Loading...
2007-06-11 CITY COUNCIL REGULAR MEETING MINUTESMIINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, HELD ON JUNE 11, 2007, AT 7:30 P.M., IN THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS. Mayor Reid called the meeting to order at 7:40 p.m. with the following present: Mayor Tom Reid Mayor Pro -Tem Steve Saboe Councilmember Woody Owens Councilmember Helen Beckman Councilmember Felicia Kyle City Manager Bill Eisen City Attorney Darrin Coker City Secretary Young Lorfing Absent: Councilmember Kevin Cole Others in attendance: Jack Colbath Director of Fire Services; Narciso Lira Assistant City Engineer; J.C. Doyle Police Chief; Trent Epperson Project Director; Mike Hodge Assistant City Manager; Claire Manthei Finance Director; Jeff Sundseth EMS Operations Director; Fred Welch Executive Director of Economic Development Corporation. The invocation was given by Mayor Pro -Tem Saboe and the Pledge of Allegiance was led by Police Chief Doyle. Mayor Reid noted the absence of Councilmember Kevin Cole, who is currently on vacation. Dr. Bill Staples, President of the University of Houston, was recognized as being present and part of an action item later in the meeting. Mayor Reid announced that there was a scheduling issue with the Teen Force and he had intended to present Certificates of Graduation from the Pearland Teen Cert Group, which is the community emergency response team. This group is in the process of having a medical reserve group that is being formed in Pearland, which is the only one in Brazoria County. MAYOR'S ACTIVITY REPORT Mayor Reid reported May 15, he attended the HGAC Board of Directors meeting; May 16, Keynote Speaker for the National Honor Society Inductees; May 17, attended the Leadership Council Chamber function, presented a proclamation to the High School Drama Department State Winner; attended the Chamber Monthly Luncheon; May 17, Page 1 of 24 — 6/11/2007 was present at the Gulf Coast Water Authority Board of Directors; May 17, attended the Police Annual Awards Banquet; May 18, attended the Transportation Policy Council Board of Directors; May 19, presented a Proclamation to Kids Day event; May 22, Special Council Meeting; May 24, in attendance at the Bay Area Transportation Partnership Board of Directors, attended the Ribbon Cutting at Community National Bank; May 25, Lunch with Employee of the Quarter, joined Congratulations Line for Project Graduation; May 26, spoke at Eagle Scout Court of Honor; May 28, spoke at VFW Post 7149 for the Memorial Day event; May 29, attended Bay Area Transportation Partnership Monthly Luncheon; May 31, attended Retirement Party for Bobby Whisenant, Chaired Pearland Area Citizens Corps Board of Directors; June 1, attended Claribel's Retirement Event; June 4, Agenda Meeting, Special Council Meeting, Public Hearings; and June 8, was present at the Chamber Before Business Breakfast. COUNCIL ACTIVITY REPORTS Councilmember Owens mentioned to those in attendance that Friday, June 15th is the Chamber's meeting at the Golfcrest Country Club and Bill Keys will be the speaker on hurricane evacuation procedures. Councilmember Beckman congratulated Keep Pearland Beautiful for winning the Government's Award for our population category, which brings $130,000 in landscaping to the City of Pearland. The Kippers, our Pearland youth group, also placed first meaning two Pearland groups will be recognized at Keep Texas Beautiful Conference in July, which she will be attending. Councilmember Beckman reported her trip to Las Vegas to the International Shopping Center Conference with members of the Economic Development Corporation and the Chamber of Commerce was a success. She was able to attend meetings with people who are interested or are already involved in development in Pearland. She was also present at meetings where she was able to find out what is happening with Green Building throughout the country, which was interesting and informative. Mayor Pro -Tem Saboe thanked Councilmember Tetens for his years of service on the bench as Councilmember. He also expressed his gratitude to Mayor Reid for attending St. Helen's Bazaar on Sunday, as well as Chief Doyle and his officers. Mayor Pro -Tem Saboe stated that the Chamber was also well represented. Councilmember Kyle attended the fundraiser for the Pearland Neighbor Center King candidates Kevin Fuller and Jeffrey Kyle. Councilmember Cole was on vacation and absent from the meeting. CITY MANAGER'S REPORT City Manager Bill Eisen reported that hurricane season has recently begun and Page 2 of 24 — 6/11/2007 reminded everyone that the next edition of Pearland in Motion will contain some useful information on hurricane preparedness and evacuation in the event of a major storm in this area. Mr. Eisen also reported that the Fire Marshal's Office has a Hurricane Preparedness Guide. Any individual who would like a copy of that can call City Hall at 281-652-1600. CITIZENS Gary Pledger, 2403 Halbert, addressed Council and stated that Halbert is on the north side of McLean off FM 518, where there are some alterations to the center lane. The construction has brought some problems for the school buses and people trying to get through the neighborhood. Mr. Pledger has witnessed people speeding through the neighborhood, which is only 2 blocks from FM 518 to Cherry Street. He further stated that there is currently no stop sign or speed bumps. Mr. Pledger stated he would ask that Council investigate with the Police Department the possibilty to place some speed bumps and a stop sign on their street. Mr. Pledger stated the school buses are coming through the neighborhood now because the turning lane off of FM 518 left of McLean only allows about three buses that the light will stay green for. People are finding they can run through the neighborhood. Mr. Pledger assured Council that this was not a complaint; only a serious traffic issue that needs to be investigated. Joe Cullison, 2406 Halbert, addressed Council and stated Halbert is an entirely residential street and since the construction on FM 518, it has caused Halbert to become a thru street. Residents are unable to back out of their driveways without having to wait for oncoming traffic. Mr. Cullison requests that possibly the traffic be detoured. The best route would be to turn on Woody Street and go around to Orange and to 35, where there are very few stop signs. Mr. Cullison is also requesting speed bumps and stop signs to deter the traffic from 518 onto Telephone Road. DOCKETED PUBLIC HEARING: None CONSENT AGENDA: A. CONSIDERATION AND POSSIBLE ACTION — APPROVAL OF MINUTES: 1. Minutes of the May 7, 2007, Special Meeting held at 6:30 p.m. 2. Minutes of the May 14, 2007, Regular Meeting held at 7:00 p.m. 3. Minutes of the May 14, 2007, Special Meeting held at 7:30 p.m. 4. Minutes of the May 22, 2007, Special Meeting held at 6:30 p. M. Page 3 of 24 — 6/11/2007 B. CONSIDERATION AND POSSIBLE ACTION — RESOLUTION NO. R2007-88 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, ACCEPTING THE CITY'S INVESTMENT REPORT FOR THE QUARTER ENDING MARCH 2007. Mr. Bill Eisen, City Manager. Councilmember Owens made the motion, seconded by Councilmember Beckman, to adopt Consent Agenda Items A through B as presented on the Consent Agenda. Voting "Aye" Councilmembers Owens, Beckman, Saboe, and Kyle. Voting "No" None. Motion Passed 4 to 0, with Councilmember Cole absent. MATTERS REMOVED FROM CONSENT AGENDA: None NEW BUSINESS COUNCIL ACTION — RESOLUTION NO. R2007-93 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A LETTER OF INTENT WITH THE UNIVERSITY OF HOUSTON SYSTEM. Mr. Bill Eisen, City Manager. Councilmember Beckman made the motion, seconded by Mayor Pro -Tem Saboe, to approve Resolution No. R2007 -93 - City Manager Bill Eisen stated he has been working with the University of Houston representative to work out details for location of the campus within the City. The University of Houston Board of Regents has recently met and approved a Letter of Intent. City Manager Bill Eisen noted that the document appears different in terms of style and format of agreements previously presented to Council. As we progress through this, the University's Legal Staff felt it would be more consistent with the University's processes to do this in the form of a letter, which to them provided for specific things to happen in the future, which would include for example the lease agreement, limiting. He said that the agreement is not really different than anything in the past in terms or actions to be required and formal processes. City Manager Bill Eisen advised Council that Dr. Staples, President of the University of Houston at Clear Lake, would be pleased to answer any questions. Dr. Staples, President of University of Houston Clear Lake, expressed his appreciation to the Mayor, all members of the City Council, and City Manager Bill Eisen. He also expressed his appreciation to Darrin Coker, who has worked very closely with the University of Houston System General Counsel's Office in a most professional manner Page 4 of 24 — 6/11/2007 and thanked him for all of his hard work. Dr. Staples spoke of how City Manager Bill Eisen had indicated that the UH System Board of Regents unanimously approved the Letter of Intent. Dr. Staples then outlined the steps, which will be required to get final approval on July 9th from the Coordinating Board. Mayor Reid stated that the University of Houston has chosen a beautiful location. Councilmember Owens stated he is pleased that the University of Houston will have a place of higher education in Pearland. Councilmember Kyle asked if Dr. Staples is anticipating having an MBA program in lieu of a satellite program. He stated that it would depend largely on critical mass and that the University has the challenge of having the resources available to offer the various courses and are paid on the basis of enrollment. Typically the most popular programs are Business Administration, Education, and Psychology. Mayor Reid stated that he would like to see if Metro could provide buses to take residents from Pearland to the Medical Center. By their reading, there are currently 4,000 Pearland residents working at the Medical Center. Mayor Reid suggested that maybe we could establish some partnerships. Mayor Reid thanked Dr. Staples for being present. Voting "Aye" Councilmembers Kyle, Saboe, Beckman, and Owens. Voting "No" None. Motion Passed 4 to 0, with Councilmember Cole absent. COUNCIL ACTION — RESOLUTION NO. R2007-94 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CONVERSION OF SERIES 1999 WATER AND SEWER ADJUSTABLE RATE BONDS TO FIXED RATE BONDS. Mr. Bill Eisen, City Manager. Mayor Pro -Tem Saboe made the motion, seconded by Councilmember Beckman, to approve Resolution No. R2007-94. City Manager Bill Eisen stated we have some adjustable rates and a lot of sewer debt that originally sold in 1999. There have been several intervals since then. The adjustable rate has been adjusted. We have an opportunity, at this time, based on current market conditions, to convert those adjustable rate bonds to fixed rate bonds. Mr. Ryan O'Hare, RBC Capital Markets, gave an overview of the City's adjustable rate debt. Page 5 of 24 — 6/11/2007 Mr. O'Hare stated at the regular council meeting on Monday, July 23rd, the rates will be in hand. He stated that on Thursday, June 14th, the Term Sheet for fixed rate conversion was distributed to interested parties; Thursday, June 28th, Potential Bond Buyers give intent to bid; Wednesday, July 18th, bids are received and evaluated; Monday, July 23d, Council Meeting to authorize acceptance of the rate received; Thursday, August 30th, is the closing and Saturday, September 1St, the new rates become effective. Brief discussion ensued between Council and Mr. O'Hare. Voting "Aye" Councilmembers Owens, Beckman, Saboe, and Kyle. Voting "No" None. Motion Passed 4 to 0, with Councilmember Cole absent. COUNCIL ACTION — COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING. Mr. Nick Finan, Assistant City Manager. Councilmember Kyle made the motion, seconded by Mayor Pro -Tem Saboe, to approve the recommendation to provide Community Development Block Grant Funds to the projects that were listed in the proposal, as well as $165,000 for the construction of sidewalks and road improvements to Fite Road. City Manager Bill Eisen stated that starting October 1 St of this year, the City will be entitled to Community Development Block Grant Funding. These funds will not fund in hired service type projects like we traditionally use these funds for water and sewer line streets. There is an opportunity to take up to 15% of those funds and to utilize them for social service type of groups within the community and what you are going to hear this evening is a recommendation with regard to the use of the funds for next year, which includes the specific information with regard to possible recipients of the 15%. Ms. Peg Purser, MKP Consulting, is the principal of the firm the City has utilized to assist with the administration of these Community Development Block Grants Funds. Ms. Peg Purser, MKP Consulting, addressed Council and stated that her firm has gone through a process of trying to determine how to utilize the funds that will become available October 1St. Ms. Purser then informed the Council of the specifics of the utilization and disbursement of funds. The 4 recipients were Neighborhood Centers (2 proposals), Forgotten Angels, Reading Center, and Pearland Independent School District. Assistant City Manager Nick Finan announced this takes us to $10 under our cap so we are recommending that $38,153 be given for Public Services. Since this is an 18 -month process instead of a 12 -month process, $885 will be left over to fund the public notices Page 6 of 24 — 6/11/2007 that have to be published in the newspaper. Ms. Purser stated that her agency is recommending one of two options; first option is to fund part of the engineering cost of a Town Ditch Phase III project. The second option would be to install sidewalks on Fite Road headed toward the school. Ms. Purser is recommending funding part of the engineering costs for that. Second option, if we opt not to do the Town Ditch, would be to install sidewalks from Chocolate Bayou on Fite over to Manvel and then down part of Manvel to the school. Part of Manvel is already covered by the new subdivision. Our recommendation was the Town Ditch. Councilmember Kyle asked if the $50,000 that Ms. Purser proposes is the amount the City of Pearland would commit to her firm. Ms. Purser stated it is a flat fee contract for 18 -months and it was approved 3 months ago. Administration money and public service money that is not utilized, can be rolled -over into only infrastructure and housing and not rolled -over into other public services or administration. Councilmember Kyle also asked Ms. Purser to explain the process her firm went through to recommend utilization of the funds for Town Ditch versus Fite Road sidewalks. Ms. Purser stated that they met with the City Manager's Office, as well as Public Works and Planning Dept. It would help offset the cost for the bonds that have been approved for the Town ditch if we can cover the $165,000 this year and possibly some more money next year. City Manager Bill Eisen stated the City had initially looked at the project along Fite Road and as we began to look at that, he remembered an occasion two or three years ago when Council looked at a different location for constructing a sidewalk along a narrow existing road. At that time, the Council's concern was that it raised a fairness or equity question if we can do it one place but we cannot at another. Assistant City Manager Nick Finan stated he met with staff and certain criteria has to be met to determine eligibility. Councilmember Kyle stated Town Ditch has been approved by the voters and is already set in motion and asked if we still need to do the process. The proposal includes some road improvement on Fite Road. If money is set-aside for Town Ditch, this is a good project for a neighborhood that has grown with young children, traffic increasing, and east -west corridor and the safety factors; she believes the community would welcome it. Assistant City Manager Nick Finan asked Assistant City Manager Mike Hodge if most of that project is also already scheduled and needs to be paid out of the general fund. Approximately $150,00 is already scheduled from the General Fund. The discussion is if we could move these General Funds elsewhere. Councilmember Kyle stated when you talk about public grant money; she thinks the concept most people look at is how it is benefiting the health, safety, and welfare of everyone. She stated there are dangers of no sidewalk on Fite Road; children are Page 7 of 24 — 6/11/2007 walking to school. Since it is grant money, it would improve the health and safety of our citizens and we can do it progressively through the years. I would be in favor of it. City Manager Bill Eisen stated that the section of Fite Road is a relatively short section and the improvements for Fite Road are pretty modest; there is a slight widening of the road by a few feet similar to what was done on a section of Hatfield within the last couple of years. Councilmember Kyle stated that any improvement on Fite is a move forward. Ms. Purser said they came up with the idea to give the students the opportunity to walk on sidewalks to school. Mayor Pro -Tem Saboe, concurred with Councilmember Kyle stating this is a good chance for the City to be visible with these kinds of grant funds and it is part of the town and is a nice statement that we are already thinking about. It is the antithesis of the concerns of prior Council but it makes sense and this is a great spot for it because it is a tough stretch of road. This is a highly visibly area because of the Dad's Club and the new schools in the area. Councilmember Beckman concurred with Councilmember Kyle regarding the sidewalks. Mayor Reid stated that it is best to repair in the near-term for safety and to install some sidewalks and maybe we should increase that number to move forward aggressively for sidewalks within two miles of all schools. Councilmember Owens would like for Engineering to review the design of the sidewalks since it is at a cost of $165,000. Mayor Reid asked Ms. Purser when she returns in July, if that would be enough time to spend the money that needs to be spent by September 30th Councilmember Beckman asked if the eligibility is a one-time award because she does not want to do the same thing every year and it does cause her some concern. Ms. Purser stated that part of her contract is to go in and provide technical assistance to these agencies to help them identify other projects so that this will be more matching money as opposed to their only pod of money. HUD expects this money to be the money of last resort. So they do want the agencies to find other sources of income to carry out the job and to expand it and this would be just to fill in the gaps. Part of her job is to work with them to identify how they can go after other funds so they can make this part of our process to not allow agencies to come back more than two years, three years, or five years for the scoring process. They get more points if this is a first-time project. Page 8 of 24 — 6/11/2007 Councilmember Beckman stated she had served on a committee for Community Development Block Grant Funds and one of the things they avoid is salaries. Mayor Reid stated the grant money should be used with great care and caution. City Attorney Darrin Coker suggested to Mayor Reid that if he may want to provide some direction through a motion, as far as development of the plan that will be presented again in the future. Voting "Aye" Councilmembers Owens, Beckman, Saboe, and Kyle. Voting "No" None. Motion Passed 4 to 0, with Councilmember Cole absent. COUNCIL ACTION — RESOLUTION NO. R2007-91 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, APPROVING THE ANNEXATION BY BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 34 OF APPROXIMATELY 40.56 ACRES OF LAND. Mr. Darrin Coker, City Attorney. Councilmember Owens made the motion, seconded by Mayor Pro -Tem Saboe, to approve Resolution No. R2007-91. After this item was discussed, Council tabled this item for further review. Councilmember Beckman asked how long the Municipal Utility Districts last. City Manager Bill Eisen stated there is a workshop scheduled for July 2"d to discuss Municipal Utility Districts. Discussion ensued between Mayor Pro -Tem Saboe, Councilmember Owens, City Manager Bill Eisen, and City Attorney Darrin Coker regarding the Municipal Utility District No. 34. Mayor Pro -Tem Saboe was concerned the burden will be shifted between commercial and residential on future MUD taxes. He would like to more clearly understand the burden of the MUD tax and who will pay that as we elongate using the term or the scope of this MUD before we move on. City Manager Bill Eisen stated this was in regards to MUD 34 or just MUDs in general. That was the subject of the 750 or 775 acre cap so the MUD was proposing to de -annex some property and annex others. Mr. Eisen stated he had anticipated that we could discuss this on July 2"d, not to get too far into that too soon. 1 think there are some questions with regard to how much sense it makes for road powers to be included Page 9 of 24 — 6/11/2007 particularly those roads that were going to be done anyway by the developer. Do we really want to have that overlapping debt that exists that may at some point complicate the City's ability to issue a debt? Mayor Pro -Tem Saboe stated the whole issue not withstanding, is really a study of how best to finance the growth of the infrastructure and who ought to fairly pay for that. He stated he is concerned that this has happened to the City in some cases for In -City MUDs. I think it is fair that we research this a bit more before we understand what the implications are and I think it is fair to In -City MUD residents that we answer to, that we are looking out for their best interest in this case too. City Manager Bill Eisen stated our concerns with regard to park powers in particular. One of the things that has been talked about in terms of something to move forward with is if park bonds could not be issued until there has been an opportunity due to the passage of time for the District to be under the control of the Board Members, who are all residents of the District and not necessarily representative of the developer. I have asked Ron Cox, who spent a number of years as the City Manager of Friendswood, who for a number of years did not permit In -City MUDs. They have one entity in town similar to a MUD. It has just been approved in the last couple of years. There will be an opportunity to share some observations of Municipal Utility Districts and hear both sides. Hopefully, we will have some people here who can help address some of those specific issues. If there are any other subjects associated with the In -City MUDs you would like to see addressed, let me know quickly so we can attempt to find someone who can address those issues as well. Mayor Reid stated the MUD is an urgent project and the City could benefit by having the Workshop to give the comfort level and opportunity to hear a little bit more about this because there are many cases where we can look to do this. He would like to have the opportunity to listen to some experts and table this item at this time. After this item was discussed, Council tabled this item for further review. Mayor Pro -Tem Saboe made the motion, seconded by Councilmember Kyle, to table Resolution No. R2007-89 for further review . Voting "Aye" Councilmembers Kyle, Tetens, Beckman, and Saboe. Voting "No" None. Motion Passed 4 to 0, with Councilmember Cole absent. COUNCIL ACTION — RESOLUTION NO. R2007-89 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AWARDING A BID FOR Page 10 of 24 — 6/11/2007 INSTALLATION OF LANDSCAPING ALONG CULLEN BOULEVARD AND KIRBY DRIVE. Mr. Trent Epperson, Project Director. Councilmember Beckman made the motion, seconded by Mayor Pro -Tem Saboe, to approve Resolution No. R2007-89. City Manager Bill Eisen stated that Council is being asked to consider the award of a contract for landscaping on the newly constructed Cullen and also Kirby Drive. The low bidder is Gulfcoast Landscape Services, Inc. and the low bid is $290,500. Mayor Reid asked if the City could restrict the planting of some vegetation during certain times of the year. Projects Manager Trent Epperson stated that the specifications would control when vegetation would be planted. Councilmember Owens commented he would like to see something done on Pearland Parkway. A lot of money was spent on landscaping on Yost Road. He would like to see it done the way it was before, possibly fill in those areas with new sod. It is the City's responsibility to make sure that it is cleaned up and put back to the way it should be. A lot of money was spent on this project. Project Director Trent Epperson stated that the contractor will maintain all of the plantings and irrigation system for one year before they take over permanent maintenance. Mayor Pro -Tem Saboe asked if the maintenance of planning Pearland Parkway is different from how it has been done in the past. Project Director Trent Epperson stated specifications have been changed. He was not sure if it was built under the new specifications. That was the McHard and Barry Rose Project and was addressed in the specifications. Mayor Pro -Tem Saboe asked what the remedy was if something went wrong, or if there are problems again with the planted landscaping or the sprinkler systems. Does the contract read that we are okay as long as problems are discovered in the first year? Project Director Trent Epperson stated that basically is part of the contract. Mayor Pro -Tem Saboe said if something is wrong, we just call and say this tree is dead. Project Director Trent Epperson reported he is doing that on Yost Road right now where six bushes are dead. Page 11 of 24 — 6/11/2007 Voting "Aye" Counciimembers Owens, Beckman, Saboe, and Kyle. Voting "No" None. Motion Passed 4 to 0, with Councilmember Cole absent. COUNCIL ACTION — RESOLUTION NO. R2007-90 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, APPROVING CHANGE ORDER NO. 3 ASSOCIATED WITH THE DIXIE FARM ROAD EXPANSION. Mr. Trent Epperson, Project Director, Mayor Pro -Tem Saboe made the motion, seconded by Councilmember Beckman, to approve Resolution No. R2007-90. City Manager Bill Eisen stated this issue relates directly to the Dixie Farm Road Project and some alternatives that have been investigated on what might be more favorable ways to deal with some pipelines that are in the way of the project. Discussion ensued between Council and Trent Epperson, Project Director stating that within the project plans and specifications, there were still notes referring to those pipelines being relocated so when the contractor did this project, they expected those pipelines to not be in the way when they over cut that and installed box culverts. Because of that, they had to take more than usual measures to install box culverts underneath several pipelines, hand digging and bringing in hydraulic machinery to pull the boxes in place underneath all the pipelines. Since this was in the plans, there were references to those pipelines being relocated by others and it became a change order that TxDOT has already moved forward with based on our advanced funding agreement with TxDOT on this project. We are responsible for the cost of this. Mayor Pro -Tem Saboe stated that the amount of the Change Order appeared reasonable. Councilmember Owens suggested that maybe next time we could get TxDOT to negotiate the 11 %. Voting "Aye" Councilmembers Kyle, Saboe, Beckman, and Owens. Voting "No" None. Motion Passed 4 to 0, with Councilmember Cole absent . Page 12 of 24 — 6/11/2007 COUNCIL ACTION — RESOLUTION NO. R2007-92 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AMENDING A CONTRACT FOR ENGINEERING SERVICES ASSOCIATED WITH THE MAGNOLIA ROAD PROJECT (SEGMENT 2). Mr. Trent Epperson, Project Director. Councilmember Kyle made the motion, seconded by Mayor Pro -Tem Saboe, to approve Resolution No. R2007-92. City Manager Bill Eisen stated this is an existing engineering services agreement with Bridgefarmer for the Magnolia Road Project Segment #2. Previously Council had authorized the design of the roadway, including one of the sewer lines in the area. There are some water lines that were deferred at that point and time to a future date. We are asking that you authorize a change in the agreement with Bridgefarmer to improve the water line. Councilmember Owens asked why the water line was changed from a 16" to a 12" water line. Project Director Trent Epperson stated that based on the recently completed water line, the water model designated that the corridor needs a 12" line as opposed to a 16" line based on the capacity needed, keeping the required velocities of the network. Councilmember Owens stated it was not a bad price but with travel being charged at a rate of $1,500, maybe we should select contractors who have offices in this area instead of Dallas. Voting "Aye" Councilmembers Owens, Beckman, Saboe, and Kyle. Voting "No" None. Motion Passed 4 to 0, with Councilmember Cole absent. COUNCIL ACTION — REGARDING THE DESIGN BUILD SELECTION PROCESS. Mr. Bill Eisen, City Manager. Councilmember Owens made the motion, seconded by Mayor Pro -Tem Saboe to discuss the design build process. City Manager Bill Eisen stated the design build selection process was discussed last week. Council had some further conversation with regards to this process. City Manager Bill Eisen summarized that the City of Pearland had gone through the process of the two-phase selection procedure as required by state law. Phase I was completed when two firms submitted bids and we then proceeded to Phase II. It was during Phase II that one of the firms had expressed some concern with regard to the type of method Page 13 of 24 — 6/11/2007 of design build being used. As a result of those concerns and indications from that firm, the contractor would withdraw from the process. If the other methods could not also be considered, some modifications had been provided. Both firms had submitted information without any information related to specific cost data that was required in Phase I. He said that if Council wanted to consider either of the two firms in the running at this point, it would likely be necessary to revert back to Phase I at a minimum assuming that we continued with the criteria that was established in Phase I. This was essentially cost plus the GMP (Guaranteed Maximum Price). City Manager Bill Eisen stated it would be fair to say if Council wanted to use a method different than that or would like to keep it open to vote, you probably would have to start completely over and not just revert back to Phase I. This goes through the advertising process and possibly even some work on the original specifications, if that is the right term. City Attorney Darrin Coker stated at the risk of being redundant, the key thing Council needs to remember is that whenever a firm is selected to negotiate with, the City of Pearland has to do so based on the original selection criteria, which was a GMP (Guaranteed Maximum Price) cost plus. Consequently if the Council wants to remain in Phase II, we would need to go back and ask them to submit based on the original selection criteria. On the other hand, we want to allow alternative delivery methods. I think we need to go back to Phase I and open it up to anybody who would like to participate in the process and go back through that process again using the alternative delivery method. He stated he would be happy to answer questions. Councilmember Beckman stated that she did not know how we could possibly go forward with either one of the two choices at this point. She has learned a lot over the last few weeks. It has been an expensive education but I am convinced that design build is not a good idea after all. I think we should go back to the original type of bid process. I think we lose a lot of transparency with this no matter which one we do. If I had to choose one, I would not know really which one to choose and I just think we ought to go back to the original bid processes and drop design build altogether. Mayor Reid stated that there are projects in the City that design build would probably be ideal for and he wished that there was more experience with this process because we lack knowledge, experience and understanding of the process. He stated that it would be ill advised for us to wind up where the City only has one person bidding. It may be difficult to explain to our citizens when we have not competitively bid a project especially when it is a showpiece type of development. We do not have $20 million projects very often. This process could be a learning curve. Mayor Reid commented that he would have no problem with starting all over. Time has already been lost and the Police Department does have a facility. It might take a little bit longer. Mayor Pro -Tem Saboe asked Mr. Coker is it his opinion at this time, that we simply cannot negotiate with either party. Page 14 of 24 — 6/11/2007 City Attorney Darrin Coker noted that it does not seem to make sense but confirmed that it was correct, explaining that when that amendment was made in Phase II, the fund that was originally planned on submitting the cost plus GNP in essence did not comply with our selection criteria. They did not submit everything we were requesting because of the amendment that was made so nobody has really complied. Neither party has complied with our selection criteria and again, sounds like only a technical matter quoting reading a direct quote from the statute that if we are going to award it, it has to be on the basis of the published selection criteria. I do not feel it would be correct if we awarded it to either party at this time. Mayor Pro -Tem Saboe stated that the last Council action on this was to proceed with the design build as a delivery process for the Public Safety Building and to ask the two candidates to submit a gross maximum price proposal. Have we really done anything since that? City Attorney Darrin Coker stated that the motion was to submit a GMP (Guaranteed Maximum Price) based on the original selection criteria and was part of the motion that night as well. Mayor Pro -Tem Saboe stated that it is the only thing that matters to him at this point because we have had discussions and problems all through this process. City Attorney Darrin Coker, stated the whole reason why we did not ask them to do that at that moment, because if you recall from that night, there was some discrepancy as to whether or not there was a separate GMP (Guaranteed Maximum Price) that did not include cost plus feature. Once we found out that that was not really the case, we needed to come back to Council and make sure Council was clear that there was not a distinction between the two, which led to the more recent workshop. We are back at Council tonight to make sure that Council would like to proceed with that motion. If the Council would like to proceed with that original motion, we can go to both parties, tell them to submit based on the original selection criteria and see if anyone does. Councilmember Owens stated that early on, he went back and looked through Step I and Step II; the only thing he ever saw in there was GMP (Guaranteed Maximum Price) and GMP (Guaranteed Maximum Price) is a generic term and it can go with cost plus or it can go with lump sum or with stipulated sum. I have not seen anything in the proposal that said GMP (Guaranteed Maximum Price) cost plus. City Attorney Darrin Coker stated that he thought he had addressed that in his memo to the Council because if you recall, this is a document that one of the participants in this process routinely referenced, which was the DBI Manual. City Attorney Darrin Coker even provided the pages from the DBI Manual and referenced it. Specifically call out stipulated sum and then they call out a GMP (Guaranteed Maximum Price) and they actually say a GMP (Guaranteed Maximum Price) cost plus but then after that, they Page 15 of 24 — 6/11/2007 refer to a GMP (Guaranteed Maximum Price) cost plus after that as a GMP (Guaranteed Maximum Price). In this particular case, I even called Hale Mills to discuss that with them. The Vice President that I spoke with indicated that a GMP (Guaranteed Maximum Price) was not a stipulated sum but I can disguise it as such if that is what we need to do so and those were his words "disguise." I think that is clear from our conversation with him that there are two different animals. GMP (Guaranteed Maximum Price) clearly by industry standards by the DBIs include a cost plus mechanism. Councilmember Owens stated personally he would like to see us stay with the design build method on here. As part of that, I go back to the Council Retreat two years ago when I was on it, that was the number one thing on the Police Department, which was to move forward with that, and we talked about doing a design build. I knew it was very high on the list this time and I know that it has already been voted on to do the design build on that. If we go back to a design build at this point, you have a minimum of 18 - months to two years before construction begins. His concern from the beginning on this was to get a qualified firm to limit the risk with the City. In order to be able to come in and do that, and do that at a Guaranteed Maximum Price on here, that was my concern. I just know within a period of time if we wait and go back to the design bid build, we will be over $20 million for the same facility that we were going to get for less than $18 million right now. He believes it is incumbent upon us for the taxpayer's money not to throw away $2 million plus. Each one of us is not going to be designing or constructing. We have staff to do that; we have hired a consultant and paid him over $200,000 so far to be the eyes and ears and support the City on that. We would be going way over $200,000 that has already been spent. We can clarify which position we want to take whether it is a GMP (Guaranteed Maximum Price) or if it is a stipulated sum or if it is a hybrid between both of them. The only thing I want is, whether the negotiated price is the $18 million or $16.5 million or whatever the number, that it does not exceed that dollar amount and we get the facility that we have agreed to pay for. All I am looking at is a guaranteed price for the project on the end and that they will build it within a certain period of time. That is the whole point behind the design build. Councilmember Beckman said it sounded like a good idea in the beginning, but this has been going on for months now. So far only two contractors have come forward and neither contractor wants to do what the other one wants to do. We are already losing money on it. If the rest of Council wants to go ahead with design build, fine, but we need to make a decision and she does not feel like it is a wise decision to take just one bid and go with it. Councilmember Owens stated if you go back to step 1, you would have to come back out and initiate the changes of what we want to do to move forward, and then put it back on the street. One of the things you look at when you are going through here is if you are going to do a cost plus is if they give you a number before the contractor signed, it is an estimate because they have already told you they are going to advertise in the papers for sub -consultants. They are not going to extend their time and effort to come Page 16 of 24 — 6/11/2007 in and review plans. If you get an estimate of whatever it is that they are subcontracting out, you will just have the estimates until you get to that point anyway but if you want to change it and go back, make it a stipulated sum, make a GMP (Guaranteed Maximum Price). Let us go back and take a look at it. We will lose 45 days - 45 days versus 18 - months or so if we go the other way and it will be guaranteed because you expend more than what we have on the table right now. He does not want to give away that extra money. Councilmember Kyle asked that when the bid went out, were Phase I and II criteria provided at the same time. City Attorney Darrin Coker confirmed that the criteria was in fact provided at the same time. Councilmember Kyle stated that we do not know yet if we are going to have to back to Phase II without having go all the way back to Phase I. We do not know with certainty who will present a proposal. Councilmember Owens speculated that both of them were. Councilmember Owens asked Councilmember Kyle if she had asked them both if they could come back and do a GMP (Guaranteed Maximum Price) as a lump sum and he thought both of them had said yes. Councilmember Kyle stated she was hearing both Phase I and Phase II were provided to these experienced, well-recognized, sophisticated design build companies. If anyone had a question what GMP (Guaranteed Maximum Price) was, those two would be familiar with it. Certainly if anyone had a question about Phase II criteria and whether GMP (Guaranteed Maximum Price) involved cost plus or not, they would be familiar with this. Recognizing that issue in Phase I and Phase II, the criteria were provided at the same time. What I heard happened is that one of them, after submitting a proposal, stated they thought it was a GVP (Guaranteed Maximum Price), subsequently in Phase 11, requested a change and it was at that time that the amendment came forward. What I would like for us to do is give both firms an opportunity to submit them. Perhaps we will not lose 45 days; perhaps we would only lose another week. Perhaps we do lose 45 days but at this point we really have not and with respect to the comment, I know it has been said multiple times, that both of them said they would provide a stipulated sum. Those requests were made in Open Council sessions and that is where all the paperwork was submitted; not during the process itself so I think it is a little unfair this late in the ballgame to require both of the bidders to rearrange their proposal because of the request of one of them for amendment. If only one of them comes to the table and it does not look promising, then we know perhaps we do need to change the process because perhaps it is not going to be workable. Or perhaps we go back to Phase I but at this point I think we were premature to presume that we will not have two successful bids if we do. I would like to see us at least get some credence to the $200,000 we Page 17 of 24 — 6/11/2007 have already invested and the opportunity to save some more costs at this point and go on to Phase II and everyone said they could do it. I do not know why we cannot go down that road. Mayor Reid asked if that was only Phase II. Mayor Reid further stated that it is required that we decide to make a decision of which process we want. Councilmember Kyle stated it would be the same process we have already instituted - one that was presented months ago - the one we all voted on. Mayor Pro -Tem Saboe asked Councilmember Kyle if she was suggesting that we send both bidders a letter saying we want one of your current proposals in conformance with our requested proposal. Please resubmit at your earliest convenience. Councilmember Kyle wished to give them both fair opportunities. City Attorney Darrin Coker stated that to do that, Council would have to rescind the amendment as well. Councilmember Kyle stated that it has already been decided that they will have to do so in order to have an opportunity. Mayor Pro -Tem Saboe said he thought that was a reasonable approach. It is extremely important to him personally that Council gets some consensus on Council with our approach stating this is such a sensitive issue and involves a lot of money that is being moved away from, the more visible competitive process and feels consensus is very important. Mayor Pro -Tem Saboe also commented that Council certainly cannot tell each other how to vote. He would personally like to move forward as a Council with that consensus or he will be personally uncomfortable. He recommends that Councilmember Kyle's suggestion is reasonable with some conditions and those conditions include some conversation around how the proposals are interpreted. He will say it again, one more time, that he has not seen anything that indicates to him that he has had an opportunity to get beneath that $300 a square foot or $290 a square foot. He has seen no indication of that and if in fact it remains the preferred choice based on qualifications. We need something more than that. He has had two questions on the table for some time now and would like to see addressing negotiations if Council chooses to negotiate that. City Manager Bill Eisen reaffirmed to Council that they would like to go back to asking both companies and provide the information required. Councilmember Kyle stated in Phase II. Mayor Pro -Tem Saboe stated whatever puts them in compliance with our RFP and if Page 18 of 24 — 6/11/2007 there is room for interpretation with that compliance, so be it. City Attorney Darrin Coker will provide Council with the proper guidelines. City Manager Bill Eisen stated two companies were informed of our criteria at that point; one would be selected and initiate negotiations, and if in some reasonable period of time, come to some term suitable to Council, that would be great. If not, we say thanks and move on to the next. Mayor Pro -Tem Saboe confirmed. Mayor Pro -Tem Saboe said it would give Council an opportunity to try and capture some of the work that has been completed and as Councilmember Kyle suggested, take advantage of the concept that this is about trying to save some money, time, and try to protect the best interests of the City and the taxpayers at the same time. Mayor Pro - Tem Saboe stated that Council should not forego something if it has already been heard. City Manager Bill Eisen stated that he understands and hopes he will be corrected if wrong; the commentary from both firms is that neither of them would be particularly interested. His understanding of both firms would be whatever negotiations with the successful first -choice firm would be and it would probably include some specifics about how much if any of that initial design money they will be paid before they submit their GMP (Guaranteed Maximum Price) or the stipulated sum. Is that a fair summation of the Council's understanding? We can ask for a stipulated sum or the cost plus with the GMP (Guaranteed Maximum Price). I do not know that it is in our best interest to do that until the design is a little further down the road so if that is the case, then I am assuming that those negotiations will include when you get to X %, whatever that is, you get paid X if we use you or not and that is part of the negotiated agreement. Am I thinking consistently with what the Council is thinking about? Mayor Pro -Tem Saboe advised City Manager Bill Eisen is summarizing the perspective that he would take or propose to the companies. It is in negotiation and if in fact, Council's position is that part of their investment in this is their additional time to work with Council as they negotiate, otherwise Council simply has absolutely no leverage. Mayor Pro -Tem Saboe stated that is where Council needs to start from since Council is not ready to write a contract and bill the City along the journey as negotiations are taking place. Councilmember Owens stated normally it is not done like that. No one gets paid anything until we get a contract. The contractors may want to capture those costs that have been part of the negotiations and then bill the City after they reach and sign a contract with the City. Councilmember Owens commented using Harris County as an example: stating a contractor can work as much as they want on a project but Harris County will not let a contractor bill for work done prior to signing the contract. Page 19 of 24 — 6/11/2007 Councilmember Owens stated that one of the Councilmembers asked in a previous meeting, at what point does the City start paying. Councilmember Owens stated that he had no intention of paying for anything until after there is a contract signed, an agreement with the contractor, a guaranteed price, and the cost of negotiating is part of the business. If they want to take it to a 50% or 60% design until they can provide a price, the contractor will have to work it out with their architectural firm. That is one reason that you always ask for a contractor to have a strong relationship in a past experience with an architectural firm because they will provide quite a bit of design before they get to the point that they will have to sign a contract stating that the City would pay a guaranteed price. City Manager Bill Eisen wondered if it was more to the City's advantage to get further into the process before a GMP (Guaranteed Maximum Price) or stipulated sum is agreed upon. The more design that is done, the more confidence that contractor can have in the numbers and the rest he has to protect himself against unforeseens or by adding to the numbers and contingencies, not doing anything wrong, just protecting themselves. There could also be a reduction in material quality or something else if the contractor agrees on a number too soon. The question is how far will a company go to get to that number and if they are willing to go 50% to 60%, that is good but if they are only willing to go 20% to 30% without knowing they will be paid, do we not wind up with as good an estimate on the contractor's part. Mayor Pro -Tem Saboe stated that if Council took that approach with him as if he were one of the contractors, he would be happy to do it. That is part of the change with this process obviously, and if they cannot ascertain based on prior experience, based on benchmarks, that they have created themselves or enjoyed by studying others in the industry, and get some sense of what it probably will cost them and they will charge us for early on in this process by 25% of the design process, then they are not a qualified firm in his opinion. If they do not have enough experience to do this and he thinks that they do, and if the City gets engaged in negotiations, and we get farther down the line, the City has more invested with time and hours. If we had four people here saying we are all interested, we are going to comply with everything, you might give it some more rope. City Manager Bill Eisen stated that the City currently has two firms, who both have entirely different approaches to what they are willing to save. Mayor Pro -Tem Saboe advised that the firms have their reputations at stake, past and future, future with the City at stake. The University of Houston campus building might be the very next one we try. It could be a great opportunity to build a relationship with Council and have first-hand experience with us and that can be parlayed into the very next project. Mayor Pro -Tem Saboe also commented that Council does have some leverage in that regard in addition to future work and neither of the firms will "nickel and dime" the City. Mayor Pro -Tem Saboe also asked what the City paid $200,000 for in Page 20 of 24 — 6/11/2007 the process of the early phase design. If we do not have some sense of what we want out of this, and we cannot lay those specs out in 45 days and ask them for a number, then maybe the City did not spend the money very wisely. Councilmember Owens commented that the whole point in the City coming into this method is the Police Facility. This would also include Municipal Court, Utility Billing, and a jail facility housing prisoners. You have a footprint of an architectural firm that does this kind of business, can take it and run from there and put all the stuff in it that the City needs so it is not a big deal. As far as people who do it all the time and take what you have now and put it all together on that, I would like to propose to not pay them anything until the contract is signed and ready to go and a percentage of whatever it is. Councilmember Owens further stated that normal procedure on a cost plus basis, would start out with an estimated cost of $18 million and they may request 25% to 30% contingency with that, which would be split with the City of what is left when negotiations are reached. At the end of the negotiations, there may be 15% left and the contractor would split that amount with the City as a profit for the contractor. Councilmember Owens said that in a design build, the contractor normally does not get paid anything up front because it is their marketing dollars. If they do not meet at the end, they do not get paid. City Manager Bill Eisen stated that the real question is if Council is in agreement on a couple of items such as cost information regarding the overhead; is this a fair summation of the observations of two Councilmembers and if the answer is yes. Councilmember Kyle stated that from her perspective, she would only clarify that it is not the cost plus overhead; it would be whatever the criteria is. Mayor Pro -Tem Saboe agreed it was his exact summation as well. Councilmember Kyle commented that she did not want it to appear as if they are simply looking for the contractors to provide information that was outlined in the proposal. Mayor Pro -Tem Saboe stated that there was a very real likelihood that only one firm will participate and that as the City enters negotiations, that firm will choose not to participate. If that happens, it is fine with him that we go back to Councilmember Beckman's recommendation that we start over because he does not know if there are any other options at this point. City Attorney Darrin Coker clarified to Council that if no action is taken tonight, we would end up going down the path that Mayor Pro -Tem Saboe and Councilmember Kyle recommended. If we want to deviate from that path, we would need a separate motion tonight to do so. Councilmember Owens expressed concern regarding the numbers supplied including Page 21 of 24 — 6/11/2007 port -a -potties because he does not know where those numbers are coming from. I do not know how you can give a price on that when you do not have the total amount of the contract that you will be bonding. I would really look at some of those items that people will give us cost on and how many months they are going to have it on the job. He would also suggest that if there are any changes made, he would make it for the whole project rather than Council coming back and doing the site preparation and planning first to get cost on that and then go to cost to do the design for the builder. City Attorney Darrin Coker stated that he would caution against going back and changing the criteria because obviously that is one of the reasons Council is present tonight having this discussion. City Attorney Darrin Coker recommended sticking with the same criteria. The contractors will submit what they want to based on criteria and then during Step II, that information would have to be weighed based upon what the contractors submit. He said that maybe it might be something that the contractor leaves blank but maybe it would not be something that would be considered important and that information is weighed. Mayor Pro -Tem Saboe stated that the information may be weighed during negotiations. City Attorney Darrin Coker confirmed changing the structure of and breaking it out into components is something that would be done in the negotiation of the contracts and agreed with Councilmember Owens on that. He is not sure that it is probably the best way to do it but can be handled in the contract negotiation phase. Councilmember Owens commented that he wanted to make sure that Council had good information, the scoring on this process when it is reviewed, and the definition for scope changes. Sub contractor selection is 10 points, interview 20 points, cost methodology is only 15 points. We are only arguing about 15 points out of the whole selection. Councilmember Owens stated that he has no problem going backward and see if anyone wants to do anything on it or not. No one gets paid anything until a contract is signed. Mayor Reid stated that the Council will not be taking any action on this item. Councilmember Owens asked if Council would be getting back to the two firms, and would send a letter stating this is what the deal is. Councilmember Kyle asked how many Councilmembers were in agreement with this approach. City Attorney Darrin Coker stated that the way he is interpreting that is the motion was made by City Council and the whole point of the workshop and tonight's discussion was to clarify and make sure Council wants to proceed with that motion. If that is the way Council wants to proceed, then no additional action will be taken. The only time he Page 22 of 24 — 6/11/2007 would see any action taken tonight would be if we wanted to deviate from that and he has not heard that. Councilmember Owens suggested that a letter to the contractors be submitted to Phase II with an attachment so no one has any disagreements. City Attorney Darrin Coker stated if Council did not proceed after clarifying the issue tonight, he would be in trouble for not doing what the Council has already advised Staff to do. After this item was discussed Council did not take formal action. OTHER BUSINESS: Council adjourned into Executive Session under Texas Government Code at 10:08 p.m. to discuss the following: EXECUTIVE SESSION UNDER TEXAS GOVERNMENT CODE 1. SECTION 551.072 — REAL PROPERTY: DISCUSSION REGARDING THE SALE, LEASE, PURCHASE, OR EXCHANGE OF REAL PROPERTY. Mr. Darrin Coker, City Attorney. 2. SECTION 551.071 — CONSULTATION WITH CITY ATTORNEY — REGARDING LEGAL MATTERS ASSOCIATED WITH NEW LEGISLATION. Mr. Darrin Coker, City Attorney. NEW BUSINESS CONTINUED: Council returned from Executive Session at 10:51 p.m. COUNCIL ACTION REGARDING THE SALE, LEASE, PURCHASE, OR EXCHANGE OF REAL PROPERTY. City Council. No action taken by Council. COUNCIL ACTION — REGARDING LEGAL MATTERS ASSOCIATED WITH NEW LEGISLATION. City Council. No action taken by Council. /_\11410111:11!1JJ1 4111 Page 23 of 24 — 6/11/2007 Meeting was adjourned at 10:51 p.m. Minutes approved as submitted and/or corrected this the 25th day of June, A.D., 2007. ATTEST: y Lyl,'��ng LrKy seetary Q:k Tom Reid Mayor Page 24 of 24 — 6/11/2007