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<br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br /> <br /> <br />ApprOf)fiation <br />Sylvan Beach Fishing Pier <br />Rq>air Escrow Fund <br /> <br />Agenda Date Requested: Janu <br /> <br />Requested By <br /> <br />Department: <br /> <br />Parks & Recreation <br /> <br />Acc't Number: <br /> <br />Report: _Resolution: _Ordinance: -L <br /> <br />Amount Budgeted: <br /> <br />NfA <br /> <br />Exhibits: <br /> <br />Second Amendment to Lease Agreement Amount Requested: <br /> <br />N/A <br /> <br />Exhibits: <br /> <br />Marine, Inc. Cost Estimate <br /> <br />Bud eted Item: <br /> <br />YES <br /> <br />NO <br /> <br />Exhibits: <br /> <br />SUMMARY & RECOMMENDATION <br />When the City of La PortelHarris Coooty rebuilt and reopened the pier in 1995, an Escrow Food was set <br />up using the revenues from the pier, to repair or replace the pier in the event it was damaged or destroyed again. <br />The Escrow Fund was originally set at $60,000, plus annual ~t ofIiving increases. It was increased to <br />$150,000 pl11S c.o.L. in the First Amendment to Lease Agreement in 1999 after the lighting and electrical <br />system was installed. <br />The Sylvan Beach Fishing Pier was damaged by high tides during a storm in late 2006. The 2006 storm <br />caused damage that was repaired in the amooot of $105,580. Fooding for the Escrow Food comes from pier use <br />revenues shared by both Harris Coooty and the City of La Porte. After discussion with Harris COlmty, the <br />decision was made to forego distrIbution of the 2006 revenues and to place the funds in the Escrow to offset <br />the anticipated cost of storm damage repair. So, net revenue generated in 2006 ($52,000) was added to the <br />escrow amOlmt of $184,000 making the Escrow Flmd total approximately $230,000. Since the $105K in <br />repairs was relatively major in relation to the amooot available for pier replacement, it was evident that the <br />Escrow Food was ooderfunded. <br />Staff obtained a replacement cost estimate from llfarine, Inc. for the pier at +1- $450,000. Harris <br />County has agreed that the Escrow Food amooot needs to be increased to provide adequate funding for <br />replacement in the future, should a storm or other disaster require it to be replaced. <br />Staff recommends approval of the Second Amendment to Lease Agreement between the City of La <br />Porte and Harris Coooty to accomplish the Escrow Food increase. The City/Coooty share of pier revenues <br />generally come in at about $60,000 per year. So, fully funding the Escrow Fund at the increased amount will <br />take approximately five years, provided there are no additional repairs needed over that time period. <br /> <br /> <br />~!~ <br />