2009-02-02 CITY COUNCIL SPECIAL MEETING MINUTESMINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON MONDAY, FEBRUARY 2, 2009, AT 6:00 P.M., IN
THE TEMPORARY MUNICIPAL COURT ROOM LOCATED AT THE CITY OF
PEARLAND COMMUNITY CENTER, 3523 LIBERTY DRIVE, PEARLAND, TEXAS.
Mayor Reid called the meeting to order at 6:05 p.m. with the following present:
Mayor
Tom Reid
Mayor Pro -Tem
Helen Beckman
Councilmember
Woody Owens
Councilmember
Steve Saboe
Councilmember
Felicia Kyle
City Manager
Bill Eisen
City Attorney
Darrin Coker
City Secretary
Young Lorfing
Absent: Councilmember Kevin Cole
Others in attendance: Trent Epperson Project Director; Mike Hodge Assistant City
Manager; Fred Welch Executive Director of Economic Development Corporation;
Nghiem Doan Deputy City Attorney.
NEW BUSINESS
COUNCIL ACTION — RESOLUTION NO. R2009-17 — A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PEARLAND, TEXAS, CONSENTING TO THE
ASSIGNMENT OF THE UNIVERSITY OF HOUSTON-PEARLAND DESIGN BUILD
AGREEMENT. Mr. Darrin Coker, City Attorney.
Councilmember Kyle made the motion, seconded by Councilmember Owens, to
approve Resolution No. R2009-17.
City Attorney Darrin Coker stated this item is a Consent to Assignment Agreement
associated with the University of Houston Campus that will be constructed in the City.
The City has already entered into an agreement with Hale -Mills Construction for the
project, but one of the partners in of the company has separated and started a company
called Palmer Construction. The division that separated from Hale -Mills Construction is
the one that would be working on the University of Houston Project. Discussions were
conducted with Hale -Mills Construction and Palmer Construction and it was decide that
if it was approved by Council, the project would be assigned to Palmer Construction.
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Hale -Mills Construction is prepared to perform under the contract and Palmer
Construction will handle the project as a subcontractor. Palmer Construction would be
subject to all terms and conditions of the original contract.
Dave Palmer, Palmer Construction, stated it was a privilege to work with the City for
several years. He stated the first planning meeting has been conducted with the
architect firm for the project and the same team originally submitted will continue to
work on the project.
City Attorney Darrin Coker stated it has been verified that the assignment of a design -
build contract is legal under State requirements.
Councilmember Saboe stated he appreciates Mr. Palmer keeping the original team for
the project and feels it represents the consistency between where the project started
and where it is going.
City Manager Bill Eisen stated, when the City became aware of the separation at Hale -
Mills Construction, the main concern was that the team that was presented during the
selection process would be the same team working on the project. Everyone that
participated in the interview process will be working on the project. Staff has been
working with the Attorney General's Office with regard to the sale of Certificates of
Obligation to finance the construction of this facility. An opinion was received that the
City, under the State Statute, could not issue Certificates of Obligation for higher
education purposes; however, the City's Bond Council strongly disagrees with this
opinion. A letter was sent to the Attorney General appealing this decision. The City
does have other options for the financing such as Contract Revenue Bonds, but the
Certificates of Obligation would be the best way to finance the project.
Councilmember Kyle asked when it was anticipated that the City would receive a
decision regarding the appeal.
City Attorney Darrin Coker stated it was expected to be approximately three days before
a decision would be received regarding the appeal and then the issue would be taken to
the next step which would possibly be a meeting to discuss the opinion.
Voting "Aye" Councilmembers Owens, Saboe, Beckman, and Kyle.
Voting "No" None.
Motion Passed 4 to 0, with Councilmember Cole absent.
ADJOURNMENT
Meeting was adjourned at 6:24 p.m
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Minutes approved as submitted and/or corrected this the 23rd day of February, A.D.,
2009.
Toni—Reid
Mayor
ATTEST:
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