2016 as start date for the design development taking them through six months leading to the start of completing construction documents. Following and starting construction before the end of 2016. All dates are under assumption that all these milestones are accomplished. Taking in consideration the ideal period of 22 months for the construction period, leading to a final date of October 2018. Mr. Ochoa emphasized that all these date are conditioned on the weather. He gave an example of a current project that has 120 rain days predicted. However, all things considered and if everything falls into place they’re predicting a moving date of October 1, 2018.
Once again Mr. Ochoa spoke about the benefits of the Construction Manager at Risk. The construction manager is selected by the owner of the project. The contractor is to deliver a project within a Guaranteed Maximum Price; the construction manager ensures that all parties stay within the set budget. The process allows the construction manger to work with the design team and have the ability to fair out different ideas to obtain the desire efficiency and cost for the project. This allows for the construction to move much faster, avoiding the cost of construction to go up. Mr. Ochoa pointed out that the cost of construction goes up by about 6.5% per year that the project is not completed. If this is number is applied to the cost of the courthouse they’ll be looking at an increase of $9 million dollars on a yearly bases the construction is delay. Taking in consideration the budget for both parties the architects suggested incorporating the Construction Manager at Risk. Mr. Ochoa commented that this system was successfully used by the City of Edinburg, leading to enough bond savings to construct a new performing art center at the Robert Vela High School. South Texas College is another entity that has included the CMR in their project.
Judge Garcia assured that they will consider the Construction Manager at Risk. However as of right now their intention is to hire an attorney that could come and explain all of the different construction methods and then chose the best fit for their project.
Judge Garcia gave a short review of the history of Hidalgo County. He reminded the public that Hidalgo County was incorporated by the Legislature in 1852. The construction of the first courthouse took time to built in the meantime meetings were being held at a general store in the City of Hidalgo. The first courthouse was constructed in the early 1860’s and was utilized up until the early 20th century. The construction of a better and updated courthouse followed between 1906 and 1908. Most recent, the construction of the current courthouse began in 1954.
Presently the construction of a new courthouse is being discuss and consider, Hidalgo County along with the City of Edinburg are considering all possibilities to properly and adequately fund the construction of a new courthouse. Both parties have in consideration the safety and security of all constituents.
2. Presentation by ERO Architects regarding the New County of Hidalgo Courthouse
Eli Ochoa Architect for ERO Architects presented the new updates being considered for the new Hidalgo County Courthouse. The architect commented on the request to increase the number of courtrooms, the new design provides 6 courtrooms per floor instead of 4 as previously presented.
Mr. Ochoa presented the blue prints for the 1st floor of the building. The 1st floor will house the County Clerk’s Office taking most of the North East side of the building, including a Secure Holding area. The main entrance to the courthouse will face north. There will also be a Jury Selection Assembly Hall that will also function as high visibility courtroom. The back portion of the building will serve for the DA’s Office and the defenders in custody. The portion set for the defenders in custody is all design to judicial and jail standards and is not intended to hold anyone for more than 24 hrs.
The District Clerk’s Office will occupy the second floor along with the Appellate Court, Bar Association and the Law Library. The third floor showcases the courtrooms, establishing 6 courts per floor. The Indigent Defense and Public Defender offices are also set to be on the 3rd floor. There after every floor will display 6 courtrooms, each of them will have individual circulation to avoid crossing paths with the defenders.
Mr. Ochoa spoke about the previous design and although the previous scheme was in line with other similar designs, the architects considered the coldness it conveyed. The design was altered and injected warmness, the architects worked on a newer design that is native to the Valley and emphasized on the culture.
They based the new drawing on 12 metaphors. First the Orange Groves, the groves and all the planting is design around City of Edinburg’s downtown. The square sketch proposes the idea of having people walk through downtown and create vibrancy in order to boost Edinburg’s retail. The accessibility to the handicap parking area will be available right off the orchard square. The second metaphor presented was the river, tying the City of Edinburg along with the University of Texas Rio Grande Valley onto the avenida leading to the courthouse. All of these create a unified urban area. The City of Edinburg’s City Hall serves a third metaphor, showcasing the contrast in materials from brick to metal and glass. The South Texas Museum of History plays part of the 12 metaphors. The architects extracted the more earth colors from the building to have them reflect in the design for the new courthouse.
Another concept taken into consideration by the architects was the water jets or “ojo de agua” these provide a recharge zone and continues to feed the river. The fifth metaphor presented by the architect was the concept of Talavera tile. The tile is to be incorporated not only in the interior of the building but, as well as on the outside of the building. Mesquite wood serves a reflection of the natural color pattern and will also be integrated into the design, along with the “Jacal” as seen on the sally port’s lattice. Additionally a covered pedestrian walkway or “avenida” will be able to provide a walkway straight into the courthouse. The porch serves as another metaphor into the design creating a cover for the main entrance. The architects created a 25 ft cantilever towards the front of the building, in this way creating a shading area. The final element is the Rio Grande Valley as a Jewel; this will create the building as the center of the city.
The entrance will create a one way St. all around the courthouse going counterclockwise. The entrance to the courthouse is to be through the main driveway becoming all utilize as a drop off area. The design proposes having the current north parking lot all the way up to the old Robert Chevrolet building lead the way to the avenida. The main public area will be angled perpendicular to the avenida as people are approaching the building, in a way providing a front and not approaching it from the side. The service entrance will be set in the back and the sally port will serve as a two story parking for judges and others. The defenders in custody are to have their own separate entrance on the south of the sally port. The north 1/3 of the building is set to be all public access area, the center 1/3 and the center core is where all the courtrooms will exist. The back side is where the judicial courtrooms and suites will be set.
Once more, Mr. Ochoa emphasized on the warmth of the new design as to give it a more human scale and have it be a welcoming facility. He also pointed out that the materials being proposed are as much maintenance free as possible. As part of their cost efficiency plan, they are proposing facing the building north. Doing so, will secure and harvest daylight for the building. Reducing the amount of electricity and allowing some savings.
The jacalito area is being constructed out of anodized aluminum in order to avoid oxidation. Right behind the wall, all the service courts will be placed along with judges and the defendants in custody making it a highly secured area. The current memorial that sits in front of the courthouse is to be relocated and elevated. In keeping with the importance of all monumental facilities such this building, the entire facility is to be elevated almost 4 ft. notwithstanding the elevation also serves as a protection wall to shield the building from any vehicles. Most important the entire facility is design to meet blast protection requirements.
To complete the presentation, the architect reviewed the esthetics of the courthouse the designers depicted three different samples of the talavera tile and created one unified pattern. The large canopy design and the earth tone colors are inspired by the University of Texas Rio Grande Valley. The avenida path is to include bubbler holes, these are to provide a cooling effect through the walkway. The design provides open space to allow for future opportunities.
Mr. Ochoa reinstated to Judge Garcia that this floor plan is the same as the two other previously presented. He also cleared to the judge that the Indigent Defense Department is to be set on the 3rd floor, along with the Public Defender Department. Judge Garcia commented that in taking into consideration future expansion they are being provided with at least one extra courtroom. However, if they were to move the offices of the Public Defender and Indigent Defense these could allow for three more courtrooms. Additionally, the judge discussed the possibility of adding a 7th floor creating 4 more courtrooms. In regards Mr. Ochoa informed the judge that if a 7th floor was added the building it could actually generate 6 courtrooms in addition to the 4 other courtrooms for a total of 10 courtrooms.
The additional shell floor would have a cost of $5 million dollars. The six additional courtrooms could function for civil and criminal courtrooms in order to have easy access to the defendents in custody and to the elevators. Judge Garcia questioned if this additional floor would bring the total price to $155 million dollars for the entire project. Mr. Ochoa commented to that currently they have a Construct Cost Limitation of $113 million dollars, if the 7th floor was to be constructed it would add an additional $5 million to that limitation bringing it up to about $118 million. The difference to get to the $150 million would be the soft costs that are associated with developing the project. If the CCL and the Soft Costs are considered then they no longer would be looking at a max of $150 million but instead a max of $155 million. On that account, judge reiterated the importance of weighing down the cost for that additional 7th floor.
Mr. Ochoa indicated to Commissioner Palacios that not the entire District Attorney’s Department would be placed on the courthouse. The design is putting aside a portion of the building for those attorneys who would be working at the courthouse all day. The Court of Appeals is to be set on the 2nd floor and it houses the entire program.
Mr. Alden Talley informed both parties that as far as soft costs, they have taken into consideration all the fees and permits, including about $3 million for the demolition cost for existing facilities on the side and over $5 million in contingencies for the county. All these become part of the $150 million fund that is currently estimated as far as the overall budget.
City of Edinburg Mayor Pro Tem Homer Jasso Jr. questioned the space being constructed for the Criminal Defense Office, questioning if that space could later be used as fully functional courtrooms. In regards Mr. Ochoa mentioned that “fully functional” could take many aspects however, the space could serve as a fully functioning civil court. The reason they would utilized the space for civil court is because it would not provide a way to get to the defenders in custody into the courtrooms without crossing the judicial staff or the general public. Judge Garcia commented that any future courts they could request from the ligature would have to be civil courts.
All things considered Judge Garcia gave the opportunity to the rest of the members to discuss the potential for a 7th floor. Commissioner Palacios stated his concerns about the financial aspect of the investment, indicating that it is best to have what is needed and not what they want. Commissioner Palacios and Judge Garcia suggested analyzing the cost for the future investment and what the cost would then be if they decide to wait another 20 or 30 years until it might be needed.
Mayor Richard Garcia commented on those courtrooms that would be set aside for the civil courts. He commented that County Courts at Law and District Courts could be serve double function. These don’t need access to the back elevators because they don’t deal with high crime defendants. Mr. Ochoa agreed with the mayor and restated that these won’t have access to the defendants in custody area. The mayor commented that as far as the city side is concern in regards to the esthetics, location, layout and blueprint they are happy and satisfy with it. However, as far as the cost goes the agreement was that the City of Edinburg would contribute a total of $30 million dollars. The amount is to be provided over a period of time and that is the base amount, the decision to add an additional floor and the rest of the $5 million is up to the county and does not affect the city.
Judge Garcia invited the City Commissioners to include their input into the discussion. Council member Daniel Torres stated that as long as they’re all in agreement as to what was presented the only other point to be address is the timeline. Council member Richard Molina accentuated on the importance of the timeline for the construction, being that the longer they wait, they run the possibility of higher cost. He also emphasized on the $30 million cap they’re allowed to contribute to the project. Therefore, any additionally construction would be up to the county to finance. The council member placed emphasis on the arena and soccer filed projects that the city is currently working on, in addition to the courthouse.
Judge Garcia welcomed their input and their assistance on trying to get the courthouse constructed. He emphasized that the courthouse would benefit the City of Edinburg as well, and all the Hidalgo residents. Mayor Pro Tem expressed his satisfaction with the design and recognized the concerns addressed by Mr. Ochoa.
Lastly Mayor Richard Garcia announced that they were ready to sign the Memorandum of Understanding. The rest of the desires to expand or add would be up to the county to finance. On that note, Judge Garcia indicated his desire to wait until they can a full court and decide whether or not to spend the additional $5 million. Commissioner Palacios openly thanked the City of Edinburg for all their contribution. He also acknowledged the impeccable design by ERO and once more appreciated the partnership between the two parties. He also made clear that the real work has just begun and the numbers are still a theory and will not be realized until they go through the process.
Mr. Ochoa explained to the members that they can incorporate a Construction Manager at Risk. The CMAR is able to provide relief in relation to most of the concerns being communicated. Before moving forward he presented on objective timeline to complete the project. The schedule contemplates March 1, 2016 as start date for the design development taking them through six months leading to the start of completing construction documents. Following and starting construction before the end of 2016. All dates are under assumption that all these milestones are accomplished. Taking in consideration the ideal period of 22 months for the construction period, leading to a final date of October 2018. Mr. Ochoa emphasized that all these date are conditioned on the weather. He gave an example of a current project that has 120 rain days predicted. However, all things considered and if everything falls into place they’re predicting a moving date of October 1, 2018.
Once again Mr. Ochoa spoke about the benefits of the Construction Manager at Risk. The construction manager is selected by the owner of the project. The contractor is to deliver a project within a Guaranteed Maximum Price; the construction manager ensures that all parties stay within the set budget. The process allows the construction manger to work with the design team and have the ability to fair out different ideas to obtain the desire efficiency and cost for the project. This allows for the construction to move much faster, avoiding the cost of construction to go up. Mr. Ochoa pointed out that the cost of construction goes up by about 6.5% per year that the project is not completed. If this is number is applied to the cost of the courthouse they’ll be looking at an increase of $9 million dollars on a yearly bases the construction is delay. Taking in consideration the budget for both parties the architects suggested incorporating the Construction Manager at Risk. Mr. Ochoa commented that this system was successfully used by the City of Edinburg, leading to enough bond savings to construct a new performing art center at the Robert Vela High School. South Texas College is another entity that has included the CMR in their project.
Judge Garcia assured that they will consider the Construction Manager at Risk. However as of right now their intention is to hire an attorney that could come and explain all of the different construction methods and then chose the best fit for their project.
B.
AI-53296
Discussion, consideration and action on Memorandum of Understanding between County of Hidalgo and City of Edinburg regarding financial contribution for Courthouse Project
Noe Hinojosa financial advisor with Estrada Hinojosa Company presented the members with a financial spreadsheet base on the estimated tax rate impact as to funding the project. Mr. Hinojosa acknowledged the work he has conducted with both involved parties, he recalled the statement by Judge Garcia and Mayor Garcia indicating that the city is only to invest $30 million into the project. The spreadsheet provides a perspective on how the county is currently financing its debt. County by statute do 3 things, they build roads, courthouses and jails. Today the County of Hidalgo has an annual debt of about $20 million dollars. The debt drops by about a million from now to the year 2021. In 2022 the debt continues to drop by about $18.5 million and then by year 2027 they payments made by county are about $8.5 million. In 2029 the payments decrease at a net debt of about $5 million, thereon the debt reduces to about $2 million by 2030. The current debt structure of the county is an aggressive one, in terms of paying its debt rapidly. Nonetheless, Mr. Hinojosa understands other concerns to fund additional projects by the county. In spite of, he understands the purpose of the meeting that is to discuss funding for the courthouse.
The presentation showed the contribution from the City of Edinburg at a cap of $1.5 million starting on or about 2018 and ending in 2047. Today, if the city was to finance $30 million it would cost them about $1.75 to about $1.8 million. By working with both parties they understand the benefits of starting at $1.5 million. Mr. Hinojosa mentioned concerns raised by the county in regards to the city not being held liable for the payment of its shared contribution. Mr. Hinojosa clarified that when there’re interlocal agreements between two entities, there’s a credit quality rating. The city’s credit is an AA- by both Standard & Poor’s and Fitch. The county’s credit is an Aa2 by Moody’s and AA- by Standard & Poor’s being much higher than the city’s. If the city or future city councils fail to make payment the city could be downgraded to below investment grade for failure to make that appropriation. Even though the appropriation payment is not a legal enforce payment, in terms of credit perspective the doors to the city would close. In terms of its ability to borrow money, the city would not be able to fund other projects. Therefore, Mr. Ochoa provided a piece of mind to the county in respect to the city committing to make its payment.
Judge Garcia request Mr. Hinojosa to explained once more the consequences that could follow if the city fails to pay. In reference Mr. Hinojosa mentioned that if the city fails to make the payment it would lead to an automatic credit downgrade. Judge Garcia mentioned that for this particular case, it will involve not only the city but the EDC as well. With that in mind Judge Garcia questioned the involvement of the two parties and how they can inter put. Mr. Hinojosa commented to the judge that clearly he is not a lawyer, but it if they chose to proceed with the memorandum of understanding then the lawyers would bring to them documents that will address those concerns. From the financial stand point, both the city council and Commissioners Court are the two main parties that need to be obligated to each other. The county needs to produce and complete a product and the city needs to meet its obligations. If the EDC for other particular requirements they might have might force development corporations to have direct agreements with the county, then at that point then can explore those options.
Mayor Garcia commented on several statements he has heard regarding the current booming of Edinburg. He clarified that the $30 million dollars was not a randomly picked, it’s a number that the city can afford. The mayor questioned Mr. Hinojosa on the projects they could afford without having to increase the tax rate or affecting the general fund. Mr. Hinojosa specified that unlike Commissioners Court, the Edinburg’s City Council has a good fund on the EDC. Mr. Hinojosa commented that as of today the EDC alone can sustain the $1.5 million payment.
Judge Garcia stated that by the same token on behalf of the county they are taking into consideration some future factors. The county can also assured the public that the dollar amount they are talking about is well within the county’s budget and will not be increasing the county’s tax rate in order to meet the debt service on the new courthouse. Mr. Hinojosa clarified to Judge Garcia that the interest in syncing tax rate will have to be adjusted by 0.0100 after that, there’ll be no adjustments to be made. On the other hand the total tax rate does not have to be impacted. At this time the project will need $1 cent from Commissioners Court, the project does not need to be funded until about January 2017. Currently they are contemplating funding the project on or about September 2016. Any delays will be to the benefit to the county as it pertains to the making of the first payment. Currently interest rates are low, and financing for the county could be about 365 or 465.
Hidalgo County’s Executive Officer Valde Guerra commented on the county’s portion in respect to the total tax rate and the additional $1 cent to the I & S. Base on that increase, internally for maintenance and operation from the county’s side it would cost about $3 million dollars. Once again, Judge Garcia assured the public that there will be no tax increase.
Mr. Hinojosa presented the Net Total Cost for the courthouse, there will be court filing fee of $1.8 million. Mr. Hinojosa was grateful for those increase filing fees because it could revenue as much as $2 million dollars for the project. If in any case those revenues are higher than $1.8 million then that money is to be utilize exclusively and dedicated for the payment of the courthouse debt. Therefore, if the numbers are larger than anticipated then the impact for the county will be less.
Mayor Garcia questioned if there should be an action taken for the consideration of the memorandum. Judge Garcia suggested taking action in form of a motion stating that would required to prepare a document to later formalize a plan that lays out the specifics of the memorandum of understanding. Hidalgo County Executive Director Bobby Villarreal commented on a memorandum of understanding draft that circulated. Mr. Villarreal indicated that City Manager Richard Hinojosa received a copy of the draft. The memorandum depicts the amounts by each party and the principals. Judge Garcia suggested to have a legal clause that could allow for the county to have its lawyers review the document and edit the memorandum. Michael Leo, County Judge’s Office, mentioned that the intention of the draft is to understand that other agreements need to be determined. This is not the final agreement. They are to come back with an Interlocal Agreement or a Ch.380 agreement to really specify the terms. However, even for the purpose of the MOU, Mr. Leo recommended approving subject to final legal review for both sides. In considering the city, for the commitment on the city it was taken out of the interlocal that was provided to the county by the city from the Law Office of Ricardo Palacios. The interlocal talks about the cap, and if it becomes less and the continuation of the city as a partner.
In accordance with the discussion Mayor Garcia also suggested to motion in order to direct the city attorneys to review the memorandum of understanding to have it complete and to hold a ceremony to sign the agreement. The final date set for the signing ceremony is to be set March 8, 2016.
Mr. Guerra indicated that the motion itself should be on the action to be taken on the memorandum of understanding between the County of Hidalgo and the City of Edinburg regarding financial contribution for the courthouse project, subject to legal review and final consensus amongst both parties the County of Hidalgo and the City of Edinburg for the March 8, 2016 meeting.
On motion by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., seconded by COMMISSIONER PCT. 4, JOSEPH PALACIOS, the Court made a UNANIMOUS vote of approval.
Vote: 3 - 0 – Unanimously
Noe Hinojosa financial advisor with Estrada Hinojosa Company presented the members with a financial spreadsheet base on the estimated tax rate impact as to funding the project. Mr. Hinojosa acknowledged the work he has conducted with both involved parties, he recalled the statement by Judge Garcia and Mayor Garcia indicating that the city is only to invest $30 million into the project. The spreadsheet provides a perspective on how the county is currently financing its debt. County by statute do 3 things, they build roads, courthouses and jails. Today the County of Hidalgo has an annual debt of about $20 million dollars. The debt drops by about a million from now to the year 2021. In 2022 the debt continues to drop by about $18.5 million and then by year 2027 they payments made by county are about $8.5 million. In 2029 the payments decrease at a net debt of about $5 million, thereon the debt reduces to about $2 million by 2030. The current debt structure of the county is an aggressive one, in terms of paying its debt rapidly. Nonetheless, Mr. Hinojosa understands other concerns to fund additional projects by the county. In spite of, he understands the purpose of the meeting that is to discuss funding for the courthouse.
The presentation showed the contribution from the City of Edinburg at a cap of $1.5 million starting on or about 2018 and ending in 2047. Today, if the city was to finance $30 million it would cost them about $1.75 to about $1.8 million. By working with both parties they understand the benefits of starting at $1.5 million. Mr. Hinojosa mentioned concerns raised by the county in regards to the city not being held liable for the payment of its shared contribution. Mr. Hinojosa clarified that when there’re interlocal agreements between two entities, there’s a credit quality rating. The city’s credit is an AA- by both Standard & Poor’s and Fitch. The county’s credit is an Aa2 by Moody’s and AA- by Standard & Poor’s being much higher than the city’s. If the city or future city councils fail to make payment the city could be downgraded to below investment grade for failure to make that appropriation. Even though the appropriation payment is not a legal enforce payment, in terms of credit perspective the doors to the city would close. In terms of its ability to borrow money, the city would not be able to fund other projects. Therefore, Mr. Ochoa provided a piece of mind to the county in respect to the city committing to make its payment.
Judge Garcia request Mr. Hinojosa to explained once more the consequences that could follow if the city fails to pay. In reference Mr. Hinojosa mentioned that if the city fails to make the payment it would lead to an automatic credit downgrade. Judge Garcia mentioned that for this particular case, it will involve not only the city but the EDC as well. With that in mind Judge Garcia questioned the involvement of the two parties and how they can inter put. Mr. Hinojosa commented to the judge that clearly he is not a lawyer, but it if they chose to proceed with the memorandum of understanding then the lawyers would bring to them documents that will address those concerns. From the financial stand point, both the city council and Commissioners Court are the two main parties that need to be obligated to each other. The county needs to produce and complete a product and the city needs to meet its obligations. If the EDC for other particular requirements they might have might force development corporations to have direct agreements with the county, then at that point then can explore those options.
Mayor Garcia commented on several statements he has heard regarding the current booming of Edinburg. He clarified that the $30 million dollars was not a randomly picked, it’s a number that the city can afford. The mayor questioned Mr. Hinojosa on the projects they could afford without having to increase the tax rate or affecting the general fund. Mr. Hinojosa specified that unlike Commissioners Court, the Edinburg’s City Council has a good fund on the EDC. Mr. Hinojosa commented that as of today the EDC alone can sustain the $1.5 million payment.
Judge Garcia stated that by the same token on behalf of the county they are taking into consideration some future factors. The county can also assured the public that the dollar amount they are talking about is well within the county’s budget and will not be increasing the county’s tax rate in order to meet the debt service on the new courthouse. Mr. Hinojosa clarified to Judge Garcia that the interest in syncing tax rate will have to be adjusted by 0.0100 after that, there’ll be no adjustments to be made. On the other hand the total tax rate does not have to be impacted. At this time the project will need $1 cent from Commissioners Court, the project does not need to be funded until about January 2017. Currently they are contemplating funding the project on or about September 2016. Any delays will be to the benefit to the county as it pertains to the making of the first payment. Currently interest rates are low, and financing for the county could be about 365 or 465.
Hidalgo County’s Executive Officer Valde Guerra commented on the county’s portion in respect to the total tax rate and the additional $1 cent to the I & S. Base on that increase, internally for maintenance and operation from the county’s side it would cost about $3 million dollars. Once again, Judge Garcia assured the public that there will be no tax increase.
Mr. Hinojosa presented the Net Total Cost for the courthouse, there will be court filing fee of $1.8 million. Mr. Hinojosa was grateful for those increase filing fees because it could revenue as much as $2 million dollars for the project. If in any case those revenues are higher than $1.8 million then that money is to be utilize exclusively and dedicated for the payment of the courthouse debt. Therefore, if the numbers are larger than anticipated then the impact for the county will be less.
Mayor Garcia questioned if there should be an action taken for the consideration of the memorandum. Judge Garcia suggested taking action in form of a motion stating that would required to prepare a document to later formalize a plan that lays out the specifics of the memorandum of understanding. Hidalgo County Executive Director Bobby Villarreal commented on a memorandum of understanding draft that circulated. Mr. Villarreal indicated that City Manager Richard Hinojosa received a copy of the draft. The memorandum depicts the amounts by each party and the principals. Judge Garcia suggested to have a legal clause that could allow for the county to have its lawyers review the document and edit the memorandum. Michael Leo, County Judge’s Office, mentioned that the intention of the draft is to understand that other agreements need to be determined. This is not the final agreement. They are to come back with an Interlocal Agreement or a Ch.380 agreement to really specify the terms. However, even for the purpose of the MOU, Mr. Leo recommended approving subject to final legal review for both sides. In considering the city, for the commitment on the city it was taken out of the interlocal that was provided to the county by the city from the Law Office of Ricardo Palacios. The interlocal talks about the cap, and if it becomes less and the continuation of the city as a partner.
In accordance with the discussion Mayor Garcia also suggested to motion in order to direct the city attorneys to review the memorandum of understanding to have it complete and to hold a ceremony to sign the agreement. The final date set for the signing ceremony is to be set March 8, 2016.
Mr. Guerra indicated that the motion itself should be on the action to be taken on the memorandum of understanding between the County of Hidalgo and the City of Edinburg regarding financial contribution for the courthouse project, subject to legal review and final consensus amongst both parties the County of Hidalgo and the City of Edinburg for the March 8, 2016 meeting.
On motion by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., seconded by COMMISSIONER PCT. 4, JOSEPH PALACIOS, the Court made a UNANIMOUS vote of approval.
Vote: 3 - 0 – Unanimously
3.
Adjourn
On motion by COMMISSIONER PCT. 4, JOSEPH PALACIOS, seconded by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., the Court made a UNANIMOUS vote of approval.
Vote: 3 - 0 - Unanimously
On motion by COMMISSIONER PCT. 4, JOSEPH PALACIOS, seconded by COMMISSIONER PCT. 1, A.C. CUELLAR, JR., the Court made a UNANIMOUS vote of approval.
Vote: 3 - 0 - Unanimously
There being no further business to come before said
Court, the meetings of the Commissioners' Court and the
Drainage District #1 Board are now hereby adjourned.
Dated this the 8th day of February, 2016
ARTURO GUAJARDO, JR., County Clerk
Hidalgo County, Texas
By: ______________________________
Norma G. Cantu, Deputy
I, ARTURO GUAJARDO, JR., County Clerk attest that this is an accurate accounting of a proceeding of the Commissioners’ Court held on February 8, 2016.
Signed this 8th day of FEBRUARY 2016
ATTEST:
ARTURO GUAJARDO, JR.
County Clerk and Ex-Officio Clerk
Of the Commissioners’ Court of
Hidalgo County
By: ____________________________
(Seal) Norma G. Cantu, Deputy
Court, the meetings of the Commissioners' Court and the
Drainage District #1 Board are now hereby adjourned.
Dated this the 8th day of February, 2016
ARTURO GUAJARDO, JR., County Clerk
Hidalgo County, Texas
By: ______________________________
Norma G. Cantu, Deputy
I, ARTURO GUAJARDO, JR., County Clerk attest that this is an accurate accounting of a proceeding of the Commissioners’ Court held on February 8, 2016.
Signed this 8th day of FEBRUARY 2016
ATTEST:
ARTURO GUAJARDO, JR.
County Clerk and Ex-Officio Clerk
Of the Commissioners’ Court of
Hidalgo County
By: ____________________________
(Seal) Norma G. Cantu, Deputy
