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2018-06-28 PEARLAND ECONOMIC DEVELOPMENT CORPORATION REGULAR MEETING MINUTESMINUTES OF A REGULAR MEETING OF THE PEARLAND ECONOMIC DEVELOPMENT CORPORATION ("PEDC") BOARD OF DIRECTORS OF THE CITY OF PEARLAND, TEXAS HELD THURSDAY, JUNE 28, 2018, 5 00 P.M., BOARD ROOM, PEDC OFFICE, 3519 LIBERTY DRIVE, SUITE 350, PEARLAND, TEXAS. CALL TO ORDER The meeting was called to order at 5:00 p.m. BOARD MEMBERS Chair Brandon Dansby Vice -Chair Hugh Patton Secretary Mona Chavarria Board Member Rushi Patel Board Member Chad Thumann Board Member Reid Wendell Board Member Celeste Jefferson EX-OFFICIO MEMBERS PEDC Matt Buchanan City of Pearland Tom Reid City of Pearland Clay Pearson PEARLAND ECONCOMIC DEVELOPMENT STAFF MEMBERS Melissa Black Roxanne Luna -Larsen Brian Malone Valerie Marvin CITY OF PEARLAND Darrin Coker Rhonda Daugherty II. APPROVAL OF MINUTES Secretary Chavarria made a motion, seconded by Board Member Patel, to approve the minutes of the Regular Meeting of April 26, 2018. Motion Passed: 6-0 Minutes of a Regular Meeting June 28, 2018 Page 2 III. PUBLIC COMMENTS None IV. FINANCIAL REPORT A. Monthly Financial Report May 2018 President Buchanan presented the May 2018 Financial Report. Rhonda Daugherty, City of Pearland Finance Assistant Director, was present to address any questions. Board Member Patel, made a motion, seconded by Secretary Chavarria, to approve the May 2018 Financial Report. Motion Passed: 6-0 V. NEW BUSINESS Board Member Jefferson arrived A. Program of Work 2018-2019 President Buchanan provided an update on progress toward completing the 2017-18 Program of Work and presented the 2018-19 Program of Work. No action taken Public Hearing: FY2018-19 Budget and Related Projects The Public Hearing was opened at 5:18 p.m. by Chairman Dansby. There were no public comments. The Public Hearing was closed at 5:18 p.m. C. Amendment of the FY 2017-18 Budget and Adoption of the FY 2018-19 Budget President Buchanan proposed year end amendments to the FY 2017-18 Budget and presented the FY 2018-19 Budget. Projections for FY 2017-18 are $14.5M for revenue and $12.1M for expenses. The FY 2018-19 budget proposes revenue of $11.9M and expenses of $15.3M. Staff also reviewed the 5-Year Forecast. Board Member Patel made a motion, seconded by Board Member Jefferson to amend the FY 2017-18 budget and adopt the proposed FY 2018-19 Budget. Motion Passed: 7-0 D. Implementation of SH35 Corridor Redevelopment Strategy: Reimbursement Agreement with the City of Pearland for SH35 Gateway and Corridor Enhancements Competitive sealed proposals for the SH 35 Gateway and Corridor Enhancement project from Beltway 8 to Broadway were received and the evaluation committee scored Landscape Art, Inc. as the proposer with the best value. The proposal was over budget but staff negotiated a price of $6,237,050.11. The scope of work consists of two monument entryways on the north side of Clear Creek and associated site work and landscaping. A Reimbursement agreement with the City will need to be considered by the City Council along with the award of a construction contract. Board Member Patel made a motion seconded Secretary Chavarria to approve the Chairman execute a reimbursement agreement with the City of Pearland to fund the construction of SH 35 Beautification from Beltway 8 to Broadway in an amount not to exceed $6,437,050. In addition, PEDC spending $56,000 for the construction phase reimbursable expenses and material testing services. Motion Passed: 7-0 Minutes of a Regular Meeting June 28, 2018 Page 3 E. Implementation of SH288 Corridor Master Improvement Plan: Reimbursement Agreement with the City of Pearland for a Change Order to Aesthetics Improvements A change order regarding the SH 288 Corridor Master Improvement Plan's aesthetic improvements was discussed. The Change Order would be for the construction of the sculpture foundations by the managed toll lanes contractor at an estimated $420,000 PEDC will fund the expense through the existing Reimbursement Agreement for SH 288 Aesthetic Improvements. Board Member Wendell made a motion, seconded by Vice Chair Patton to approve the Change Order to include the pear sculpture foundations in the SH 288 Corridor Hardscape Enhancements Project in an amount estimated to be $420,000, or the actual cost. Motion Passed: 7-0 F. Reimbursement Agreement with City of Pearland for the SH 288 Northbound Frontage Road between CR 59 and FM 518 The City has been working with Brazoria County to split the estimated construction cost for the design and construction of the SH 288 north bound frontage road between CR 59 and FM 518. To facilitate moving forward with the project. PEDC, on March 22, 2018, approved funding a portion of the project cost, originally not to exceed $450,000 The County has given a preliminary commitment of $1.5M causing a $300 000 shortage. An amendment to the reimbursement agreement with the City to fund an additional amount of $300,000 was requested, making a total contribution by PEDC not to exceed $750,000 Secretary Chavarria made a motion, seconded by Board Member Wendell, to approve the Chairman to execute an amendment to the Reimbursement Agreement with the City of Pearland to fund the SH 288 Frontage Road design, engineering, and construction in total amount not to exceed $750,000. Motion Passed: 7-0 G. Monthly Activity Report — President Buchanan summarized ongoing activity. No action taken The meeting went into recess at 6:18 p.m. The meeting reconvened and went into Executive Session at 6:28 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 551.087 — DELIBERATIONS REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS AND REIMBURSEMENT AGREEMENT WITH THE CITY OF PEARLAND — Project #1802 3. SECTION 551.072 — DELIBERATIONS REGARDING REAL PROPERTY — Project #1803 4. SECTION 551.087 — DELIBERATIONS REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS — Project #1804 5. SECTION 551.087 — DELIBERATIONS REGARDING REAL PROPERTY— Project #1610 The Board reconvened into Open Session at 7:29 p.m. New Business Continued: Minutes of a Regular Meeting June 28, 2018 Page 4 H. Economic Development Negotiations — Business Attraction/Retention Projects No action taken I. Economic Development Negotiations — Project #1802 No action taken. J. Deliberations Regarding Real Property — Project #1803 Board Member Patel made a motion, seconded by Secretary Chavarria to approve the President to enter into a loan and infrastructure agreement with Prospect #1803 and/ or related entities for $525,000 and the extension of a water line for an estimated $130,000. Motion Passed: 7-0 K. Economic Development Negotiations Project /11804 Board Member Thumann made a motion, seconded by Board Member Jefferson to approve the President enter into agreements necessary to demolish all improvements and landscape located at 2401 Main Street. Motion Passed: 7-0 L. Deliberations regarding real property — Project #1610 Board Member Patel made a motion, seconded by Secretary Chavarria, for the President to remove contingencies as discussed in Executive Session. Motion Passed: 7-0 Adjournment: The meeting was adjourned at 7:29 p.m. Minutes approved as submitted and/or corrected this A.D., 2018 ATTEST: Hugh Patton, Vice Chair day of Brandon Dansby, Chair