2020-06-25 PEARLAND ECONOMIC DEVELOPMENT CORPORATION REGULAR MEETING MINUTESMINUTES OF A REGULAR VIDEO CONFERENCE MEETING OF THE PEARLAND ECONOMIC DEVELOPMENT
CORPORATION ("PEDC") BOARD OF DIRECTORS OF THE CITY OF PEARLAND, TEXAS HELD THURSDAY, JUNE 25, 2020
5:00 P.M.
I. CALL TO ORDER
The meeting was called to order at 5:02 p.m.
BOARD MEMBERS
Chairman Hugh Patton
Vice -Chair Mona Chavarria
Secretary Reid Wendell
Board Member Brandon Dansby
Board Member Antonio Johnson
Board Member Chad Thumann
EX-OFFICIO MEMBERS
PEDC Matt Buchanan
City of Pearland Clay Pearson
Chamber Carol Artz-Bucek
PEARLAND ECONCOMIC DEVELOPMENT STAFF MEMBERS
Melissa Black
Jessica Byerly
Roxanne Luna -Larsen
Brian Malone
Valerie Marvin
CITY OF PEARLAND
Darren Coker
Rhonda Daugherty
Trent Epperson
Joshua Lee
John McCarter
John McDonald
Minutes of a Regular Meeting
June 25, 2020
Page 2
II. APPROVAL OF MINUTES
Vice Chair Chavarria made a motion, seconded by Secretary Wendell, to approve the minutes of the
Regular Meeting of May 28, 2020.
Motion Passed: 6-0
III. PUBLIC COMMENTS
None.
IV. FINANCIAL REPORT
A. Monthly Financial Report — May 2020 Financial Report
President Buchanan presented the May 2020 Financial Report.
Board Member Thumann had a question regarding the actual year to date in the Salaries and
Wages line item versus the budgeted amount. City of Pearland Assistant Finance Director
Rhonda Daugherty explained that two months have three pay periods accounting for the year to
date balance.
Board Member Dansby made a motion, seconded by Board Member Thumann, to approve the
May 2020 Financial Report.
Motion Passed: 6-0
V. NEW BUSINESS
A. Excuse the absence of Chairman Patton from the regular Board meeting on May 28, 2020.
Board Member Johnson made a motion, seconded by Vice Chair Chavarria, to excuse the absence
of Chairman Patton from the May 28, 2020 meeting.
Motion Passed: 6-0
B. SH 288 Corridor Master Improvement Plan — Contract with Millis Development for Phase IV
Improvements BW8 to CR 59
A proposal from Millis Development for the Phase IV of improvements of BW8 to CR 59 was
presented to the Board. The contract and scope of work covers the construction and installation
of improvements in Phase IV of five phases of the SH288 Corridor Master Improvement Plan and
includes landscaping irrigation, lighting, large water fountains, pear sculptures and gateway
signage.
Four competitive sealed proposals were received and the best value proposal was from Millis
Development. Negotiations on scope and time modifications on various items in their proposal
resulted in a total cost for the proposal to be $14,192,050.84, a reduction form their original
proposal of $15,610,043.84.
Millis would act as the general contractor, organizing various subcontractors specifically Shooter
& Lindsey who will be performing approximately 70% of the work, including providing plant
material and installing trees, shrubs, plants, planting beds, and irrigation.
Minutes of a Regular Meeting
June 25, 2020
Page 3
The project will be completed in phases after the construction contract is awarded and a Notice
to Proceed issued by the City. Completion will be by January 2022 and a one year warranty
period will begin. After each phase, long term maintenance will be transferred to PMMD2
Secretary Wendell made a motion, seconded by Board Member Dansby to approve the City of
Pearland to award a contract with Millis Development and Construction for Phase IV in an
amount of $14,192,050.84.
Motion Passed: 5-1
Opposed: Thumann
C. Implementation for Pearland Prosperity Business Formation and Early Stages Growth Focus Area:
Professional Services Agreement with Business Cluster Development
A professional Services Agreement with Business Cluster Development (BCD) for implementation
of the Pearland Prosperity Business Formation and Early Stage Growth focus area was presented
to the Board. After interviewing four firms and evaluating references, the best choice was a
collaboration between two of the firms, BCD and Claggett Wolf Associates (CWA) with BCD
leading the partnership.
The project will have two phases which will include research of published data and interviews
with stakeholders Phase I will focus on assessing the project's Market Opportunity by
determining if a Minimal Viable Product can be developed that will produce the Mission
Achievement/ Impact Factors wanted and Phase II will develop the business model and cost
framework needed to develop, implement and sustain the project's Minimal Viable Product.
Costs are expected not to exceed $90,000 with $84,410 covering the base fee and the remaining
for estimated reimbursable expenses and any additional trips or meetings.
Board Member Thumann made a motion, seconded by Board Member Johnson to approve the
President to enter into a Professional Services Agreement with Business Cluster Development for
an amount not to exceed $90,000.
Motion Passed: 6-0
D. Implementation of SH 35 Corridor Redevelopment Strategy. Professional Services Agreement
with Freese & Nichols — Phase III Improvements — Halik Street Final Design of Drainage and
Roadway Improvements.
The professional services agreement with Freese & Nichols for drainage and roadway
improvements to Halik Street was brought to the Board for consideration. Included in agreement
is the final engineering design with Halik Street being reconstructed to 38 ft, curb and gutter
storm sewer and 6ft concrete sidewalk, with a 2 ft brick paver strip, along the south curb,
detention, and a drainage lateral connecting the storm sewer from Halik Street to rice Drier Road
costing $121,850.
Vice Chair Chavarria made a motion, seconded by Secretary Wendell to approve the President to
enter into a Professional Services Agreement with Freese & Nichols, Inc. for Halik Street final
engineering and design in the amount of $121,850.
Motion Passed: 6-0
E Approval of the FY 2020-21 Program of Work and FY 2019-20 Program of Work Update
Minutes of a Regular Meeting
June 25, 2020
Page 4
President Buchanan provided an update and progress of the 2019-20 Program of Work He also
presented the 2020-2021 Program of Work. The 2020-2021 Program of Work aligns with the
Pearland Prosperity Strategic Plan previously approved by the Board.
Board Member Dansby made a motion seconded by Board Member Thumann to approve the
proposed 2020-202 Program of Work.
Motion Passed: 6-0
F. Public Hearing: FY2020-21-21 Budget and Related Projects
The Public Hearing was opened at 7:11 p.m. There were no registrants for public comments and
the Public Hearing was closed at 7:11 p.m.
G. Amendment of the FY 2019-20 and Adoption of the FY 2020-21 Budget
Consideration for the proposed FY 2020-21 PEDC Budget, year-end FY 2019-20 Budget
Projections and Five -Year Forecast was brought to the Board by President Buchanan.
Expenditures are consistent with Program of Work and priorities outlined in the Pearland
Prosperity Community Strategic Plan.
The year-end FY 2019-20 Budget indicates $12M in revenue and $9.2M in expenses. Sales tax
revenue for the year is projected at $10 6M which is 88% of the amended budgeted amount
reflecting the impact of COVID-19. Expenses are $12 2M under our amended budget of $21.4M.
The two major items that are under budget is almost $10M for 288 Corridor Enhancements and
$1 2M for the proposed North Main Business Park. Our beginning fund balance was $16.7M and
our projected ending fund balance is $19 6M.
The FY 2020-21 budget projects a total revenue of $11 5M with sales tax revenue of $11M, an
increase of 3/ in sales tax revenue from FY 2019-20 projections. Proposed are expenses of
$24.5M, $13.0M over projected revenue. The projected FY 2020-21 beginning fund balance of
$19.6M will end FY 2020-21 with a fund balance of $6.5M.
The five-year forecast shows this year's proposed year-end projected budget, proposed FY 2020-
21 budget and projections for the following four years with expected ending fund balances. All
proposed expenditures are consistent with the priorities outlined in our Pearland Prosperity
Community Strategic Plan. Sales Tax is assumed at 2% increase, no revenue from the CSl building
is included. Anticipated expenditures are summarized for the next five years.
Board Member Johnson made a motion, seconded by Vice Chair Chavarria to Amend the FY2019-
20 Budget and adopt the FY 2020-21 Budget as presented.
Board Member Thumann made a motion, seconded by Board Member Dansby, to amend the
motion and reduce the contingency from the line item for the 288 Corridor Enhancements for
FY2020-21 of $710,000 to $100,000, which reduces Budget total Expenses from $24,598,122 to
$23,988,122
Amendment to the Motion Passed: 6-0
Passed as Amended: 6-0
H. Monthly Activity Report — President Buchanan summarized ongoing activity.
No action taken.
The meeting went into recess at 7:50 p.m.
Minutes of a Regular Meeting
June 25, 2020
Page 5
The meeting reconvened and went into Executive Session at 7:57 p.m.
VI. OTHER BUSINESS
Executive Session Under Texas Government Code
1 Section 551 087 — DELIBERATIONS REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS
Update on Business Attraction/Retention Projects
2 SECTION 551 072 — DELIBERATIONS REGARDING THE LEASE, PURCHASE, OR SALE OF REAL
PROPERTY 14740 Kirby Drive Lease
The Board closed Executive Session at 8:49 p.m.
The Board reconvened into Open Session at 8:53 p.m.
VII. NEW BUSINESS CONTINUED:
I. CONSIDERATION AND POSSIBLE ACTION: DELIBERATIONS REGARDING THE LEASE, PURCHASE, OR
SALE OF REAL PROPERTY 14740 Kirby Drive Lease
No action taken
VIII. ADJOURNMENT:
The meeting was adjourned at 8:54 p.m.
Minutes approved as submitted and/or corrected this
A.D., 20211 I
Chair
Secretary
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