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HomeMy WebLinkAboutO-2002-2554 REQUEST OR CITY COUNCIL AGENDA ITEM Appropriation Requested By: Source of Funds: TIRZ Department: Account Number: 039- Report: Resolution: Ordinance: Amount Budgeted: Exhibits: Agreement for Services Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION At the August 1,2001 meeting, the La Porte Redevelopment Authority discussed contracting with the City of La Porte for Redevelopment Authority duties described in the Tri-Party Agreement. Section II and Section VI of the Tri-Party Agreement (attached) between the City, Zone and Authority describes the services the Redevelopment Authority may furnish. Since the Authority has no employees we are suggesting a simple agreement with the City to provide these services. (Note: this approach is similar to the operating agreement between the City and the La Porte Area Water Authority). The agreement provides for the Authority to compensate the City, at cost plus 5%, annually, upon termination, or as otherwise provided for in writing, for services performed by the City on behalf of the Authority. For outside or vendor services, payment will be made within 30 days of invoice date. The agreement term is for 1 year with the option for two I-year renewals and includes provisions for termination by either party. Action Required bv Council: Approve the proposed Service Agreement between the City, TIRZ, and Redevelopment Authority. Approved for City Council Ae:enda ~~T.~ Robert T. Herrera, City Manager S-\l.,.()'L Date ORDINANCE NO. 2002 - d.,55 'f AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT FOR SERVICES BY AND BETWEEN THE CITY OF LA PORTE, TEXAS, TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS, AND THE LA PORTE REDEVELOPMENT AUTHORITY, MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. ORDINANCE NO. 2002-~,5Jt PASSED AND APPROVED, this 20th day of May, 2002. By: ATTEST: ~lfJ!ja{{ li4il Ma t a A. Gi lett City Secretary APPROVED: ~, /1 zZ4u!a~ Knox W. Askins City Attorney CITY OF LA PORTE a:~~ 'N man L. al ne Mayor PAGE 2 AGREEMENT FOR SERVICES BY AND BETWEEN THE CITY OF LA PORTE, TEXAS, TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS AND THE LA PORTE REDEVELOPMENT AUTHORITY THIS AGREEMENT (this "Agreement"), effective as of 5, ~ 0- {)d , 2002, is made by and between the CITY OF LA PORTE, TEXAS, a municipal corporation and a home-rule city in the State of Texas (the "CITY"); REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS, a reinvestment zone created by the City pursuant to Chapter 311, Texas Tax Code (the "ZONE"); and the LA PORTE REDEVELOPMENT AUTHORITY, a nonprofit local government corporation organized and existing under the laws ofthe State of Texas (the "AUTHORITY"). RECITALS WHEREAS, the CITY, ZONE, and AUTHORITY have previously entered into an Agreement; and WHEREAS, the CITY and the ZONE desire to secure services of the CITY to assist the AUTHORITY in its duties described in its Agreement with the CITY and ZONE; NOW, THEREFORE, for and in consideration of the mutual undertakings herein contained, the AUTHORITY and CITY agree as follows: I. CITY agrees to assist the AUTHORITY in its scope of services as defined by Section II and Section IV of the "AGREEMENT BY AND BETWEEN THE CITY OF LA PORTE, TEXAS, REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS, AND THE LA PORTE REDEVELOPMENT AUTHORITY" for a term of one (1) year commencing with an option to renew this agreement for two additional one (1) year terms, subject to the agreement of both parties. This agreement is subject to termination at any time without cause by either party giving ninety (90)-day written notice to the other. II. CITY shall receive compensation for services referred to in Section I above in an amount equal to the direct salary costs plus 5% of City personnel performing services anticipated by this agreement. Payment for these services shall be made annually, upon termination, or otherwise agreed to in writing by both parties. Reimbursable expenses such as consultant's fees, supplies and materials shall be billed at cost plus 5% and paid within thirty (30) days of invoice or as determined by separate agreement with consultant or provider. III. CITY will procure, to AUTHORITY'S account, supplies, materials, equipment, and services, utilizing funds allocated in AUTHORITY'S approved budget (Tax Increment Reinvestment Zone Fund), for the services provided by the CITY on behalf of AUTHORITY. CITY shall conform to all applicable purchasing laws of the State of Texas in the procurement of all supplies and materials necessary for the services provided. IV. CITY is retained by AUTHORITY only for the purpose and to the extent set forth in this Agreement, and City's relation to AUTHORITY, during the period of this Agreement, is that of an independent entity, and CITY shall be free to dispose of such portion of his entire time not required to satisfy the terms of this Agreement in any manner he deems advisable. CITY shall not be considered an employee of AUTHORITY. V. CITY shall be required to operate within the current guidelines of its governing body and shall notify AUTHORITY of any possible conflicts with such guidelines, as soon as practicable after the occurrence of said possible conflicts. VI. CITY hereby assumes entire responsibility and liability for any and all damage or injury of any kind or nature whatever to all persons, whether employees of CITY or otherwise, and to all property caused by, resulting from, arising out of, or occurring in connection with the services provided for in this Agreement and if any person shall make a claim for any damage or injury as herinabove described, whether such claim may be based upon the AUTHORITY'S alleged active or passive negligence or participation in the wrong or upon any alleged breach of any statutory duty or obligation on the part ofthe AUTHORITY, the CITY agrees to indemnify and save harmless the AUTHORITY, its agents, servants, and employees from and against any and all loss, expense, damage, or injury that the AUTHORITY may sustain as result of any such claims and the CITY agrees to assume, on behalf of the AUTHORITY, the defense of any action at law or in equity, which may be brought against the AUTHORITY upon such claim and to pay on behalf of the AUTHORITY, upon its demand, the amount of any judgment that may be entered against the AUTHORITY in any such action. VII. Before commencing the services, the CITY shall procure and maintain liability insurance, at its own expense, and procure and maintain workers' compensation and employee liability insurance in accordance with the laws of the State of Texas. The CITY agrees that nothing contained in this paragraph shall limit or release the CITY from its obligations otherwise provided for in this Agreement, including assumption of liabilities and indemnifications to the AUTHORITY. If the CITY fails to procure and maintain at least the above insurance, the AUTHORITY shall have the right to procure and maintain the said insurance for and in the name of the CITY, and the CITY shall pay the cost thereof and shall furnish all necessary information to make effective and maintain such insurance. VIII. The CITY for the compensation provided for herein, hereby agrees to pay and shall hold the AUTHORITY harmless against the payment of all contributions, taxes, or premiums which may be payable under Federal, State, or Local laws arising out of the performance of the work. IX. If either the CITY or AUTHORITY believes it has a claim of any nature whatsoever against the other party, it shall give the other written notice of the amount, whenever possible, and nature of such claim within forty-five (45) days (or such other time limits as may be expressly set forth in the Agreement) of the occurrence of the event upon which such claim is based. In default of such notice the claim is waived. x. All matters relating to the validity, performance, interpretation, or construction of this Agreement or the breach thereof shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands and seals the day and year first above written. CITY OF LA PORTE By: ~~?--. /N rman Malone, Mayor ATTEST: LA PORTE REDEVELOPMENT AUTHORITY Ll~~..t;,~- By: President, Board of Directors // '7- a/ ~/7 .' ,.~ , oard of Directors REINVESTMENT ZONE NUMBER ONE, CITY OF LAPORTE, TEXAS r~\ \ . ' ---::> By: ~-~., 'r&'L~ Chairperson, Board of Directors H:\My Documents\Documents\TIRZ\Redevlopment Authority Agreementdoc II. SCOPE OF SERVICES BY AUTHORITY To the extent of available funds and subj ect to the limitations of this Agreement, the services that the Authority may furnish consis,t of,among other things, the following: ,A. Management and Administrative Services and Consultants, The Authority will provide management and adrr),inistrative services for the Zone and the PID. The servi~es ~thout limitation may include the following: ,1. Provide the staff and administrative services that are necessary to manage the Zone and the PID and provide or supervise the services and the Proj ects; 2. Provide management, fInancial and program monitoring systems for the administration of the Zone, and the PID; 3. Provide any required reports to the City and the Zone' concerning the administration of the Zone; , , 4. Subject to the t,eims of this Agreement, recruit, hire, pay and supervise the consultants and any work force that the Authority will utilize to furnish services required for the development or redevelopment of the Zone; 5. Provide staff to participate in meetings concerning the administration of the Zone and the PID in all its capacities, including the services to the Zone Board when managing the Zone; 6. Provide liaison and coordination between the Zone, the City, the County, the School District, other Taxing Units, property owners, and other persons and groups interested in the redevelopment activities of the Zone and the PID; 7. Supervise and monitor the performance of consultantS and subcontractors who are employed by the Authority; Houston:367966.1 I " i " 5 I I .... 8. Assist in briefing Developers, property O'1'mers and other persons concerning proposed activities and developments that would complement public and private development activities in the Zone; 9. Function as the information/complaint center for all matters relating to the administration of the Zone and advise the Zone Board ~d the City in a timely manner of any problems concemingthe Zone and the PID; and 10. Provide engineering, planning, legal, [mancial, real estate, and other services through consultants engaged by the Authority as may be requested by the Zone Board or the City. B. Services With Respect to the Plans and Enlargement of the Zone. 1. Act as consulfant to the Zone in the implementation and amendment of the Plans in accordance with applicable law. 2. The Authority will review areas for addition to the Zone _~ requested by the Zone Board and will provide information with respect to any proposed enlargement that may be required by the Zone Board including, if requested, the information required for a preliminary Project Plan and a preliminary Financing Plan with respect to the enlargement of the Zone. C. Tax and Assessment Rolls. 1. Assist the Zone Board and the City with respect to the preparation of special tax rolls relating to the Zone. The Authority will analyze property uses in the Zone, compare them to the records of the Appraisal District, and attempt to reconcile the tax rolls of the Appraisal District with the actual land uses. 2. Assist the City in securing a tax roll for the Zone each year, and assist the Zone Board, the City, and the Appraisal District in having the Zone tax rolls correctly reflect the total appraised value of real property in the Zone for that year and showing separately the Tax Increment Base and the Captured Appraised Value. The Authority, will assist the Zone Board and the City in advising all Taxing Units participating in the Zone with respect to the Captured Appraised Value and the amount of Tax Increment of each Taxing Unit which is to be paid into the Tax Increment Fund as required by the TIRZ A~t. ' 3. Assist the City in preparing the Pill Assessment rolls, noticing and conducting hearings, and collecting the Pill Assessments. , I !j r HouSlon:367966.2 6 I I ':'., ~ D. Construction ofProiects. The Authority may construct infrastructure, buy equipment and supplies, and deal in re.al estate as necessary to implement the Plans and as permitted by the TIRZ Act and the PID Act: 1. To the extent funds are available, the Authority may design and construct Projects identified in the Plans that meet the qualifications of the TIRZ Act and the PID Act as applicable; and 2. To the extent funds are available, the Authority may buy, sell, lease and otherwise deal in real estate within the Zone. E. Subcontractors. The Authority may provide the services required by this Agreement through staff, subcontractors, and/or. consultants subject to the conditions of this Agreement. VI. ACCOUNTING AND AUDITS A. Accounts. records, and accounting reports. The Authority will maintain books of records and accounts in which full, true, and proper entries will be made on all dealings, transactions, . business, and matters that in any way affect or pertain to the operation of the Zone and th~ Pill, and the allocation and application of funds provided hereunder. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. The Authority shall provide free access to the books and records at all times to the City and the Zone or their representatives and shall permit them to examine and audit the same and make copies thereof. The Authority shall further allow the City and the Zone and their representatives to make inspections of all work data, documents, proceedings, and activities related to this Agreement. Such right of access and audit shall, continue for a period of three years from the date of final payment under this Agreement. The Authority will operate on the basis of the same fiscal year as the. City. B. Audit. At the end of each fiscal year (beginning with the fiscal year or fraction thereof during which this Agreement is executed), the Authority will have an audit prepared by an independent Certified Public Accountant for that fiscal year that shall be submitted to the Authority, the Zone and the City within 120 days after the end of the fiscal year. The Authority shall furnish copies of the audit to the City Manager and the Zone Board. C. Authority Depository. Any moneys received from investing and reinvesting the moneys paid by the City and the Zone to the Authority shall remain in the PID Revenue Fund and the TIRZ Revenue Fund, as applicable, until used by the Authority for one of the purposes permitted by this Agreement, and may be commingled with other moneys of the Authority; provided that these funds shall be accounted for separately. Such funds shall be invested and reinvested by the Authority only in investments that would be eligible for investment by the City pursuant to the provisions of the Public Funds Investment Act (Chapter 2256, Texas Government Code). Such funds will be secured by the depository bank in the same manner as City funds are required to be secured at the City depository and in accordance with applicable law and City procedures. .