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HomeMy WebLinkAbout04-26-21 Regular Meeting of the La Porte City Council Office of the Mayor WHEREAS, the Office of the Municipal Clerk, a time-honored and vital part of local government, exists throughout the world, providing the professional link between citizens, local governing bodies, and other agencies of government, rendering equal service to all; and WHEREAS, the City Secretary is a City official appointed by the City Council, serving as the secretariat to the governing body and performing duties including Council administration, Elections Officer, Public Information Officer for both public information requests and for media and communications, liquor licensing, Records Management Officer, liaison to boards and commissions, and being part of the City's emergency management team. The City Secretary is accountable for the City seal and serves as the parliamentarian to the Council. The City Secretary is charged with neutrality, honesty, integrity, and upholding applicable state law and the City Charter; and WHEREAS, Municipal Clerks continually strive to improve through continuing education, by providing assistance to their communities and their peers, and participation in professional organizations; and WHEREAS, for the vital services they perform and their exemplary dedication to the communities they represent, we extend our appreciation to City of La Porte City Secretary Lee Woodward, Deputy City Secretary Sharon Harris, Records Administrator Gladis Sanchez, and Administrative Assistant Alaina Alvarado. I, Louis R. Rigby, Mayor, do hereby proclaim May 2-8, 2021, as NOW, THEREFORE, Municipal Clerks Week th In Witness Whereof: I have hereto set my hand and caused the Seal of the City to be affixed hereto, this the 26 day of April, 2021. Office of the Mayor WHEREAS, as the volume of materials that must be stored, searched, and properly disposed of expands annually, cities have become increasingly aware of the need for efficient systematic approaches to managing records; and WHEREAS, the coordinated efforts between the Records Management Officer, Records Management Coordinator, and the departmental Records Liaisons are critical to collecting, organizing, and preserving the records of the City; and the management of departmental records is necessary for timely responses to public information requests, as established and governed by the Texas Public Information Act; and WHEREAS, the efficient administration of information requires a comprehensive records management program under the direction of professional records administrators. Implementation of such a well-planned records management program is essential to increase the efficiency and reduce the cost of storing and retrieving information and to ensure compliance with statues governing records retention. I, Louis R. Rigby, Mayor, do hereby proclaim April 2021, as NOW, THEREFORE, Records Management Month In Witness Whereof: I have hereto set my hand and caused the Seal of the City to be affixed hereto, this, the 26th day of April, 2021. City of La Porte ______________________________ Louis R. Rigby, Mayor REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 Requested By: Source of Funds: N/A Matt Hartleib, Manager Department: Administration/HR Account Number: N/A Amount Budgeted: N/A Report Resolution Ordinance Amount Requested: N/A Exhibits: Budgeted Item: Yes No SUMMARY & RECOMMENDATION City of La Porte employees achieving service milestones of 10 years or longer with the City as of April 2021 include: 10 years of service Barry Groaning Patrol Officer Sgt. Michael Harness Patrol Sergeant Amanda Ramirez - Telecommunicator ACTION REQUIRED BY CITY COUNCIL Recognition of employees' years of service with the City of La Porte. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 Requested By: Source of Funds: N/A Matt Hartleib, Manager Department: Administration/HR Account Number: N/A Amount Budgeted: N/A Report Resolution Ordinance Amount Requested: N/A Exhibits: Employee of the Quarter Martin Budgeted Item: Yes No SUMMARY & RECOMMENDATION Joel Martin, Treatment Plant Operator II in Public Works Department, has been st selected as the Employee of the Quarter for 1 quarter of calendar year 2021. Mr. Martin was nominated by a teammate for his exemplary work and dedication during the winter storm in February. ACTION REQUIRED BY CITY COUNCIL st Recognition of the Employee of the 1 Quarter of calendar year 2021. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date 9ƒƦƌƚǤĻĻ ƚŅ ƷŷĻ ЊƭƷ vǒğƩƷĻƩ ŅƚƩ /ğƌĻƓķğƩ —ĻğƩ ЋЉЋЊ WƚĻƌ ağƩƷźƓ Joel Martin currently serves the La Porte community as an Operator II at our wastewater treatment plant. Prior to transferring to Public Works in June of 2018, Joel worked at Bay Forrest Golf Course for four years as a cart attendant and on the course maintenance crew. normal duties at the treatment plant include lab work, data entry, field work, and other daily operations to keep the plant functioning safely and in compliance with a variety of regulatory standards. Part of the responsibility for the treatment plant team is sharing 24/7 standby duties and Joel was on standby during the winter storm we experience back in February. Although he did not know what the severity of the storm might be, Joel did not hesitate to camp out and stay put at the plant for what turned into several days. Throughout the event, nominated him for this recog do. He has set a great example to his fellow co- be expected from a La Porte wastewater operator. He is constantly looking to improve his skills and knowledge through classes and other means. For the great work he consistently does, and for going above and beyond during a very challenging event for the community, please join me in congratulating Joel Martin as our Employee of the Quarter. LOUIS R. RIGBY CHUCK ENGELKEN Mayor Mayor Pro Tem, Councilperson District 2 BRANDON LUNSFORD BILL BENTLEY Councilmember At Large A Councilmember District 3 BRENT Mc CAULLEY THOMAS GARZA Councilmember At Large B Councilmember District 4 TREY KENDRICK JAY MARTIN Councilmember District 1 Councilmember District 5 NANCY OJEDA Councilmember District 6 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF LA PORTE APRIL 12, 2021 The City Council of the City of La Porte met in a regular meeting on Monday, April 12, 2021, at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 6:00 p.m., with the following in attendance: Councilpersons present: Louis Rigby, Brandon Lunsford, Brent McCaulley, Trey Kendrick, Chuck Engelken, Bill Bentley, Thomas Garza (left at 6:01 p.m.), Jay Martin, Nancy Ojeda/Robbie McLarrin Councilpersons attending remotely: None Councilpersons absent: Trey Kendrick Council-appointed officers present: Corby Alexander, City Manager; Lee Woodward, City Secretary; Clark Askins, Assistant City Attorney 1. CALL TO ORDER Mayor Rigby called the meeting to order at 6:00 p.m. to wear a mask during Council meetings. The Mayor reminded Councilperson Garza that he had the opportunity to attend the meeting electronically and could go to his office in City Hall. The Mayor asked the Sergeant-at-Arms to remove Councilperson Garza. ch he termed as illegal. The motion did not receive a second and was not considered. Councilperson Garza left the room. 2. INVOCATION The invocation was given by Clark Askins, Assistant City Attorney, and pledges were led by Mayor Rigby. 3.PRESENTATIONS, PROCLAMATIONS, AND RECOGNITIONS a. Presentation - Administer Oath of Office to newly elected Councilperson Robbie McLarrin. \[Louis R. Rigby, Mayor\] . b.Recognition in appreciation of the service to the City of La Porte given by Councilperson Nancy Ojeda \[Louis R, Rigby, Mayor\] c. Proclamation - National Volunteer Week. \[Mayor Louis R. Rigby\] d.Proclamation - National Animal Control Officers Week. \[Mayor Louis R. Rigby\] e. Proclamation - National Telecommunicators Week. \[Mayor Louis R. Rigby\] f. Proclamation - Crime Victim's Rights Week. \[Mayor Louis R. Rigby\] g.Recognition - Retirement of Sgt. Richard Ayers. \[Mayor Louis R. Rigby\] h.Presentation and update on the La Porte Independent School District. \[Dr. Walter Jackson, Superintendent of Schools\] 4. CITIZEN COMMENT (Generally limited to five minutes per person; in accordance with state law, the time may be reduced if there is a high number of speakers or other considerations.) offered her appreciation to the City Council, Officer Ayers, and the PD Dispatchers. Peggy Antone spoke regarding the PID hearing, in opposition to the proposed project. She asked that the corner commercial property be converted to a nature preserve, as there is already a commercial venture across the street which not permitted for that site; she also offered concerns about light pollution. Jeff Martin invited all to come out to the upcoming Sylvan Page 1 of 3 April 12, 2021, Council Meeting Minutes Beach Festival on April 24, thanked Nancy Ojeda for her service, welcomed Robbie McLarrin, and thanked Chief Deardorff and LPPD. 5.CONSENT AGENDA (Approval of Consent Agenda items authorizes each to be implemented in accordance with staff recommendations provided. An item may be removed from the consent agenda and added to the Statutory Agenda for full discussion upon request by a member of the Council present at this meeting.) Approve the minutes of the March 22, 2021, City Council meeting. \[Mayor Louis R. Rigby a. \] b.Approve the appointment of Brent McCaulley to an open position on the La Porte Development Corporation Board of Directors. c. Adopt Ordinance 2021-3821 for the purpose of vacating, abandoning, and closing a portion of the North 1st Street right-of-way situated between North J Street and Reserve A, Block 1 of La Porte Landfill, and a nd portion of the North J Street right-of-way situated between North 2 Street right-of-way and an abandoned section of North J Street right-of-way, and authorizing the execution and delivery of a deed to the adjoining landowner. \[Ian Clowes, City Planner\] d.Adopt Resolution 2021-38 authorizing the submission of an application to the Texas General Land Office for a Texas Community Development Block Grant - Mitigation grant, for drainage infrastructure. \[Ray Mayo, Director of Public Works\] e. Approval or other action to authorize execution of an interlocal agreement between Harris County and the City of La Porte for the Fairmont Parkway Signalization Project, in the amount of $1,000,000.00 \[Ray Mayo, Director of Public Works\] f. Approve Resolution 2021-39 to suspend the effective date proposed by CenterPoint Energy Resources Corp., Texas Coast Division, to increase rates under the Gas Reliability Infrastructure Program for 45 days, y Manager\] g.Award Bid #21009 to Turner Power & Construction, LLC in the amount of $390,683.00, for the Northwest Park Soccer Field Lighting Renovation Project, with a contingency amount of $39,068.00, for a total authorization of $429,751.00 \[Rosalyn Epting, Director of Parks & Recreation\] h.Approve the three- (3-) year contract renewal with AT&T for internet services and upgrade to existing internet system. \[Grady Parker, IT Manager\] (Mayor Pro Tem Engelken signed a conflict of interest affidavit and did not participate in the vote regarding item 5f.) Mayor Pro Tem Engelken moved to approve the consent agenda, less item 5f; the motion was seconded by Councilperson Bentley; the motion was adopted, 7-0. Councilperson Bentley moved to adopt Resolution 2021-39 to suspend effective date proposed by CenterPoint Energy Resources Corp., Texas Coast Division, to increase rates under the Gas Reliability Infrastructure Program ) of cities; the motion was seconded by Councilperson Lunsford; the motion was adopted, 6-0. 6. PUBLIC HEARINGS AND ASSOCIATED ORDINANCES a.The City Council will hold a public hearing to receive comment regarding the advisability of the creation of a Public Improvement District to make certain improvements over certain property located on +/- 56.7 acres at the corner of Wharton Weems Boulevard and State Highway 146 Frontage Road within the corporate limits of the City of La Porte, Texas. \[Corby Alexander, City Manager\] Mayor Rigby opened the public hearing at 6:44 p.m. City Manager Corby Alexander presented a summary. Paul Groman, the developer of the project, spoke in support of the project, and Dee Ann Thompson and Peggy Antone spoke in opposition to the development. Mayor Rigby closed the public hearing at 6:59 p.m. 7.STATUTORY AGENDA a.Presentation, discussion, and possible action on the evaluation criteria for an RFP for Delinquent Ad Valorem Tax Collection Services. \[Michael Dolby, Finance Director\] Councilperson McCaulley moved to use Option 1 as the evaluation criteria for an RFP for Delinquent Ad Valorem Tax Collection Services; the motion was seconded by Councilperson Martin; the motion was adopted, 7-0. Page 2 of 3 April 12, 2021, Council Meeting Minutes 8.REPORTS Receive report on the Drainage and Flooding Committee meeting. \[Councilperson Jay Martin a.\] Councilperson Martin said the Committee met today, discussed pending drainage and flooding projects, heard an update on the agreement with the City of Pasadena, and scheduled the next meeting for May 10, 2021. 9.ADMINISTRATIVE REPORTS City Council Budget Retreat, April13 La Porte Development Corporation Board meeting, April 26 Planning and Zoning Commission meeting, April 15 Zoning Board of Adjustments meeting, April 22 City Council meeting, April 26 City Manager Corby Alexander said there were no reports. 10. COUNCIL COMMENTS Hear announcements concerning matters appearing on the agenda; items of community interest; and/or inquiries of staff regarding specific factual information or existing policy from the Mayor, Councilmembers, and City staff, for which no formal action will be discussed or taken. Councilpersons congratulated Sgt. Ayers; thanked Dr. Jackson and shared their hope for working together; expressed appreciation for Nancy Ojeda, the animal control officers, LPPD volunteers, Shay Lister and the work for crime victims, and the telecommunicators in Dispatch; welcomed Robbie McLarrin; gave kudos to the City Secretary 12,000-piece charter information mailout; noted anticipation for the Sylvan Beach Festival; newly elected Councilperson McLarrin shared his gratitude and excitement about serving; thanked the LPPD for all they do all year; the Mayor announced that Councilperson Kendrick has resigned today due to work obligations, and shared that he had welcomed the Texas Municipal Clerks Salt Grass Chapter to the community last week. 11. EXECUTIVE SESSION (a) Texas Government Code Sec. 551.087 - Deliberation regarding economic development negotiations: Meet with City Manager to discuss financial information received from, and offer of financial incentive to, business prospect seeking to develop property within the City limits. The Council convened into executive session at 7:21 p.m. 11. RECONVENE into regular session and consider action, if any, on item(s) discussed in executive session. The Council reconvened in open session at 7:59 p.m. The Mayor said the Council gave the City Manager direction to continue negotiations and return with a full proposal. ADJOURN Without objection, the Council adjourned at 8:00 p.m. _______________________________ Lee Woodward, City Secretary Page 3 of 3 April 12, 2021, Council Meeting Minutes LOUIS RIGBY CHUCK ENGELKEN Mayor Mayor Pro Tem BRANDON LUNSFORD Councilperson District 2 Councilperson At Large A BILL BENTLEY BRENT McCAULLEY Councilperson District 3 Councilperson At Large B THOMAS GARZA TREY KENDRICK Councilperson District 4 Councilperson District 1 JAY MARTIN Councilperson District 5 ROBBIE MCLARRIN Councilperson District 6 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF LA PORTE APRIL 13, 2021 The City Council of the City of La Porte met in a special meeting on Tuesday, April 13, 2021, at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 6:00 p.m., with the following in attendance: Councilpersons present: Louis Rigby (left at 7:00 p.m.), Brandon Lunsford, Brent McCaulley, Trey Kendrick, Chuck Engelken, Bill Bentley, Thomas Garza (left the meeting at 6:01 p.m.), Jay Martin, Robbie McLarrin Councilpersons attending remotely: None Councilpersons absent: None Council-appointed officers present: Corby Alexander, City Manager; Lee Woodward, City Secretary CALL TO ORDER Mayor Rigby called the meeting to order at 6:00 p.m. 2. CITIZEN COMMENT (Generally limited to five minutes per person; in accordance with state law, the time may be reduced if there is a high number of speakers or other considerations.) (At the end of item I, Mark Follis asked for and was given permission to address the Council, please see below.) 3. STATUTORY AGENDA The purpose of this meeting is to discuss and formulate City Council and staff plans, operations, policies, and/or future projects, including the following: (a) Financial Overview. \[Michael Dolby, Finance Director\] Mr. Dolby shared the annual financial overview. (b) Medical plan update. \[Matt Hartleib, Human Resources Manager\] Mr. Hartleib presented the update. (c) Compensation Plan update. \[Matt Hartleib, Human Resources Manager\] Mr. Hartleib presented the update. (d) New City Hall Facility. (requested by Mayor Rigby) \[Ray Mayo, Director of Public Works\] Page 1 of 3 April 13, 2021, Special Council Meeting Minutes Mr. Mayo gave a presentation on condition and next steps in order to proceed.Without objection, the Council directed staff to move forward with planning for a new facility and issuance of $13.5 M in certificates of obligation. (e) Citywide Signage Project. \[Jason Weeks, Assistant City Manager, and Kristin Gauthier, Emergency Management Coordinator\] Mr. Weeks provided a presentation. The Council offered no objection to proceeding. (f) Purchase and implementation on the 700/800 MHz mobile and handheld radio units for La Porte EMS. \[Lisa Camp, EMS Chief\] Chief Camp provided a presentation. The Council offered no objection to proceeding. (g) Provide staff direction on the revised Fire Training Center liquefied petroleum gas firefighting props project and new components to the FTC. \[Carl Holley, Fire Chief\] Chief Holley provided a presentation. The Council offered no objection to proceeding. (h) Provide staff direction on how to move forward with the La Porte Police Department Emergency Services CAD/RMS system. \[Steve Deardorff, Police Chief\] Chief Daeumer provided a presentation. The Council offered no objection to proceeding. (i) Provide feedback and direction to staff on how to move forward with upgrading police body cameras, mobile video equipment and interview room recording systems. \[Steve Deardorff, Chief of Police\] Chief Ditrich provided a presentation. The Council offered no objection to proceeding, with several members voicing support for Option 1. Mark Follis asked and was given permission to provide a public comment at this time and shared his optimism about upgrades for the Main Street area. (j) Provide staff direction on possible policy guidelines or other action regarding Summer by Mayor Rigby) \[Ray Mayo, Director of Public Works\] Mr. Mayo offered a presentation. Without objection, the Council indicated the item would be postponed until a draft policy could be presented. (k) Addition of a full-time Equipment Operator l position for the Solid Waste Division of the Public Works Department. \[Ray Mayo, Director of Public Works\] Mr. Mayo shared information on the position. The Council offered no objection to proceeding. (l) Phase ll of the S. Broadway Trail Lighting from Wharton Weems to Fairmont Parkway. (Requested by Mayor Rigby) \[Roz Epting, Director of Parks & Recreation\] Roz Epting presented the proposal. The Council offered no objection to proceeding. Page 2 of 3 April 13, 2021, Special Council Meeting Minutes (l)Addition of a dog park at Fairmont Park. (Requested by Mayor Rigby)\[Roz Epting, Director of Parks & Recreation\] Roz Epting presented the proposal. The Council offered no objection to proceeding. (m) Discussion about increasing pre-funding of the Fairmont Park West Splash Park by an additional $200,000 in Fiscal Year 2022, in order to provide sufficient funding to construct Splash Park a year earlier. (Requested by Councilperson Bentley, with support of Mayor Pro-Tem Engelken and Councilperson McCaulley) \[Roz Epting, Director of Parks & Recreation\] Roz Epting presented the proposal. The Council offered no objection to proceeding. 4. COUNCIL COMMENTS regarding matters appearing on the agenda; recognition of community members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies. Councilpersons thanked the staff for the presentations and expressed anticipation for the results anticipated. ADJOURNMENT Without objection, Mayor Pro Tem Engelken adjourned the meeting at 8:40 p.m. _______________________________ Lee Woodward, City Secretary Page 3 of 3 April 13, 2021, Special Council Meeting Minutes REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 Source of Funds: Requested By: Louis R. Rigby, Mayor Department: City Council Account Number: Amount Budgeted: Report Resolution Ordinance Amount Requested: Exhibits: Ord. 2021-3826 Budgeted Item: Yes No SUMMARY & RECOMMENDATION Councilperson-District 1 Trey Kendrick tendered his resignation of the position on April 12. Per Texas Election Code Sec. 201.023, a vacancy occurs on the date the resignation is accepted by the appropriate authority or on the eighth day after the date of its receipt by the authority, whichever is earlier. The City Charter 2.04. b. Procedure provides that \[w\]hen a vacancy occurs for any reason in the office of mayor or councilperson, council shall call a special election within one hundred twenty (120) days. At said election the vacant office or offices shall be filled under the provisions of this Charter. When read together, the vacancy will occur on Tuesday, April 20, 2021, and a special election must be held on or before August 18, 2021. Councilperson Kendrick will continue serving as the officeholder in a holdover capacity until his successor is sworn in. Staff recommends an election be held on July 31, 2021. LPISD has generously agreed that this election may be voted at the LPISD ITC location, convenient to District 1 voters. Staff recommends this location for early and election day voting. The July 31 election date provides a ballot filing period from Tuesday, April 26, through nd 5 p.m. on Tuesday, June 2, 2021 (the 62 day before election day is a Sunday and May 31 is Memorial Day, a City holiday). The Election Code permits candidates until 5 p.m. on fifth day after application to withdraw and have their name removed from the ballot. ACTION REQUIRED BY CITY COUNCIL Adopt Ordinance 2021-3826 providing a date and making other provisions for the Councilperson-District 1 special election to fill a vacancy. ORDINANCE 2021-3826 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, ORDERING A st SPECIAL MUNICIPAL ELECTION TO BE HELD ON THE 31 DAY OF JULY, 2021, FOR THE PURPOSE OF ELECTING A COUNCILPERSON-DISTRICT 1; DESIGNATING THE PLACES AND MANNER OF HOLDING THE ELECTION; AND PROVIDING FOR THE POSTING AND PUBLICATION OF NOTICE; PROVIDING A SAVINGS CLAUSE; PROVIDING AN OPEN MEETINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: SECTION 1. A special municipal election of the City of La Porte, Texas, for election of a member of the City Council as prescribed by Section 2.03 of the City Charter, shall be held between seven o'clock (7:00) a.m. and seven st o'clock (7:00) p.m. on the 31 day of July, 2021, in the city, for the purpose of electing a Councilperson-District 1. A runoff election will be held, if necessary, on August 28, 2021, between seven o'clock (7:00) a.m. and seven o'clock (7:00) p.m., all such arrangements for which are authorized by the adoption of this ordinance. SECTION 2. The City is hereby divided into six (6) election precincts, corresponding to the boundaries of the six City Council single-member districts. The boundaries of such districts are as established, defined, and outlined in Ordinance 2011-3384. The polling place for this election precinct shall be as follows: City District/ Election Precinct Polling Location 1 , La Porte, 77571 SECTION 3. This election shall be held in accordance with, and shall be governed by, the election laws of the State of Texas. The City Council has determined, pursuant to Chapter 31 of the Texas Election Code, that the City is authorized to enter into an Election Services Agreement with the La Porte Independent School District (LPISD) for this election for the use of their facility. The City Secretary and Mayor are hereby authorized to perform all duties and take all actions as required by any election services contract(s) that may be authorized by the City Council. SECTION 4. Any eligible and qualified person may have his or her name upon the official ballot as an independent candidate by submitting an application, which, in accordance with Texas Election Code Section 141.031, must be in writing and be signed and sworn to by the candidate and indicate that the candidate swears to the application. Such application for the special election herein called may be filed with the City Secretary beginning on April 27, 2021, at 8:00 a.m., and must be filed not later than 5:00 p.m. on June 2, 2021. SECTION 5. The position of Councilperson-District 1 shall be elected and installed with the candidate that receives a majority vote of all the votes cast for said office and shall hold office for the remainder of the three-year term, which concludes at the time of the holding of the May 2023 general municipal election, and any resulting runoff, for the election of members to the La Porte City Council. SECTION 6. Each candidate for the office of Councilperson-District 1 must be a resident qualified voter of the City for twelve (12) months immediately preceding election day and must also be a resident of District 1 for twelve (12) months immediately preceding election day, in accordance with Section 2.02(a) of the City Charter. SECTION 7. Lee Woodward, City Secretary, is appointed as the Early Voting Clerk, and Sharon Harris, Deputy City Secretary, is appointed as the Deputy Early Voting Clerk, for joint early voting in person and voting by mail, and the ighway, La Porte, Texas, 77571, is hereby designated as the Main Early Voting Location for early voting for the election. Applications for ballot by mail shall be mailed, faxed, emailed, or delivered by common or contract carrier to: Lee Woodward, City Secretary City of La Porte 604 West Fairmont Parkway La Porte, Texas 77571 Phone: 281-470-5021 Fax: 281-842-3701 Email: CitySecretary@LaPorteTX.gov who shall promptly provide them per the provisions of the Texas Election Code. The deadline to hand deliver an application for a ballot by mail (ABBM) is Friday, July 16, 2021 (EC 84.008). The last day for the early voting clerk to receive applications for a ballot to be voted by mail via mail, fax, common or contract carrier, or email, per the Election Code provisions of Sec. 84.007(c) is Tuesday, July 20, 2021. If a voter submits an application for ballot by mail via fax or email, the early voting clerk must receive an original or a copy with a wet signature via mail within four business days of the submission of the fax or email, in accordance with Election Code Sec. 84.007(c). The place at which Early Voting by personal appearance shall be conducted is designated as the Building, 9832 Spencer Highway, La Porte, 77571, (main early voting polling place). During the lawful early voting period, such Early Voting Clerk shall keep such location for early voting open for early voting from 8:00 a.m. - 5:00 p.m., beginning Monday, July 19, 2021, and continuing through Tuesday, July 27, 2021, with the exception of Tuesday, July 20, 2021, and Tuesday, July 27, 2021, in which case early voting hours shall be from 7:00 a.m. to 7:00 p.m. SECTION 8. Voting at said election, including early voting, shall be by the use of voting machines; and the ballots of said election shall conform to the Texas Election Code, as amended. The City Secretary is hereby authorized and directed to obtain, or cause to be obtained, the necessary electronic tabulating equipment, to arrange for the testing thereof as provided by law and to employ a duly qualified manager and a duly qualified tabulation supervisor to perform the duties respectively imposed on them by law with respect to the processing and tabulation of ballots at the Central Counting Station. SECTION 9. The City Secretary of the City of La Porte shall issue notice of said election to be published one time in the Bay Area Observer, which is hereby found and declared to be a newspaper of general circulation in said City, not less than ten (10) days nor more than thirty (30) days prior to the date of the said election; in addition, notice of st said election shall be posted on the bulletin board in City Hall not later than the twenty-first (21) day before election day and remain posted through election day. SECTION 10. The Mayor and/or the City Secretary of the City of La Porte are hereby authorized to execute and/or issue, for and on behalf of the City, such orders, documents, and forms as may, from time to time, be promulgated by the Secretary of State of the State of Texas in conjunction with the election herein ordained. SECTION 11. Each and every provision, paragraph, sentence and clause of this ordinance has been separately considered and passed by the City Council of the City of La Porte, Texas, and each said provision would have been separately passed without any other provision; and if any provision hereof shall be ineffective, invalid or unconstitutional, for any cause, it shall not impair or affect the remaining portion, or any part thereof, but the valid portion shall be in force just as if it had been passed alone. SECTION 12. 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 Texas 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 13. This ordinance shall be in effect immediately upon its passage and approval. th PASSED AND APPROVED, this 26 day of April 2021. CITY OF LA PORTE, TEXAS ________________________________ Louis R. Rigby, Mayor ATTEST: APPROVED AS TO FORM: _______________________________ _________________________________ Lee Woodward, City Secretary Clark T. Askins, Assistant City Attorney REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 N/A Source of Funds: Requested By: Steve Deardorff, Chief Department: Police Department N/A Account Number: N/A Amount Budgeted: Report Resolution Ordinance Amount Requested: N/A Exhibits: Budgeted Item: Yes No Grant SUMMARY & RECOMMENDATION enforcement agency shall designate one person to serve as the agency's Crime Victim The duties of the Crime Victim Liaison include: to ensure that a victim, guardian of a victim, or close relative of a deceased victim of a crime involving bodily injury is afforded rights; providing advocacy for victims; referring victims to community resources; and providing moral support during any time the victim is required to make a court appearance. For calendar years 2019 and 2020, the Crime Victim Liaison provided valuable services to over 1,300 victims. The Crime Victim Liaison was also able to assist victims with crime victim compensation and monetary support in several cases where such was Program in 2002, over $495,000.00 tion has been awarded being sought authorizing the City Manager and Police Department to submit application for a two year continuation grant for the Crime Victim Liaison position. The Grant request will be for the maximum allowable amount of $45,000.000 each year. Assuming that the full amount of the request is awarded, the City will be mandated to continue to support the program by absorbing approximately $52,000.00 each year in its personnel operating budget to cover this position. If approved the new grant would run from 9/1/21 thru 8/31/23, 21 and 2022 fiscal years. Liaison are crucial to the Department and request full support from City Council by authorizing the Resolution allowing for submission of the grant and authorizing the City Manager to sign all documents relating to the grant. ACTION REQUIRED BY CITY COUNCIL Authorize the City Manager and the La Porte Police Department to submit for the Victim Coordinator and Liaison Grant (VCLG) for Fiscal Years 2021 and 2022 in order to continue partial funding for the Crime Victim Liaison position. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date RESOLUTION 2021-42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, AUTHRORIZING THE VICTIM COORDINATOR AND LIAISON POSITION BE PARTIALLY FUNDED THROUGH A GRANT FOR THE FISCAL YEARS 2022-2023; APPROVING THE SUBMISSION OF THE GRANT APPLICATION FOR THE VICITM COORDINATOR AND LIAISON POSITION THROUGH THEOFFICE OF THE ATTORNEY FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. Legal Name of Applicant: City of La Porte, Texas Unique Application Number: 2022-0018458445 WHEREAS, the City of La Porte has applied for or wishes to apply to the Office of the Attorney General (OAG) for the Victim Coordinator and Liaison Grant (VCLG); and WHEREAS, the City Council of The City of La Porte has considered and supports the Application filed or to be filed with the Office of the Attorney General; and WHEREAS, t he City of La Porte has designated or wishes to designate Corby Alexander, City Manager, as the Coordinator and Liaison Grant (VCLG) with the Office of the Attorney General (OAG), as well as given the authority to sign all grant adjustment requests, inventory reports, progress reports, and financial reports or any other official documents related to the grant on behalf of the grantee. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, THAT: Section 1. That The City of La Porte City Council authorizes the Victim Coordinator and Liaison Position be acquired through a grant for fiscal years 2022-2023, and further authorizes and approves submission of the grant application for the Victim Coordinator and Liaison Position, via the Office of the Attorney General of the State of Texas. Section 2. Section 3. The City of La Porte agrees that in the event of loss or misuse of the Office of the Attorney General funds, the City of La Porte assures that the funds will be returned to the Office of the Attorney General in full; and; agrees that it will appropriate any matching funds in support of the grant, if applicable. Section 4. 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 5. This resolution shall be in effect from and after its passage and approval. th PASSED and APPROVED this, the 26 day of April, 2021. CITY OF LA PORTE, TEXAS __________________________________ Louis R. Rigby, Mayor ATTEST: APPROVED AS TO FORM: ______________________________ __________________________________ Lee Woodward, City Secretary Clark T. Askins, Assistant City Attorney REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 001,016,033,034 & 038 Source of Funds: Requested By: Michael Dolby, Director Department: Finance 5001-Audit Account Number: $65,000 Amount Budgeted: Report Resolution Ordinance Amount Requested: $64,000 Exhibits: Engagement Letter for Fiscal Year 2021, Budgeted Item: Yes No and LPAWA Engagement Letter for Fiscal Year 2021 SUMMARY & RECOMMENDATION In 2018, Whitley Penn was chosen to perform auditing services for the City of La Porte for fiscal year 2018, 2019 and 2020. Previously, the City had utilized Patillo, Brown and Hill audit firm from 2015-2017. Staff would like to continue the working relationship with the audit firm of Whitley Penn and recommends City Council entering into a Professional Service Agreement with Whitley Penn to perform auditing services for the City of La Porte and the La Porte Area Water Authority for fiscal year ending September 30, 2021. The cost of these services will remain unchanged from the prior fiscal year. After the last Fiscal Affairs Committee meeting, Committee members expressed their interest in staff bringing this item forward to City Council for consideration. ACTION REQUIRED BY CITY COUNCIL Approval or other action to enter into a Professional Service Agreement with Whitley Penn to perform auditing services for the City of La Porte and the La Porte Area Water Authority for fiscal year ending September 30, 2021. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date ЌАЌА .ǒŅŅğƌƚ {ƦĻĻķǞğǤ {ǒźƷĻ ЊЏЉЉ IƚǒƭƷƚƓͲ Ļǣğƭ ААЉВБ АЊЌ͵ЏЋЊ͵ЊЎЊЎ ağźƓ ǞŷźƷƌĻǤƦĻƓƓ͵ĭƚƒ April 5, 2021 To the Honorable Mayor, Members of City Council and the City Manager 604 W. Fairmont Parkway La Porte, Texas You have requested that we audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund informa September 30, 2021 and for the year then ended, and the related notes to the financial statements, which collectively compliance over major federal award programs for the year ended September 30, 2021. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter. Our audits will be conducted with the objectives of our expressing an opinion on each opinion unit and an opinion on compliance regarding the C and analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the required supplementary information (RSI) in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist primarily of inquiries of management regarding their methods of measurement and presentation, and comparing the information for consistency inquiries. We will not express an opinion or provide any form of assurance on the RSI. The following RSI is required by accounting principles generally accepted in the United States of America: 1) 2)Budgetary Cond La Porte Redevelopment Authority 3)Schedule of Changes in the Liability and Related Ratios (Pension and Other Post-Employment Benefits (OPEB)) 4)Schedule of Contributions (Pension and OPEB) 5)Schedule of Proportionate Share of the Liability (Pension) Supplementary information other than nancial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling the supplementary information to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and additional procedures in accordance with auditing standards generally accepted in the United States of America. We intend to provide an opinion on the following supplementary information in relation to the financial statements as a whole: 1)Combining and Individual Fund Statements and Schedules 2)Schedule of Expenditures of Federal Awards To the Honorable Mayor, Members of City Council and the City Manager April 5, 2021 City of La Porte, Texas Page 2 of 10 Also, the document we submit to you will include the following other additional information that will not be subjected to the auditing procedures applied in our audit of the financial statements: 1) Introductory Section 2) Statistical Section Data Collection Form Prior to the completion of our engagement, we will complete the sections of the Data Collection Form that are our responsibility. The form will summarize our audit findi responsibility to submit a reporting package including financial statements, schedule of expenditure of federal awards, summary schedule of prior audit findings and corrective action plan along with the Data Collection Form to the federal audit clearinghouse. The financial reporting package must be text searchable, unencrypted, and unlocked. Otherwise, the reporting package will not be accepted by the federal audit clearinghouse. We will assist you in the electronic submission and certification. You may request from us copies of our report for you to include with the reporting package submitted to pass-through entities. The Data Collection Form is required to be submitted within the earlier of 30 reports or nine months after the end of the audit period, unless specifically waived by a federal cognizant or oversight agency for audits. Data Collection Forms submitted untimely are one of the factors in assessing programs at a higher risk. Audit of the Financial Statements We will conduct our audit in accordance with auditing standards generally accepted in the United States of America (U.S. GAAS), the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America; the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The pro judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to error, fraudulent financial reporting, misappropriation of assets, or violations of laws, governmental regulations, grant agreements, or contractual agreements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. If appropriate, our procedures will therefore include tests of documentary evidence that support the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of cash, investments, and certain other assets and liabilities by correspondence with creditors and financial institutions. As part of our audit process, we will request written representations from your attorneys, and they may bill you for responding. At the conclusion of our audit, we will also request certain written representations from you about the financial statements and related matters. Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements or noncompliance (whether caused by errors, fraudulent financial reporting, misappropriation of assets, detected abuse, or violations of laws or governmental regulations) may not be detected exists, even though the audit is properly planned and performed in accordance with U.S. GAAS and Government Auditing Standards of the Comptroller General of the United States of America and in accordance with the Uniform Guidance. Please note that the determination of abuse is subjective and Government Auditing Standards does not require auditors to detect abuse. To the Honorable Mayor, Members of City Council and the City Manager April 5, 2021 City of La Porte, Texas Page 3 of 10 In making our risk assessments, we consider internal contro of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of communicate to you in writing concerning any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements that we have identified during the audit. Our responsibility as auditors is, of course, limited to the period covered by our audit and does not extend to any other periods. We will issue a written report upon comple be addressed to the governing body of the City. We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our opinions, add an emphasis-of- matter or other-matter paragraph(s), or withdraw from the engagement. In accordance with the requirements of Government Auditing Standards, we will also issue a written report describing the scope of our testing over internal control over financial reporting and over compliance with laws, regulations, and provisions of grants and contracts, including the results of that testing. However, providing an opinion on internal control and compliance over financial reporting will not be an objective of the audit and, therefore, no such opinion will be expressed. with the Uniform Guidance as it related to each of the major federal awards upon completion of our audit. Audit of Major Program Compliance (s) compliance will be conducted in accordance with the requirements of the Single Audit Act, as amended; and the Uniform Guidance, and will include tests of accounting records, a determination of major programs in accordance with the Uniform Guidance and other procedures we consider necessary to enable us to express such an opinion on major federal award program compliance and to render the required reports. We cannot provide assurance that an unmodified opinion on compliance will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or withdraw from the engagement. The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether the City has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major federal award programs. Our procedures will consist of determining major federal programs and performing the applicable procedures described in the U.S. Office of Management and Budget OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on of those procedures will be to express an opinion on the plicable to each of its major federal programs in our report on compliance issued pursuant to the Uniform Guidance. Also, as required by the Uniform Guidance, we will perform tests of controls to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to eachprograms. However, our tests will be less in scope than would be necessary to render an opinion on these controls and, accordingly, no opinion will be expressed in our report. We will issue a report on compliance th major federal programs, and a report on internal controls over compliance that will report any significant deficiencies and material weaknesses identified; however, such report will not express an opinion on internal control. To the Honorable Mayor, Members of City Council and the City Manager April 5, 2021 City of La Porte, Texas Page 4 of 10 Our audit will be conducted on the basis that management and, when appropriate, those charged with governance acknowledge and understand that they have responsibility: 1. For the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; 2. For the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; 3. For identifying, in its accounts, all federal awards received and expended during the period and the federal programs under which they were received, including federal awards and funding increments received prior to December 26, 2014 (if any), and those received in accordance with the Uniform Guidance generally received after December 26, 2014; 4. For maintaining records that adequately identify the source and application of funds for federally funded activities; 5. For preparing the schedule of expenditures of federal awards (including notes and noncash assistance received) in accordance with the Uniform Guidance; 6. For the design, implementation, and maintenance of internal control over federal awards; 7. For establishing and maintaining effective internal control over federal awards that provides reasonable assurance that the nonfederal entity is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards; 8. For disclosing accurately, currently, and completely the financial results of each federal award in accordance with the requirements of the award; 9. For identifying and ensuring that the City complies with federal statutes, regulations, and the terms and conditions of federal award programs and implementing systems designed to achieve compliance with applicable laws, regulations, grants, and contracts applicable to activities and its federal award programs; 10. For identifying and providing report copies of previous audits, attestation engagements, or other studies that directly relate to the objectives of the audit, including whether related recommendations have been implemented; 11. For taking prompt action when instances of noncompliance are identified; 12. For addressing the findings and recommendations of auditors, for establishing and maintaining a process to track the status of such findings and recommendations and taking corrective action on reported audit findings from prior periods and preparing a summary schedule of prior audit findings; 13. For following up and taking corrective action on current year audit findings and preparing a corrective action plan for such findings; 14. For submitting the reporting package and data collection form to the appropriate parties; 15. For making the auditor aware of any significant contractor relationships where the contractor is responsible for program compliance; 16. To provide us with: a. Access to all information of which management is aware that is relevant to the preparation and fair presentation of the financial statements, and relevant to federal award programs, such as records, documentation, and other matters; b. Additional information that we may request from management for the purpose of the audit; and c. Unrestricted access to persons within the City from whom we determine it necessary to obtain audit evidence. 17. For adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the current year period(s) under audit are immaterial, both individually and in the aggregate, to the financial statements as a whole; 18. For acceptance of nonattest services, including identifying the proper party to oversee nonattest work; 19. For maintaining adequate records, selecting and applying accounting principles, and safeguarding assets; To the Honorable Mayor, Members of City Council and the City Manager April 5, 2021 City of La Porte, Texas Page 5 of 10 20. For informing us of any known or suspected fraud affecting the entity involving management, employees with significant role in internal control and others where fraud could have a material effect on compliance; 21. For the accuracy and completeness of all information provided; 22. For taking reasonable measures to safeguard protected personally identifiable and other sensitive information; and 23. For confirming your understanding of your responsibilities as defined in this letter to us in your management representation letter. With regard to the supplementary information referred to above, you acknowledge and understand your responsibility (a) for the preparation of the supplementary information in accordance with the applicable criteria, (b) to provide us with the appropriate written representations regarding supplementary information, (c) to include our report on the supplementary information in any document that contains the supplementary information and that indicates that we have reported on such supplementary information, and (d) to present the supplementary information with the audited financial statements, or if the supplementary information will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by you of the supplementary information and our report thereon. With respect to any nonattest services we perform, the C management decisions and performing all management functions; (b) assigning a competent individual to oversee the services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting responsibility for the results of the services performed; and (e) establishing and maintaining internal controls, including monitoring ongoing activities. Nonattest services could include assistance with the preparation of financial statements including the government-wide conversion entries and note disclosures, assistance with the preparation of the schedule of expenditures of federal award (SEFA) and related notes, and assistance with the preparation of the data collection form and submission to the federal audit clearinghouse. As part of our audit process, we will request from management and, when appropriate, those charged with governance, written confirmation concerning representations made to us in connection with the audit. We understand that your employees will prepare all confirmations we request and will locate any documents or invoices selected by us for testing. If you intend to publish or otherwise reproduce the financial statements and make reference to our firm, you agree ew and approval before printing. You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed. Fees and Timing The timing of our audit will be scheduled for performance and completion as follows: Document internal control and preliminary tests August 2021 Perform year-end audit procedures January 2022 Issue audit reports March 2022 Present to City Council March 2022 We anticipate meeting these deadlines barring any delays. To the Honorable Mayor, Members of City Council and the City Manager April 5, 2021 City of La Porte, Texas Page 6 of 10 Guadalupe R. Garcia, CPA is the engagement partner for the audit services specified in this letter. His responsibilities include supervising Whitlert of this engagement and signing or authorizing another qualified firm representative to sign the audit report. Our fee for the audit services will be based on the amount of time required and the difficulty of the work involved which we estimate to be $58,650. The fee estimate for the audit is based on an personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will keep you informed of any problems we encounter and our fees will be adjusted accordingly. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation and payment is due in Tarrant County. You agree to pay reasonable attorney fees and collection costs incurred relating to collection of fees for services performed under the terms of this engagement. In accordance with Whitley Penn, LLP policy, work may be suspended if your account becomes 30 days or more past due and will not resume until your account is paid in full. In addition, invoices not paid in full by the last day of the month will be assessed interest at a rate of one percent per month. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been complete even if we have not issued our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket expenditures through the date of termination. Our nal payment of any outstanding invoices. You may request that we perform additional services not addressed in this engagement letter. If this occurs, we will communicate with you concerning the scope of the additional services and the estimated fees. We also may issue a separate engagement letter covering the additional services. In the absence of any other written communication from us documenting such additional services, our services will continue to be governed by the terms of this engagement letter. We would like to make the following comments regarding the fee estimates: 1. Our fee estimates have not considered the effects of any changes to auditing standards and accounting principles, which may be promulgated by the AICPA, Congress, or any other regulatory body in the future and are unknown to us at this time. If significant additional time is necessary resulting in increased fees, we will endeavor to notify you of any such circumstances as they are assessed. 2. of all items requested in the Prepared by Client Any delays caused by not preparing the items when requested may result in additional fees, as well as the possibility of postponing our fieldwork. The PBC listing will be provided to you during the planning process of the engagement. 3. Time incurred for audit adjustments identified during our audit and the related additional testing required has not been considered in our fee estimates. Prior to performing any additional testing, we will notify you of the exceptions and obtain approval for any additional fees which may be incurred. 4. Our fee estimates are based on all general ledger sub ledgers being reconciled to the general ledger balance and any adjustment necessary should be recorded to the general ledger prior to our fieldwork start date. The ethics of our profession prohibit the rendering of professional services where the fee for such services is contingent, or has the appearance of being contingent, upon the results of such services. Accordingly, it is important that our bills be paid promptly when received. If a situation arises in which it may appear that our independence would be questioned because of significant unpaid bills, we To the Honorable Mayor, Members of City Council and the City Manager April 5, 2021 City of La Porte, Texas Page 7 of 10 In the unlikely event that differences concerning our services or fees should arise that are not resolved by mutual agreement, to facilitate judicial resolution and save time and expense of both parties, the District and Whitley Penn, LLP agree not to demand a trial by jury in any action, proceeding, or counterclaim arising out of or relating to our services and fees for this engagement. Any controversy, dispute, or questions arising out of or in connection with this agreement or our engagement shall be determined by arbitration conducted in accordance with the rules of the American Arbitration Association, and any decision rendered by the American Arbitration Association shall be binding on both parties to this agreement. The costs of any arbitration shall be borne equally by the parties. Any and all claims in arbitration relating to or arising out of this contract/agreement shall be governed by the laws of the State of Texas and to the extent any issue regarding the arbitration is submitted to a court, including the appointment of arbitrators or confirmation of an award, the District Courts in Tarrant County shall have exclusive jurisdiction. Any action arising out of this agreement or the services provided shall be initiated within two years of the service provided. This letter replaces and supersedes any previous proposals, correspondence and understanding, whether written or oral. The agreements contained in this engagement letter shall survive the completion or termination of this engagement. impaired under the AICPA Code of Professional Conduct, you agree to inform the engagement partner before entering into any substantive employment discussions with any of our personnel. Other Matters During the course of the engagement, we may communicate with you or your personnel via fax or e-mail, and you should be aware that communication in those mediums contains a risk of misdirected or intercepted communications. In the course of our services, our firm may transmit confidential information that you provided us to third parties in order to facilitate our services. As applicable, we require confidentiality agreements with all our service providers to maintain the confidentiality of your information and additionally the firm will take reasonable precautions to determine that our service providers have the appropriate procedures in place to prevent the unauthorized release of confidential information to others. We will remain ultimately responsible for the work provided by any third- party service providers used under this agreement. By your signature below, you consent to having confidential information transmitted to entities outside the firm. Please feel free to inquire if you would like additional information regarding the transmission of confidential information to entities outside the firm. Regarding the electronic dissemination of audited financial statements, including financial statements published electronically on your Internet website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. Professional standards prohibit us from being the sole host and/or the sole storage for your financial and non- financial data. As such, it is your responsibility to maintain your original data and records and we cannot be responsible to maintain such original information. By signing this engagement letter, you affirm that you have all the data and records required to make your books and records complete. The audit documentation for this engagement is the property of Whitley Penn, LLP and constitutes confidential information. However, we may be requested to make certain audit documentation available to your pass-through regulatory entity and federal agencies and the U.S. Government Accountability Office pursuant to authority given to it by law or regulation, or to peer reviewers. If requested, access to such audit documentation will be provided under the supervision Whitley Penn, To the Honorable Mayor, Members of City Council and the City Manager April 5, 2021 City of La Porte, Texas Page 8 of 10 selected audit documentation to these agencies and regulators. The regulators and agencies may intend, or decide, to distribute the copies of information contained therein to others, including other governmental agencies. The City may wish to include our report on these financial statements in an exempt offering document. The City report, or reference to our Firm, will not be included in such offering document without prior permission or consent. Any agreement to perform work in connection with an exempt offering document, including an agreement to provide permission or consent, will be a separate engagement letter. For exempt offerings for which we are not involved, you will clearly indicate that we were not involved with the contents of such offering document and a disclosure as shown below will be included in the exempt offering: engaged to perform and has not performed, since the date of its report included herein, any procedures on the financial statements addressed in that report. Whitley Penn also has not performed any pro Further, we will be available during the year to consult with you on financial management and accounting matters of a routine nature. During the course of the audit, we may observe opportunities for economy in, or improved controls over, your operations. We will bring such matters to the attention of the appropriate level of management, either orally or in writing. We agree to retain our audit documentation or work papers for a period of at least five years from the date of our report. You agree to inform us of facts that may affect the financial statements of which you may become aware during the the date the financial statements are issued. At the conclusion of our audit engagement, we will communicate to the Honorable Mayor and Members of City Council the following significant findings from the audit: Our view about the qualitative aspects of Significant difficulties, if any, encountered during the audit; Uncorrected misstatements, other than those we believe are trivial, if any; Disagreements with management, if any; Other findings or issues, if any, arising from the audit that are, in our professional judgment, significant and relevant to those charged with governance regarding their oversight of the financial reporting process; Material, corrected misstatements that were brought to the attention of management as a result of our audit procedures; Representations we requested from management; other accountants, if any; and Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence, with management. In accordance with the requirements of Government Auditing Standards, we have attached a copy of our latest external peer review report of our firm for your consideration and files. Please sign and return the attached copy of this letter to indicate your acknowledgment of, and agreement with, the arrangements for our audit of the financial statements compliance over major federal award programs including our respective responsibilities. To the Honorable Mayor, Members of City Council and the City Manager April 5, 2021 City of La Porte, Texas Page 9 of 10 We appreciate the opportunity to be your financial statement auditors and look forward to working with you and your staff. Respectfully, Houston, Texas RESPONSE: This letter correctly sets forth our understanding. Acknowledged and agreed on behalf of City of La Porte, Texas by: Name: __________________________________________________________ Title: ____________________________________________________________ Date: ____________________________________________________________ Name: __________________________________________________________ Title: ____________________________________________________________ Date: ____________________________________________________________ To the Honorable Mayor, Members of City Council and the City Manager April 5, 2021 City of La Porte, Texas Page 10 of 10 ЌАЌА .ǒŅŅğƌƚ {ƦĻĻķǞğǤ {ǒźƷĻ ЊЏЉЉ IƚǒƭƷƚƓͲ Ļǣğƭ ААЉВБ АЊЌ͵ЏЋЊ͵ЊЎЊЎ ağźƓ ǞŷźƷƌĻǤƦĻƓƓ͵ĭƚƒ April 5, 2021 To the Board of Directors La Porte Area Water Authority La Porte, Texas You have requested that we audit the financial statements of the business-type activities of La Porte Area Water for the year then ended, and the related notes to the financial statements, which collectively comprise We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter. Our audit will be conducted with the objective of our expressing an opinion on each opinion unit. and analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the required supplementary information (RSI) in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist primarily of inquiries of management regarding their methods of measurement and presentation, and comparing the information for consistency inquiries. We will not express an opinion or provide any form of assurance on the RSI. The following RSI is required by accounting principles generally accepted in the United States of America: 1) 2)Budgetary Schedules Supplementary information other than subject the following supplementary information to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling the supplementary information to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and additional procedures in accordance with auditing standards generally accepted in the United States of America. We intend to provide an opinion on the following supplementary information in relation to the financial statements as a whole: 1)Texas Commission on Environment Quality Audit of the Financial Statements We will conduct our audit in accordance with auditing standards generally accepted in the United States of America (U.S. GAAS). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures including the assessment of the risks of material misstatement of the To the Board of Directors April 5, 2021 La Porte Area Water Authority Page 2 of 7 financial statements, whether due to error, fraudulent financial reporting, misappropriation of assets, or violations of laws, governmental regulations, grant agreements, or contractual agreements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. If appropriate, our procedures will therefore include tests of documentary evidence that support the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of cash, investments, and certain other assets and liabilities by correspondence with creditors and financial institutions. As part of our audit process, we will request written representations from your attorneys, and they may bill you for responding. At the conclusion of our audit, we will also request certain written representations from you about the financial statements and related matters. Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements or noncompliance (whether caused by errors, fraudulent financial reporting, misappropriation of assets, detected abuse, or violations of laws or governmental regulations) may not be detected exists, even though the audit is properly planned and performed in accordance with U.S. GAAS. In making our risk assessments, we consider internal c presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effec we will communicate to you in writing concerning any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements that we have identified during the audit. Our responsibility as auditors is, of course, limited to the period covered by our audit and does not extend to any other periods. We will issue a written report upon complebasic financial statements. Our report will be addressed to the governing body of the Authority. We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our opinions, add an emphasis- of-matter or other-matter paragraph(s), or withdraw from the engagement. Our audit will be conducted on the basis that management and, when appropriate, those charged with governance acknowledge and understand that they have responsibility: 1. For the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; 2. For identifying and providing report copies of previous audits, attestation engagements, or other studies that directly relate to the objectives of the audit, including whether related recommendations have been implemented; 3. For taking prompt action when instances of noncompliance are identified; 4. For addressing the findings and recommendations of auditors, for establishing and maintaining a process to track the status of such findings and recommendations and taking corrective action on reported audit findings from prior periods and preparing a summary schedule of prior audit findings; 5. For following up and taking corrective action on current year audit findings and preparing a corrective action plan for such findings; 6. For submitting the reporting package and data collection form to the appropriate parties; 7. For making the auditor aware of any significant contractor relationships where the contractor is responsible for program compliance; 8. To provide us with: To the Board of Directors April 5, 2021 La Porte Area Water Authority Page 3 of 7 a. Access to all information of which management is aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, and other matters; b. Additional information that we may request from management for the purpose of the audit; and c. Unrestricted access to persons within the Authority from whom we determine it necessary to obtain audit evidence. 9. For adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the current year period(s) under audit are immaterial, both individually and in the aggregate, to the financial statements as a whole; 10. For acceptance of nonattest services, including identifying the proper party to oversee nonattest work; 11. For maintaining adequate records, selecting and applying accounting principles, and safeguarding assets; 12. For informing us of any known or suspected fraud affecting the entity involving management, employees with significant role in internal control and others where fraud could have a material effect on compliance; 13. For the accuracy and completeness of all information provided; 14. For taking reasonable measures to safeguard protected personally identifiable and other sensitive information; and 15. For confirming your understanding of your responsibilities as defined in this letter to us in your management representation letter. With regard to the supplementary information referred to above, you acknowledge and understand your responsibility (a) for the preparation of the supplementary information in accordance with the applicable criteria, (b) to provide us with the appropriate written representations regarding supplementary information, (c) to include our report on the supplementary information in any document that contains the supplementary information and that indicates that we have reported on such supplementary information, and (d) to present the supplementary information with the audited financial statements, or if the supplementary information will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by you of the supplementary information and our report thereon. With respect to any nonattest services we perform, the Au management decisions and performing all management functions; (b) assigning a competent individual to oversee the services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting responsibility for the results of the services performed; and (e) establishing and maintaining internal controls, including monitoring ongoing activities. Nonattest services could include assistance with the preparation of financial statements including government-wide journal entries and note disclosures. As part of our audit process, we will request from management and, when appropriate, those charged with governance, written confirmation concerning representations made to us in connection with the audit. We understand that your employees will prepare all confirmations we request and will locate any documents or invoices selected by us for testing. If you intend to publish or otherwise reproduce the financial statements and make reference to our firm, you agree ew and approval before printing. You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed. Fees and Timing The timing of our audit will be scheduled for performance and completion as follows: To the Board of Directors April 5, 2021 La Porte Area Water Authority Page 4 of 7 Document internal control and preliminary tests August 2021 Perform year-end audit procedures January 2022 Issue audit reports February 2022 Present to the Board of Directors February 2022 We anticipate meeting these deadlines barring any delays. Guadalupe R. Garcia, CPA is the engagement partner for the audit services specified in this letter. His responsibilities include supervising Whitlert of this engagement and signing or authorizing another qualified firm representative to sign the audit report. Our fee for the audit services will be based on the amount of time required and the difficulty of the work involved which we estimate to be $5,100 The fee estimate for the audit is based on anticipated cooperation from the rcumstances will not be encountered during the audit. If significant additional time is necessary, we will keep you informed of any problems we encounter and our fees will be adjusted accordingly. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation and payment is due in Tarrant County. You agree to pay reasonable attorney fees and collection costs incurred relating to collection of fees for services performed under the terms of this engagement. In accordance with Whitley Penn, LLP policy, work may be suspended if your account becomes 30 days or more past due and will not resume until your account is paid in full. In addition, invoices not paid in full by the last day of the month will be assessed interest at a rate of one percent per month. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been complete even if we have not issued our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket expenditures through the date of termination. Our nal payment of any outstanding invoices. You may request that we perform additional services not addressed in this engagement letter. If this occurs, we will communicate with you concerning the scope of the additional services and the estimated fees. We also may issue a separate engagement letter covering the additional services. In the absence of any other written communication from us documenting such additional services, our services will continue to be governed by the terms of this engagement letter. We would like to make the following comments regarding the fee estimates: 1. Our fee estimates have not considered the effects of any changes to auditing standards and accounting principles, which may be promulgated by the AICPA, Congress, or any other regulatory body in the future and are unknown to us at this time. If significant additional time is necessary resulting in increased fees, we will endeavor to notify you of any such circumstances as they are assessed. 2. ation of all items requested in the Prepared by ed. Any delays caused by not preparing the items when requested may result in additional fees, as well as the possibility of postponing our fieldwork. The PBC listing will be provided to you during the planning process of the engagement. To the Board of Directors April 5, 2021 La Porte Area Water Authority Page 5 of 7 3. Time incurred for audit adjustments identified during our audit and the related additional testing required has not been considered in our fee estimates. Prior to performing any additional testing, we will notify you of the exceptions and obtain approval for any additional fees which may be incurred. 4. Our fee estimates are based on all general ledger sub ledgers being reconciled to the general ledger balance and any adjustment necessary should be recorded to the general ledger prior to our fieldwork start date. The ethics of our profession prohibit the rendering of professional services where the fee for such services is contingent, or has the appearance of being contingent, upon the results of such services. Accordingly, it is important that our bills be paid promptly when received. If a situation arises in which it may appear that our independence would be questioned because of significant unpaid bills, we In the unlikely event that differences concerning our services or fees should arise that are not resolved by mutual agreement, to facilitate judicial resolution and save time and expense of both parties, the District and Whitley Penn, LLP agree not to demand a trial by jury in any action, proceeding, or counterclaim arising out of or relating to our services and fees for this engagement. Any controversy, dispute, or questions arising out of or in connection with this agreement or our engagement shall be determined by arbitration conducted in accordance with the rules of the American Arbitration Association, and any decision rendered by the American Arbitration Association shall be binding on both parties to this agreement. The costs of any arbitration shall be borne equally by the parties. Any and all claims in arbitration relating to or arising out of this contract/agreement shall be governed by the laws of the State of Texas and to the extent any issue regarding the arbitration is submitted to a court, including the appointment of arbitrators or confirmation of an award, the District Courts in Tarrant County shall have exclusive jurisdiction. Any action arising out of this agreement or the services provided shall be initiated within two years of the service provided. This letter replaces and supersedes any previous proposals, correspondence and understanding, whether written or oral. The agreements contained in this engagement letter shall survive the completion or termination of this engagement. impaired under the AICPA Code of Professional Conduct, you agree to inform the engagement partner before entering into any substantive employment discussions with any of our personnel. Other Matters During the course of the engagement, we may communicate with you or your personnel via fax or e-mail, and you should be aware that communication in those mediums contains a risk of misdirected or intercepted communications. In the course of our services, our firm may transmit confidential information that you provided us to third parties in order to facilitate our services. As applicable, we require confidentiality agreements with all our service providers to maintain the confidentiality of your information and additionally the firm will take reasonable precautions to determine that our service providers have the appropriate procedures in place to prevent the unauthorized release of confidential information to others. We will remain ultimately responsible for the work provided by any third- party service providers used under this agreement. By your signature below, you consent to having confidential information transmitted to entities outside the firm. Please feel free to inquire if you would like additional information regarding the transmission of confidential information to entities outside the firm. Regarding the electronic dissemination of audited financial statements, including financial statements published electronically on your Internet website, you understand that electronic sites are a means to distribute information To the Board of Directors April 5, 2021 La Porte Area Water Authority Page 6 of 7 and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. Professional standards prohibit us from being the sole host and/or the sole storage for your financial and non- financial data. As such, it is your responsibility to maintain your original data and records and we cannot be responsible to maintain such original information. By signing this engagement letter, you affirm that you have all the data and records required to make your books and records complete. The audit documentation for this engagement is the property of Whitley Penn, LLP and constitutes confidential information. However, we may be requested to make certain audit documentation available to your pass-through regulatory entity and federal agencies and the U.S. Government Accountability Office pursuant to authority given to it by law or regulation, or to peer reviewers. If requested, access to such audit documentation will be provided under the supervision Whitley Penn, selected audit documentation to these agencies and regulators. The regulators and agencies may intend, or decide, to distribute the copies of information contained therein to others, including other governmental agencies. The Authority may wish to include our report on these financial statements in an exempt offering document. The or reference to our Firm, will not be included in such offering document without prior permission or consent. Any agreement to perform work in connection with an exempt offering document, including an agreement to provide permission or consent, will be a separate engagement letter. For exempt offerings for which we are not involved, you will clearly indicate that we were not involved with the contents of such offering document and a disclosure as shown below will be included in the exempt offering: engaged to perform and has not performed, since the date of its report included herein, any procedures on the financial statements addressed in that report. Whitley Penn also has not performed any pro Further, we will be available during the year to consult with you on financial management and accounting matters of a routine nature. During the course of the audit, we may observe opportunities for economy in, or improved controls over, your operations. We will bring such matters to the attention of the appropriate level of management, either orally or in writing. We agree to retain our audit documentation or work papers for a period of at least five years from the date of our report. You agree to inform us of facts that may affect the financial statements of which you may become aware during the the date the financial statements are issued. At the conclusion of our audit engagement, we will communicate to the Board of Directors the following significant findings from the audit: Significant difficulties, if any, encountered during the audit; Uncorrected misstatements, other than those we believe are trivial, if any; Disagreements with management, if any; Other findings or issues, if any, arising from the audit that are, in our professional judgment, significant and relevant to those charged with governance regarding their oversight of the financial reporting process; To the Board of Directors April 5, 2021 La Porte Area Water Authority Page 7 of 7 Material, corrected misstatements that were brought to the attention of management as a result of our audit procedures; Representations we requested from management; other accountants, if any; and Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence, with management. Please sign and return the attached copy of this letter to indicate your acknowledgment of, and agreement with, the arrangements for our audit of the financial statements including our respective responsibilities. We appreciate the opportunity to be your financial statement auditors and look forward to working with you and your staff. Respectfully, Houston, Texas RESPONSE: This letter correctly sets forth our understanding. Acknowledged and agreed on behalf of La Porte Area Water Authority by: Name: __________________________________________________________ Title: ____________________________________________________________ Date: ____________________________________________________________ Name: __________________________________________________________ Title: ____________________________________________________________ Date: ____________________________________________________________ REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 Source of Funds: N/A Requested By: Ray Mayo, Director Department: Public Works Account Number: N/A Amount Budgeted: N/A Report Resolution Ordinance Amount Requested: N/A Exhibits: Pasadena Ordinance, La Porte Ord. Budgeted Item: Yes No 2021-3824, Proposed Amendment to Interlocal Agreement, and Area Map SUMMARY & RECOMMENDATION On January 23, 2012, the La Porte City Council conducted a workshop to review the concept of a swap of Extraterritorial Jurisdiction (ETJ) with the City of Pasadena. In offer to provide drainage improvements along Willow Springs Gully near the Pasadena Convention Center site. In order to facilitate the concepts discussed at the workshop, an interlocal agreement (ILA) was developed, providing for: the provision of 100 acre- feet of detention volume from the City of Pasadena to the City of La Porte; and the Pursuant to the ILA executed June 25, 2012 and July 3, 2012, by the City of La Porte and City of Pasadena, respectively, proposed construction improvements were to be completed within three years of the date of the agreement (by July 2015). In 2019, tus of the drainage improvements. City of La Porte staff informed the Drainage Committee that the improvements were not completed and that there had been minimal progression towards initiating the drainage improvements. At the October 12, 2020 Drainage Committee meeting, the Committee requested to explore legal options, at the ILA. After discussing options in executive session, City Council directed City of La Porte staff to coordinate with Pasadena staff to amend the terms of the original ILA. The amended terms provide for a revised timeline to begin and to complete the detention facility construction. Additionally, Pasadena delegates, to the City of La Porte, the authority to facilitate procurement of professional services for: feasibility assessment; design phase services; permitting; and other tasks associated with seeing this project to construction phase, with Pasadena remaining responsible for all associated costs. Upon receiving final construction plans, Pasadena agrees to advertise the construction phase within 60 days, with construction to be completed within s City Council. La Porte City Council discussed the aforementioned terms in executive session at the March 8, 2021 City Council meeting, and voted, unanimously, to present the amended The amended ILA terms have been reviewed by Pasadena and were approved, via Ordinance (attached), City Council meeting. amending the interlocal agreement, providing for the City of La Porte to begin with design of drainage improvements on the 99-acre tract near the Pasadena Convention Center site, staff recommends moving forward with the accepting the amendments to the interlocal agreement, as approved by the City of Pasadena, via Pasadena Ordinance. Benefits: Timelines are established, including additional conditions if milestones are not met by Pasadena; La Porte manages preliminary project phases to ensure project progression. Liabilities: Previous agreement does not have terms for failure to fulfill terms of agreement. ACTION REQUIRED BY CITY COUNCIL Consider an ordinance to amend Ordinance No. 2012-3421, providing for the within the ETJ of the City of Pasadena. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date ORDINANCE 2021-3824 AN ORDINANCE APPROVING AND AUTHORIZING AMENDMENTS TO THAT CERTAIN INTERLOCAL AGREEMENT DATED JULY 3, 2012, FOR THE REAPPORTIONMENT OF EXTRATERRITORIAL JURISDICTION BETWEEN THE CITY OF LA PORTE, TEXAS AND THE CITY OF PASADENA, TEXAS, AND APPROVED BY CITY OF LA PORTE ORDINANCE 2012-3421, TO IMPLEMENT A SCHEDULE AND DIVISION OF RESPONSIBILITIES FOR CONSTRUCTION OF DRAINAGE INFRASTRUCTURE; 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, TEXAS: Section 1. The City Council of La Porte, Texas, hereby approves and authorizes amendments to that certain Interlocal Agreement dated July 3, 2012, for the reapportionment of extraterritorial boundaries between the City of La Porte, Texas and the City of Pasadena, Texas and adopted by Ordinance 2012-3421, as reflected by the document titled , for the purpose of implementing a schedule and division of responsibilities for construction of drainage infrastructure, a copy of which is attached hereto, incorporated by reference herein, and made a part hereof for all purposes. Section 2. The Mayor is hereby authorized and empowered to execute said on behalf of the City of La Porte, Texas. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City of La Porte to such document. Section 3. 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 4. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. th Passed and approved this 12 day of April, 2021. CITY OF LA PORTE, TEXAS _________________________________ Louis R. Rigby, Mayor ATTEST: APPROVED AS TO FORM: ________________________________ __________________________________ Lee Woodward, City Secretary Clark T. Askins, Assistant City Attorney O dnobp yb MP 11:63:2 ta 1202/11/2 :dettolP dxm.71x11_tseretnIfOstcarT\\eganiarD_anedasaP_00-700-7002\\0002\\stcejorP\\1bdsigvuoh\\\\ REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 Source of Funds: 003- Utility CIP Requested By: Ray Mayo, Director Department: Public Works Account Number: 003-7087-532-5110 Amount Budgeted: $450,000 Report Resolution Ordinance Amount Requested: $0 Exhibits: Notification and Access Report, Budgeted Item: Yes No Bid from R&B Group SUMMARY & RECOMMENDATION The Public Works Department belt filter press replacement project at the Wastewater Treatment Plant, Bid #21015 was opened on March 25, 2021. The bid was advertised thth on March 4 and 11, 2021. A total of 64 vendors were notified and 21 downloaded the bid documents. However, the City received only one single bid from R&B Group in the amount of $518,113.52. There was an option included in the bid for a trade-in allowance for the current equipment. This option was not exercised by the bidder. During a follow-up review of equipment specifications with the manufacturer, City staff learned of an opportunity to re-condition the belt filter press unit with new factory parts, ice technicians. This option is under review by City Staff as a sole source provider. Staff recommends City Council reject the single bid from R&B Group for Bid #21015 for the Belt Filter Press Replacement project at the Wastewater Treatment Plant. Benefits: Option to rebuild will save significant costs over total replacement. Service life is expected to be equal to a new unit. Extended warranty on high-wear parts. Liabilities: Single Bid exceeds the project budget. There are no comparative bids to evaluate. ACTION REQUIRED BY CITY COUNCIL Rejection of the single bid from R&B Group for Bid #21015 Replacement of Belt Filter Press at the Wastewater Treatment Plant. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date Reason Bid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid AnswerBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid Notification Email info@aaaflexpipe.comgary@allpump.comdana@ana-lab.comdsanford@austinpump.comjohn@automaticpump.comdstewart@barcopump.combaukuselectric@yahoo.combhemenway@bistaterubber.comwguerra@boyerinc.comLCIANTO@C APPUSA.COMddavila@cdcnews.comdt@chaparrallabs.comjohn.fermiza@constructconnect.cominlandsales@usunderwaterservices.comcrescentelectric@comcast.netlhighland@cdcnews.comaccounting@environmentalmachines andsmith@equipmentsouthwest.commonique@flcoatings.commelissa.hooker@fortiline.comjhboult@gpmpumpandseal.comtaylor.savoie@gcinc.comgspci2@sbcglobal.netestimating@gwphillipsconstruction.commdavis@hartw ellenv.comrichard.hardy@hdsupply.comtanya.lockett@hdrinc.commhalde@hrgreen.comddayananda@hvj.comccollins@imsinfo.comlscott@teamipr.combnbulgier@jtbservices.comg.jaimes@jaimar-automation.comsales@k2sv c.commbellows@kaptechlabs.comkesslerpainting@yahoo.comjeffjackson@kinlochequip.commlucio@ljaengineering.comsayres628@gmail.comrmartin@morsco.compaul@newmanregency.combids@napc.memike@pfeifferandson.c om Date 2021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-15 13:38:542021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:02 Invitation ClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationSelf InvitedClassificationClass ificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassifi cationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificat ion State City of La Porte (TX)139426Belt Filter Press TXTXTXTXTXTXTXMOTXPATXTXGATXTXTXTXTXTXNCTXTXTXTXTXTXTXTXTXCATXTXTXTXTXTXTXTXILTXTXCOTX Vendor Name Notifications ReportAgencyBid NumberBid Title AAA Flexible Pipe Cleaning Co ALL-PUMP & EQUIP. CO.ANA-LAB CORPORATIONAustin Pump & Supply CompanAutomatic Pump & Equipment Bartholow Rental CompanyBaukus ElectricBi-State Rubber Inc.Boyer, Inc.CAPP USA INCCDC NewsChaparral Laboratories, Inc.CMDCONSOR Engineers, LLC dba Crescent Engineering Co IncD DavilaEnvironmental Machines & Ser Equipment SouthwestF&L Coatings and Concrete, LLFortiline Inc.GPM Pump and SealGranite InlinerGULF STATES PROTECTIVE GW Phillips Construction, INC. Hartwell Environmental CorporaHD Supply Water WorksHDR Engineering, Inc.HR Green, Inc.HVJ Associates, Inc.IMSIPR South Central LLCJ.T.B. Services IncJaimar Automation, LLCK2 Services, LLCKAP Technologies, Inc.Kessler PaintingKinloch EquipmentLJA Engineering, Inc.Midwest Valley ConsultingMORRISON SUPPLYNewman Regency GroupNorth America Procurement CoPfeiffer & Son, Ltd. Bid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid NotificationBid Notification bids@plwus.comdavid@polstonprocesstx.comPrecisionpstexas@gmail.combdillard@pumpwrxs.comddolat@qclabs.comrjconstcoinc@earthlink.netdamon@randbgroup.combtavares@rhsitx.combob@racpt.comjallen@sakcon.com tbaker@spi-eng.comsjjcons@hotmail.comkwright@synagro.comgeorge.tamez@tgrayutility.comstan@pipehunter.comcgwyn@tlccon.nettgaspard@trigonassociates.comrgreen@vistratic.comthomasrwhitener@yahoo.comTodd. Jackson@wwebber.com 2021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:022021-03-04 11:43:02 ClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationClassificationCla ssificationClassificationClassificationClassificationClassificationClassification TXTXTXTXTXTXTXTXTXCATXTXTXTXTXTXLAFLTXTX PLW Waterworks, LLCPolston Applied Technologies CPrecision Plant Services, LLC.PumpWrxs & ControlsQC Laboratoires, Inc.R J Construction Company, IncR+B Group, Inc.R.H. Shackelford, Inc.RAC Industries, LLCSAK Construction, LLCSchaumburg & Polk, Inc.SJ&J CONSTRUCTION, LLCSynagro t gray utility & rehabTexas Underground, Inc.TLC Trucking & Contracting, InTrigon Associates, llcVistraticwbi incWebber, LLC Documents Bid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdfBid 21015 Belt Filter Press.pdf Accessed First Time City of La Porte (TX)21015Belt Filter Press 2021-03-13 03:44 AM CST2021-03-08 01:52 AM CST2021-03-04 11:21 PM CST2021-03-04 01:14 PM CST2021-03-07 09:32 PM CST2021-03-04 06:09 PM CST2021-03-04 12:48 PM CST2021-03-05 11:04 AM CST2021-03-13 01:56 PM CST2021-03-04 01:03 PM CST2021-03-09 09:11 AM CST2021-03-05 08:16 AM CST2021-03-04 06:18 PM CST2021-03-05 03:30 AM CST2021-03-04 01:44 PM CST2021-03-10 08:12 AM CST2021-03-07 11:23 PM CST2021-03-09 06:49 PM CST2021-03-04 02:02 PM CST2021-03-07 08:16 PM CST2021-03-05 11:56 AM CST Vendor Name Access ReportAgencyBid NumberBid Title ConstructConnectConstruction JournalNorth America Procurement CouncilHartwell Environmental CorporationDodge Data & AnalyticsL&L SuppliesHR Green, Inc.ADVANCED FILTRATION CONCEPTS, IBidClerkOnviaDodg e Data & AnalyticsRFx AnalystDodge Data & AnalyticsSmartProcureNewman Regency GroupR & B Group, IncPerkens WS CorporationFerro Regulus Supply CoCSA Construction, Inc.The Blue Book Building & Construction NPrecision Plant Services, LLC. REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 Requested By: Ray Mayo, Director 001- General Fund Source of Funds: 002- Utility Fund Department: Public Works 001-7072-532-6009 Report Resolution Ordinance Account Number: 002-7087-532-6009 Amount Budgeted: $204,080 / $36,572 Exhibits: Bid Tabulation # 21013, Notification And Access Report, Disposal and Transportation Amount Requested: $204,080 / $36,572 Costs, Equipment Operation Costs, Waste Management Bid, Republic Services Bid, Draft Budgeted Item: Yes No Contract Type I Disposal SUMMARY & RECOMMENDATION Bids for Type I Waste Disposal were opened on March 25, 2021. The bid was thth advertised on February 25 and March 4, 2021. A total of 37 providers were notified, with the City receiving two (2) bids. Type I waste is categorized as household garbage. Also, Type I landfills accept sewage sludge, a by-product of wastewater treatment. La Porte disposes of approximately 13,000 tons of garbage and 4000 cubic yards of sewage sludge each year. Budgeted / Requested amounts shown are approximate amounts remaining in the budgets for the current fiscal year. Referencing the bid tabulation, Republic Services has submitted the low bid for garbage disposal at $26.56 per ton yard with a State disposal fee of $0.94 per ton, for a combined total of $27.50 disposal rate per ton. The previous disposal rate for garbage was $29.16. Waste Management has submitted the low bid for sludge disposal at $23.50 per cubic yard with a state disposal fee of $0.30 per cubic yard for a combined total of $23.80 per cubic yard. The previous disposal rate for sludge was $11.65 per cubic yard. Landfill sludge acceptance and management costs have increased steadily -term contract with Waste Management, our rates were held in check by the contract terms. With the new pricing we are now seeing rates that are consistent with competitive market pricing. The exhibit for Annual Disposal and Transportation Costs displays estimated annual disposal quantities at the respective bid disposal costs: $478,100.00 for Republic Services and $490,920.00 for Waste Management.However, the travel distance to McCarty Road landfill from La Porte is 27.5 miles, which equates to 55 miles round trip and an estimated turnaround time of 82 minutes. The travel distance to Baytown landfill is 19 miles, which equates to 38 miles round trip and an estimated turnaround time of 58 minutes. When the total cost of equipment operation is factored in, it indicates an annual savings of approximately $17,063.96, by choosing the nearest disposal location. Estimated total costs including transportation and disposal would be $574,783.40 for Republic Waste McCarty Road location and $557,719.44 for Waste Management Baytown location. The extra distance to McCarty Road landfill would increase the annual mileage on each vehicle by approximately 7,072 miles. The additional travel time would also reduce efficiency of garbage collection by approximately 10 percent. Another factor to consider is highway safety. The route to McCarty Road landfill would be SH 225 west to 610 north and Highway 90 east to McCarty Road. The contract provides for an initial term of five (5) years and an option for one (1) five- year extension with the agreement of both parties. Also, the contract provides for an annual price adjustment based on the consumer price index. Staff recommends City Council awarding Bid #21013 for Type I Waste Disposal Services to Waste Management of Texas Inc. Benefits: Continued business relationship with a leader in this industry. Landfill managers have offered extended hours during emergency events. Travel route to Baytown landfill is less traffic congested and more driver-friendly Efficiencies for garbage collection will remain the same. Liabilities: Utilization of alternate Type I landfills will increase transportation costs and mileage on vehicles. The increased distances to alternate Type I landfills will reduce efficiency for collection crews. ACTION REQUIRED BY CITY COUNCIL Award Bid # 21013 for Type I Waste Disposal to Waste Management of Texas Inc. and authorize the City Manager to execute a contract for an initial term of five (5) years, not to exceed annual budgeted amounts. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date $0.94$0.30 $29.50$23.50 $30.44$23.80 Unit Price WASTE MANAGEMENT aytown Landfill B 4791 Tri-City Beach RoadBaytown, TX 775201535B $0.94$0.94 $26.56$29.21 $27.50$30.15 d 77078 R oad Landfill T R Unit Price REPUBLIC SERVICES McCarty 5757 OatesHouston,261b tion Descri Bid Tabulation to Sealed Bid #21013 Type I Waste Disposal Garbage Disposal per tonState Disposal Fee per tonTotal Disposal FeeSewage Sludge Disposal per cubic yardState Disposal Fee per cubic yardTotal Disposal FeeAddress of Disposal SiteTCEQ Permit Number 12 No. Item Opening Date: March 25, 2021 eason R ) osal p TX ( ate D 3 of La Porte e I Waste Dis y yp CitT ame N or d en V t or p e y enc Notifications ReAgBid Number2101Bid Titl AAA Flexible Pipe Cleaning Co. Inc2021-02-25 10:28:07Bid NotificationAdvanced Facility Maintenance2021-02-25 10:28:07Bid NotificationAnderson Pollution Control, Inc.2021-02-25 10:28:07Bid NotificationAshBritt, Inc.2021-02-25 10:28:07Bid NotificationAustin Mac Repair2021-02-25 10:28:07Bid NotificationB&K Technology Solutions, dba Advanced Trecnology Recycling2021-02-25 10:28:07Bid NotificationBARTON ENDEAVORS, LLC2021-02-25 10:28:07Bid NotificationBergeron Emergency Services, Inc.2021-02-25 10:28:07Bid NotificationBFI Waste Services of Texas, LP2021-02-25 10:28:07Bid NotificationCDC News2021-02-25 10:28:07Bid NotificationCeres Environmental Services, Inc.2021-02-25 10:28:07Bid NotificationCrowderGulf2021-02-25 10:28:07Bid NotificationD Davila2021-02-25 10:28:07Bid NotificationD&J Trash Out Services2021-02-25 10:28:07Bid NotificationDale Dobbins2021-02-25 10:28:07Bid NotificationDRC Emergency Services2021-02-25 10:28:07Bid NotificationEmployee Solution2021-02-25 10:28:07Bid NotificationEnvirobidnet an Entram Corp2021-02-25 10:28:07Bid NotificationGeneral Site Services2021-02-25 10:28:07Bid NotificationHDR Engineering, Inc.2021-02-25 10:28:07Bid NotificationHR Green, Inc.2021-02-25 10:28:07Bid NotificationIMS2021-02-25 10:28:07Bid NotificationISC Global Services, Inc.2021-02-25 10:28:07Bid NotificationK & K Tractor Services LLC2021-02-25 10:28:07Bid NotificationMidwest Valley Consulting2021-02-25 10:28:07Bid NotificationMoving Made Easy, Inc2021-02-25 10:28:07Bid NotificationMSW Consultants, Inc.2021-02-25 10:28:07Bid NotificationOnsite Electronics Recycling LLC2021-02-25 10:28:07Bid NotificationPLW Waterworks, LLC2021-02-25 10:28:07Bid NotificationRFx Analyst2021-02-25 10:28:07Bid NotificationSynagro 2021-02-25 10:28:07Bid NotificationTHE DRC GROUP2021-02-25 10:28:07Bid NotificationTJ Waste of Corpus Christi, Inc2021-02-25 10:28:07Bid NotificationURS Corporation2021-02-25 10:28:07Bid NotificationVeterans Alliance Resourcing2021-02-25 10:28:07Bid NotificationVistratic2021-02-25 10:28:07Bid NotificationWaste Management2021-02-25 10:28:07Bid Notification s t ocumen D me ) Ti t TX ( rs Fi d of La Porte ccesse y pe I Waste Disposal A y Cit21013 ame N or d r en V y enc ccess Report AAgBid NumbeBid TitleT Sevenoutsource2021-02-26 12:52 AM CSTBid 21013 Type I Waste Disposal.pdfRepublic Services of Houston2021-02-25 11:36 AM CSTBid 21013 Type I Waste Disposal.pdfConstructConnect2021-03-01 03:32 AM CSTBid 21013 Type I Waste Disposal.pdfConstructConnect2021-02-27 01:04 AM CSTBid 21013 Type I Waste Disposal.pdfWaste Management of Texas, Inc.2021-02-26 01:27 PM CSTBid 21013 Type I Waste Disposal.pdfConstruction Journal2021-03-01 12:10 AM CSTBid 21013 Type I Waste Disposal.pdfOnvia2021-02-25 01:03 PM CSTBid 21013 Type I Waste Disposal.pdfFrontier K2, LLC2021-03-04 09:17 AM CSTBid 21013 Type I Waste Disposal.pdfSmartProcure2021-02-26 03:10 AM CSTBid 21013 Type I Waste Disposal.pdfPerkens WS Corporation2021-02-28 09:39 PM CSTBid 21013 Type I Waste Disposal.pdfMidwest Valley Consulting2021-02-25 01:25 PM CSTBid 21013 Type I Waste Disposal.pdfNorth America Procurement Council2021-02-28 11:16 PM CSTBid 21013 Type I Waste Disposal.pdfAAA Flexible Pipe Cleaning Co. Inc2021-02-25 11:35 AM CSTBid 21013 Type I Waste Disposal.pdfRFx Analyst2021-02-26 09:35 AM CSTBid 21013 Type I Waste Disposal.pdfCatapult Plus LLC2021-03-01 03:11 PM CSTBid 21013 Type I Waste Disposal.pdfSchool Wholesale Supplies LLC2021-02-25 10:31 PM CSTBid 21013 Type I Waste Disposal.pdfWebtech2021-03-04 07:51 AM CSTBid 21013 Type I Waste Disposal.pdfCMS2021-02-25 11:40 PM CSTWayne Enterprises2021-02-25 12:17 PM CSTDodge Data & Analytics2021-02-25 06:18 PM CSTTukmol General Contractor2021-03-02 04:36 AM CSTAshBritt, Inc.2021-02-25 01:51 PM CST MUNICIPALSOLID WASTE DISPOSAL AGREEMENT TYPE ILANDFILL BY AND BETWEEN THE CITY OF LA PORTE, TEXAS AND (Name of Corporation) This“Agreement for MunicipalSolid Waste Disposal” (this ”Agreement”) is made and entered into at La Porte, Texas, effective as of the ___ day of May, 2021, by and between the CITY OF LA PORTE, TEXAS, a Texas Municipal Corporation, hereinafter called the "City", and _____________________, Corporation, hereinafter called the "Contractor". WITNESSETH: WHEREAS, the City desires to dispose of municipal solid waste generated in the City; and WHEREAS, theCity Council of the City of La Porte, Texas did authorize the administration to negotiate a long term fixed-price contract for disposalof the City of La Porte’s municipal solid waste with the Contractor and its landfill(s). NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein recited, by each to be performed, it is hereby agreed by and between the parties hereto as follows: (I) DISPOSAL SITE. The Contractor owns and/or operatesa Type I sanitary landfill at a site located (insert address) described by metes and bounds in Municipal Solid Waste Permit No.____ , (or any other mutually agreed upon site) hereinafter called the "Landfill" for the complete handling, processing and disposal of municipal solid wasteand sludgegenerated in the City and collected bythe City or itsfranchisee for disposal in a Type I landfill. (A) Materials to be disposed of. The Contractor shall accept for disposal all municipal solid waste, as that term is defined in Title 30 of the Texas Administrative Code, Chapter 330, Rule 330.3(90) or other applicable provision, brought to the Landfill by the City or it franchisee. The Contractor may designate the location on site at the Landfill at which municipal solid waste is to be unloaded. Notwithstanding anything contained herein to the contrary, in no event shall Contractor be obligated to acceptfor disposal any Nonconforming Waste. Nonconforming Waste, for purposes of this Agreement, means waste that is prohibited from being received, managed or disposed of atthe designated Landfill by federal, state or local law, regulation, permit, ordinance or other legal requirement, and included but is not limited to, hazardous substances or hazardous material. In the event the City or its franchisee shall deliver to the Landfill any Nonconforming Waste, to the extent allowed by lawthe City shall indemnify Contractor, and defend and hold Contractor harmless, from any and all losses, claims, demands, or causes of action, including fines, and penalties, as a result of the delivery of such Nonconforming waste to the Landfill. Title to and responsibility for Nonconforming Waste shall remain with the generator at all times. (B)Additional Materials to be Disposed of. The Contractor shall accept for disposal processed sewage sludge, such item qualifying as special waste as that term is defined in Title 30 of the Texas Administrative Code, Chapter 330, Rule 330.3(154),that will pass Contractor’s paint filter test and which comes from the City’s waste water treatment plant. City shall provide to Contractor a completed Generator’s Waste Profile Sheet (“Profile Sheet”) describing the waste water sludge, and shall provide a representative sample of such waste if requested by Contractor. Contractor shall determine the acceptability for disposal of the waste water sludge. (C) Operation of disposal site. The Contractor shall have the exclusive right to the use of and responsibility for the operation of the Landfill for the term of this Agreement or any extension thereof, subject to the following terms and provisions: (i) The Contractor shall furnish all labor, tools, equipment and power for the operation of the Landfill site, and shall be responsible for all necessary maintenance thereof. Contractor shall operate the Landfill site consistent with requirements established under applicable law andaccording to accepted modern standards for sanitary landfill operationand under the supervision of an experienced person so that it shall not become a nuisance or an offence to the City or other persons. Contractor shall maintain suitable roads within the Landfill for truck traffic. (ii) Municipal solid waste and sludge accepted by the Contractor shall be handled in accordance with Contractor’s procedures as determined by Contractor. Sufficient auxiliary equipment shall be maintained on the site or kept otherwise available to permit operation in case of equipment breakdown or increased volume of material to be handled. (iii) The area shall be orderly and sanitary at all times as so not to interfere with the City’s disposal of municipal solid waste and other materials provided hereunder. (iv) The Contractor agrees to comply with all laws, ordinances and regulations of the State of Texas and with the terms and conditions of its permit applicable to the operation of the Landfill under this Agreement and to conform with the standards of operation as established by the Texas Commission on Environmental Quality (TCEQ), and agrees that all services rendered by it hereunder shall be rendered in a clean, sanitary, orderly, courteous and efficient manner and that it will instruct its employees accordingly. In the event the Contractor shall wholly fail to dispose of municipal solid waste and sludge herein provided to be disposed of delivered or offered for delivery to the Landfill site for a period of two consecutive (2) weeks, and provided such failure is not due to war, insurrection, riot, strike, act of God or any other cause or causes beyond the Contractor's control, the City may, at its option after written notice to the Contractor, terminate this Agreement. (v) In the event that the City shall, without fault on its part, be made a party to litigation arising as a result of failure of the Contractor to comply with any provisions of this Agreement or by reason of the Contractor's negligent operation or use of the Landfill site (other than provided for herein) brought by or against the City, then the Contractor shall pay all reasonable costs and attorney's fees necessarily incurred by the City in defense of such litigation, and indemnify and save and hold the City harmless from any liability therefrom. (vi) The Landfill shall be operated by the Contractor in compliance with all valid, non-discriminatory and generally applicable ordinances, regulations, and laws of regulatory bodies having jurisdiction of the Contractor’s operations. (vii) City and its franchisees shall have the right to enter Contractor’s Landfill for the sole purpose of offloading municipal solid waste. The City shall ensure that its employees or franchisees comply with all rules and regulations of the Landfill. Contractor may deny the City or its contractor’s entry to the Landfill and/or terminate the Agreement in the event of City’s breachof thisAgreement or failure to follow Contractor’s Landfillrules and regulations upon fifteen (15) days’written notice. 2. TERM OF AGREEMENT. This Agreement shall be for a period of five (5) years beginning May1, 2021, and ending April 3, 2026 (“Initial Term”). The Initial Term of the Agreement may be extended for one (1) additional (5) year term, upon the written agreement of the City and the Contractor. 3. COMPENSATION TO CONTRACTOR. As full compensation to the Contractor for operation of the Landfill for disposal of City’s municipal solid waste and other material,the City agrees to pay the Contractor the following fees: (A) Regular Municipal Solid Waste Disposal. As a base fee of $_________ per ton for municipal solid wastedisposal, plus the amount of any separate fees imposed on the Contractor by the State of Texas (currently $_______ per ton). (B) Adjustments to Base Fees for Construction and Demolition Waste. On May1 of each year during the Initial Term ortheRenewal Term of this Agreement if such option is exercised by City and Contractor, if the parties agree to adjust the base fee so that it shall be increased by the average monthly percentage in accordance with the changes in the U.S.Consumer Price Index, for All Urban Consumers, Garbage and Trash, as measured at the beginning and end of the most recently published 12 month period. In addition, Contractor may also increase such base fee to reflect any increases in taxes, fees and other governmental charges (including, without limitation, changes in the TCEQ fees), required by federal, state or local regulation, rule ordinance or permit condition that becomes effective or is implemented after the effective date of this Agreement and such increases shall be effective date when such tax or other charge takes effect. (C) Sludge. As a base fee, the sum of _____________ per cubic yard for dewatered waste water sludge, plus the amount of any separate fees imposed on the Contractor by the State of Texas (currently_________). (D) Adjustment to Base Fees for Sludge. On May 1 of each year during the Initial Term or theRenewal Term of this Agreement, if such option is exercised by City and Contractor, the parties agree to adjust the base fee for dewatered waste water sludge, so that it shall be increased by the average monthly percentage in accordance with changes in the U.S Consumer Price Index, for All Urban Consumers, Garbage and Trash,as measured at the beginning and end of the most recently published 12 month period. Contractor may also increase such base fee to reflect any increases in taxes, fees and other governmental charges (including, without limitation, changes in the TCEQ fees), required by federal, state or local law, regulation, rule, ordinance or permit condition that becomes effective or is implemented after the effective date of this Agreement, and such increases shall be effective date of this Agreement, and such increases shallbe effective upon the date when such tax or other charge takes effect. (E)Time of payment. The Contractor shall invoice the City bi-monthly,(every two weeks) for municipal solid waste and sludge delivered to the Landfill pursuant to this Agreement. Each invoice will detail the number of loads and weight or volume of each load. Invoices shall be paid by the City within thirty (30)days of receipt of invoices. (F) Acceptance of Waste. Contractor shall accept for disposal all residential and commercial municipal solid waste and sludge, consistent with their permit, generated within the City’s limits and in accordance with this Agreement, including that collected by private haulers and that brought to the landfill by private citizens and shall make a reasonable charge for disposal therefore. (G) Hours of operations and holidays. The Contractor shall keep the Landfill open for the receiving construction and demolition waste from 7:00 a.m. to 5:00 p.m. Monday through Friday, except holidays, unless such hours are restricted by the Landfill’s TCEQ permit or different hours mutually agreed to by the parties. (H) Suspension or Termination of Service. Contractor retains the right to suspend service if the City fails to timely pay Contractor so long as Contractor provides City with fifteen (15) days’ notice to cure prior to suspending services. If City fails to cure, Contractor has the right to terminate this Agreement on seven (7) days’ additional notice. 4.INSURANCE AND WORKER'S COMPENSATION.It is understood and agreed between the parties that, entering into this Agreement, the Contractor is acting as an independent contractor and is in no way the agent or employee of the City. In this respect, it is also agreed as follows: (A) The Contractor shall, at its own expense, maintain in full force and effect during the term of this Agreement Employer's Liability, Worker's Compensation, Public Liability and Property Damage insurance. All insurance shall be by insurers licensed to do business in the State of Texas. The Contractor shall furnish the City certificates of insurance or other evidence satisfactory to the City to the effect that such insurance has been procured and is in force, before execution of this Agreement. The certificateswith the exception of Worker’s Compensationshall name the Contractor and the City as insured parties, and shall provide for a minimum of 10 days’ prior notice to the City of cancellation of coverage. The certificates shall name the City as an additional insured. (B) The Contractor shall maintain Workers’ Compensation insurance in the following amounts: COVERAGE LIMIT OF LIABILITY (1) Worker's Compensation Statutory Employer's Liability $1,000,000 each accident $1,000,000 Disease-policy limit $1,000,000 Disease-each Employee (C) The Contractor shall maintain Commercial General Liability including blanket contractual liability in the following amounts: $1,000,000 Each Occurrences/$1,000,000 aggregate (D) The Contractor shall maintain Property Damage insurance, to include explosion, collapse and underground coverage as follows: $1,000,000 Each Occurrence/$1,000,000 aggregate (E) The Contractor will indemnify and save harmless the City, its officers, agents, servants and employees from and against any and all suits, actions, legal proceedings, claims, demands, damages, costs, expenses and reasonable attorney's fees to the extent caused by any negligent act or omission or willful misconduct by Contractor or its officers, agents, servants and employees in the performance of this Agreement, including damages, claims or penalties arising from thedisposal of any construction and demolition waste by the Contractor, or failure of the Contractor to comply with federal, state or local laws, rules and regulations relating to the disposal of any acceptable waste, Contractor shall not be liable for any suits, actions, legal proceedings, claims, demands, damages, costs, expenses and attorney's fees arising out of the misconduct or negligent act or omission of the City, its officers, agents, servants and employees or from the City’s delivery of Nonconforming Waste to the Contractor 5. NOTICES. Whenever under this agreement, provision is made for notices of any kind, it shall be deemed sufficient notice and service thereof if the said notice is in writing and is deposited in the mail in a properly stamped envelope to be delivered certified mail, as addressed as follows: City Contractor City ManagerPresident City of La PorteName of Corporation 604 W. FairmontAddress La Porte, Texas 77571 City, State IN WITNESS WHEREOF, the parties to these presents have executed this agreement in multiple counterparts, each of which shall be deemed an original, this the day of , 2021. THE CITY OF LA PORTE, TEXAS ATTEST: BY: Corby D. Alexander City Secretary City Manager APPROVED AS TO FORM: Clark Askins City Attorney (name of corporation) BY: (SEAL) ATTEST: REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 Source of Funds: 001 General Fund Requested By: Ray Mayo, Director Department: Public Works Account Number: 001-7072-532-6009 Amount Budgeted: $92,998 Report Resolution Ordinance Amount Requested: $92,998 Exhibits: Bid Tabulation # 21012, Notification and Budgeted Item: Yes No Access Report, Waste Management Bid, Draft Contract Type IV Disposal SUMMARY & RECOMMENDATION Bids for Type IV Waste Disposal were opened on March 25, 2021. The bid was thth advertised on February 25 and March 4, 2021. A total of 37 providers were notified, with the City receiving two (2) bids. Type IV waste is categorized as construction and d. La Porte disposes of approximately 40,000 cubic yards of heavy trash each year. Budgeted / Requested amounts shown are approximate amounts remaining in the budgets for the current fiscal year. Waste Management of Texas has submitted the low bid at $4.85 per cubic yard with a State disposal fee of $0.19 per cubic yard, for a combined total of $5.04 disposal rate per cubic yard. The previous disposal rate for Type IV waste was $4.81. This produces an increase of $0.23 per cubic yard, or 4.8%. La Porte has utilized Waste Management landfill services for the last 10 years. The driving distance to Green Shadow Landfill is 8.1 miles (18 minutes). The contract provides for an initial term of five (5) years and an option for one (1) five- year extension with the agreement of both parties. Also, the contract provides for an annual price adjustment based on the consumer price index. Staff recommends City Council awarding Bid #21012 for Type IV Waste Disposal to Waste Management of Texas Inc. Benefits: Continued business relationship with a leader in this industry. Landfill managers have offered extended hours during emergency events. Efficiency for heavy trash collection will remain the same. Liabilities: Utilization of alternate Type IV landfills will increase disposal fees. The increased distances to alternate Type IV landfills will increase transportation costs and turn-around times for collection vehicles. ACTION REQUIRED BY CITY COUNCIL Award Bid # 21012 for Type IV Waste Disposal to Waste Management of Texas Inc. and authorize the City Manager to execute a contract for an initial term of five (5) years, not to exceed annual budgeted amounts. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date $4.85$0.19 $5.04 Unit Price WASTE MANAGEMENT reen Shadow Landfill G 710 Jana LanePasadena, TX 775031540A $7.94$0.30 $8.24 d 77078 R oad Landfill T R Unit Price REPUBLIC SERVICES McCarty 5757 OatesHouston,261b tion Descri Bid Tabulation to Sealed Bid #21012 Type IV Waste Disposal Type IV Waste Disposal per cubic yardState Disposal Fee per cubic yardTotal Disposal FeeAddress of Disposal SiteTCEQ Permit Number 1 No. Item Opening Date: March 25, 2021 eason R osal ) p TX ( ate D 2 of La Porte e IV Waste Dis y yp CitT ame N or d en V t or p e y enc Notifications ReAgBid Number2101Bid Titl AAA Flexible Pipe Cleaning Co. Inc2021-02-25 10:30:13Bid NotificationAdvanced Facility Maintenance2021-02-25 10:30:13Bid NotificationAnderson Pollution Control, Inc.2021-02-25 10:30:13Bid NotificationAshBritt, Inc.2021-02-25 10:30:13Bid NotificationAustin Mac Repair2021-02-25 10:30:13Bid NotificationB&K Technology Solutions, dba Advanced Trecnology Recycling2021-02-25 10:30:13Bid NotificationBARTON ENDEAVORS, LLC2021-02-25 10:30:13Bid NotificationBergeron Emergency Services, Inc.2021-02-25 10:30:13Bid NotificationBFI Waste Services of Texas, LP2021-02-25 10:30:13Bid NotificationCDC News2021-02-25 10:30:13Bid NotificationCeres Environmental Services, Inc.2021-02-25 10:30:13Bid NotificationCrowderGulf2021-02-25 10:30:13Bid NotificationD Davila2021-02-25 10:30:13Bid NotificationD&J Trash Out Services2021-02-25 10:30:13Bid NotificationDale Dobbins2021-02-25 10:30:13Bid NotificationDRC Emergency Services2021-02-25 10:30:13Bid NotificationEmployee Solution2021-02-25 10:30:13Bid NotificationEnvirobidnet an Entram Corp2021-02-25 10:30:13Bid NotificationGeneral Site Services2021-02-25 10:30:13Bid NotificationHDR Engineering, Inc.2021-02-25 10:30:13Bid NotificationHR Green, Inc.2021-02-25 10:30:13Bid NotificationIMS2021-02-25 10:30:13Bid NotificationISC Global Services, Inc.2021-02-25 10:30:13Bid NotificationK & K Tractor Services LLC2021-02-25 10:30:13Bid NotificationMidwest Valley Consulting2021-02-25 10:30:13Bid NotificationMoving Made Easy, Inc2021-02-25 10:30:13Bid NotificationMSW Consultants, Inc.2021-02-25 10:30:13Bid NotificationOnsite Electronics Recycling LLC2021-02-25 10:30:13Bid NotificationPLW Waterworks, LLC2021-02-25 10:30:13Bid NotificationRFx Analyst2021-02-25 10:30:13Bid NotificationSynagro 2021-02-25 10:30:13Bid NotificationTHE DRC GROUP2021-02-25 10:30:13Bid NotificationTJ Waste of Corpus Christi, Inc2021-02-25 10:30:13Bid NotificationURS Corporation2021-02-25 10:30:13Bid NotificationVeterans Alliance Resourcing2021-02-25 10:30:13Bid NotificationVistratic2021-02-25 10:30:13Bid NotificationWaste Management2021-02-25 10:30:13Bid Notification ffffffffffffffff s t ocumen D Bid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pdBid 21012 Type IV Waste Disposal.pd me ) Ti t TX ( rs Fi d of La Porte ccesse y pe IV Waste Disposal A y Cit21012 ame N or d r en V y enc ccess Report AAgBid NumbeBid TitleT ConstructConnect2021-02-27 01:06 AM CSTConstructConnect2021-03-01 03:28 AM CSTWaste Management of Texas, Inc.2021-02-26 01:25 PM CSTConstruction Journal2021-02-25 09:28 PM CSTRepublic Services of Houston2021-02-25 11:40 AM CSTOnvia2021-02-25 01:03 PM CSTFrontier K2, LLC2021-03-04 09:26 AM CSTSmartProcure2021-02-26 03:11 AM CSTPerkens WS Corporation2021-02-28 09:39 PM CSTMidwest Valley Consulting2021-02-25 01:30 PM CSTNorth America Procurement Council2021-02-28 11:15 PM CSTRFx Analyst2021-02-26 09:36 AM CSTSchool Wholesale Supplies LLC2021-02-25 10:31 PM CSTCatapult Plus LLC2021-03-02 04:37 PM CSTWebtech2021-03-04 07:53 AM CSTSevenoutsource2021-02-26 12:52 AM CSTCMS2021-02-25 11:40 PM CSTWayne Enterprises2021-02-25 12:18 PM CSTSynagro 2021-02-25 02:01 PM CSTDodge Data & Analytics2021-02-25 06:18 PM CSTTukmol General Contractor2021-03-02 04:38 AM CSTConstructConnect2021-03-03 06:15 PM CSTAshBritt, Inc.2021-02-25 01:52 PM CST CONSTRUCTION AND DEMOLITIONSOLID WASTE DISPOSAL AGREEMENT TYPE IV LANDFILL BY AND BETWEEN THE CITY OF LA PORTE, TEXAS AND (Name of Corporation) This“Agreement for Construction and Demolition Solid Waste Disposal” (this ”Agreement”) ismade and entered into at La Porte, Texas, effective as of the ___ day of April, 2021, by and between the CITY OF LA PORTE, TEXAS, a Texas Municipal Corporation, hereinafter called the "City", and _____________________, Corporation, hereinafter called the "Contractor". WITNESSETH: WHEREAS, the City desires to dispose of construction and demolition waste generated in the City; and WHEREAS, the City Council of the City of La Porte, Texas did authorize the administration to negotiate a long term fixed-price contract for disposal of the City of La Porte’s construction and demolition waste with the Contractor and its landfill(s). NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein recited, by each to be performed, itis hereby agreed by and between the parties hereto as follows: (I) DISPOSAL SITE. The Contractor owns and/or operates a Type IV landfill unit, as that term is defined in Title 30 of the Texas Administrative Code, Chapter 330, Rule 330.5(a)(2) at the (name city) site located on tract(s) of land described by metes and bounds in Municipal Solid Waste Permit No.____ , (or any other mutually agreed upon site) hereinafter called the "Landfill" for the complete handling, processing and disposal of construction and demolition solidwaste generated in the City and collected bythe City or its construction and demolition solid waste collection franchisee. (A) Materials to be disposed of. The Contractor shall accept for disposal all construction and demolition solid waste, as that term is defined in Title 30 of the Texas Administrative Code, Chapter 330, Rule 330.3(33) or other applicable provision, brought to the Landfill by the City or itsfranchisee. The Contractor may designate the location on site at the Landfill at which material is to be unloaded. Notwithstanding anything contained herein to the contrary, in no event shall Contractor be obligated to acceptfor disposal any Nonconforming Waste. Nonconforming Waste for purposes of this Agreement means waste that is prohibited from being received, managed or disposed of at the Landfill by federal, state or local law, regulation, permit, ordinance or other legal requirement, and included but is not limited to, hazardous substances or hazardous material. In the event the City or its franchisee shall deliver to the Landfill any Nonconforming Waste, to the extent allowed by law the City shall indemnify Contractor, and defend and hold Contractor harmless, from any and all losses, claims, demands, or causes of action, including fines, and penalties, as a result of the delivery of such Nonconforming Waste to the Landfill. Title and responsibility for Nonconforming Waste shall remain with the generator at all times. (B) Operation of disposal site. The Contractor shall have the exclusive right to the use of and responsibility for the operation of the Landfill for the term of this Agreement or any extension thereof, subject to the following terms and provisions: (i) The Contractor shall furnish all labor, tools, equipment and power for the operation of the Landfill site, and shall be responsible for all necessary maintenance thereof. Contractor shall operate the Landfill site consistent with requirements established under applicable law and according to accepted modern standards for sanitary landfill operation and under the supervision of an experienced person so that it shall not become a nuisance or an offence to the Cityor other persons. Contractor shall maintain suitable roads within the Landfill for truck traffic. (ii) All construction and demolition waste accepted by the Contractor shall be handled in accordance with Contractor’s procedures as determined by Contractor. Sufficient auxiliary equipment shall be maintained on the Landfill site or kept otherwise available to permit operation in case of equipment breakdown or increased volume of material to be handled. (iii) The Landfill shall be kept orderlyand sanitary at all times as so not to interfere with the City’s disposal of construction and demolition waste, as provided hereunder. (iv) The Contractor agrees to comply with all laws, ordinances and regulations of the State of Texas and with the terms and conditions of its permit applicable to the operation of the Landfill under this Agreement and to conform with the standards of operation as established by the Texas Commission on Environmental Quality (TCEQ), and agrees that all services rendered by it hereunder shall be rendered in a clean, sanitary, orderly courteous and efficient manner and that it will instruct its employees accordingly. In the event the Contractor shall wholly fail to dispose of construction and demolition waste delivered or offered for delivery to the Landfill site to be disposed of as provided herein for a period of two (2) consecutive weeks, and provided such failure is not due to war, insurrection, riot, strike, act of God or any other cause or causes beyond the Contractor's control, the City may, at its option after written notice to the Contractor, terminate this Agreement. (v)In the event that the City shall, without fault on its part, be made a party to litigation arising as a result of failure of the Contractor to comply with any provisions of this Agreement or by reason of the Contractor's negligent operation or use of the Landfill site (other than provided for herein) brought by or against the City, then the Contractor shall pay all reasonable costs and attorney's fees necessarily incurred by the City in defense of such litigation, and indemnify and save and hold the City harmless from any liability therefrom. (vi) The Landfill shall be operated by the Contractor in compliance with all valid, non-discriminatory and generally applicable ordinances, regulations, and laws of regulatory bodies having jurisdiction of the Contractor’soperations. (vii)Clean dirt or clean bricks that can be used beneficially may be accepted upon inspection by the landfill site manager and billed at “No Charge”. The City is responsible for communicating with Contractor prior to arrival of any loads deemed clean of contamination for potential beneficial use. (viii) City and its franchisees shall have the right to enter Contractor’s Landfill for the sole purpose of offloading construction and demolition waste. The City shall ensure that its employees or franchisees comply with all rules and regulations of the Landfill. Contractor may deny the City or its franchisee’s entry to the Landfill and/or terminate the Agreement in the event of City’s breach of this Agreement or failure to follow Contractor’s Landfill rules and regulations upon fifteen (15) days’ written notice. 2. TERM OF AGREEMENT. This Agreement shall be for a period of five (5) years beginning April1, 2021, and ending March 31, 2026(“Initial Term”). The Initial Term of the Agreement may be extended for one(1) additional (5) year term, upon the written agreement of the City and the Contractor. 3. COMPENSATION TO CONTRACTOR. As full compensation to the Contractor for operation of the Landfill for disposal of City’s construction and demolition waste, the City agrees to pay the Contractor the following fees: (A) Construction and Demolition Waste Disposal. As a base fee of $_________ per cubic yard for construction and demolition waste disposal, plus the amount of any separate fees imposed on the Contractor by the State of Texas (currently $_______ per cubic yard). (B) Adjustments to Base Fees for Construction and Demolition Waste. On April 1 of the first year of the renewal term of this Agreement if such option isexercised by City and Contractor, ifthe parties agree to adjustthe base fee so that it shall be increased or decreased in accordance with the changes in the Consumer Price Index, the Consumer Price Index for All Urban Consumers (CPI-U) as promulgated by the Bureau of Labor Statistics of the United States Department of Labor. In addition, Contractor may also increase such base fee to reflect any increases in taxes, fees and other governmental charges (including, without limitation, changes in the TCEQ fees, required by federal, state or local regulation, rule ordinance or permit condition that becomes effective or is implemented after the effective date of this Agreement, an such increases shall be effective date when such tax or other charge takes effect. (C)Time of payment. The Contractor shall invoice the City bi-monthly, invoices stth to be submitted on the 1 and 16 of each month, accompanied by tickets which are collected by the Contractor as refuse trucks make deliveries, and will reflect the invoice period. Invoices shall be paid by the City within thirty (30) days of receipt of invoices. (D) Acceptance of Construction and Demolition Waste. Contractor shall accept for disposal all residential and commercial construction and demolition waste consistent with Contractor’s permit, generated within the City’s limits and in accordance with this Agreement, including that collected by private haulers and thatbrought to the Landfill by private citizens and shall make a reasonable charge for disposal therefore. (E) Hours of operations and holidays. The Contractor shall keep the Landfill open for the receiving construction and demolition waste from 7:00 a.m. to 5:00 p.m. Monday through Friday and 4:00 a.m. to 12:00 noon Saturdays, except holidays, unless such hours are restricted by the Landfill’s TCEQ permit or different hours mutually agreed to by the parties. (F)Suspension or Termination of Service. Contractor retains the right to suspend service if the City fails to timely pay Contractor so long as Contractor provides City with fifteen (15) days’ notice to cure prior to suspending services. If City fails to cure, Contractor has the right to terminate this Agreement on seven (7) days’ additional notice. 4. INSURANCE AND WORKER'S COMPENSATION. It is understood and agreed between the parties that, entering into this Agreement, the Contractor is acting as an independent contractor and is in no way the agent or employee of the City. In this respect, it is also agreed as follows: (A) The Contractor shall, at its own expense, maintain in full force and effect during the term of this Agreement Employer's Liability, Worker's Compensation, Public Liability and Property Damage insurance. All insurance shall be by insurers licensed to do business in the State of Texas. The Contractor shall furnish the City certificates of insurance or other evidence satisfactory to the City to the effect that such insurance has been procured and is in force, before execution of this Agreement. The certificates shall name the Contractor and the City as insured parties, and shall provide for a minimum of thirty (30) days’ prior notice to the City of cancellation of coverage. The certificates shall name the City as an additional insured. (B) The Contractor shall maintain Workers’ Compensation insurance in the following amounts: COVERAGELIMIT OF LIABILITY (1) Worker's Compensation Statutory Employer's Liability $1,000,000 each accident $1,000,000 Disease-policy limit $1,000,000 Disease-each Employee (C) The Contractor shall maintain Commercial General Liability including blanket contractual liability in the following amounts: $1,000,000 Each Occurrences/$1,000,000 aggregate (D) The Contractor shall maintain Property Damage insurance, to include explosion, collapse and underground coverage as follows: $1,000,000 Each Occurrence/$1,000,000 aggregate (E) The Contractor will indemnify and save harmless the City, its officers, agents, servants and employees from and against any and all suits, actions, legal proceedings, claims, demands, damages, costs, expenses and attorney's fees incident to any work done in the performance of this Agreement, including damages, claims or penalties arising from the disposal of any construction and demolition waste by the Contractor, arising from the failure of the Contractor to comply with federal, state or local laws, rules and regulations relating to the disposal of any waste, or arising out of a willful or negligent act or omission of the Contractor, its officers, agents, servants and employees. However, the Contractor shall not be liable for any suits, actions, legal proceedings, claims, demands, damages, costs, expenses and attorney's fees arising out of a willful or negligent act or omission of the City, its officers, agents, servants and employees. (5) NOTICES. Whenever under this agreement, provision is made for notices of any kind, it shall be deemed sufficient notice and service thereof if the said notice is in writing and is deposited in the mail in a properly stamped envelope to be delivered certified mail, as addressed as follows: CityContractor City Manager President City of La Porte Name of Corporation 604 W. Fairmont Address La Porte, Texas 77571 City, State IN WITNESS WHEREOF, the parties to these presents have executed this agreement in multiple counterparts, each of which shall be deemed an original, this the day of , 2021. THE CITY OF LA PORTE, TEXAS ATTEST: BY: Corby D. Alexander City Secretary City Manager APPROVED AS TO FORM: Clark Askins City Attorney (name of corporation) BY: (SEAL) ATTEST: REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 Source of Funds: 003- Utility CIP Requested By: Ray Mayo, Director Department: Public Works Account Number: 003-7087-532-5110 Amount Budgeted: $450,000 Report Resolution Ordinance Amount Requested: $196,894.00 Exhibits: Proposal from Alfa Laval Inc., Budgeted Item: Yes No Sole source letter SUMMARY & RECOMMENDATION The Public Works Department belt filter press replacement project at the Wastewater Treatment Plant, Bid #21015 was opened on March 25, 2021. The bid was advertised thth on March 4 and 11, 2021. A total of 64 vendors were notified and 21 downloaded the bid documents. However, the City received only one single bid from R&B Group in the amount of $518,113.52. There was an option included in the bid for a trade-in allowance for the current equipment. This option was not exercised by the bidder. The bid amount exceeded the project budget. During a follow-up review of equipment specifications with the manufacturer, City staff learned of an opportunity to re-condition the belt filter press unit with new factory parts, . This offer includes an extended warranty on high wear parts; a three (3) year warranty on 18 rollers and a two (2) year warranty on 36 bearing assemblies. The proposed cost to re-condition the belt press is $186,894.00. Replacement of all moving and wear parts will provide an expected service life equal to a new unit. The Purchasing Department has reviewed the proposal and has approved Alfa Laval as a sole-source contractor. Staff recommends approval of the re-conditioning proposal offered by Alfa Laval Inc. as an option to total replacement of the unit, at a cost of $186,894.00 as a sole source contractor and a project contingency of $10,000.00. Benefits: Option to rebuild will save significant costs over total replacement. Service life is expected to be equal to a new unit. Extended warranty on high-wear parts. Liabilities: Single Bid exceeds the project budget. There are no comparative bids to evaluate. ACTION REQUIRED BY CITY COUNCIL Approve the re-conditioning proposal from Alfa Laval Inc. in the amount of $186,894.00 and a project contingency of $10,000.00, for a total authorization of $196,894.00. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date . force majeure, Pro rata Larry Packard REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 Special Programs Source of Funds: Requested By: Jason Weeks, Asst. City Mgr. Department: Administration/CMO 038-6030-565-9997 Account Number: $135,000 Amount Budgeted: Report Resolution Ordinance Amount Requested: N/A Exhibits: Original Development Agreement, Budgeted Item: Yes No Marked-up Amended Development Agreement, Final Amended Development Agreement, Incentive Application, and Letter from Applicant SUMMARY & RECOMMENDATION On February 24, 2020, staff brought to the La Porte Development Corporation Board a project in downtown La Porte. The applicant Marion (Marty) and Vicki Campise have purchased the Main Street bank building located at 100 W. Main Street. The initial EDC matrix, which indicated that this project would be eligible for a $22,365 incentive. La Porte Development Corp. determined that this particular project had the potential to have more intangible value to the City and would be a catalyst to spur additional interest and investments in Main Street. On February 24th, the La Porte Development Corporation Board discussed the project and approved to move forward with an incentive package for this project in an amount not to exceed of $85,000. Subsequent to the February 24th meeting, the applicant moved further along on this project and made changes to the initial project. The applicant secured agreements with two (2) tenants to occupy the first floor of this building. These tenants are Goodies and the La Porte-Bayshore Chamber of Commerce. There was a reduction in the number of commercial business primarily due to the Chamber needing an additional 500 sq. ft. of space, thereby only allowing capacity for these two (2) commercial businesses. Additional changes reduced the number of apartments on the second floor from three (3) to two (2) due to a resident requiring 1800 sq. ft. of space. The applicant had secured rental tenants for the apartment units. The initial investment of the applicant was increased from $500,000to $700,000, with the total investment of$850,000, including land and building at $150,000 and the total renovations. The development agreement provided the below benchmarks: Total cash incentive of $85,000 with following payment schedule: two payments of $40,000 and $45,000 o First payment of $40,000, within 30 days of substantial completion of construction/ renovations. This payment is estimated to occur around January 2021. o Second payment of $45,000 when building is occupied with four (4) full- time jobs (confirmed by documentation from each business stating such). The applicant will be responsible for maintaining jobs 5 years after 2nd payment. This payment is estimated to occur around June 2021. Claw- maintain the four (4) jobs for five (5) years, each year potential claw-back amount decreases by $17,000. Due to several delays in starting and performing the work, the applicant has not been able to satisfy the requirements of the 1st benchmark. At the March 22, 2021 the La Porte Development Corporation Board meeting, the applicant requested an extension to the first benchmark to May 15, 2021. The LPDC Board approved the applicants request to extend the first benchmark date to May 15, 2021. Staff has worked with the Assistant City Attorney to amend the original development agreement for the approved date extension. Today, the La Porte Development Corporation Board met to approve an amended and restated economic development incentive agreement between the LPDC and Marion & Vicki Campise, for the use of Type B Development Corporation Sales Tax Funds for the refurbishment and renovation of the old bank building located in La Porte, Texas. Staff recommends the La Porte City Council approve the attached amended and restated development agreement for the 100 W. Main Street project. ACTION REQUIRED BY CITY COUNCIL Approve or deny an amended and restated economic development incentive agreement between the La Porte Development Corporation, and Marion Campise and Vicki Campise, for the use of Type B Development Corporation Sales Tax Funds for refurbishment/renovation of the old bank building located at 100 W. Main Street in La Porte, Texas. Approved for the La Porte Development Corporation Board meeting agenda. Corby D. Alexander, City Manager Date AMENDED AND RESTATED ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE LA PORTE DEVELOPMENT COPRPORATION, AND MARION CAMPISE AND VICKI CAMPISE, FOR USE OF TYPE B DEVELOPMENT CORPORATION SALES TAX FUNDS That AGREEMENT made by and entered into the 24th day of August 2020 between the La Porte Development Corporation, a Type B non-profit corporation operating under authority of Texas Local Government Code Chapters 501 and 505 Marion Campise, hereinafter , is hereby amended and restated as follows:. WITNESSETH: WHEREAS, the voters of the City of La Porte authorized the levying of additional sales tax within the City for promotion of economic development and the LPDC is authorized to use such tax revenues for certain qualifying projects and other economic development related purposes; and WHEREAS, Recipient is a Texas based commercial development company that specializes in rehabilitating underutilized commercial buildings; and WHEREAS, Recipient wishes to renovate the exterior and interior of a the building located at 100 West Main Street., and make associated site improvements, for the purpose of operating a mixed use commercial and residential facility and which would 1) result in the expenditure by Recipient of an estimated $650,000.00 in capital improvements; and 2) employ an estimated four (4) full time personnel; and WHEREAS, Recipient has requested that LPDC provide financial incentives to Recipient to contribute towards the cost of renovation of the property at 100 West Main Street under a qualifying project of the LPDC for infrastructure, site and related improvements, as authorized by Texas Local Government Code Chapters 501 and 505, and it is the desire of LPDC to assist in the funding of same, finding that such expenditures will promote or develop new or expanded business enterprises. WHEREAS, Texas law and the by-laws of the LPDC require that certain expenditures and projects by the LPDC be approved by the governing body of the City; and whereas the LPDC Board has duly approved such project and the expenditures for same have been authorized by the La Porte City Council; and NOW THEREFORE, in consideration of the covenants and conditions stated herein, and in consideration of the mutual benefits that will accrue to each of the parties hereof, as well as to the citizens of the City of La Porte, Texas, the parties have agreed and do hereby agree as follows: ARTICLE I 1 In consideration of Recipientrenovating the existing structure at 100 West Main Street and operating a mixed use commercial and residential facility at the subject site Building, which proposal was considered in that certain public hearing authorizing a proposed project for the expenditure of LPDC funds for the promotion or development of new or expanded business enterprises, held before the LPDC on July 27, 2020, LPDC agrees to provide Recipient an incentive package consisting of a cash payment in a total sum not to exceed $85,000.00, to be distributed in two increments of $40,000 and $45,000.00 each, with each distribution conditioned on the attainment of certain performance thresholds, more specifically outlined as follows: 1) A cash incentive payment in an amount equal to $40,000.00 will be distributed to Recipient by LPDC, upon a) receipt by LPDC of proof of substantial completion of renovation of the Building and b) proof of minimum capital investment in the amount of $650,000.00 applied towards renovation of the Building and related infrastructure and site work, exclusive of the cost to Recipient to purchase the existing real estate tract and vacant building. However, in no case will the $40,000.00 payment be made by LPDC if documentation substantiating 1) substantial completion of the renovation of the Building and 2) the expenditure of no less than $650,000.00 applied towards capital improvements to the Building is not delivered to and received by LPDC by May 15, 2021. In the case that proof of substantial completion of renovation of the Building and minimum capital investment of $650,000.00 applied towards capital improvements to the Building is presented to LPDC on or before said May 15, 2021 deadline, the LPDC shall convene a meeting of the LPDC Board of Directors for a date no later than forty- five (45) days after receipt of proof of substantial completion of the renovation of the Building and minimum capital investment of $650,000.00 by LPDC from Recipient. Upon verification of the substantial completion of the Building and minimum capital investment of $650,000.00, as reflected by formal vote of the LPDC Board of Directors that Recipient has satisfied the requirements of this paragraph, LPDC will then remit the $40,000.00 to Recipient within a period not to exceed thirty (30) days. In the case where Recipient fails to submit proof of substantial completion of renovation of the Building and proof of a minimum capital investment in the amount of $650,000.00 by the May 15, 2021 deadline, despite being disqualified for the incentive payment Recipient will remain eligible to qualify for receipt of the $45,000.00 incentive payment under Paragraph 2 below, in so far as the conditions precedent for permanent employment of four positions is established in such paragraph is met. However, in such case Recipient will be required to submit proof of substantial completion of renovation of the Building in order to qualify for the incentive payments outlined in Paragraph 2 below. 2) A cash incentive payment in an amount equal to $45,000.00 will be distributed to Recipient by LPDC upon delivery to the LPDC of a) an employment roster evidencing that entities leasing space within the Building cumulatively employ a minimum of four (4) full time employees at the Building site as of June 30, 2021. However, in no case will the $45,000.00 payment be made by LPDC if proof of the employment of a minimum of four (4) full time personnel as of June 30, 2021 is not delivered to and received by LPDC by August 30, 2021. Proof of employment, for purposes of this 2 agreement, may be satisfied by submission to LPDC by the saidAugust 30, 2021 deadline of a) copies of 941 Report to the Internal Revenue Service and C3 Report to the Texas Workforce Commission for each employee (but with social security numbers of each employee redacted) and b) a notarized statement executed by Building site lessees affirming that a cumulative four (4) full time employees are employed in positions permanently located at the Building site. In the case that proof of employment of four (4) full-time personnel is presented to LPDC on or before said August 30, 2021 deadline, the LPDC shall convene a meeting of the LPDC Board of Directors for a date no later than forty-five (45) days after receipt of proof of employment by lessees at the Building site by Recipient. Upon verification of employment as reflected by formal vote of the LPDC Board of Directors, LPDC will then remit the $45,000.00 to Recipient within a period not to exceed thirty (30) days. In the event that Recipient qualifies for the $45,000.00 incentive installment based upon proof of employment of four (4) full-time positions by lessees located at the Building site pursuant to Article 1, Paragraph 2, above, then in such case Recipient shall be required to prove the continuous employment by lessees at the Building site of a cumulative minimum of four (4) full-time positions, for a continuous five (5) year period. At the conclusion of each calendar year during such five (5) year period, beginning on December 31, 2021, through and including December 31, 2025, Recipient shall be required to submit to the LPDC proof of employment of a minimum of four (4) full-time positions at the Building site, in the manner required under Article 1, Paragraph 2, above. Should Recipient fail to provide proof of the employment of four (4) full-time employees at the end of a calendar year, then for that year Recipient shall be responsible for remitting to the LPDC the sum of $17,000.00 representing recapture out of the previously awarded $85,000.00 incentive paid under this Agreement. However, in the instance that Recipient provides proof of employment of a minimum of four (4) full-time positions at the end of a calendar year, Recipient shall be relieved from the obligation to remit to the LPDC $17,000.00 recapture for that year. If Recipient fails to qualify for the $40,000 incentive installment provided for in Article I, Paragraph 1 but qualifies for payment of the $45,000.00 payment under Article 1, Paragraph 2, then in that case the obligations of Recipient to maintain the continuous employment of four (4) full-time personnel at the Building site shall continue to apply, but in the case of failure to maintain employment of four (4) full- time employees at the Building site shall subject Recipient to the requirement to remit to the LPDC $9000.00 as recapture out of the previously awarded $45,000 incentive paid under this Agreement, instead of $17,000.00. ARTICLE II All funds received as herein provided shall be solely for the purpose of contributing towards Recipient in the renovation of the exterior and interior of the building located at 100 West Main Street and for the making of associated site and infrastructure improvements, to operate a mixed-use commercial and residential facility. Recipient further acknowledges that the incentive grant provided for herein is tied to a project of the LPDC for the promotion or development of new or expanded business enterprises, as authorized by Texas Local Government Code chapters 501 and 505. 3 ARTICLE III Disbursement and/or retention of the cash incentive identified in Article I of this Agreement shall be made as follows: A. Disbursement shall be made to Recipient, subject to the satisfaction of the conditions precedent or conditions subsequent contained within Article I of this Agreement. B. LPDCobligation to Recipient shall not exceed $85,000.00, nor shall LPDC be obligated to reimburse Recipient for requests delivered to LPDC after the termination of this Agreement. ARTICLE IV Recipient understands that the funds paid to Recipient by the LPDC are derived from tax revenues collected under Texas Local Government Code 505.252, and that LPDC has estimated the tax revenues to be collected during the term of this Agreement. Recipient further understands, acknowledges, and agrees that if the tax revenue actually collected is less than 90% of the estimated tax revenues to be collected in any fiscal year during the term of this Agreement, LPDC will be under no obligation to provide funding to Recipient for any payment or payments during or after the fiscal year for which there is a revenue shortfall. Upon execution of the Agreement, funds will be placed in a City of La Porte designated commitment account for purposes of this Agreement. ARTICLE V In the event of any default by Recipient hereunder, including, but not limited to, use of the funds provided herein for purposes other than those stated in Article I of this Agreement, LPDC may cease all future payments hereunder and terminate this Agreement. In addition, LPDC shall have the right to reclaim and recapture, and Recipient shall refund, any funds that are not spent in accordance with the terms of this Agreement, including 1) LPDC funds spent by Recipient in contravention of this Agreement and 2) any LPDC funds previously paid to Recipient but not yet spent by Recipient. In each such case, the previously paid cash payment or payments shall be remitted to the LPDC within sixty (60) of receipt of written demand for same. Any breach of this covenant shall be grounds for immediate termination of the distribution of funds. ARTICLE VI The term of this Agreement is for a period beginning on the date of approval by LPDC and ending July 31, 2026. ARTICLE VII All funds provided by the LPDC pursuant to this Agreement may be used only for the purposes authorized by this Agreement. Notwithstanding Article I, above, City shall be under no obligation to 4 make any fund disbursements if the reports required under this Article have not been delivered to the LPDC. ARTICLE VIII This Agreement does not create any joint venture, partnership, or agency relationship between the LPDC and Recipient. Recipient shall have exclusive control of, and the exclusive right to control the details of the work to be performed by Recipient hereunder and all personnel performing same, and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, volunteers, licensees, and invitees. In no event shall any person par considered an officer, agent, servant, or employee of the LPDC. ARTICLE IX Recipient agrees to assume and does hereby assume all responsibility and liability for damages sustained by persons or property, whether real or asserted, by or from the carrying on of work by Recipient or in the performance of services performed and to be performed by Recipient hereunder. Recipient covenants and agrees to, and does hereby indemnify, defend, and hold harmless LPDC and all their respective officers, agents, and employees from all suits, actions, claims, and expenses of any character, includi whether real or asserted, sustained by any person or property by or in consequence of any intentional or negligent act, omission, or conduct of Recipient, its agents, servants or employees. ARTICLE X This Agreement may be amended by the mutual agreement of the Parties hereto in writing to be attached to and incorporated into this Agreement. ARTICLE XI Recipient shall adhere to all local, state, and federal laws and regulations that may affect its actions made pursuant to this Agreement, and shall maintain in effect during the term of this Agreement any and all federal, state, and local licenses and permits which may be required of Recipients generally. ARTICLE XII Recipient may not assign this Agreement, or any of the benefits provided herein including but not limited to incentive payments identified in Article I, without the written consent of LPDC. ARTICLE XIII The waiver by LPDC of any breach of any term, condition, or covenant herein contained shall not be deemed a waiver of any subsequent breach of the same, or any other term, condition, or covenant. 5 ARTICLE XIV The obligations of the Parties to this Agreement are performable in Harris County, Texas and if legal action is necessary to enforce same, venue shall lie in Harris County, Texas. ARTICLE XV This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. ARTICLE XVI This Agreement may be executed in triplicate, each of which shall be deemed an original and constitute one and the same instrument. ARTICLE XVII Neither LPDC nor Participant shall be required to perform any term, condition, or covenant in this Agreement so long as such performance is delayed or prevented by force majeure, which shall mean Acts of God, civil riots, floods, and any other cause not reasonably within the control of LPDC or Recipient except as herein provided, and which by the exercise of due diligence LPDC or Recipient is unable, wholly or in part, to prevent or overcome. ARTICLE XVIII In submitting this application, the applicant whose signature appears below affirms its intent and commitment to comply in full with Section 2264.052 of the Government Code and certifies that it does not and will not knowingly employ an undocumented worker during any time period associated with the public subsidy for which the application is being submitted. The applicant further certifies its understanding and agreement that if it is convicted of a violation of 8 U.S.C. Section 1324a(f), providing for civil and/or criminal penalties for engaging in a pattern or practice of knowingly hiring or continuing to employ unauthorized aliens, it shall repay the amount of the public subsidy with interest, at the rate and according to the terms of the agreement signed under Section 2264.053 of the Government Code, not later than the 120th day after the date the city notifies the business of the violation. ARTICLE XIX The Agreement embodies the complete agreement of the parties hereto, superseding all oral or written pervious and contemporary agreements between the Parties, which relate to matters in this Agreement. SIGNED AND AGREED to by LPDC and Recipient and EFFECTIVE on the date indicated below. LA PORTE DEVELOPMENT CORPORTION 6 __________________________ Richard Warren, President ATTEST ___________________________ Secretary of the Corporation ___________________________ Marion Campise _________________________________ Vicki Campise ________________________________ DATE 7 AMENDED AND RESTATED ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE LA PORTE DEVELOPMENT COPRPORATION, AND MARION CAMPISE AND VICKI CAMPISE, FOR USE OF TYPE B DEVELOPMENT CORPORATION SALES TAX FUNDS THIS That AGREEMENT made by and entered into this the 24th day of August 2020 between the La Porte Development Corporation, a Type B non-profit corporation operating under authority of Texas Local Government Code Chapters 501 and 505 Marion Campise, , is hereby amended and restated as follows:. WITNESSETH: WHEREAS, the voters of the City of La Porte authorized the levying of additional sales tax within the City for promotion of economic development and the LPDC is authorized to use such tax revenues for certain qualifying projects and other economic development related purposes; and WHEREAS, Recipient is a Texas based commercial development company that specializes in rehabilitating underutilized commercial buildings; and WHEREAS, Recipient wishes to renovate the exterior and interior of a the building located at 100 West Main Street., and make associated site improvements, for the purpose of operating a mixed use commercial and residential facility and which would 1) result in the expenditure by Recipient of an estimated $650,000.00 in capital improvements; and 2) employ an estimated four (4) full time personnel; and WHEREAS, Recipient has requested that LPDC provide financial incentives to Recipient to contribute towards the cost of renovation of the property at 100 West Main Street under a qualifying project of the LPDC for infrastructure, site and related improvements, as authorized by Texas Local Government Code Chapters 501 and 505, and it is the desire of LPDC to assist in the funding of same, finding that such expenditures will promote or develop new or expanded business enterprises. WHEREAS, Texas law and the by-laws of the LPDC require that certain expenditures and projects by the LPDC be approved by the governing body of the City; and whereas the LPDC Board has duly approved such project and the expenditures for same have been authorized by the La Porte City Council; and NOW THEREFORE, in consideration of the covenants and conditions stated herein, and in consideration of the mutual benefits that will accrue to each of the parties hereof, as well as to the citizens of the City of La Porte, Texas, the parties have agreed and do hereby agree as follows: ARTICLE I 1 In consideration of Recipientrenovating the existing structure at 100 West Main Street and operating a mixed use commercial and residential facility at the subject site Building, which proposal was considered in that certain public hearing authorizing a proposed project for the expenditure of LPDC funds for the promotion or development of new or expanded business enterprises, held before the LPDC on July 27, 2020, LPDC agrees to provide Recipient an incentive package consisting of a cash payment in a total sum not to exceed $85,000.00, to be distributed in two increments of $40,000 and $45,000.00 each, with each distribution conditioned on the attainment of certain performance thresholds, more specifically outlined as follows: 1) A cash incentive payment in an amount equal to $40,000.00 will be distributed to Recipient by LPDC, upon a) receipt by LPDC of proof of substantial completion of renovation of the Building and b) proof of minimum capital investment in the amount of $650,000.00 applied towards renovation of the Building and related infrastructure and site work, exclusive of the cost to Recipient to purchase the existing real estate tract and vacant building. However, in no case will the $40,000.00 payment be made by LPDC if documentation substantiating 1) substantial completion of the renovation of the Building and 2) the expenditure of no less than $650,000.00 applied towards capital improvements to the Building is not delivered to and received by LPDC by May 15, 2021. In the case that proof of substantial completion of renovation of the Building and minimum capital investment of $650,000.00 applied towards capital improvements to the Building is presented to LPDC on or before said May 15, 2021 deadline, the LPDC shall convene a meeting of the LPDC Board of Directors for a date no later than forty- five (45) days after receipt of proof of substantial completion of the renovation of the Building and minimum capital investment of $650,000.00 by LPDC from Recipient. Upon verification of the substantial completion of the Building and minimum capital investment of $650,000.00, as reflected by formal vote of the LPDC Board of Directors that Recipient has satisfied the requirements of this paragraph, LPDC will then remit the $40,000.00 to Recipient within a period not to exceed thirty (30) days. In the case where Recipient fails to submit proof of substantial completion of renovation of the Building and proof of a minimum capital investment in the amount of $650,000.00 by the May 15, 2021 deadline, despite being disqualified for the incentive payment Recipient will remain eligible to qualify for receipt of the $45,000.00 incentive payment under Paragraph 2 below, in so far as the conditions precedent for permanent employment of four positions is established in such paragraph is met. However, in such case Recipient will be required to submit proof of substantial completion of renovation of the Building in order to qualify for the incentive payments outlined in Paragraph 2 below. 2) A cash incentive payment in an amount equal to $45,000.00 will be distributed to Recipient by LPDC upon delivery to the LPDC of a) an employment roster evidencing that entities leasing space within the Building cumulatively employ a minimum of four (4) full time employees at the Building site as of June 30, 2021. However, in no case will the $45,000.00 payment be made by LPDC if proof of the employment of a minimum of four (4) full time personnel as of June 30, 2021 is not delivered to and received by LPDC by August 30, 2021. Proof of employment, for purposes of this 2 agreement, may be satisfied by submission to LPDC by the saidAugust 30, 2021 deadline of a) copies of 941 Report to the Internal Revenue Service and C3 Report to the Texas Workforce Commission for each employee (but with social security numbers of each employee redacted) and b) a notarized statement executed by Building site lessees affirming that a cumulative four (4) full time employees are employed in positions permanently located at the Building site. In the case that proof of employment of four (4) full-time personnel is presented to LPDC on or before said August 30, 2021 deadline, the LPDC shall convene a meeting of the LPDC Board of Directors for a date no later than forty-five (45) days after receipt of proof of employment by lessees at the Building site by Recipient. Upon verification of employment as reflected by formal vote of the LPDC Board of Directors, LPDC will then remit the $45,000.00 to Recipient within a period not to exceed thirty (30) days. In the event that Recipient qualifies for the $45,000.00 incentive installment based upon proof of employment of four (4) full-time positions by lessees located at the Building site pursuant to Article 1, Paragraph 2, above, then in such case Recipient shall be required to prove the continuous employment by lessees at the Building site of a cumulative minimum of four (4) full-time positions, for a continuous five (5) year period. At the conclusion of each calendar year during such five (5) year period, beginning on December 31, 2021, through and including December 31, 2025, Recipient shall be required to submit to the LPDC proof of employment of a minimum of four (4) full-time positions at the Building site, in the manner required under Article 1, Paragraph 2, above. Should Recipient fail to provide proof of the employment of four (4) full-time employees at the end of a calendar year, then for that year Recipient shall be responsible for remitting to the LPDC the sum of $17,000.00 representing recapture out of the previously awarded $85,000.00 incentive paid under this Agreement. However, in the instance that Recipient provides proof of employment of a minimum of four (4) full-time positions at the end of a calendar year, Recipient shall be relieved from the obligation to remit to the LPDC $17,000.00 recapture for that year. If Recipient fails to qualify for the $40,000 incentive installment provided for in Article I, Paragraph 1 but qualifies for payment of the $45,000.00 payment under Article 1, Paragraph 2, then in that case the obligations of Recipient to maintain the continuous employment of four (4) full-time personnel at the Building site shall continue to apply, but in the case of failure to maintain employment of four (4) full- time employees at the Building site shall subject Recipient to the requirement to remit to the LPDC $9000.00 as recapture out of the previously awarded $45,000 incentive paid under this Agreement, instead of $17,000.00. ARTICLE II All funds received as herein provided shall be solely for the purpose of contributing towards Recipient in the renovation of the exterior and interior of the building located at 100 West Main Street and for the making of associated site and infrastructure improvements, to operate a mixed-use commercial and residential facility. Recipient further acknowledges that the incentive grant provided for herein is tied to a project of the LPDC for the promotion or development of new or expanded business enterprises, as authorized by Texas Local Government Code chapters 501 and 505. 3 ARTICLE III Disbursement and/or retention of the cash incentive identified in Article I of this Agreement shall be made as follows: A. Disbursement shall be made to Recipient, subject to the satisfaction of the conditions precedent or conditions subsequent contained within Article I of this Agreement. B. LPDCobligation to Recipient shall not exceed $85,000.00, nor shall LPDC be obligated to reimburse Recipient for requests delivered to LPDC after the termination of this Agreement. ARTICLE IV Recipient understands that the funds paid to Recipient by the LPDC are derived from tax revenues collected under Texas Local Government Code 505.252, and that LPDC has estimated the tax revenues to be collected during the term of this Agreement. Recipient further understands, acknowledges, and agrees that if the tax revenue actually collected is less than 90% of the estimated tax revenues to be collected in any fiscal year during the term of this Agreement, LPDC will be under no obligation to provide funding to Recipient for any payment or payments during or after the fiscal year for which there is a revenue shortfall. Upon execution of the Agreement, funds will be placed in a City of La Porte designated commitment account for purposes of this Agreement. ARTICLE V In the event of any default by Recipient hereunder, including, but not limited to, use of the funds provided herein for purposes other than those stated in Article I of this Agreement, LPDC may cease all future payments hereunder and terminate this Agreement. In addition, LPDC shall have the right to reclaim and recapture, and Recipient shall refund, any funds that are not spent in accordance with the terms of this Agreement, including 1) LPDC funds spent by Recipient in contravention of this Agreement and 2) any LPDC funds previously paid to Recipient but not yet spent by Recipient. In each such case, the previously paid cash payment or payments shall be remitted to the LPDC within sixty (60) of receipt of written demand for same. Any breach of this covenant shall be grounds for immediate termination of the distribution of funds. ARTICLE VI The term of this Agreement is for a period beginning on the date of approval by LPDC and ending July 31, 2026. ARTICLE VII All funds provided by the LPDC pursuant to this Agreement may be used only for the purposes authorized by this Agreement. Notwithstanding Article I, above, City shall be under no obligation to 4 make any fund disbursements if the reports required under this Article have not been delivered to the LPDC. ARTICLE VIII This Agreement does not create any joint venture, partnership, or agency relationship between the LPDC and Recipient. Recipient shall have exclusive control of, and the exclusive right to control the details of the work to be performed by Recipient hereunder and all personnel performing same, and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, volunteers, licensees, and invitees. In no event shall any person considered an officer, agent, servant, or employee of the LPDC. ARTICLE IX Recipient agrees to assume and does hereby assume all responsibility and liability for damages sustained by persons or property, whether real or asserted, by or from the carrying on of work by Recipient or in the performance of services performed and to be performed by Recipient hereunder. Recipient covenants and agrees to, and does hereby indemnify, defend, and hold harmless LPDC and all their respective officers, agents, and employees from all suits, actions, claims, and expenses of any whether real or asserted, sustained by any person or property by or in consequence of any intentional or negligent act, omission, or conduct of Recipient, its agents, servants or employees. ARTICLE X This Agreement may be amended by the mutual agreement of the Parties hereto in writing to be attached to and incorporated into this Agreement. ARTICLE XI Recipient shall adhere to all local, state, and federal laws and regulations that may affect its actions made pursuant to this Agreement, and shall maintain in effect during the term of this Agreement any and all federal, state, and local licenses and permits which may be required of Recipients generally. ARTICLE XII Recipient may not assign this Agreement, or any of the benefits provided herein including but not limited to incentive payments identified in Article I, without the written consent of LPDC. ARTICLE XIII The waiver by LPDC of any breach of any term, condition, or covenant herein contained shall not be deemed a waiver of any subsequent breach of the same, or any other term, condition, or covenant. 5 ARTICLE XIV The obligations of the Parties to this Agreement are performable in Harris County, Texas and if legal action is necessary to enforce same, venue shall lie in Harris County, Texas. ARTICLE XV This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. ARTICLE XVI This Agreement may be executed in triplicate, each of which shall be deemed an original and constitute one and the same instrument. ARTICLE XVII Neither LPDC nor Participant shall be required to perform any term, condition, or covenant in this Agreement so long as such performance is delayed or prevented by force majeure, which shall mean Acts of God, civil riots, floods, and any other cause not reasonably within the control of LPDC or Recipient except as herein provided, and which by the exercise of due diligence LPDC or Recipient is unable, wholly or in part, to prevent or overcome. ARTICLE XVIII In submitting this application, the applicant whose signature appears below affirms its intent and commitment to comply in full with Section 2264.052 of the Government Code and certifies that it does not and will not knowingly employ an undocumented worker during any time period associated with the public subsidy for which the application is being submitted. The applicant further certifies its understanding and agreement that if it is convicted of a violation of 8 U.S.C. Section 1324a(f), providing for civil and/or criminal penalties for engaging in a pattern or practice of knowingly hiring or continuing to employ unauthorized aliens, it shall repay the amount of the public subsidy with interest, at the rate and according to the terms of the agreement signed under Section 2264.053 of the Government Code, not later than the 120th day after the date the city notifies the business of the violation. ARTICLE XIX The Agreement embodies the complete agreement of the parties hereto, superseding all oral or written pervious and contemporary agreements between the Parties, which relate to matters in this Agreement. SIGNED AND AGREED to by LPDC and Recipient and EFFECTIVE on the date indicated below. LA PORTE DEVELOPMENT CORPORTION 6 __________________________ Richard Warren, President ATTEST ___________________________ Secretary of the Corporation ___________________________ Marion Campise _________________________________ Vicki Campise ________________________________ DATE 7 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE LA PORTE DEVELOPMENT COPRPORATION, AND MARION CAMPISE AND VICKI CAMPISE, FOR USE OF TYPE B DEVELOPMENT CORPORATION SALES TAX FUNDS THIS AGREEMENT made by and entered into this 24th day of August 2020 between the La Porte Development Corporation, a Type B non-profit corporation operating under authority of Texas Local Government Code Chapters 501 and 505 Marion Campise, hereinafter WITNESSETH: WHEREAS, the voters of the City of La Porte authorized the levying of additional sales tax within the City for promotion of economic development and the LPDC is authorized to use such tax revenues for certain qualifying projects and other economic development related purposes; and WHEREAS, Recipient is a Texas based commercial development company that specializes in rehabilitating underutilized commercial buildings; and WHEREAS, Recipient wishes to renovate the exterior and interior of a the building located at 100 West Main Street., and make associated site improvements, for the purpose of operating a mixed use commercial and residential facility and which would 1) result in the expenditure by Recipient of an estimated $650,000.00 in capital improvements; and 2) employ an estimated four (4) full time personnel; and WHEREAS, Recipient has requested that LPDC provide financial incentives to Recipient to contribute towards the cost of renovation of the property at 100 West Main Street under a qualifying project of the LPDC for infrastructure, site and related improvements, as authorized by Texas Local Government Code Chapters 501 and 505, and it is the desire of LPDC to assist in the funding of same, finding that such expenditures will promote or develop new or expanded business enterprises. WHEREAS, Texas law and the by-laws of the LPDC require that certain expenditures and projects by the LPDC be approved by the governing body of the City; and whereas the LPDC Board has duly approved such project and the expenditures for same have been authorized by the La Porte City Council; and NOW THEREFORE, in consideration of the covenants and conditions stated herein, and in consideration of the mutual benefits that will accrue to each of the parties hereof, as well as to the citizens of the City of La Porte, Texas, the parties have agreed and do hereby agree as follows: ARTICLE I 1 In consideration of Recipientrenovating the existing structure at 100 West Main Street and operating a mixed use commercial and residential facility at the subject site Building, which proposal was considered in that certain public hearing authorizing a proposed project for the expenditure of LPDC funds for the promotion or development of new or expanded business enterprises, held before the LPDC on July 27, 2020, LPDC agrees to provide Recipient an incentive package consisting of a cash payment in a total sum not to exceed $85,000.00, to be distributed in two increments of $40,000 and $45,000.00 each, with each distribution conditioned on the attainment of certain performance thresholds, more specifically outlined as follows: 1) A cash incentive payment in an amount equal to $40,000.00 will be distributed to Recipient by LPDC, upon a) receipt by LPDC of proof of substantial completion of renovation of the Building and b) proof of minimum capital investment in the amount of $650,000.00 applied towards renovation of the Building and related infrastructure and site work, exclusive of the cost to Recipient to purchase the existing real estate tract and vacant building. However, in no case will the $40,000.00 payment be made by LPDC if documentation substantiating 1) substantial completion of the renovation of the Building and 2) the expenditure of no less than $650,000.00 applied towards capital improvements to the Building is not delivered to and received by LPDC by January 31, 2021. In the case that proof of substantial completion of renovation of the Building and minimum capital investment of $650,000.00 applied towards capital improvements to the Building is presented to LPDC on or before said January 31, 2021 deadline, the LPDC shall convene a meeting of the LPDC Board of Directors for a date no later than forty-five (45) days after receipt of proof of substantial completion of the renovation of the Building and minimum capital investment of $650,000.00 by LPDC from Recipient. Upon verification of the substantial completion of the Building and minimum capital investment of $650,000.00, as reflected by formal vote of the LPDC Board of Directors that Recipient has satisfied the requirements of this paragraph, LPDC will then remit the $40,000.00 to Recipient within a period not to exceed thirty (30) days. In the case where Recipient fails to submit proof of substantial completion of renovation of the Building and proof of a minimum capital investment in the amount of $650,000.00 by the January 31, 2021 deadline, despite being disqualified for the incentive payment Recipient will remain eligible to qualify for receipt of the $45,000.00 incentive payment under Paragraph 2 below, in so far as the conditions precedent for permanent employment of four positions is established in such paragraph is met. However, in such case Recipient will be required to submit proof of substantial completion of renovation of the Building in order to qualify for the incentive payments outlined in Paragraph 2 below. 2) A cash incentive payment in an amount equal to $45,000.00 will be distributed to Recipient by LPDC upon delivery to the LPDC of a) an employment roster evidencing that entities leasing space within the Building cumulatively employ a minimum of four (4) full time employees at the Building site as of June 30, 2021. However, in no case will the $45,000.00 payment be made by LPDC if proof of the employment of a minimum of four (4) full time personnel as of June 30, 2021 is not delivered to and received by LPDC by August 30, 2021. Proof of employment, for purposes of this 2 agreement, may be satisfied by submission to LPDC by the saidAugust 30, 2021 deadline of a) copies of 941 Report to the Internal Revenue Service and C3 Report to the Texas Workforce Commission for each employee (but with social security numbers of each employee redacted) and b) a notarized statement executed by Building site lessees affirming that a cumulative four (4) full time employees are employed in positions permanently located at the Building site. In the case that proof of employment of four (4) full-time personnel is presented to LPDC on or before said August 30, 2021 deadline, the LPDC shall convene a meeting of the LPDC Board of Directors for a date no later than forty-five (45) days after receipt of proof of employment by lessees at the Building site by Recipient. Upon verification of employment as reflected by formal vote of the LPDC Board of Directors, LPDC will then remit the $45,000.00 to Recipient within a period not to exceed thirty (30) days. In the event that Recipient qualifies for the $45,000.00 incentive installment based upon proof of employment of four (4) full-time positions by lessees located at the Building site pursuant to Article 1, Paragraph 2, above, then in such case Recipient shall be required to prove the continuous employment by lessees at the Building site of a cumulative minimum of four (4) full-time positions, for a continuous five (5) year period. At the conclusion of each calendar year during such five (5) year period, beginning on December 31, 2021, through and including December 31, 2025, Recipient shall be required to submit to the LPDC proof of employment of a minimum of four (4) full-time positions at the Building site, in the manner required under Article 1, Paragraph 2, above. Should Recipient fail to provide proof of the employment of four (4) full-time employees at the end of a calendar year, then for that year Recipient shall be responsible for remitting to the LPDC the sum of $17,000.00 representing recapture out of the previously awarded $85,000.00 incentive paid under this Agreement. However, in the instance that Recipient provides proof of employment of a minimum of four (4) full-time positions at the end of a calendar year, Recipient shall be relieved from the obligation to remit to the LPDC $17,000.00 recapture for that year. If Recipient fails to qualify for the $40,000 incentive installment provided for in Article I, Paragraph 1 but qualifies for payment of the $45,000.00 payment under Article 1, Paragraph 2, then in that case the obligations of Recipient to maintain the continuous employment of four (4) full-time personnel at the Building site shall continue to apply, but in the case of failure to maintain employment of four (4) full- time employees at the Building site shall subject Recipient to the requirement to remit to the LPDC $9000.00 as recapture out of the previously awarded $45,000 incentive paid under this Agreement, instead of $17,000.00. ARTICLE II All funds received as herein provided shall be solely for the purpose of contributing towards Recipient in the renovation of the exterior and interior of the building located at 100 West Main Street and for the making of associated site and infrastructure improvements, to operate a mixed-use commercial and residential facility. Recipient further acknowledges that the incentive grant provided for herein is tied to a project of the LPDC for the promotion or development of new or expanded business enterprises, as authorized by Texas Local Government Code chapters 501 and 505. 3 ARTICLE III Disbursement and/or retention of the cash incentive identified in Article I of this Agreement shall be made as follows: A. Disbursement shall be made to Recipient, subject to the satisfaction of the conditions precedent or conditions subsequent contained within Article I of this Agreement. B. LPDCobligation to Recipient shall not exceed $85,000.00, nor shall LPDC be obligated to reimburse Recipient for requests delivered to LPDC after the termination of this Agreement. ARTICLE IV Recipient understands that the funds paid to Recipient by the LPDC are derived from tax revenues collected under Texas Local Government Code 505.252, and that LPDC has estimated the tax revenues to be collected during the term of this Agreement. Recipient further understands, acknowledges, and agrees that if the tax revenue actually collected is less than 90% of the estimated tax revenues to be collected in any fiscal year during the term of this Agreement, LPDC will be under no obligation to provide funding to Recipient for any payment or payments during or after the fiscal year for which there is a revenue shortfall. Upon execution of the Agreement, funds will be placed in a City of La Porte designated commitment account for purposes of this Agreement. ARTICLE V In the event of any default by Recipient hereunder, including, but not limited to, use of the funds provided herein for purposes other than those stated in Article I of this Agreement, LPDC may cease all future payments hereunder and terminate this Agreement. In addition, LPDC shall have the right to reclaim and recapture, and Recipient shall refund, any funds that are not spent in accordance with the terms of this Agreement, including 1) LPDC funds spent by Recipient in contravention of this Agreement and 2) any LPDC funds previously paid to Recipient but not yet spent by Recipient. In each such case, the previously paid cash payment or payments shall be remitted to the LPDC within sixty (60) of receipt of written demand for same. Any breach of this covenant shall be grounds for immediate termination of the distribution of funds. ARTICLE VI The term of this Agreement is for a period beginning on the date of approval by LPDC and ending July 31, 2026. ARTICLE VII All funds provided by the LPDC pursuant to this Agreement may be used only for the purposes authorized by this Agreement. Notwithstanding Article I, above, City shall be under no obligation to 4 make any fund disbursements if the reports required under this Article have not been delivered to the LPDC. ARTICLE VIII This Agreement does not create any joint venture, partnership, or agency relationship between the LPDC and Recipient. Recipient shall have exclusive control of, and the exclusive right to control the details of the work to be performed by Recipient hereunder and all personnel performing same, and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, volunteers, licensees, and invitees. In no event shall esponsibilities hereunder be considered an officer, agent, servant, or employee of the LPDC. ARTICLE IX Recipient agrees to assume and does hereby assume all responsibility and liability for damages sustained by persons or property, whether real or asserted, by or from the carrying on of work by Recipient or in the performance of services performed and to be performed by Recipient hereunder. Recipient covenants and agrees to, and does hereby indemnify, defend, and hold harmless LPDC and all their respective officers, agents, and employees from all suits, actions, claims, and expenses of any character, includi whether real or asserted, sustained by any person or property by or in consequence of any intentional or negligent act, omission, or conduct of Recipient, its agents, servants or employees. ARTICLE X This Agreement may be amended by the mutual agreement of the Parties hereto in writing to be attached to and incorporated into this Agreement. ARTICLE XI Recipient shall adhere to all local, state, and federal laws and regulations that may affect its actions made pursuant to this Agreement, and shall maintain in effect during the term of this Agreement any and all federal, state, and local licenses and permits which may be required of Recipients generally. ARTICLE XII Recipient may not assign this Agreement, or any of the benefits provided herein including but not limited to incentive payments identified in Article I, without the written consent of LPDC. ARTICLE XIII The waiver by LPDC of any breach of any term, condition, or covenant herein contained shall not be deemed a waiver of any subsequent breach of the same, or any other term, condition, or covenant. 5 ARTICLE XIV The obligations of the Parties to this Agreement are performable in Harris County, Texas and if legal action is necessary to enforce same, venue shall lie in Harris County, Texas. ARTICLE XV This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. ARTICLE XVI This Agreement may be executed in triplicate, each of which shall be deemed an original and constitute one and the same instrument. ARTICLE XVII Neither LPDC nor Participant shall be required to perform any term, condition, or covenant in this Agreement so long as such performance is delayed or prevented by force majeure, which shall mean Acts of God, civil riots, floods, and any other cause not reasonably within the control of LPDC or Recipient except as herein provided, and which by the exercise of due diligence LPDC or Recipient is unable, wholly or in part, to prevent or overcome. ARTICLE XVIII In submitting this application, the applicant whose signature appears below affirms its intent and commitment to comply in full with Section 2264.052 of the Government Code and certifies that it does not and will not knowingly employ an undocumented worker during any time period associated with the public subsidy for which the application is being submitted. The applicant further certifies its understanding and agreement that if it is convicted of a violation of 8 U.S.C. Section 1324a(f), providing for civil and/or criminal penalties for engaging in a pattern or practice of knowingly hiring or continuing to employ unauthorized aliens, it shall repay the amount of the public subsidy with interest, at the rate and according to the terms of the agreement signed under Section 2264.053 of the Government Code, not later than the 120th day after the date the city notifies the business of the violation. ARTICLE XIX The Agreement embodies the complete agreement of the parties hereto, superseding all oral or written pervious and contemporary agreements between the Parties, which relate to matters in this Agreement. SIGNED AND AGREED to by LPDC and Recipient on the dates indicated below. LA PORTE DEVELOPMENT CORPORTION 6 __________________________ Richard Warren, President ___________________ Date ATTEST ___________________________ Secretary of the Corporation Marion Campise _________________________________ _________________________ Date ATTEST ________________________________ 7 March 11,2021 To City of La Porte Development Corporation Pursuant to our written agreement dated August 24, 2020, between Marion Campise and The City of La Porte Development Corporation, it was agreed upon at that time that the project substantial completion date would be January 31, 2021, with 4 full time employees by June 30,2021, and final completion date would be no later than August 30, 2021. Because of many delays beyond our control, we now have a substantial completion date of June 1, 2021, and the 4 full time employees and move in by June 30, 2021 and a final completion of August 30, 2021, which is the same as the original final date. Because of these delays, I am requesting an extension of our agreement. There were several reasons causing our date change and they are as follows: Delays in getting our site plan approved, and the building permit, we started our permit process in February 2020 with final approval being given November18, 2020. Delays in getting approval of plans for fire sprinkler system from City of La Porte Fire Marshall office, plans first submitted in November 2020, and permit finally granted March 5,2021. No interior work could be started until sprinkler system was installed COVID - 19 Virus depleted work staff of most of our vendors causing a labor and material shortage resulting in delays and cost increases. Freezing temperatures in February brought all work in progress to a complete stop resulting in loss of 8 days. We are extremely grateful for the monetary help from the Board. Without their assistance we would not have been able to complete the building that not only The Chamber of Commerce was expecting but Goodies as well I personally thank you for your help and hope this gives you an insight into our delay problems I also appreciate the help granted by our Fire Marshall and the City Planning Department I am aware that there is a lot of new building going on in La Porte and the workload on those two departments is monumental They are to be commended Marty Campise REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 Requested By: Source of Funds: 037 (Hotel/Motel Fund) Jason Weeks, Asst. City Mgr. Department: Administration/CMO Account Number: 037-6063-565.2075 Amount Budgeted: $10,000 Report Resolution Ordinance Amount Requested: $10,000 Exhibits: Sponsorship Request Application, 2021 Budgeted Item: Yes No Museum Budget, and Sponsorship Policy SUMMARY & RECOMMENDATION In late February 2021, City staff received a sponsorship application from the San th Jacinto Museum of History in the amount of $10,000 for the 10 Annual San Jacinto Texas Independence Fun Run. was specifically for the Fun Run which was scheduled to begin on March 6, 2021 and last until March 14, 2021. The City Council denied this sponsorship due to timing of the event. Staff has provided a copy ed Sponsorship Policy, which requires applicants to have approval 30 days prior to the event. City Council asked that the San Jacinto Museum of History to look at other alternatives for sponsorship funding, such as allowing all La Porte residents access the San Jacinto Museum free of charge. The sponsorship funds for this event are budgeted in the Hotel/Motel Fund. San Jacinto Museum of History Board determined that it would not be financial prudent to approve allowing residents to have free admission to the Museum for a full year. However, the applicants are now approaching the City with an alternative sponsorship application request. After researching what several museums in Houston do for free admission days, they noticed that there was a trend with Thursday's. Due to this, the Museum is requesting a $10,000 sponsorship from the City of La Porte, in return residents of La Porte will have free admission to the San Jacinto Museum of History on Participating residents will be required to show proof of residency. at the entrance of the San Jacinto Museum of History welcoming La Porte residents rdth during these dates. The Museum will be available free of charge on June 3, June 10, ththstththndth June 17, June 24, July 1, July 8, July 15, July 22, and July 29 from 9:00 AM to 6:00 PM. Additionally, the Museum and City will jointly promote this event on their respective Facebook pages. -shirts, website,andtheir social media sites (Facebook th and Instagram) did for the 9 Annual San Jacinto Texas Independence Fun Run this year. Staff recommends City Council approving the $10,000 sponsorship to the San Jacinto Museum of History in honor of La Porte , which will allow all La Porte residents free admission to the Museum. ACTION REQUIRED BY CITY COUNCIL Approve or deny the sponsorship request for $10,000 to the San Jacinto Museum of History for La Porte Resident Day every Thursday in June 2021 and July 2021, whereby La Porte residents will receive free admission to the San Jacinto Museum of History upon proof of residency. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date SAN JACNTO MUSEUM OF HISTORY 2021 BUDGET Opening Cash Balance$ 124,829 Revenue: Source Revenue: Ticket Sales$ 319,584 Gift Shop 66,693 Subtotal$ 386,277 Donations/Memberships: Donations$ 179,623 Memberships 17,670 Subtotal$ 197,299 Annual Events: Fun Run$ 40,000 Festival San Jacinto Dinner 100,000 Special Evening Subtotal$ 140,000 Total Revenue$ 723,576 Expenses: Operating Expenses: Payroll - Administrative$ 351,108 Payroll - Floor Staff 95,676 Other Expenses 135,000 Subtotal$ 581,784 Annual Events: Fun Run$ 8,000 Festival San Jacinto Dinner 45,000 Special Evening Subtotal$ 53,000 Large Periodic Expenses: Property Tax$ 22,000 Audit Fee (to B&V) 20,000 Manlove Expenses 60,000 Subtotal$ 102,000 Total Expenses$ 736,784 Net Surplus/(Deficit) (13,208) Ending Cash Balance$ 111,621 {ƦƚƓƭƚƩƭŷźƦ tƚƌźĭǤ L͵LƓƷƩƚķǒĭƷźƚƓ The purpose of this sponsorship policy is to provide administrators with guidelines when the City is approached by organizations to support local festivals, special events, community projects or programs. The City of La Porte recognizes the value of these partnerships to the community but also its charge to maintain fiscal responsibility. The following policy has been established to direct when co-sponsorship or in-kind services can be approved. LL͵tƚƌźĭǤ In order to be considered for approval, the opportunity must: Move forward the mission and goals of the City of La Porte. Have an entirely filled application form. Demonstrate value to either the Citizens of La Porte, the La Porte Business Community, or the area as a whole Conform to all applicable federal and state statutes, and to all applicable City ordinances, policies, and practices. The sponsorship must not result in any competitive advantage, benefit, or preferential treatment for the sponsor outside of the sponsorship agreement. Be presented to City staff at least one month before the opportunity is to take place. If the City is being asked to participate more than $10,000, the application must be in by February 15th before the budget year in which the opportunity takes place. Show the City logo on all materials showing event sponsors. Get pre-approval of the use of City logo, slogan, branding statement, or quote. Opportunities receiving money from Local Hotel Occupancy Tax revenues must comply with state law, show collaboration with at least one local hotel or motel beforehand and complete an after action report. Also note: Sponsorship approvals are made on an annual basis and shall be considered as one-time approvals. City participation should not be an expected line item in the receiving organization The City reserves the right to assess all activities at any time to ensure all rules, regulations, conditions of use, and City and health and safety laws are not violated. Sponsorships and in-kind services can be revoked at any time, effective immediately. The opportunity cannot be held to advocate a political position or figure. The hosting organization will not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition, marital status, sex, or sexual orientation. Further, the organization must agree to conform to the requirements of the Americans with Disabilities Act. Religious organizations, companies, or groups may obtain sponsorships if the proposed program, event, or project neither promotes religious messages nor advocates for or promotes religious beliefs. Any sponsorship above $1,000 must be approved by La Porte City Council. LLL͵ 5ĻŅźƓźƷźƚƓƭ In-Kind Contributions: Donations of goods, services, or time instead of cash. Opportunity: The program or event in which the applicant is asking for City participation, whether it be cash or in-kind. Sponsorship: When the City decides to donate either cash or in-kind contributions to an opportunity. REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 Source of Funds: N/A Requested By: Jason Weeks, Asst. City Mgr Department: Administration/CMO Account Number: N/A Amount Budgeted: N/A Report Resolution Ordinance Amount Requested: N/A Exhibits: Revised EMS agreement with Bayport Budgeted Item: Yes No Companies SUMMARY & RECOMMENDATION On August 24, 2020, the La Porte City Council approved a contract between the City of La Porte EMS and the Association of Bayport Companies (ABC) for Emergency Medical Service for a period of thirty-six (36) months. Bayport Industrial District is the area located south of Fairmont Parkway. The new three year (2020-23) agreement was calculated at a rate of $42.49 per employee, per year, which equated to an increase of The primary reason for the significant increase can be contributed to the 20% salary increases. This contributed to a 34.3% increase in EMS budget from the 2015-16 previous contracted budgeted amounts for personnel. Additionally, the agreement did not account for the Emergency Service District budget. The ESD budget includes cost associated with replacement cost of equipment and vehicles as well as cost associated with uniforms & protective equipment, training, and machinery, tools, and computer equipment. The new agreement was to begin on October 1, 2020 and expire on September 30, 2023. Shortly after Council approved the Association of Bayport Companies, Chief Camp began receiving communications from the ABC new president claiming that the $12.72 increase per person was too much and they wanted to begin negotiating with the City to reduce the amount. Since October 1, 2020, Chief Camp, Assistant City Manager and City Manager have met with their president, Daniel Velasquez and their board virtual on numerous occasions to explain to them the reason for the increases. Since the City Council has approved their new agreement, ABC has not signed an agreement; however, the City has begun receiving payments from ABC. Staff discussion on reducing their rates. On March 22, 2021, staff made a presentation to City Council and informed Council that staff had reached an agreed-upon alternative agreement with ABC, which included the below details: 1. Multi-year agreement with a provision to adjust the price annually. Rates will not be fixed for the term of the agreement but fluctuate each year. 2. Year one would exclude the costs associated with the Emergency Service District, bringing the cost per employee down to $38.17 from $42.50. 3. ESD costs would be added back in year 2 of the agreement. 4. 10% Admin fee would stay in place. The La Porte City Council requested that this item not be brought back for consideration until the ABC Board had approved and signed the revised agreement. Staff worked with the Assistant City Attorney to revise the agreement with the above revised terms. The th week of April 12, the City received a signed revised agreement from ABC. Please Note: Staff has received at least one inquiry from a company in the Battleground District as to the impact of this action to their rates. The enclosed agreement only impacts the Association of Bayport Companies. Future action/consideration will be needed to extend the new contract parameters to other companies. ACTION REQUIRED BY CITY COUNCIL Approve or deny a revised agreement with the Association of Bayport Companies and area located within the Bayport Industrial District for the City of La Porte EMS to provide EMS coverage for the period from October 1, 2020 through September 30, 2023. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 N/A Source of Funds: Requested By: Corby Alexander, City Manager Department: Administration/CMO N/A Account Number: N/A Amount Budgeted: Report Resolution Ordinance Amount Requested: N/A Exhibits: Public Notice, Second Amended Project Budgeted Item: Yes No Plan & Reinvestment Zone Financing Plan, and Ordinance 2021-3825 Recent Financial Report SUMMARY & RECOMMENDATION by the City 2325. City Council subsequently approved the Project Plan and Reinvestment Zone Financing. The purpose of the finance construction of public facilities and infrastructure necessary to catalyze commercial and residential development and redevelopment within the Zone boundaries. The Original Zone covered approximately 1,362 acres and was created with the intent of encouraging residential, retail and light to business industrial uses within the Zone. At the time, the excessive costs associated with constructing a regional detention basin and channel system and oversized sanitary sewer lift stations, force mains and gravity collection lines in of the municipality and impeded the development of the area solely through private investment. A regional approach to storm water detention was also necessary due to the inherent inefficiencies in localized detention which decreased the amount of usable land, thus limiting the amount of taxable value within the area. The Zone was created as a mechanism to fund expenditures associated with the design, construction and financing of public improvements, as well as other specific project related costs. Developers have advanced funds on behalf of the TIRZ for design and construction of specific public facilities and to be reimbursed through a development reimbursement agreement. Since inception of the Zone a number of public improvements have been completed including roadways, drainage, water and sewer improvements. Residential, commercial and industrial development has occurred and values have increased to over $338 million. Of particular note, the TIRZ has provided funding for all of the public infrastructure improvements in Port Crossing, improvements to the intersection of Wharton Weems and Hwy 146, pedestrian bridge connecting the Lakes at Fairmont Green to Bayshore Elementary, and the drainage inter-connect under Wharton Weems. Additionally, TIRZ funding will be used to fund the extension of M Street, east of Powell Road, and public infrastructure in Artesia Village The Zone and the City now propose the Second Amendment to the Project Plan and Finance Plan which extends the life of the Zone an additional five (5) years, allowing the TIRZ to continue to accomplish the goals for which it was originally created and to allow adequate time to fund new projects. A public hearing is required prior to approving the Second Amended Project Plan and Finance Plan. The City advertised the public hearing notice in the Bay Area Observer on April 15, 2021. The Second Amended Project Plan and Finance Plan extends the life of the Zone an additional five years, from December 31, 2029 to December 31, 2034. The life extension allows the TIRZ to continue to accomplish the goals for which it was originally created and to allow adequate time to fund new projects. Also, it allows additional time to reimburse developers for public infrastructure improvements that have or will be constructed for residential development, including developments current underway as well as any proposed for the near future. City will still be able to de-annex portions of the TIRZ incrementally during the period extension. This de-annexation will allow the City to begin to receive revenue to the general fund. Staff has included the Second Amended to the Project Plan and Reinvestment Zone Financing Plan document which constitutes the Second Amended Project Plan and Reinvestment Zone Financing Plan as required by Chapter 311, Texas Tax Code. The purpose of the TIRZ is to facilitate the development/redevelopment of residential and commercial properties through the financing of public infrastructure and improvements. The project cost table was updated as part of this Second Amendment to allow for additional roadway, utility and parks improvements. On November 30, 2020, The TIRZ Board of Directors approved the Second Amended Project Plan and Finance Plan, which extends the life of the Zone an additional five (5) years from December 31, 2029 to December 31, 2034. Staff recommends that City Council conduct a public hearing concerning the extension of the La Porte Reinvestment Zone Number One for another five (5) years and take action on the attached Ordinance approving the Second Amendment to the Project Plan and Reinvestment Zone Financing Plan and Extending the duration of the Zone for Reinvestment Zone Number One, City of La Porte, Texas. ACTION REQUIRED BY CITY COUNCIL Conduct a Public Hearing and receive public comments concerning the Second Amendment to the Project Plan and Reinvestment Zone Financing Plan and Extending the duration of the Zone for Reinvestment Zone Number One, City of La Porte, Texas, and adopt Ordinance 2021-3825 approving the Second Amendment to the Project Plan and Reinvestment Zone Financing Plan and Extending the duration of the Zone for Reinvestment Zone Number One, City of La Porte, Texas. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date REINVESTMENTZONENUMBERONE CITYOFLAPORTE,TEXAS SECONDAMENDED PROJECTPLANANDREINVESTMENTZONEFINANCINGPLAN November30,2020 REINVESTMENTZONENUMBERONE,CITYOFLAPORTE,TEXAS SecondAmendedProjectPlanandReinvestmentZoneFinancingPlan TableofContents Introduction.....................................................................................................................................3 ProjectPlan......................................................................................................................................4 ReinvestmentZoneFinancePlan....................................................................................................5 Exhibit1ZoneRevenues,AllEntities Exhibit2AProjectedValuesandRevenues,CityOriginalZone Exhibit2BProjectedValuesandRevenues,CountyOriginalZone Exhibit2CProjectedValuesandRevenues,ISDOriginalZone Exhibit2DProjectedValuesandRevenue,City2013Annex Map1BoundaryMap Map2AerialViewofPropertyinandsurroundingtheZone Map3ExistingLandUse/PropertyClassificationofPropertyintheZone 2 Introduction TheReinvestmentZoneNumberOne,CityofLaPorte,TexaswascreatedbytheCity CounciloftheCityofLaPorte,Texasin1999byOrdinanceNo.992325.CityCouncil subsequentlyapprovedtheProjectPlanandReinvestmentZoneFinancing.Thepurposeofthe taxincrementreinvestmentzone (theistofinanceconstructionofpublicfacilitiesand infrastructurenecessarytocatalyzecommercialandresidentialdevelopmentandredevelopment withintheZoneboundaries. TheOriginalZonecoveredapproximately1,362acresandwascreatedwiththeintentof encouragingresidential,retailandlighttobusinessindustrialuseswithintheZone.Atthetime, t heexcessivecostsassociatedwithconstructingaregionaldetentionbasinandchannel systemandoversizedsanitarysewerliftstations,forcemainsandgravitycollectionlinesin accordancewiththemasterplanprohibitedthesoundgrowthofthemunicipalityand impededthedevelopmentoftheareasolelythroughprivateinvestment.Aregionalapproach tostormwaterdetentionwasalsonecessaryduetotheinherentinefficienciesinlocalized detentionwhichdecreasedtheamountofusableland,thuslimitingtheamountoftaxable valuewithinthearea. TheZonewascreatedasamechanismtofundexpendituresassociatedwiththedesign, constructionandfinancingofpublicimprovements,aswellasotherspecificprojectrelatedcosts. DevelopershaveadvancedfundsonbehalfoftheTIRZfordesignandconstructionofspecific publicfacilitiesandtobereimbursedthroughadevelopmentreimbursementagreement. th OnFebruary10,2014,byOrdinanceNo.20143509CityCouncilapprovedtheFirstAmended ProjectPlanandFinancePlanwhichexpandedtheZoneboundariestoincludeanadditional33 acresoflandandprovidefortheconstructionofpublicutilitiesandstormwaterdetention facilitiestoaccommodatedevelopmentwithintheexpandedboundaries. SinceinceptionoftheZoneanumberofpublicimprovementshavebeencompletedincluding roadways,drainage,waterandsewerimprovements.Residential,commercialandindustrial developmenthasoccurredandvalueshaveincreasedtoover$338million. TheZoneandtheCitynowproposetheSecondAmendmenttotheProjectPlanandFinancePlan whichextendsthelifeoftheZoneanadditionalfiveyears,allowingtheTIRZtocontinueto accomplishthegoalsforwhichitwasoriginallycreatedandtoallowadequatetimetofundnew projects. ThisdocumentconstitutestheSecondAmendedProjectPlanandReinvestmentZone FinancingPlanasrequiredbyChapter311,TexasTaxCode.ThepurposeoftheTIRZisto facilitatethedevelopment/redevelopmentofresidentialandcommercialpropertiesthrough thefinancingofpublicinfrastructureandimprovements. 3 ProjectPlan A. AuthorizedProjectsandProjectCosts TheprojectcostsfortheSecondAmendmentaredetailedin Table1.Thedollaramounts foreachcategoryareapproximateandmaybeamendedfromtimetotimebytheBoard ofDirectorsoftheZonewithapprovaloftheCityCouncil. Table1EstimatedProjectCosts SecondAmendment Roadways$5,000,000.00 Utility$5,000,000.00 ParkandRecreationImprovements$10,000,000 TotalProjectCosts20,000,000.00$ B. ExistingandProposedUsesofLand(TexasTaxCode§311.011(b)(1)): TaxIncrementReinvestmentZoneNumberOne,CityofLaPorteconsistsof propertygenerallylocatedalongtheeastandwestsideofStateHighway146southof FairmontParkway.TheZonealsoincludespropertynearSylvanBeachPark.Existinguses withintheZoneconsistsofvacant/undeveloped,residential,commercial,andlight industrialuses.Surroundinglandusesinclude Maps2&3 showexistingusesand conditionswithintheZone.Proposedusesincluderesidential,commercial,industrialand undevelopedlanduses. C. ProposedChangesofZoningOrdinances,MasterPlanofMunicipality,BuildingCodes, andOtherMunicipalOrdinances(TexasTaxCode§311.011(b)(2)): Allconstructionwillbedoneinconformancewithexistingbuildingcoderegulationsof theCityofLaPorte.Therearenoproposedchangesofanycitydevelopmentordinances, masterplans,orbuildingcodes. D. EstimatedNonProjectCosts(TexasTaxCode§311.011(b)(3)): Theprojectcostsreferencedin Table1 areinclusiveofprojectcoststobeincurredbythe Zoneonly.Thecoststhatwouldotherwisebeprojectcostsbutarederivedfromother parties,suchastheCityofLaPorte,theTexasDepartmentofTransportationorprivate sources,arenonprojectcosts.Fundingidentifiedin Table1 forimprovementswillbe leveragedtoacquirenonprojectfunding. E. MethodofRelocatingPersonstobeDisplaced,ifany,asaresultofimplementingthe Plan(TexasTaxCode§311.011(b)(4)): Therewillbenopersonsdisplacedasaresultofimplementingtheplan. 4 ReinvestmentZoneFinancePlan A. EstimatedProjectCosts(TexasTaxCode§311.011(c)(1)): Table1 liststheestimatedprojectcostsfortheZone.AssetforthinthisPlan,thedollar amountsareapproximateandmaybeamendedfromtimetotimebytheBoardof DirectorsoftheZonewithapprovaloftheCity Council.Thefinancingcostsareafunction ofprojectfinancingneedsandwillvarywithmarketconditionsfromtheestimatesshown in Table1. B. ProposedKind,Number,andLocationofallProposedPublicWorksorPublic ImprovementstobeFinancedbytheZone(TexasTaxCode§311.011(c)(2)): ThesedetailsaredescribedthroughoutthePlan,includingbutnotlimitedtoroadway construction/reconstruction,stormwaterconveyanceandmanagementsystems,water andwastewaterimprovementsandparksandrecreationfacilities.Thenumberand locationofproposedimprovementsarecontainedin Table1. C. EconomicFeasibility(TexasTaxCode§311.011(c)(3)): Theoriginalplanpreparedin1999evaluatedtheeconomicpotentialoftheZone.The analysisdeterminedthattheareawithintheboundariesoftheZonesubstantiallyarrests andimpairsgrowthoftheCity,slowsdowntheprovisionofhousingaccommodationsand commercialdevelopmentandconstitutesaneconomicandsocialliability.Atthetimeof creation,theareaincludedintheTIRZwaspredominatelyopenandconsistedofproperty withdefectivetitlesanddelinquenttaxes.Theseconditionsalongwiththeenormous costofinfrastructureimprovementsincludingdrainageandsewer,impededthesound growthanddevelopmentofthearea.Asaresultitwasdeterminedthattheareawould benefitfromaTaxIncrementReinvestmentZone,whichfacilitatesinfrastructure improvementsandprojects.Theseimprovementswouldfacilitateresidentialand commercialdevelopmentinthearea. Exhibit1 constitutesincrementalrevenueestimatesforthisPlan.Theincremental revenueestimatesareprojectedtobesufficienttocoverthecostofproposed improvements.TheZoneandtheCityfindanddeterminethatthePlaniseconomically feasible. D. EstimatedAmountofBondIndebtedness;EstimatedTimeWhenRelatedCostsor MonetaryObligationsIncurred(TexasTaxCode§311.011(c)(4),§311.011(c)(5)): IssuanceofnotesandbondsbytheZonemayoccurastaxincrementrevenuesallow.The valueandtimingoftheissuanceofnotesorbondswillcorrelatetodebtcapacityas derivedfromtheprojectsandrevenueschedulesincludedin Table1 and Exhibit1,as wellasactualmarketconditionsfortheissueandsaleofsuchnotesandbonds. E. MethodsandSourcesofFinancingProjectCostsandPercentageofIncrementfrom TaxingUnitsAnticipatedtoContributeTaxIncrementtotheZone(TexasTaxCode§ 311.011(c)(6)): Methodsandsourcesoffinancingincludetheissuanceofnotesandbonds,developer advances,aswellascollaborationwiththecity,andotherentitiesforgrantfundingand partnerships.TaxincrementwillconsistofcontributionsfromtheCity,CountyandLa PorteIndependentSchoolDistrict.Thetaxingentitiesparticipateatthefollowingrates: 5 CityofLaPorte 100%ofitstaxrate HarrisCounty 75%ofitstaxrate LaPorteISD 100%ofitstaxrate,$0.86/100oftheISDtaxrategoestowardsTIRZprojectswith theremaindergoingtowardseducationalfacilities *LaPorteISDwillnotparticipateintheextensionofthelifeoftheZone. F. CurrentTotalAppraisedValueofTaxableRealProperty(TexasTaxCode§ 311.011(c)(7)): ThecurrentCitytaxableappraisedvalueoftaxablerealpropertyintheZoneis$356.3 million. G. EstimatedCapturedAppraisedValueofZoneDuringEachYearofExistence(TexasTax Code§311.011(c)(8)): TheestimatedcapturedappraisedvalueoftheZoneduringeachremainingyearof existenceiscontainedin Exhibit1. H. ZoneDuration(TexasTaxCode§311.011(c)(9)): TheZonewasestablishedbytheCityin1999andwillterminateonDecember31,2034. LaPorteparticipationintheZonewillendonDecember31,2029.TheZonemay terminateatanearliertimedesignatedbysubsequentordinance,oratsuchtime, subsequenttotheissuanceofproposedrevenuebonds,notesorotherobligations,ifany, thatallprojectcosts,bonds,andinterestonbondshavebeenpaidinfull. 6 Entities All 1 Revenues, Exhibit Zone Projected Zone Original City 2A Revenues, Exhibit and Values Projected Zone Original County, 2B Exhibit Revenues and Values Projected Zone Original ISD 2C Revenues Exhibit and Values Projected Annex 2013 City 2D Revenue, Exhibit and Values Projected Map1 ZoneBoundary Map2 ZoneBoundaryAerialView Map3 ZoneBoundaryPropertyClassification City of La Porte, Texas, Ordinance No. 2021 - 3825 AN ORDINANCE APPROVING THE SECOND AMENDMENT TO THE PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN FOR REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS, AND EXTENDING THE DURATION OF REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS, TO DECEMBER 31, 2034; AUTHORIZING THE CITY SECRETARY TO DISTRIBUTE SUCH PLANS; CONTAINING FINDINGS AND PROVISIONS RELATED TO THE FOREGOING SUBJECT; PROVIDING FOR SEVERABILITY; CONTAINING AN OPEN MEETINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of La Porte ("City") pursuant to the provisions of Chapter 311, Texas Tax Code, and Ordinance 99-2325, created Reinvestment Zone Number One, City of La Porte, Texas, (the "Zone"); and WHEREAS, the Board of Directors of the Zone has adopted and recommended, and the City has approved, the Project Plan and Reinvestment Zone Financing Plan (the ''Plan") for the Zone; and WHEREAS, the Board of Directors of the Zone has adopted and recommended, and the City has approved the 2013 Amendment to the Project Plan and Reinvestment Zone Financing Plan for Tax Increment Reinvestment Zone Number One that reflects the enlargement of the Zone Boundaries, and WHEREAS, in the said Ordinance 99-2325, the effective date specified for the Zone was January 1, 2000, and the termination date specified for the Zone was December 31, 2029, establishing a 30-year duration; and WHEREAS, pursuant to Texas Tax Code Sections 311.007(c) and 311.017(a)(l), the City Council may, by ordinance, extend a reinvestment zone's termination date to a date later than the date originally established for termination of a zone; and WHEREAS, at its November 30, 2020, board meeting, the Board of Directors of the Zone considered and adopted the Second Amendment to the Plan that extends the duration of the Zone to December 31, 2034 ("Second Amendment"), and has recommended the Second Amendment for approval by the City; and WHEREAS, Texas Tax Code Section 311.003(c) provides that the City publish notice of a public hearing not later than the seventh (7) day before the date of the public hearing in a newspaper having general circulation in the municipality; and WHEREAS, the City Council, pursuant to Texas Tax Code Sections 311.003 and 311.011, after public notice thereof was given in a newspaper of general circulation of the City, conducted a public hearing on April 26, 2021, at which property owners and other interested persons were allowed to speak, and finds that the amendments herein do not violate the limitations in Section 311.006(a) of the Texas Tax Code and are eligible for adoption under said Code. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS THAT: Section 1. Findings. The findings and recitals contained in the preamble of this Ordinance are hereby found and declared to be true and correct and are adopted as part of this Ordinance for all purposes. Section 2. Extension of the Duration of the Zone. That the termination date of Reinvestment Zone Number One, City of La Porte, Texas, is hereby extended to December 31, 2034. Section 3. Approval of the Second Amendment. The Second Amendment, attached hereto as Exhibit "A", is hereby determined to be feasible and is approved. The appropriate officials of the City are authorized to take all steps reasonably necessary to implement the Second Amendment. Section 4. Severability. If any provision, section, subsection, sentence, clause or phrase of this Ordinance, or the application of same to any person or set of circumstances is for any reason be held to be unconstitutional, void or invalid, the validity of the remaining provisions of this Ordinance shall not be affected thereby, it being the intent of the City Council in adopting this Ordinance that no portion hereof or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionally, voidness or invalidity of any other portion hereof, and all provisions of this Ordinance are declared to be severable for that purpose. Section 5. Open Meeting. 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 for the time required by law preceding this meeting, as required by the Open Meetings Law, TEX. T CODE, Ch. 551; and that this meeting was open to the public as required by law at all times during which this Ordinance and the subject matter thereof was discussed, considered and acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 6. Effective Date. This Ordinance shall be effective upon its passage and approval. PASSED, APPROVED AND ADOPTED ON THIS DAY OF ________, 2021 CITY OF LA PORTE, TEXAS By: Louis R. Rigby, Mayor ATTEST: Lee Woodward, City Secretary APPROVED AS TO FORM: Clark Askins, Assistant City Attorney EXHIBIT A NOTICE OF PUBLIC HEARING FOR EXTENSION OF DURATION OF REINVESTMENT ZONE NUMBER ONE, LA PORTE, TEXAS, UNTIL DECEMBER 31, 2034, AND APPROVAL OF SECOND AMENDED PROJECT PLAN AND FINANCE PLAN FOR REINVESTMENT ZONE NUMBER ONE, LA PORTE, TEXAS, PURSUANT TO CHAPTER 311, TEXAS TAX CODE. Notice is hereby given that the City Council of the City of La Porte, Texas will hold a public hearing at its meeting on April 26, 2021, which begins at 6:00 p.m. at City Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, for extension of the duration Reinvestment Zone Number One, La Porte, Texas, until December 31, 2034, and approval of the Second Amended Project Plan and Finance Plan for Reinvestment Zone Number One, La Porte, Texas. All residents and property owners are invited to provide comments for or against the extension of the duration of Reinvestment Zone Number One, La Porte, Texas, or the concept of tax increment financing in general. At or on the adjournment of the public hearing, the City may extend the duration of the Zone for Reinvestment Zone Number One, La Porte, Texas, until December 31, 2034. A copy of the Second Amended Project Plan and Finance Plan may be obtained in the City Office. REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 N/A Source of Funds: Requested By: Corby Alexander, City Manager Department: Administration/CMO N/A Account Number: N/A Amount Budgeted: Report Resolution Ordinance Amount Requested: N/A Exhibits: Public Hearing Notice, Location Map, Budgeted Item: Yes No Information Sheet & Resolution 2021-40 SUMMARY & RECOMMENDATION A developer has approached the City of La Porte concerning the development of approximately +/- 56.7 acres at the corner of Wharton Weems and State Highway 146. The developer is requesting the City Council approve the creation of Public Improvement District Number Two would be approximately +/-56.7 acres representing the entirety of the proposed residential subdivision that will be developed in several sections containing 250 lots. The land is located at the intersection of State Highway 146 and Wharton Weems Boulevard as shown on the attached map. Also, PID No. 2 will be located within La Porte TIRZ No. 1. The above referenced tract was included in La Porte PID No. 1, which was created in 2008. This PID was created but never fully implemented. No assessments were made to any of the properties south of Wharton Weems. The PID currently for consideration would replace the original but exclude property south of Wharton Weems. Included in this packet is information considered by City Council in 2008 when the original PID was established. Purpose The purpose of the PID is to assist the developer with public infrastructure costs. Through the PID, the developer will recover certain costs through an assessment on each lot. The La Porte TIRZ No. 1 will also be used to reimburse for public infrastructure, including water, sewer, and drainage for the subdivision; however, the TIRZ has only 9 years remaining and does not have the capacity to cover all of those costs so a PID assessment is being sought to cover any remaining infrastructure costs. Please note, staff will bring an agenda item to the City Council to consider extending the TIRZ by 5 years. Assessment Rate The PID assessment is expected to be approximately $1,925 per lot per year on the larger lots, or the equivalent of a 70-cent tax rate (per $100) on a $275,000 home. The assessment will be $1,505 on the smaller lots, or the equivalent of a 70-cent tax rate (per $100) on $215,000 homes. Included in the annual payment are financing and interest costs allowing for a level annual payment over the proposed thirty (30) year term of the PID. For planning purposes, the principal amount for each lot equals $27,653 (larger lots) and $21,131 (smaller lots) and the interest rate on financed assessments is 3%. The principal amount of the assessment will be payable at any time by the homeowners which would terminate the assessment, and an amortization schedule will be kept for each property covered by the assessment to track annual payments and the outstanding principal balance. Total assessments (principal and interest), if paid over 30 years, would range $45,150 and $57,750. Disclosure Proper disclosure notices detailing the assessment will be presented to potential homebuyers by the builders, and for acknowledgement at closing in the same manner as disclosure notices used in MUDs and other special districts with an ad valorem tax rate. Public Notice Public Notice of a public hearing was published in The Bay Area Observer, a local newspaper of general circulation on March 18, 2021. On April 12, 2021, the City Council conducted a public hearing to receive comments considering the advisability of the creation of a public improvement district to make certain improvements over certain property located within the corporate limits of the City of La Porte. The planned improvements are the construction of public water, sanitary sewer, drainage facilities, street paving, engineering, financing, and related costs and improvement within the PID No. 2. The estimated costs of the improvements, including financing, are $13.5 million over the life of the PID. The proposed method of assessment is by value, per lot, or per square foot of benefited property. The proposed apportionment of cost is 100% to the PID and 0% to the municipality as a whole. Development Agreement City staff in coordination with the TIRZ Board have been working with the developer on an agreed-upon reasonable development agreement. The La Porte Redevelopment Board/TIRZ Board will consider the formal approval of the development agreement at a future Board meeting. Actions Required by City Council: 1. Resolutions Required A total of two (2) separate Resolutions must be considered by City Council as part of the process in the creation of the La Porte PID No. 2. Each of the Resolutions must be considered for approval in specific order with the Consideration of Findings of Fact first, then theConsideration of Creating the PID: a. Consideration of Resolution of Findings of Fact City Council would need to approve a resolution making findings in connection with the proposed City of La Porte PID No. 2 related to the advisability of the improvements, the nature of the improvements, the estimated cost of the improvements, the boundaries of the proposed district, the method of assessment and the apportionment of cost between the PID N. 2 and the City as a whole, and making other findings related to the PID No. 2. b. Consideration of the Resolution Creating the PID Once a resolution of findings of fact has been approved, the City Council would need to approve a resolution authorizing the establishment of the City of La Porte PID No. 2 in the City of La Porte, Texas. Additionally, the resolution would authorize publication of this resolution, providing for the preparation of service and assessment plan, and make other provisions related to the creation of the PID No. 2. 2. Service and Assessment Plan - If created, the PID would still need City Council approval of the Service and Assessment Plan and all Assessment Rolls (i.e. no assessments can be implemented without City Council approval). The District Administrator will write the Service and Assessment Plans and formulate the Assessment Rolls for consideration by City Council. The District Administrator will work with the City and the Harris County Tax Assessor to have the assessments placed on the County tax bills. The PID assessments will be collected on an annual basis in the same manner as property taxes and transferred to a City-established PID revenue fund. Staff recommends the La Porte City Council approve Resolution 2021-40 Consideration of Findings of Fact related to the creation of a public improvement district to make certain improvements on the +/- 56.7 acres at the corner of Wharton Weems and State Highway 146 Frontage Road in La Porte, Texas. ACTION REQUIRED BY CITY COUNCIL Approve or deny Resolution 2021-40 making findings in connection with the proposed City of La Porte PID No. 2 related to the advisability of the improvements, the nature of the improvements, the estimated cost of the improvements, the boundaries of the proposed district, the method of assessment and the apportionment of cost between the PID No. 2 and the City as a whole, and making other findings related to the PID No. 2. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date City of La Porte Resolution No. 2021-40 A RESOLUTION MAKING FINDINGS IN CONNECTION WITH THE PROPOSED CITY OF LA PORTE PUBLIC IMPROVEMENT DISTRICT NUMBER TWO RELATED TO THE ADVISABILITY OF THE IMPROVEMENTS, THE NATURE OF THE IMPROVEMENTS, THE ESTIMATED COST OF THE IMPROVEMENTS, THE BOUNDARIES OF THE PROPOSED DISTRICT, THE METHOD OF ASSESSMENT AND THE APPORTIONMENT OF COST BETWEEN THE DISTRICT AND THE CITY AS A WHOLE; AND MAKING OTHER FINDINGS RELATED TO THE DISTRICT. WHEREAS, the City of La Porte City Council is authorized to create a public improvement district the City has received a petition from certain landowners within the City requesting the creation of a public improvement district; and WHEREAS, notice of a public hearing to consider the advisability of establishing the proposed district was published in The Bay Area Observer a local newspaper of general circulation on March 18, 2021; the place, City Council Chambers, La Porte, Texas, the general nature of the proposed improvements; the boundaries of the proposed district; and the proposed method of assessment; and the proposed apportionment of cost between the district and the City as a whole; and WHEREAS, written notice of the public hearing to consider advisability of establishing the district was sent timely to the current address, so reflected on the tax rolls, of the owners of property subject to assessment under the proposed district; and WHEREAS, the public hearing was held with all interested parties having been given the opportunity to be heard; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council, having duly considered the petition submitted by property owners in the proposed district and the comments of those who made presentations at the public hearing on April 12, 2021, hereby finds as follows: (1) It will promote the interests of the City to create the City of La Porte Public Improvement District Number Two Government Code for the purposes herein described. (2) It is advisable that the proposed improvement project be provided in the District and the City exercise the powers granted by Chapter 372, Texas Local Government Code, in connection with the establishment of the District, including the carrying out of the improvement project described below that will confer special benefits on property in the District and to levy and collect a special assessment on property in the District, based on the benefit conferred by such project, to pay all of the costs of such improvements. (3) The general nature of the public improvements in the District is set forth below. (a) The improvements include engineering and construction of water, wastewater, storm sewer facilities, detention, paving, common areas and amenities, and other improvements, creation and administration costs, and interest. (4) The estimated costs of the public improvements over the life of the PID are a total of $13,500,000.00. (5) The boundaries of the District are fully described in Exhibit A attached hereto. (6) The proposed methods of assessment is as follows: (a) The assessment for the Public Improvements is proposed to be by value, lot, or according to the square footage of property without regard to improvements on the property. (7) The proposed method of apportionment of the cost of the improvements between the District and the City as a whole is as follows: (a) The District will bear 100 percent of the costs of the percentage of the Public Improvements that will be reimbursed by assessment on the property. Section 2. This Resolution shall be passed finally on the date of its introduction and shall take effect immediately upon its passage and approval. PASSED AND ADOPTED this _____ day of ___________________, 2021. ________________________ Louis R. Rigby, Mayor Attest: __________________________________ Lee Woodward, City Secretary EXHIBIT A tǒĬƌźĭ LƒƦƩƚǝĻƒĻƓƷ 5źƭƷƩźĭƷ ΛtL5Μ bƚ͵ Ћ \[ƚĭğƷźƚƓ /ƚǒƓĭźƌ LƷĻƒ LƓŅƚƩƒğƷźƚƓ {ŷĻĻƷ Ώ tƩƚƦƚƭĻķ /źƷǤ ƚŅ \[ğ tƚƩƷĻ tǒĬƌźĭ LƒƦƩƚǝĻƒĻƓƷ 5źƭƷƩźĭƷ ΛtL5Μ bǒƒĬĻƩ Ǟƚ ΛtƩƚƦƚƭĻķ {ǒĬķźǝźƭźƚƓΜ Council Action Requested th It is requested that City Council hold a public hearing on April 12 to approve the proposed PID through adoption of the findings and creation resolutions. Area Public Improvement District Number Two would be approximately 56.7 acres representing the entirety of the proposed residential subdivision that will be developed in several sections containing 250 lots. The land is located at the intersection of State Highway 146 and Wharton Weems Boulevard as shown on the attached map. PID 2 will also be located within La Porte TIRZ No. 1. Purpose The purpose of the PID is to assist the developer with public infrastructure costs. This arrangement is similar to a municipal utility district (MUD) and the MUD tax used for the same purpose. Through the PID, the developer will recover certain costs through an assessment on each lot (including street paving and landscaping). La Porte TIRZ No. 1 will be used to reimburse for a certain percentage of the water, sewer, and drainage for the subdivision; however, the TIRZ has only 14 years remaining and does not have the capacity to cover all of those costs so a certain amount will be included in the PID assessment. Assessment Rate The PID assessment is expected to be approximately $1,934 per lot per year on the larger lots, or the equivalent of a 70- cent tax rate on a $275,000 home. The assessment will be $1,495 on the smaller lots, or the equivalent of a 70-cent tax rate on $215,000 homes. Included in the annual payment are financing and interest costs allowing for a level annual payment over the proposed thirty (30) year term of the PID. For planning purposes, the principal amount for each lot equals $27,653 (larger lots) and $21,131 (smaller lots) and the interest rate on financed assessments is 3%. The principal amount of the assessment will be payable at any time by the homeowners which would terminate the assessment, and an amortization schedule will be kept for each property covered by the assessment to track annual payments and the outstanding principal balance. Disclosure Proper disclosure notices detailing the assessment will be presented to potential homebuyers by the builders, and for acknowledgement at closing in the same manner as disclosure notices used in MUDs and other special districts with an ad valorem tax rate. Future Actions If created, the PID would still need City Council approval of the Service and Assessment Plan and all Assessment Rolls (i.e. no assessments can be implemented without City Council approval). The District Administrator will write the Service and Assessment Plans and formulate the Assessment Rolls for consideration by City Council. The District Administrator will work with the City and the Harris County Tax Assessor to have the assessments placed on the County tax bills. The PID assessments will be collected on an annual basis in the same manner as property taxes and transferred to a City- established PID revenue fund. REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: April 26, 2021 N/A Source of Funds: Requested By: Corby Alexander, City Manager Department: Administration/CMO N/A Account Number: N/A Amount Budgeted: Report Resolution Ordinance Amount Requested: N/A Exhibits: Public Hearing Notice, Location Map, Budgeted Item: Yes No Information Sheet & Resolution 2021-41 SUMMARY & RECOMMENDATION A developer has approached the City of La Porte concerning the development of approximately +/- 56.7 acres at the corner of Wharton Weems and State Highway 146. The developer is requesting the City Council approve the creation of Public Improvement District Number Two would be approximately +/-56.7 acres representing the entirety of the proposed residential subdivision that will be developed in several sections containing 250 lots. The land is located at the intersection of State Highway 146 and Wharton Weems Boulevard as shown on the attached map. Also, PID No. 2 will be located within La Porte TIRZ No. 1. The above referenced tract was included in La Porte PID No. 1, which was created in 2008. This PID was created but never fully implemented. No assessments were made to any of the properties south of Wharton Weems. The PID currently for consideration would replace the original but exclude property south of Wharton Weems. Included in this packet is information considered by City Council in 2008 when the original PID was established. Purpose The purpose of the PID is to assist the developer with public infrastructure costs. Through the PID, the developer will recover certain costs through an assessment on each lot. The La Porte TIRZ No. 1 will also be used to reimburse for public infrastructure, including water, sewer, and drainage for the subdivision; however, the TIRZ has only 9 years remaining and does not have the capacity to cover all of those costs so a PID assessment is being sought to cover any remaining infrastructure costs. Please note, staff will bring an agenda item to the City Council to consider extending the TIRZ by 5 years. Assessment Rate The PID assessment is expected to be approximately $1,925 per lot per year on the larger lots, or the equivalent of a 70-cent tax rate (per $100) on a $275,000 home. The assessment will be $1,505 on the smaller lots, or the equivalent of a 70-cent tax rate (per $100) on $215,000 homes. Included in the annual payment are financing and interest costs allowing for a level annual payment over the proposed thirty (30) year term of the PID. For planning purposes, the principal amount for each lot equals $27,653 (larger lots) and $21,131 (smaller lots) and the interest rate on financed assessments is 3%. The principal amount of the assessment will be payable at any time by the homeowners which would terminate the assessment, and an amortization schedule will be kept for each property covered by the assessment to track annual payments and the outstanding principal balance. Total assessments (principal and interest), if paid over 30 years, would range $45,150 and $57,750. Disclosure Proper disclosure notices detailing the assessment will be presented to potential homebuyers by the builders, and for acknowledgement at closing in the same manner as disclosure notices used in MUDs and other special districts with an ad valorem tax rate. Public Notice Public Notice of a public hearing was published in The Bay Area Observer, a local newspaper of general circulation on March 18, 2021. On April 12, 2021, the City Council conducted a public hearing to receive comments considering the advisability of the creation of a public improvement district to make certain improvements over certain property located within the corporate limits of the City of La Porte. The planned improvements are the construction of public water, sanitary sewer, drainage facilities, street paving, engineering, financing, and related costs and improvement within the PID No. 2. The estimated costs of the improvements, including financing, are $13.5 million over the life of the PID. The proposed method of assessment is by value, per lot, or per square foot of benefited property. The proposed apportionment of cost is 100% to the PID and 0% to the municipality as a whole. Development Agreement City staff in coordination with the TIRZ Board have been working with the developer on an agreed-upon reasonable development agreement. The La Porte Redevelopment Board/TIRZ Board will consider the formal approval of the development agreement at a future Board meeting. Actions Required by City Council: 1. Resolutions Required A total of two (2) separate Resolutions must be considered by City Council as part of the process in the creation of the La Porte PID No. 2. Each of the Resolutions must be considered for approval in specific order with the Consideration of Findings of Fact first, then the Consideration of Creating the PID: a. Consideration of Resolution of Findings of Fact City Council would need to approve a resolution making findings in connection with the proposed City of La Porte PID No. 2 related to the advisability of the improvements, the nature of the improvements, the estimated cost of the improvements, the boundaries of the proposed district, the method of assessment and the apportionment of cost between the PID No. 2 and the City as a whole, and making other findings related to the PID No. 2. b. Consideration of the Resolution Creating the PID Once a resolution of findings of fact has been approved, the City Council would need to approve a resolution authorizing the establishment of the City of La Porte PID No. 2 in the City of La Porte, Texas. Additionally, the resolution would authorize publication of this resolution, providing for the preparation of service and assessment plan, and make other provisions related to the creation of the PID No. 2. 2. Service and Assessment Plan - If created, the PID would still need City Council approval of the Service and Assessment Plan and all Assessment Rolls (i.e. no assessments can be implemented without City Council approval). The District Administrator will write the Service and Assessment Plans and formulate the Assessment Rolls for consideration by City Council. The District Administrator will work with the City and the Harris County Tax Assessor to have the assessments placed on the County tax bills. The PID assessments will be collected on an annual basis in the same manner as property taxes and transferred to a City-established PID revenue fund. Staff recommends the La Porte City Council approve Resolution 2021-41 Consideration of Creation of the PID to make certain improvements on the +/- 56.7 acres at the corner of Wharton Weems and State Highway 146 Frontage Road in La Porte, Texas. ACTION REQUIRED BY CITY COUNCIL Approve or deny Resolution 202141 authorizing the establishment of the City of La Porte PID No. 2 in the City of La Porte, Texas. Additionally, the resolution would authorize publication of this resolution, providing for the preparation of service and assessment plan, and make other provisions related to the creation of the PID No. 2. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date City of La Porte Resolution No. 2021-41 A RESOLUTION AUTHORIZING THE ESTABLISHMENT OF THE CITY OF LA PORTE PUBLIC IMPROVEMENT DISTRICT NUMBER TWO IN THE CITY OF LA PORTE, TEXAS; AUTHORIZING PUBLICATION OF THIS RESOLUTION, PROVIDING FOR THE PREPARATION OF A SERVICE AND ASSESSMENT PLAN; AND MAKING OTHER PROVISIONS RELATED TO THE SUBJECT. ***** WHEREAS, the City of La Porte City Council is authorized to create a public improvement district for the purpose described therein, and the City has received a petition from certain landowners within the City requesting the creation of a public improvement district; and WHEREAS, the City Council held a public hearing on April 12, 2021 notice of which was published and mailed to property owners of the proposed district pursuant to Section 372.009 of the Code; and WHEREAS, the City Council has made findings by resolution as to the advisability of the proposed improvement project, the nature of the improvements, the boundaries of the proposed public improvement district, the estimated cost, the method of assessment and the apportionment of cost between the improvement district and the City as a whole, as required by Chapter 372 of the Code; and WHEREAS, the City Council has determined that it should proceed with the creation of the Green Trails Public Improvement District and the provision of public improvements proposed to be provided thereby; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The facts recited in the preamble hereto are hereby found to be true and correct. Section 2. The City of La Porte Public Improvement District Number Two authorized to be and is hereby established as a public improvement district under the provisions of Chapter 372 of the Code over the land currently included within the boundaries of the City of La Porte, Texas, as more fully described in Exhibit A attached hereto, all in accordance with the findings made by the City Council in Section 1 of Resolution No. 2021-40 passed and approved on April 26, 2021. Section 3. The City Secretary is hereby directed to give notice of the authorization for establishment of the District by publishing the resolution once in at least one local newspaper of general circulation in the City. The authorization and establishment of the District shall be deemed to be effective upon the publication of the notice directed by this section. Section 4. The City Council hereby directs the District Administrator to prepare a service and assessment plan for review and approval of the City Council in accordance with Chapter 372 of the Code. Section 5. The District shall not provide any improvements until at least 20 days after authorization of the District takes effect. Such services shall not begin if during such period a petition is filed pursuant to section 372.010(c) of the Code. Section 6. effect immediately upon its passage and approval. PASSED AND ADOPTED this _____ day of ____________________, 2021. ______________________________ Louis R. Rigby, Mayor Attest: _________________________________ Lee Woodward, City Secretary EXHIBIT A tǒĬƌźĭ LƒƦƩƚǝĻƒĻƓƷ 5źƭƷƩźĭƷ ΛtL5Μ bƚ͵ Ћ \[ƚĭğƷźƚƓ /ƚǒƓĭźƌ LƷĻƒ LƓŅƚƩƒğƷźƚƓ {ŷĻĻƷ Ώ tƩƚƦƚƭĻķ /źƷǤ ƚŅ \[ğ tƚƩƷĻ tǒĬƌźĭ LƒƦƩƚǝĻƒĻƓƷ 5źƭƷƩźĭƷ ΛtL5Μ bǒƒĬĻƩ Ǟƚ ΛtƩƚƦƚƭĻķ {ǒĬķźǝźƭźƚƓΜ Council Action Requested th It is requested that City Council hold a public hearing on April 12 to approve the proposed PID through adoption of the findings and creation resolutions. Area Public Improvement District Number Two would be approximately 56.7 acres representing the entirety of the proposed residential subdivision that will be developed in several sections containing 250 lots. The land is located at the intersection of State Highway 146 and Wharton Weems Boulevard as shown on the attached map. PID 2 will also be located within La Porte TIRZ No. 1. Purpose The purpose of the PID is to assist the developer with public infrastructure costs. This arrangement is similar to a municipal utility district (MUD) and the MUD tax used for the same purpose. Through the PID, the developer will recover certain costs through an assessment on each lot (including street paving and landscaping). La Porte TIRZ No. 1 will be used to reimburse for a certain percentage of the water, sewer, and drainage for the subdivision; however, the TIRZ has only 14 years remaining and does not have the capacity to cover all of those costs so a certain amount will be included in the PID assessment. Assessment Rate The PID assessment is expected to be approximately $1,934 per lot per year on the larger lots, or the equivalent of a 70- cent tax rate on a $275,000 home. The assessment will be $1,495 on the smaller lots, or the equivalent of a 70-cent tax rate on $215,000 homes. Included in the annual payment are financing and interest costs allowing for a level annual payment over the proposed thirty (30) year term of the PID. For planning purposes, the principal amount for each lot equals $27,653 (larger lots) and $21,131 (smaller lots) and the interest rate on financed assessments is 3%. The principal amount of the assessment will be payable at any time by the homeowners which would terminate the assessment, and an amortization schedule will be kept for each property covered by the assessment to track annual payments and the outstanding principal balance. Disclosure Proper disclosure notices detailing the assessment will be presented to potential homebuyers by the builders, and for acknowledgement at closing in the same manner as disclosure notices used in MUDs and other special districts with an ad valorem tax rate. Future Actions If created, the PID would still need City Council approval of the Service and Assessment Plan and all Assessment Rolls (i.e. no assessments can be implemented without City Council approval). The District Administrator will write the Service and Assessment Plans and formulate the Assessment Rolls for consideration by City Council. The District Administrator will work with the City and the Harris County Tax Assessor to have the assessments placed on the County tax bills. The PID assessments will be collected on an annual basis in the same manner as property taxes and transferred to a City- established PID revenue fund. REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation April 26, 2021 Agenda Date Requested: Requested By: Louis R. Rigby, Mayor Source of Funds: Department: City Council Account Number: Amount Budgeted: Report Resolution Ordinance Amount Requested: Exhibits: None Budgeted Item: Yes No SUMMARY & RECOMMENDATION Each session, the Texas Legislature considers passage of bills affecting municipalities. Listed below are several that have been highlighted as potentially having impact on the City of La Porte. Attached are the proposed forms of the bills. Should the Council wish correspondence to be sent from the Mayor or on behalf of the full Council or like to have a resolution for a future meeting to be prepared, such motions would be in order to clarify the action to be taken. S.B. 1661 (Bettencourt) The bill proposes that cities shall hold their general elections on the November uniform election date of even-numbered years. All positions would be either two- or four-year terms and either half or all of the body would be elected at the same time. The City had its likely highest voter turnout ever (over 14,000 voters checked in, although around 3,000 chose not to vote in all the City races) in November 2020, when elections. The City had three races on the ballot, one which was unopposed, and no propositions, for which Harris County invoiced the City $63,344 (the City has not been invoiced for the runoff). The City has little to no flexibility in a county election in terms of selecting polling locations, quantity of election workers, and extended polling times and days. at https://capitol.texas.gov/tlodocs/87R/billtext/html/SB01661I.htm. As of April 20, the bill had not been heard in committee. S.B. 10 (Bettencourt): S.B. 10 would prevent a city from hiring staff, contracting with lobbyists or other professional advocates, or joining associations like the Texas Municipal League that engage in advocacy at the state capitol. Specifically, the bill would provide: The governing body of a county or municipality may not spend public money or provide compensation in any manner to directly or indirectly influence or attempt to influence the outcome of any legislation pending before the legislature T bill, nor is it defined in existing state law. While directly influencing the outcome of legislation would encompass traditional communications with members of the legislature and staff, communications and activities. S.B. 10 would prohibit TML, for instance, from providing its members information about a bill, since doing so could potentially influence the outcome of the legislation. The bill contains three exceptions to the general prohibition on community advocacy listed above. Those exceptions are: 1. Allowing an elected official to advocate for or against or otherwise influence or attempt to influence the outcome of legislation pending before the legislature; 2. Allowing an officer or employee of a city to provide information to a member of the legislature or appear before a legislative committee, but only if requested by the member of the legislature or committee; 3. Allowing an employee to advocate for or against or otherwise influence or attempt to influence the outcome of legislation, but only if the employee engages in a minimal amount of lobbying activity so as not to be required to register as a lobbyist under state law. H.B. 1869 (Bonnen): H.B. 1869 service property tax rate calculation to only include debt approved at an election. This means that tax-supported debt obligations that are not approved at an election, like certificates of obligation, time warrants, anticipation notes, and certain financing agreements must be paid The impact of this minor statutory change would be significant for many cities, including La Porte. Cities would almost certainly stop using some of the more flexible means of debt financing that are currently available to them. We would also not be able to benefit from Texas Water Development Board (TWDB) subsidized financing options (which require the issuance of Cos). You may recall that the Lomax Lift Station Consolidation project is funded through subsidized TWDB financing that will save the City over $1 million. Additionally, La Porte has traditionally not issue debt supported by utility fund revenue, preferring to use CO bonds to fund utility related capital improvement projects. La Porte will only be able to issue tax-supported debt through general obligation bonds, which are approved by the voters at an election on one of two uniform election dates. Doing so for all tax-supported debt means both more administrative costs in issuing the debt through increased payments to bond counsel and financial advisors, in addition to a notably less- nimble governing body, ie we will be less able to take advantage of changes in bond market or interest rates. Lastly, as written, this legislation would impact our ability to issue refunding debt or refinance exist debt. H.B. 753 (Cain) Solid Waste: would prohibit a city from: (1) charging a person granted a franchise to provide solid waste management services in the city franchise fees of more than two percent of the gross receipts of the franchisee for the sale of services in the city; and (2) restricting the right of an entity to contract with a person other than the city, or an exclusive franchisee of the city, for solid waste management services for commercial, industrial, or multifamily residential waste. This bill would cut solid waste franchise fees received by the City by approximately $65,000. H.B. 4170 (Middleton) Tax Rate Adjustment for Federal Funds: would provide that if a year, the voter-approval tax rate for the taxing unit is decreased to reflect the receipt of additional federal funds. The bill would have a double whammy effect on La Porte. As result of federal funding to combat the impact of COVID the City received nearly $2 million in federal funding last fiscal year and is slated to receive an additional $7.6 million. We would have to lower the tax rate with no assurance of any future federal funding. Additionally, once the lower rate is adopted we would be subject to a revenue cap in the second year. The net effect is a long term decrease in revenue to the City of La Porte. H.B. 330 (Cain): H.B. 330 would require that any bond election 1. pass by a 2/3 majority vote, and 2. bond elections would have at least a 20% voter turnout. This would essential kill our ability to issue tax supported debt especially in light of the provisions of H.B. 1869. ACTION REQUIRED BY CITY COUNCIL Provide staff direction on items for which the Council would like the Mayor to send correspondence or on which staff should prepare resolutions for consideration.