2001-07-09 Regular Meeting and Special Called Workshop Meeting

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• REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Jul 9 200 Requested By: Department: Administration Report: Resolution: Ordinance: X Exhibits: Ordinance No. Exhibits: Tri-Party Agreement between City, TIRZ Board, La Porte Redevelopment Authority Aaaroariation Source of Funds: n/a Account Number: n/a Amount Budgeted: n/a Amount Requested: n/a Budgeted Item: YES NO SUMMARY & RECOMMENDATION A key element of our Tax Increment Reinvestment Zone (TIRZ) is the Tri-Party Agreement between the City, the T1RZ Board, and the Redevelopment Authority. This document describes the relationship of the three parties and outlines the type of services to be provided by the Authority and the obligations and duties of the Authority. As with other TIRZ and Authority documents, we have attempted to provide a document that is flexible enough to deal with the issues that might surface over the next 25+ years. As drafted, there are several checks and balances which are incorporated. L The Authority can only issue bonds with City Council's approval (Section III A). 2. The terms and conditions of the Authority's assigning or pledging the proceeds received by the Authority must be approved by the City Manager (Section III, last paragraph). 3. The Authority agrees to operate under the City's fmancial, accounting and procurement policies. Deviation from these policies will require City Council approval (Section VII Operating Policies). 4. Except where City Council approval is required, the Authority shall not enter into any agreements, contracts, or obligations without the City Manager's approval (Section VII Operating Policies). Several areas of the agreement refer to the Authority providing certain administrative services, reports, accounting services, audits, depository agreements, investments, etc. It is anticipated that the Authority will contract with the City to provide these services (with some exceptions, i.e. audit). This is similar to the way the City and the La Porte Area Water Authority operate. The Redevelopment Authority would pay the City for these services from the TIRZ funds, as it is an eligible expense. Staff recommends City Council enter into aTri-Party Agreement between the City, the TIRZ Board, and the Redevelopment Authority. The TIRZ Board and Redevelopment Authority will consider approval of the Tri-Party Agreement after City Council's action. Action Required by Council: Consider approval of Ordinance No. approving and authorizing aTri-Party Agreement between the City, the TIRZ Board, and the Redevelopment Authority. Aparoved for City Council Agenda Robert T. Herrera, City Manager Date