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 .'
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, oard of Directors
REINVESTMENT ZONE NUMBER ONE,
CITY OF LAPORTE, TEXAS
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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;
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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.
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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. .