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R2023-180_2023-08-14RESOLUTION NO. R2023-180 A Resolution of the City Council of the City of Pearland, Texas, authorizing the City Manager or his designee to enter into a cost sharing agreement with the Pearland Economic Development Corporation associated with the Hickory Slough Sports Complex. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain Cost Sharing Agreement by and between the City of Pearland and the Pearland Economic Development Corporation, a copy of which is attached hereto as Exhibit “A” and made a part hereof for all purposes, is hereby authorized and approved. Section2. That the City Council, contingent upon PEDC approval, hereby approves PEDC expenditures to fund approximately $17.6 million, or the actual cost, for construction of the Hickory Slough Sports Complex Expansion Project (“Project”); an estimated $232,951.00 for one- time capital equipment costs for the Project; and an estimated annual $384, 021.00 for the ongoing operations and maintenance of the Project. Section 3. That the City Manager or his designee is hereby authorized to execute and the City Secretary to attest a Cost Sharing Agreement with the Pearland Economic Development Corporation. PASSED, APPROVED and ADOPTED this the 14th day of August, A.D., 2023. _________________________________ J. KEVIN COLE MAYOR ATTEST: _____________________________ FRANCES AGUILAR, TRMC, MMC CITY SECRETARY APPROVED AS TO FORM: ________________________________ DARRIN M. COKER CITY ATTORNEY DocuSign Envelope ID: 400032D9-2DAD-4015-895C-9F8133C766A2 HICKORY SLOUGH SPORTS COMPLEX FUNDING AGREEMENT CITY OF PEARLAND RECREATION CONSTRUCTION AND MAINTENANCE CONTRIBUTIONS This Agreement is entered into this 0/ 1 day of , 2023, by and between the CITY OF PEARLAND, TEXAS (hereinafter "C y"), and the Pearland Economic Development Corporation (hereinafter "PEDC") WHEREAS, the PEDC is a Type B economic development corporation, created pursuant to Chapter 505 of the Texas Local Government Code, as amended, and WHEREAS, the City and PEDC have approved the Pearland Prosperity Strategic Plan which includes a strategy to support Quality of Life and Quality of Place by advancing the development and implementation of the Parks and Multi-Modal Master Plans, and WHEREAS, the City's Master Parks Plan calls for construction of the Hickory Slough Sports Complex ("Project") in two (2) phases, and WHEREAS, the PEDC previously funded a portion of the Project, Phase I ("Phase I Funding"), and WHEREAS, the City plans to construct and maintain Phase II of the Project, and WHEREAS, the City has requested PEDC contribute towards the construction and ongoing maintenance of the Project, Phase II ("Phase II Funding"), and WHEREAS, Section 501 103 of the Texas Local Government Code (hereinafter "Code"), in pertinent part, defines the term "project" to mean "expenditures that are found by the board of directors to be required or suitable for infrastructure necessary to promote or develop new or expanded business enterprises, limited to (1) streets and roads, rail spurs, water and sewer utilities, electric utilities, or gas utilities, drainage, site improvements, and related improvements, (2) telecommunications and Internet improvements ", and WHEREAS, Section 505 152 of the Code authorizes the expenditure of PEDC funds for projects related to Recreational or Community Facilities which includes public parks, and WHEREAS, Section 505 152 of the Code, in pertinent part, also defines the term "project" to mean "land, buildings, equipment, facilities, expenditures and improvements found by the board of directors to be required or suitable for use for public park purposes and events, including...parks and parks facilities, open space improvement..., and WHEREAS, Section 505 303 of the Code authorizes the expenditure of PEDC funds for maintenance and operating costs of a project so long as the project is publicly owned and operated, and Type B funds were utilized to purchase or construct the project, and WHEREAS, the Project will contribute to the improvement of the City's parks system, and the PEDC desires to fund the expenses associated with the Project, and WHEREAS, at its July 27, 2023 Board of Directors meeting, the PEDC conducted a public hearing and approved funding a portion of the expenses associated with the Project in addition to an annual contribution towards the Project's maintenance and operations, and WHEREAS, City and PEDC desire an agreement to set forth their respective responsibilities with regard to the Project WITNESSETH: NOW THEREFORE, in consideration of the foregoing premises and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, it is hereby agreed as follows 1 Phase II Funding The total estimated cost of the Project (Phase II) is estimated to be $17 6M, as itemized in Exhibit "A" attached hereto PEDC agrees to fund the Phase II costs in an amount estimated to be $17 6M, or the actual cost ("Phase II Funding") The Phase II Funding amount shall be paid in installments or a lump sum amount to the City. The timing and amount of the payment shall be determined at sole discretion of the City, but in no event shall the total payments exceed the PEDC Participation amount without additional authorization from the Board of Directors 2 Type B Funding Percentage The PEDC funded 13% or $564,000 of the total cost of $4 5M of the Project, Phase I capital costs PEDC Participation will fund 100% of the estimated $17 6M, or the actual cost, of the Project, Phase II capital costs The PEDC combined funding percentage for the capital costs for Phase I and Phase II of the Project is 82% ("Combined PEDC Participation Percentage") is shown in Exhibit "B" attached hereto 3 Capital Equipment PEDC agrees to fund an estimated $232,951 for capital equipment necessary to operate the Project at the same percentage as the Combined PEDC Participation Percentage of 82% The itemization of proposed capital equipment is shown in Exhibit "C" attached hereto. 4 Maintenance and Operations Costs The total estimated annual maintenance and operations cost of the Project is 2 $468,318 PEDC shall fund an annual amount of maintenance and operations costs equal to the Combined PEDC Participation Percentage PEDC is estimated in the first full year of operations to pay $384,021 per year or $32,002 per month which is 82% of the cost estimate shown in Exhibit "D" This amount shall be paid to City in installments or a lump sum amount The timing the payments shall be determined at sole discretion of the City, but in no event shall the total payments exceed the PEDC percentage contribution to the total capital cost 5. Annual Calculation The City, on an annual basis, and prior to the Board of Directors adoption of their annual budget, shall present to the Board of Directors a proposed itemized annual budget for the maintenance and operations of the Project to be incorporated into the PEDC's annual budget 6 City shall design and construct the Project generally shown in Exhibit "E" attached hereto 7 The City shall comply with state law requirements for construction of public projects using competitive bidding, competitive proposals, or alternate forms of delivery for construction projects City reserves the right to reject all bids or proposals for the construction of the Project Following award of the contract by City, City shall cause construction of the Project to commence on or before July 1, 2025 ("Commencement Date") and shall cause the Improvements to be completed in accordance with the plans and specifications within a reasonable period of time 8 Due to the funding and maintenance components of this Agreement, the term of this Agreement shall be perpetual, commencing on the day of , 2023 9. This Agreement may only be amended, modified, or supplemented by written agreement and signed by both parties. 10 No assignment by a party hereto of any rights under or interests in this agreement will be binding on another party hereto without the written consent of the party sought to be bound, and specifically but without limitation moneys that may become due and moneys that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any written consent to an assignment no assignment will release or discharge the assignor from any duty or responsibility under this Agreement 11 Nothing herein is intended to supersede or waive any City ordinance or regulation pertaining to such construction 12 Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of 3 this Agreement is prohibitive or invalid under applicable law, such provision shall be ineffective to the extent of such provision or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement 13 This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of Texas 14 To accomplish execution of this Agreement, it may be executed in multiple counterparts. 15 The Parties agree that any suit arising out of or related to this Agreement shall be filed in Brazoria County Texas 16 All notices which are required or may be given pursuant to this Agreement shall be in writing and shall be sufficient if delivered personally or by first class mail, postage prepaid, return receipt requested, or by a nationally recognized courier, to the parties and their attorneys at the addresses set out below or such other addresses as the parties or their attorneys may hereafter notify one another. If to City City of Pearland Attn Trent Epperson, City Manager 3519 Liberty Drive Pearland, TX 77581 If to PEDC• Pearland Economic Development Corporation Attn Chair of the Board of Directors 3519 Liberty Drive, Suite 300 Pearland, TX 77581 4 Notice delivered in accordance with the terms hereof shall be effective upon receipt In witness whereof, the parties have hereunto set their hands and signatures on the date first above mentioned PEARLAND ECONOMIC DEVELOPMENT CORPORATION a Texas non-profit corporation • 1 By. 4 e.. Ch:• Thumann Chair CITY OF PEARLAND, a Texas municipal corporation By Trent Epperson, City Manager ATTEST. Fran guitar City S cretary q • • • 5 Exhibit A Total Project Cost Design $ 1,553,762 Construction. General Conditions $ 410,000 Demolition $ 35,025 Hardscape $ 753,825 Restroom $ 900,000 Earthwork & Paving $ 895,565 Utilities $ 30,800 Storm $ 390,500 Fields $ 6,172,000 Lighting and Electrical $ 1,190,000 Softscape $ 1,612,700 Site Furnishings $ 557,600 Subtotal $ 12,948,015 20% Contingency $ 2,589,603 Total Construction Cost $ 15,537,618 Construction Mgmt. & Insp. $ 310,752 Construction Materials Testing $ 200,000 Total Const. Ph Svcs $ 510,752 Grand Total $ 17,602,132 6 Exhibit B Combined PEDC Participation Percentage Phase I City Bond $ 3,800,000 PEDC $ 564,000 Park Funds $ 110,000 Total $ 4,474,000 Phase II PEDC $ 17,600,000 Total PEDC Funding $ 22,074,000 Combined PEDC Participation Percentage 82% 7 Exhibit C Capital Equipment 8 Hickory Slough Sportsplex One-time Capital Expenditures Capital Items Estimated Cost F250 Crew Cab $ 44,500 Trailer $ 9,650 Utility Vehicle $ 9,789 Wide area field mower $ 75,000 Zero turn mower(2) $ 25,800 Artificial turf line remover $ 3,056 Turf Tank $ 55,000 Cell Phone -3 $ 900 pad $ 785 Laptop Computer $ 1,902 Desk Phone-2 $ 1,100 Minor Tools and Equipment $ 2,800 Office Desk $ 911 Office Chair- 3 $ 450 Maintenance Building Desk $ 911 Lockers $ 5,000 Maintenance Building Trash Can $ 160 Refndgerator $ 1,000 Printer $ 360 Microwave $ 310 Coffee Maker $ 66 Synthetic turf groomer and magnet $ 8,700 Ground Driven Lely Spreader $ 6,825 Turf Roller $ 5,245 Ride on spreader/sprayer $ 11,049 Jr. Sod Cutter $ 5,539 Medical Cabinet and Eye Wash station $ 1,200 Standard Flammable storage cabinet $ 1,260 Standard size Chemical cabinet $ 1,580 Universal spill kit $ 475 Bulk Storage Steel shelving (2) $ 1,220 Workstation $ 735 Pallet jack $ 405 Lawn mower lift $ 403 ANNUAL TOTAL $ 284,086 Exhibit D Maintenance and Operations Cost 9 Hickory Slough Sportsplex Estimated for 12 total fields Annual Operations and Maintenance Costs Parks & Recreation Level of Service Estimated Annual Cost Notes 1 Crew Leader $ 71,658 Salary& benefits 3 Park Maintenance Workers $ 165,976 Salary& benefits Overtime $ 15,000 Weekend coverage and possible tournaments) Athletic Field Attendants (2 PT) $ 30,430 5.5 hours per night x 7 Athletic Programmer $ 15,868 ( 33 of Salary& benefits) Athletic Coordinator $ 10,432 ( 2 of Salary& benefits) Uniforms $ 2,200 Mulch $ 2,000 Irrigation Inspection Contract $ 5,000 Irrigation Wireless Fee $ 180 12 months x $15/month Broadcast Ant Treatment $ 2,000 Top Dressing Sand $ 30,000 Preemergent $ 5,184 96 bags x 3times/year Herbicides $ 1,000 staff applied Contractual Fertilizer $ 27,200 Contractual Herbicide $ 20,990 Soil Tests $ 600 toilet paper, urinal cakes, soap, cleaning supplies, Janitorial $ 4,000 etc Utilities (Electrical) $ 20,000 Fuel $ 500 Fleet Lease (Truck replacement) $ 5,500 Small Handled Equipment replacement $ 1,200 average of 2/year on cycle Shop supplies, replacement tools, blades, filters, oil, Consumables $ 5,000 etc First Aid restock $ 200 Personal Protective Equipment(PPE) $ 500 Field Paint $ 6,000 Turf Tank Annual Service $ 2,000 .5 to share with SCR (3,999 annual) Fire Alarm Service Contract $ 500 % to cover sprinkled buildings - Facilities HVAC Service Contract $ 3,000 % to cover maintenance building - Facilities Janitorial Contract $ 10,200 Grease Trap Cleaning $ 1,000 Annual service Electrical Repairs $ 3,000 estimated repairs utilizing City contract ANNUAL TOTAL $ 468,318 Exhibit E Project Improvements to MASTER PLAN PH II - OVERALL -------- - - --- LEGEND 0 SHADE TREES 0 ORNAMENTAL TREES -- HuGHEs RANCH ROAD_____._7-1=1,---- 01=1 ,..--(E..._.7......_;_____ 11.11111 .Th-- '-a.Z.7;roilt 1 0 SHRUBS & GROUNDCOVER 0 PLAYGROUND AREA • • • • • ••• • • 'j ®PICNIC AREA • • • • : '�" ' �?�5�' — O .. .. ••. ,. • . • .... .. • - . . .. 1 � �. 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