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HomeMy WebLinkAbout07-25-16 Meeting of the La Porte Development Corporation Board of Directors RICHARD WARREN, PRESIDENTRICHARD WARREN, PRESIDENTMIKE CLAUSEN, BOARD MEMBERMIKE CLAUSEN, BOARD MEMBER SHELLEY FULLER, BOARD MEMBERSHELLEY FULLER, BOARD MEMBERRANDY WOODARD, BOARD MEMBERRANDY WOODARD, BOARD MEMBER JAY MARTIN, BOARD MEMBERJAY MARTIN, BOARD MEMBERNANCY OJEDA, VICENANCY OJEDA, VICE-PRESIDENT/b> CHUCK ENGELKEN, BOARD MEMBERCHUCK ENGELKEN, BOARD MEMBER CITY OF LA PORTE DEVELOPMENT CORPORATION MEETING AGENDACITY OF LA PORTE DEVELOPMENT CORPORATION MEETING AGENDA Notice is hereby given of a meeting of the City of La Porte Development Corporation to be held on Notice is hereby given of a meeting of the City of La Porte Development Corporation to be held on July 25, 2016July 25, 2016, at the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas, , at the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas, beginning at 5:00 PM to consider the following items of business:beginning at 5:00 PM to consider the following items of business: 1.CALL TO ORDERCALL TO ORDER 2.CONSENT AGENDACONSENT AGENDA (All consent agenda items are considered routine by the La Porte (All consent agenda items are considered routine by the La Porte Development Corporation Board and will be enacted by one motion. There will be no separate Development Corporation Board and will be enacted by one motion. There will be no separate discussion of these items unless a Board member requests an item be removed and considered discussion of these items unless a Board member requests an item be removed and considered separately)separately) (a)Consider approval or other action regarding minutes of the meeting held on June 27, 2016 Consider approval or other action regarding minutes of the meeting held on June 27, 2016 - P. FogartyP. Fogarty (b)Financial ReportFinancial Report-- M. Dolby M. Dolby 3.DISCUSSION AND POSSIBLE ACTIONDISCUSSION AND POSSIBLE ACTION (a)Discussion and possible action regarding the proposed budget for La Porte Development Discussion and possible action regarding the proposed budget for La Porte Development Corporation Board for Fiscal Year 2016Corporation Board for Fiscal Year 2016--20172017-- T. Leach T. Leach 4.SET DATE FOR NEXT MEETING SET DATE FOR NEXT MEETING -- T. Leach T. Leach   5.Board member comments regarding matters appearing on agenda; Recognition of Board member comments regarding matters appearing on agenda; Recognition of community members, city employees, and upcoming events; inquiry of staff regarding community members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies.specific factual information or existing policies. 6.AdjournAdjourn The La Porte Development Corporation Board reserves the right to meet in closed session on any The La Porte Development Corporation Board reserves the right to meet in closed session on any agenda item should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, agenda item should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas Government Code (the Texas open meetings laws).of the Texas Government Code (the Texas open meetings laws). In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable accommodations for persons attending public meetings. To better serve attendees, requests should be received accommodations for persons attending public meetings. To better serve attendees, requests should be received 24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019. CERTIFICATIONCERTIFICATION I certify that a copy of the July 25, 2016, agenda of items to be considered by the Board of the La Porte Development I certify that a copy of the July 25, 2016, agenda of items to be considered by the Board of the La Porte Development Corporation was placed on the City Hall Bulletin Board on July 19, 2016.Corporation was placed on the City Hall Bulletin Board on July 19, 2016.        Patrice Fogarty, City SecretaryPatrice Fogarty, City Secretary   RICHARD WARREN, PRESIDENT MIKE CLAUSEN, BOARD MEMBER NANCY OJEDA, VICE-PRESIDENT RANDY WOODARD, BOARD MEMBER CHUCK ENGELKEN, BOARD MEMBER SHELLEY FULLER, BOARD MEMBER JAY MARTIN, BOARD MEMBER MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD MEETING OF JUNE 27, 2016 The City of La Porte Development Corporation Board met on June 27, 2016, at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, 77571, at 5:00 p.m. to consider the following items of business: 1. CALL TO ORDER President Richard Warren called the meeting to order at 5:00p.m. The following members of the La Porte Development Corporation Board were present: Board members Fuller, Clausen, Martin, Engelken and Ojeda. Staff Present: Corby Alexander, Patrice Fogarty and Clark Askins. Absent: Board member Woodard. 2. CONSENT (All consent agenda items are considered routine by the La Porte Development Corporation Board and will be enacted by one motion. There will be no separate discussion of these items unless a Board member requests an item be removed and considered separately.) (a) Consider approval or other action regarding minutes of the La Porte Development Corporation Board meeting held on May 23, 2016 P. Fogarty (b) Financial Report M. Dolby Board member Clausen moved to approve the Consent Agenda items pursuant to staff recommendations. Board member Ojeda seconded. MOTION PASSED UNANIMOUSLY 6/0. Board member Woodard was absent. 3. PUBLIC HEARING AND ASSOCIATED MATTERS (a) Public hearing to receive comments regarding proposed project of the La Porte Development Corporation in amount not to exceed $230,000 to award an economic incentive to Northern Safety Company, Inc. for promotion of expanded business enterprises, including consolidation of operations at 359 Pike Court in La Porte, Texas; consider approval or other action authorizing La Porte Development Corporation project in amount not to exceed $230,000 for Northern Safety Company, Inc. for promotion of expanded business enterprises, including consolidation of operations at 359 Pike Court in La Porte, Texas and authorizing Board President Richard Warren to execute a Development Agreement with Northern Safety Company, Inc. in connection with such project - T. Leach The public hearing opened at 5:03 p.m. City Manager Corby Alexander presented a summary. Louis Garcia, President of Northern Safety Company, Inc., provided information on the company. Page 1 of 3 June 27, 2016, La Porte Development Corporation Board Minutes There being no public comments, the public hearing closed at 5:10 p.m. Board member Clausen moved to authorize a La Porte Development Corporation project in an amount not to exceed $230,000 for Northern Safety Company, Inc., for promotion of expanded business enterprises, including consolidation of operations at 359 Pike Court in La Porte, Texas and authorizing Board President Richard Warren to execute a Development Agreement with Northern Safety Company, Inc., in connection with such project. Board member Fuller seconded. MOTION PASSED UNANIMOUSLY 6/0. Board member Woodard was absent. 4. AUTHORIZATIONS (a) Consider approval or other action authorizing Staff to execute payment in the amount of $75,000.00 to ACT Independent Turbo Services, Inc., in accordance with terms of incentive agreement T. Leach City Manager Corby Alexander presented a summary. st Board member Martin moved to authorize Staff to execute the 1 payment in the amount of $75,000.00 to ACT Independent Turbo Services, Inc., in accordance with the terms of the incentive agreement. Board member Ojeda seconded. MOTION PASSED UNANIMOUSLY 6/0. Board member Woodard was absent. (b) Consider approval or other action authorizing Board President Richard Warren to sign and execute a development agreement with Margaret Lindsey Russell for an enhancement grant th project in an amount not to exceed $25,000.00 for property located at 1026 S. 8 Street La Porte, Texas T. Leach No action was taken as this item was removed from consideration upon the request of applicant. 5. SET DATE FOR NEXT MEETING Board members set the next meeting date for Monday, July 25, 2016, at 5:00 p.m. 6. BOARD MEMBER COMMENTS regarding matters appearing on agenda; recognition of community members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies. Board member Ojeda asked certification and the oversight of a state organization providing the service to assure the Board is operating correctly. City Manager Corby Alexander advised he will update Board members on Mr. 7. ADJOURN There being no further business, Board member Engelken moved to adjourn the meeting at 5:24 p.m. Board member Fuller seconded. MOTION PASSED UNANIMOUSLY 6/0. Board member Woodard was absent. Respectfully submitted, ____________________________________ Patrice Fogarty, City Secretary Page 2 of 3 June 27, 2016, La Porte Development Corporation Board Minutes Passed and approved on this 25th day of July, 2016. ____________________________________ President Richard Warren Page 3 of 3 June 27, 2016, La Porte Development Corporation Board Minutes This is an Unaudited Statement. City of La Porte La Porte Development Corporation (038) Fund Summary (Section 4B Sales Tax) Previous ReportFY 2015-16FY 2014-15 Unaudited Beginning Fund Balance 9/30$4,544,417$4,544,417$3,213,390 Plus Year to Date Revenues: 1/2 Cent Sales Tax601,3241,341,8701,468,799 Transfers-In--175,000 Interest Income5,01612,7666,012 Total Revenues606,3401,354,6361,649,811 Equals Total Resources5,150,7575,899,0534,863,201 Less Year to Date Expenditures: Payroll38,85575,39272,773 Supplies9421,1981,110 Services & Charges (Memberships, Training, Advertising, Legal, Utilities)74,080108,234108,103 Incentive Grants100,000105,00088,000 * Debt Service Transfer283,612510,501812,863 Total Expenditures497,489800,3251,082,849 Estimated Year to Date Fund Balance as of 6/30/2016$4,653,268$5,098,728$3,780,352 Commitments Pipeline Grill$200,000 Fischer's Hardware120,000 Richard Industrial Group10,000 ACT Independent Turbo Service, Inc.436,000 Debt Service Reserve1,083,817 $1,849,817 Adjusted Year to Date Fund Balance$3,248,911 Projection Through Year End Adjusted Year to Date Fund Balance$3,248,911 Plus: Estimated Sales Tax1,008,130 Less: Estimated Operational Costs(173,982) Less: Debt Service Transfers(170,167) Projected Year End Fund Balance$3,912,892 Sales tax revenues for Fiscal Year 2016 are estimated to be $2,350,000. Previously Funded Projects (Funding in Fund 015 - General CIP Fund) BudgetExpendituresBalance Façade Grants407,669149,788257,881 Commitment - Lawarance W. Maher Jr. Family Trust17,04617,046 Available Balance407,669166,834240,835 *Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields. REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMITEM July 25, 2016July 25, 2016AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Source of Funds:Source of Funds: Requested By:Requested By: Account Number:Account Number: AdministrationAdministration Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESNONO 1. Proposed FY17 Budget Proposed FY17 Budget SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS The proposed FY17 La Porte Development Corporation Budget is presented tonight for the BoardsThe proposed FY17 La Porte Development Corporation Budget is presented tonight for the Boards’’ consideration.  The proposed budget is $873,338 greater than last yearconsideration.  The proposed budget is $873,338 greater than last year’’s budget.  The following is a list of the s budget.  The following is a list of the major changes included the proposed budget: major changes included the proposed budget:  Decreased Training/Seminars (30Decreased Training/Seminars (30--20) $9,000 to reflect staff vacancy.  Once a new ED Coordinator is 20) $9,000 to reflect staff vacancy.  Once a new ED Coordinator is hired, he/she will be able to program in desired training based on specific needs.hired, he/she will be able to program in desired training based on specific needs. Decreased Other Professional Services (50Decreased Other Professional Services (50--07) $21,500.  Strategic planning and website upgrades were not 07) $21,500.  Strategic planning and website upgrades were not needed in the upcoming fiscal year.needed in the upcoming fiscal year. Decreased Trade Shows (60Decreased Trade Shows (60--40) $4,000 reflect staff vacancy.  Once a new ED Coordinator is hired, 40) $4,000 reflect staff vacancy.  Once a new ED Coordinator is hired, he/she will be able to program in desired trade shows.he/she will be able to program in desired trade shows. Increased Transfer to Fund 015 (90Increased Transfer to Fund 015 (90--15) $642,331 to fund the following capital projects:15) $642,331 to fund the following capital projects: Restroom/Pavilion at Five PointsRestroom/Pavilion at Five PointsRestroom/Pavilion at Five PointsRestroom/Pavilion at Five Points Additional parking at Pecan ParkAdditional parking at Pecan Park Increased Request for Special Programs (99Increased Request for Special Programs (99--97) $256,791 to fund incentive payments pursuant to approved 97) $256,791 to fund incentive payments pursuant to approved development agreements with Pipeline Grill, Richard Industrial Group, Fischerdevelopment agreements with Pipeline Grill, Richard Industrial Group, Fischer’’s Hardware, and ACT s Hardware, and ACT Turbo.  Previously, incentive payments were earmarked as Turbo.  Previously, incentive payments were earmarked as ““CommitmentsCommitments””in the monthly reports to the in the monthly reports to the Board, but were not formally integrated into the annual budget.Board, but were not formally integrated into the annual budget.  The next step in the budget process is the budget workshops with the City Council on August 8 The next step in the budget process is the budget workshops with the City Council on August 8--10, 2016.  Should 10, 2016.  Should the Board desire to change any of the items in the Development Corporationthe Board desire to change any of the items in the Development Corporation’’s proposed budget, staff will s proposed budget, staff will incorporate those modifications during the presentation to the Council for consideration. incorporate those modifications during the presentation to the Council for consideration.  Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation: Provide staff with feedback regarding the proposed FY2016Provide staff with feedback regarding the proposed FY2016--2017 La Porte Development Corporation budget.2017 La Porte Development Corporation budget.   Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate 7/11/2016 City of La Porte La Porte Development Corporation (038) Fund Summary (Section 4B Sales Tax) Beginning Fund Balance 9/30/15$4,516,912 Plus Estimated 15-16 Revenues2,360,000 Less 15-16 Expenditures and Commitments Debt Payments680,668 Economic Development Operations771,276 Total Expenditures1,451,944 Estimated Fund Balance 9/30/165,424,968 Plus 16-17 Revenues: 1/2 Cent Sales Tax2,212,500 Interest Income8,500 Total Revenues2,221,000 Equals Total Resources7,645,968 Less 16-17 Expenditures: Economic Development Operations600,234 * Debt Service Transfer685,247 Transfer to General CIP Fund750,000 Total Expenditures2,035,481 Ending Fund Balance 9/30/17$5,610,487 EstimatedProjected 2015-162016-17 Revenues$2,360,000$2,221,000 Expenditures & Commitments1,451,9442,035,481 Revenues over Expenditures$908,056$185,519 *Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields. allow to training FY17 ED DecreasednewCoordinatordetermineneeds actuals) ProposedBudget on Budget End based Year FY16(adjusted RESULTS OF DEPARTMENT REVIEW WITH CITY MANAGER FISCAL YEAR ADJUSTED ESTIMATE CITY MANAGER Adopted FY16Budget DIV 30 SECTION 4B SALES TAX PREPARED 07/11/16, 16:33:23 BUDGET PREPARATION WORKSHEET PAGE 1ACCOUNT NUMBER ACCOUNT DESCRIPTION 2014-15 BUDGET 2015-16 REVIEWFUND 038 SECTION 4B SALES TAX DEPT 60 ADMINISTRATION038-6030-565.10-10 REGULAR EARNINGS 75,827 73,008 71,877 72,689038-6030-565.10-12 SICK BUY BACK 0 0 0 0038-6030-565.10-20 OVERTIME 0 0 0 0038-6030-565.10-30 CERTIFICATION 0 0 0 0038-6030-565.10-35 LONGEVITY 129 66 132 180038-6030-565.10-55 TERMINATION PAY (S/V) 0 0 0 0038-6030-565.10-60 FICA 5,666 5,442 5,359 5,385038-6030-565.10-65 RETIREMENT 12,506 11,886 11,632 11,485038-6030-565.10-80 INSURANCE - MEDICAL 10,423 10,423 10,423 10,423038-6030-565.10-81 INSURANCE - LIFE 29 20 32 20038-6030-565.10-9 0 OTHER BENEFITS 0 1,200 950 0038-6030-565.20-01 OFFICE 79 200 200 200038-6030-565.20- 02 POSTAGE 140 2,000 1,000 1,000038-6030-565.20-15 OTHER SUPPLIES 1,370 1,000 1,500 1,000038-6030-565.30 -01 MEMBERS & SUBSCRIPTIONS 44,666 44,500 44,500 43,500038-6030-565.30-20 TRAINING/SEMINARS 8,556 13,500 6,441 4,500038-6030-565.4 0-11 BUILDING 0 0 0 0038-6030-565.40-55 COMPUTER SOFTWARE 0 0 0 0038-6030-565.40-60 TECHNOLOGY LEASE FEES 0 0 0 0038-6030-565.40-65 COMPUTER MAINTENANCE FEES 0 0 0 0038-6030-565.50-01 ACCOUNTING 5,000 5,000 5,000 5,000038-6030-565.50-03 LEGAL 9,904 10,000 10,000 10,000038-6030-565.50-05 PERSONNEL SERVICES 0 0 0 0 for in ED was due budget and website new Strategic Five there not at for participate and agreements Park determine allow to did to existing payments to additional because on budget Pecan services for shows to at Previouslyincentivebaseddevelopment need DecreasedCoordinatorwhich FundingparkingRestroom/PavilionPoints DecreasednoPlanningupgrades RESULTS OF DEPARTMENT REVIEW WITH CITY MANAGER FISCAL YEAR ADJUSTED ESTIMATE CITY MANAGER ------------ ------------ ------------ ------------ DIV 30 SECTION 4B SALES TAXDIV 63 HOTEL/MOTEL OPERATIONS PREPARED 07/11/16, 16:33:23 BUDGET PREPARATION WORKSHEET PAGE 2ACCOUNT NUMBER ACCOUNT DESCRIPTION 2014-15 BUDGET 2015-16 REVIEWFUND 038 SECTION 4B SALES TAX DEPT 60 ADMINISTRATION038-6030-565.50-07 OTHER PROFESSIONAL SERVIC 6,305 28,000 28,000 16,500038-6030-565.50-12 PROPERTY RESALE MAINT 0 0 0 0038-6030-565.60-02 PRINTING & REPRODUCTION 498 3,000 500 500038-6030-565.60-05 ADVERTISING 45,715 50,000 50,000 49,500038-6030-565.60-10 JANITORIAL SERVICES 0 0 0 0038-6030-565.60-40 TRADE SHOWS 8,828 11,000 2,500 8,000038-6030-565.70-01 ELECTRICAL 0 0 0 0038-6030-565.70-02 NATURAL GAS 0 0 0 0038-6030-565.70-04 WATER 0 0 0 0038-6030-565.70-05 MISC UTILITIES 0 0 0 0038-6030-565.80-3 1 LAND ACQUISITIONS 0 0 0 0038-6030-565.90-50 CONTINGENCY 0 0 0 0038-6030-565.99-97 REQ FOR SPECIAL PROGRAMS 123,957 103,561 413,561 360,352038-6030-565.99-99 REQ FOR NEW POSITION 0 0 0 0038-6030-680.90-03 ADMN TRANS TO FUND 003 0 0 0 0038-6030-680.90-04 ADMN TRANS TO FUND 004 1,083,817 680,668 680,668 685,247038-6030-680.90-15 ADMN TRANS TO FUND 015 0 107,669 107,669 750,000038-6030-680.90-33 TRANSFER TO ST MAINT FUND 0 0 0 0* SECTION 4B SALES TAX 1,443,415 1,162,143 1,451,944 2,035,481038-6063-680.90-15 ADMN TRANS TO FUND 015 0 0 0 0* HOTEL/MOTEL OPERATIONS 0 0 0 0** ADMINISTRATION 1,443,415 1,162,143 1,451,944 2,035,481 DEPT 98 CP