HomeMy WebLinkAbout05-23-11 Regular Meeting of La Porte City Council LOUIS RIGBY DARYL LEONARD
Mayor F L Mayor Pro Tem
JOHN ZEMANEK 0 . A Councilmember District 3
Councilmember at Large A
JOHN BLACK TOMMY MOSER
) � Councilmember District 4
Councilmember at Large B CI /` ,m
MIKE MOSTEIT " JAY MARTIN
Councilmember District 1 4 Councilmember District 5
CHUCK ENGELKEN MIKE CLAUSEN
Councilmember District 2 Councilmember District 6
CITY COUNCIL MEETING AGENDA
Notice is hereby given of a Regular Meeting of the La Porte City Council to be held Monday,
May 23, 2011, at 6:00 p.m., in the Council Chambers of City Hall, 604 West Fairmont Parkway,
La Porte, Texas, for the purpose of considering the following agenda items. All agenda items are
subject to action. The City Council reserves the right to meet in a closed session on any agenda
item should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, of
the Texas Government Code.
1. CALL TO ORDER
2. INVOCATION — The invocation will be given by Don Hill of Interchurch Council.
3. PLEDGE OF ALLEGIANCE — The Pledge of Allegiance will be led by Councilmember Mike
Mosteit.
4. PRESENTATIONS, PROCLAMATIONS AND RECOGNITIONS
(a) Proclamation: "Trees for Houston Day" — Mayor Rigby /S. Barr
5. ELECTION ORDINANCE AND OTHER ELECTION- RELATED ACTIONS
(a) Consider approval or other action regarding an Ordinance declaring the results of the
creation and tax election of the La Porte Fire Control, Prevention and Emergency Medical
Services District held in the City of La Porte on May 14, 2011, adopting a one -fourth of
one percent sales and use tax for financing the operation of the La Porte Fire Control,
Prevention, and Emergency Medical Services District within the territory of the District —
Mayor Rigby
(b) Administer the Oath of Office to re- elected Councilmembers Mike Mosteit, District 1, and
Mike Clausen, District 6 — Judge Denise Mitrano
(c) Issue Certificates of Election to re- elected Councilmembers Mike Mosteit, District 1,
and Mike Clausen, District 6 — Mayor Rigby
6. PETITIONS, REMONSTRANCES, COMMUNICATIONS, CITIZENS AND TAX PAYERS
WISHING TO ADDRESS COUNCIL (Limited to five minutes)
• Phillip Hoot — Speaking about Safety Town
7. CONSENT AGENDA — Consent agenda items are considered routine by the City Council and
will be enacted by one motion. A Councilmember may remove any item for discussion.
(a) Consider approval or other action of minutes of the May 9, 2011, regular meeting of the
City Council of the City of La Porte — P. Fogarty
Page 1 of 3
May 23, 2011, City Council Agenda
(b) Consider approval or other action authorizing staff to request proposals from project
consultants as discussed and approved by the Drainage Committee, for drainage
infrastructure improvements — T. Tietjens
(c) Consider approval or other action authorizing a contract for health plan /benefits
consulting services for the City of La Porte as discussed and recommended by the
Chapter 172 Committee — H. Weger
(d) Consider approval or other action regarding a Resolution amending the City of La Porte
Investment Policy — M. Dolby
(e) Consider approval or other action regarding a Resolution pertaining to the use of the
former Klein Retreat and Happy Harbor Methodist Home properties — S. Barr
(f) Consider approval or other action regarding an Ordinance changing the name of that
portion of East E Street, from San Jacinto Street to Arizona Street, to Evelyn Kennedy
Boulevard — T. Tietjens
(g) Consider approval or other action to award bid #11014 and authorize the City Manager
to execute a contract for the construction of the Lift Station # 37 Rehabilitation Project —
D. Mick
(h) Consider approval or other action authorizing clarification of the Retiree Medical
Benefits Policy as discussed and approved by the Chapter 172 Committee — H. Weger
8. ZONING PUBLIC HEARINGS AND ASSOCIATED ORDINANCES
(a) Public Hearing to receive comments for or against Rezone Request #11- 92000002, for
the property located at 801 North 16 Street, further described as a 9.1460 -acre tract of land
situated in the Johnson Hunter Survey, Abstract No. 35, Harris County, Texas, containing
TRS A & 1A, Block 1, Nebraska Syndicate. Brolyn Petri, on behalf of Chemical Lime (Lhoist
North America), seeks to have this property rezoned from Light Industrial (LI) to Heavy
Industrial (HI) — T. Tietjens
Ordinance — Consider approval or other action regarding an Ordinance amending
Chapter 106 "Zoning" of the Code of Ordinances by changing classification from Light
Industrial (LI) to Heavy Industrial (HI) for the property located at 801 North 16 Street — T.
Tietjens
9. ORDINANCES
(a) Consider approval or other action regarding an Ordinance appointing members to a
Re- Districting Committee and establishing its powers and duties — P. Fogarty
10. ADMINISTRATIVE REPORTS — R. Bottoms
May 30, 2011 — City Offices closed in Observance of Memorial Day
June 11, 2011 — Runoff election
June 13, 2011 — City Council Meeting — 6 PM
Newly Elected City Officials' Orientation — TML — July 15 -16, 2011, in Irving, TX
11. COUNCIL COMMENTS REGARDING MATTERS APPEARING ON AGENDA; RECOGNITION
OF COMMUNITY MEMBERS, CITY EMPLOYEES, AND UPCOMING EVENTS; INQUIRY OF
STAFF REGARDING SPECIFIC FACTUAL INFORMATION OR EXISTING POLICIES —
Councilmembers Mosteit, Clausen, Martin, Black, Moser, Zemanek, Leonard, Engelken, and
Mayor Rigby.
• Page 2 of 3
May 23, 2011, City Council Agenda
12. EXECUTIVE SESSION
The City Council will now go into executive session pursuant to the provisions of the Texas Open
Meetings Act, Chapter 551 of the Texas Government Code, in accordance with the authority
contained in:
Texas Government Code, Section 551.074 — Deliberation concerning the duties of a public
officer or employee: Patrice Fogarty, City Secretary
13. RECONVENE into regular session and consider action, if any, on items discussed in executive
session.
14. ADJOURN
In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable
accommodations for persons attending public meetings. To better serve attendees, requests should be
received 24 hours prior to the meeting. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.
CERTIFICATION
certify that a copy of the May 23, 2011, agenda of items to be considered by the City Council was posted on the
City Hall bulletin board �}/ onMay 17, 2011.
Patrice Fogarty, City Secretary
I certify that the attached notice and a da of ite to be considered by the City Council was removed by me
f �he City Fjall bulletin board on the day of , 2011.
bo
. /. K o Title: ! � i C J.1 /� .,4L/11 � I
Page 3 of 3
May 23, 2011, City Council Agenda
5
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: May 23, 2011 Budget
Requested By: Mayor Louis Rigby Source of Funds: N/A
Department: City Council Account Number: N/A
Report: Resolution: Ordinance: X Amount Budgeted: N/A
Amount Requested: N/A
Exhibits: Ordinance
Budgeted Item: YES NO
Exhibits: Election Reports
Exhibits:
Exhibits:
SUMMARY & RECOMMENDATION
This ordinance canvasses the results of the May 14, 2011, special election for the creation and
tax election of the La Porte Fire Control, Prevention and Emergency Medical Services District.
Acti 'red by Council:
Ad rs ance canvassing the results of the May 14, 2011, special election for the creation and tax
e tion of s - a Porte Fire • •ntrol, Prevention and Emergency Medical Services District.
1 i rov1 fo i C un ' ' . enda
ASTE 3,-/4 /„
Ron Bottoms, 't - anager Date
ORDINANCE NO. 2011- 3 3 5 0
AN ORDINANCE DECLARING THE RESULTS OF THE CREATION AND TAX ELECTION
OF THE LA PORTE FIRE CONTROL, PREVENTION AND EMERGENCY MEDICAL SERVICES
DISTRICT HELD IN THE CITY OF LA PORTE ON MAY 14, 2011; ADOPTING A
ONE - FOURTH OF ONE PERCENT SALES AND USE TAX FOR FINANCING THE OPERATION
OF THE LA PORTE FIRE CONTROL, PREVENTION, AND EMERGENCY MEDICAL
SERVICES DISTRICT WITHIN THE TERRITORY OF THE DISTRICT; FINDING
COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE
HEREOF.
WHEREAS, on December 13, 2010, the City Council of the City of
La Porte via Ordinance No. 2010 -10, proposed the creation of the La
Porte Fire Control, Prevention, and Emergency Medical Services
District (the "District ") and established the city limits of the City
of La Porte as the boundaries of the District (the "Territory "); and
WHEREAS, after all of the prerequisites to ordering the creation
and tax election were satisfied by the City Council of the City of La
Porte and the Temporary Board of the District, a creation and tax
election was ordered on February 15, 2011; and
WHEREAS, on May 14, 2011, a uniform election date, voters within
the Territory voted upon the following proposition:
PROPOSITION NO. 1
The creation of the La Porte Fire Control, Prevention, and Emergency
Medical Services District dedicated to fire safety and emergency
medical services and the adoption of a proposed local sales and
use tax at a rate of one - fourth of one percent (0.25 %); and
WHEREAS, on May 23, 2011, the Temporary Board of the District
canvassed the results of the creation and tax election and found the
votes cast were as follows:
PROPOSITION NO. 1
The creation of the La Porte Fire Control, Prevention, and Emergency
Medical Services District dedicated to fire safety and emergency
medical services and the adoption of a proposed local sales and
use tax at a rate of one - fourth of one percent (0.25 %).
For 928 votes
Against 570 votes; and
WHEREAS, because the votes cast for the creation of the District
exceed the votes cast against the same by 358 votes, the Temporary Board
of the District issued an order declaring the District created on May
23, 2011; and
WHEREAS, pursuant to Section 344.055 of the Texas Local
Government Code and Section 321.106 of the Texas Tax Code, the City
Council of the City of La Porte is the governing body responsible for
adopting the sales and use tax in the Territory;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
LA PORTE:
Section 1. That the City Council of the City of La Porte finds
that the above referenced recitals are true and correct.
Section 2. That the City Council of the City of La Porte, based
upon the results of the creation and tax election ordered by the
Temporary Board of the La Porte Fire Control, Prevention, and Emergency
Medical Services District, declares the District created and the
one - fourth of one percent sales and use tax in the Territory authorized
in accordance with all applicable laws.
Section 3. Based upon the declarations of the Temporary Board
of the La Porte Fire Control, Prevention, and Emergency Medical
Services District and of the City Council in Section 2 hereinabove,
the City Council of the City of La Porte hereby adopts a one - fourth
of one percent sales and use tax in the Territory for the purpose of
financing the operation of the District, which tax shall be charged
in addition to any other sales and use tax authorized by law.
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
2
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 Ordinance shall be effective from and after its
passage and approval, and it is so ordered.
PASSED AND APPROVED, this 23rd day of May, 2011.
CITY • i ORTE
4 ''
BY: Ambi1Y A
iou s R. Ri!. , Mayor
AT ST:
l rLa- 4/ i r' ri
Patrice Fogare
City Secretary
APPROVED:
/ r
K ox W. Askins
City Attorney
3
7
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Council Agenda Item
May 23, 2011
7. CONSENT AGENDA
(a) Consider approval or other action of minutes of the May 9, 2011, regular meeting
of the City Council of the City of La Porte — P. Fogarty
(b) Consider approval or other action regarding authorizing staff to request proposals
from consultants as discussed and approved by the Drainage Committee — T.
Tietjens
(c) Consider approval or other action regarding entering into a contract with a
benefits consulting firm for the City of La Porte as discussed and recommended
by the Chapter 172 Committee — H. Weger
(d) Consider approval or other action regarding a Resolution amending an
Investment Policy conforming to all statutes governing investment of the City of
La Porte's funds, including, but not limited to, the Public Funds Investment Act,
Chapter 2256, Texas Government Code — M. Dolby
(e) Consider approval or other action regarding a Resolution pertaining to the
former Klein Retreat and Happy Harbor Methodist Home properties — S. Barr
(f) Consider approval or other action regarding an Ordinance changing the name of
that portion of East E Street, from San Jacinto Street to Arizona Street, to Evelyn
Kennedy Boulevard — T. Tietjens
(g) Consider approval or other action to award bid #11014 and authorize the City
Manager to execute a contract for the construction of the Lift Station # 37
Rehabilitation Project — D. Mick
(h) Consider approval or other action authorizing clarification of the Retiree
Medical Benefits Policy as discussed and approved by the Chapter 172
Committee — H. Weger
A
LOUIS RIGBY DARYL LEONARD
Mayor Mayor Pro Tem
JOHN ZEMANEK O A
Councilmember District 3
Councilmember at Large A A O
JOHN BLACK li. TOMMY MOSER
Councilmember at Large B v , \ Councilmember District 4
MIKE MOSTEIT JAY MARTIN
Councilmember District 1 Councilmember District 5
CHUCK ENGELKEN MIKE CLAUSEN
Councilmember District 2 / Councilmember District 6
MINUTES OF THE REGULAR MEETING OF THE
CITY COUNCIL OF THE CITY OF LA PORTE
MAY 9, 2011
The City Council of the City of La Porte met in regular meeting on Monday, May 9, 2011, at the City Hall
Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 6:00 p.m. to consider the following
items of business:
1. Call to Order
Mayor Rigby called the meeting to order at 6:00 p.m. Members of Council present:
Councilmembers Leonard, Zemanek, Mosteit, Engelken, Moser, Clausen, and Martin. Absent:
Councilmember Black. Also present were City Manager Ron Bottoms, City Secretary Patrice
Fogarty, and Assistant City Attorney Clark Askins.
2. Invocation — The Invocation was given by Assistant City Attorney Clark Askins
3. Pledge of Allegiance — The Pledge of Allegiance was led by Councilmember Engelken
4. Presentations /Proclamations
A. Mayor Rigby presented a proclamation to for "Motorcycle Safety & Awareness Month."
B. Mayor Rigby presented a proclamation to for "LyondellBasell Employees Day."
C. Mayor Rigby recognized the retirement of Officer Sherman Moore from the La Porte Police
Department. Chief Adcox was also present.
D. Economic Development Coordinator Stacey Osborne introduced President Bob Mitchell and
Marketing Director Paul Chavez of the Bay Area Houston Economic Partnership, who presented
a brief presentation on activities in the past year. They apologized for their delay in arriving at
the meeting due to an overturned truck on SH 146. They gave statistics and providing a
detailed projection of the impact of the economic partnership With the City.
Councilmember Engelken asked the capital investment and number of employees based on the
new projects that were mentioned as having been brought into La Porte, and also the retention
for NASA area and the impact it will have on the city. He asked for the growth rate for the cities
they previously did projects with.
Councilmember Leonard said that when discussing and justifying funds, they want to make sure
that all parties involved in a project be mentioned, and was reassured by Mr. Mitchell that they
do that in their presentations.
Page 1 of 4
May 9, 2011, City Council Meeting Minutes
5. Petitions, Remonstrance's, Communications, Citizens and Tax Payers wishing to address
Council on any item posted on the agenda (Limited to five minutes)
Chuck Rosa, 812 South Virginia - spoke against the donation of land as mentioned in item 6C on
the consent agenda.
Thomas P. O'Connell, 9100 SW Freeway, Houston, Texas — spoke in support of a resolution (HR
1489) — Glass - Steagall that is in legislation at this time and asked for the support of City Council.
Dennis Daulton, 10938 Lasso Ln., Houston, Texas — spoke in support of the resolution (HR 1489)
— Glass - Steagall and also asked for the support of City Council.
Brenda Brown, 631 Fairfield, Shoreacres, Texas — said that she owns property located at 109 S. 3rd
and 113 S. 3rd Street and asked several questions concerning the building and relocation of the
proposed new fire station #1 on 3 street. She raised several concerns, including drainage,
location, noise, vibrations, lights, and asked how it would be funded. She asked that her concerns
be taken into consideration.
Carl Betts, 109 S. 3 — said he'd like to see the proposed new fire station be relocated.
Angela Brown, 113 S. 3 — says that she hears walkie- talkies and vibrations from the current fire
station located on 3 street, and said there isn't enough parking now, and she would like to see the
new fire station be moved to another location.
Pam Summers, Seabrook — (Bay Are Houston Convention Visitors Bureau) — thanked the City of
La Porte for their support for encouraging tourism and their positive impact on the economic
development in this area.
6. Consent Agenda
A. Consider approval or other action of minutes of the Regular Meeting of La Porte City
Council held on April 25, 2011 — P. Fogarty
B. Consider approval or other action approving an ordinance vacating, abandoning and
closing the alleys in Blocks 373, 374, and 376, La Porte, Harris County — T. Tietjens
C. Consider approval or other action regarding an ordinance authorizing the donation of
Lots 17 -18 and Lots 19 -20, Block 101, Town of La Porte Harris County, Texas to La Porte
Chapter, Bay Area Habitat for Humanity, a Texas Non - Profit Corporation, for the
construction of affordable housing — T. Tietjens
D. Consider approval or other action appointing Jerome McKown to the La Porte Police
Reserve Force — K. Adcox
Page 2 of 4
May 9, 2011, City Council Meeting Minutes
E. Consider approval or other action authorizing utilization of the State of Texas' contract
with Citibank for the City's procurement card program — S. Cream
Councilmember Leonard moved to approve the Consent Agenda as presented.
Councilmember Martin seconded. MOTION PASSED.
Ayes: Mayor Rigby, Councilmembers Leonard, Zemanek, Mosteit,
Engelken, Moser, Clausen and Martin
Nays: None
Absent: Councilmember Black
7. Consider approval or other action regarding procurement of a Mail Solution System through
Buyboard — M. Dolby
Finance Director Michael Dolby presented a summary and recommendation and answered
Councils' questions.
Councilmember Moser moved to approve procurement of a Mail Solution System through
Buyboard. Councilmember Clausen seconded. MOTION PASSED.
Ayes: Mayor Rigby, Councilmembers Leonard, Zemanek, Mosteit,
Engelken, Moser, Clausen and Martin
Nays: None
Absent: Councilmember Black
8. Receive Report from Drainage and Flooding Committee — Chairman Mosteit
Chairman Mosteit presented a report of the Drainage and Flooding Committee's last meeting.
9. Receive Report from Fiscal Affairs Committee — Chairman Engelken
Chairman Engelken presented a report of the Fiscal Affairs Committee.
10. Administrative Reports — R. Bottoms
City Manager Ron Bottoms did not make a report.
May 14, 2011 — General Election and Special Election — 7:00 A.M. — 7:00 P.M.
May 23, 2011 — City Council Meeting — 6:00 P.M.
Early Voting for General Election and Special Election — Monday, May 2, 2011, through Tuesday,
May 10, 2011, from 8:00 A.M. to 5:00 P.M. extended hours for Early Voting will be Wednesday,
May 4, 2011, from 7:00 A.M. - 7:00 P.M. and Tuesday, May 10, 2011, from 7: 00 A.M. — 7:00 P.M.;
Early Voting on Saturday, May 7, 2011, from 8:00 A. M. — 5:00 P.M.
Page 3 of 4
May 9, 2011, City Council Meeting Minutes
11. Council Comments: Matters appearing on agenda; recognition of community members, city
employees, and upcoming events; inquiry of staff regarding specific factual information or existing
policy — Councilmember's Engelken, Black, Mosteit, Clausen, Martin, Moser, Zemanek, Leonard,
and Mayor Rigby.
Councilmembers Engelken, Mosteit, Martin, Moser, Zemanek, Leonard and Clausen congratulated
Crime Prevention Officer Sherman Moore on his retirement. Councilmember Mosteit also
congratulated Bay Area Houston Economic Partnership for their recognition. Councilmember
Clausen congratulated LyondellBasell on their recognition. Councilmember Martin encouraged
citizens and the city to subscribe and advertise to the Bay Area Observer. Councilmember Moser
asked staff to provide Ms. Brown with answers to her questions. Councilmember Leonard
congratulated LyondellBasell on their recognition. Mayor Rigby congratulated Sherman Moore on
his retirement and also said that Sylvan Beach Day was well attended and a great time was had by
all. Thanks to Patrice for getting the microphones working correctly.
12. City Council reserves the right to meet in a closed session on any agenda item should the
need arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas
Government Code.
Notice is hereby given that the City Council will meet in a closed session in accordance with the
following provision(s) of the Texas Open Meetings Act:
Texas Government Code, Section 551.071(1)(A) — Pending or Contemplated Litigation — State of
Texas vs. Port of Houston mediation update.
Texas Government Code, Section 551.071(2) — Consultation with City Attorney — discuss City of
La Porte - Flanagan Shipping lease agreement.
13. Reconvene into Regular Session and Consider Action, if any, on items discussed in
Executive Session.
Council reconvened the regular meeting at 8:22 p.m.
Mayor Rigby stated Council had received an update on mediation and gave direction to staff on
some legal issues. He also stated that staff is directed to sell the property.
14. Adjournment
There being no further business, at 8:23 p.m., Councilmember Engelken moved to adjourn the
meeting.
Respectfully submitted,
Cit S ret��
Patrice Fogarty,
City rY
Passed and - • p;. . n May 23, 2011.
�
Mayo Lo is R. Rill
Page 4 of 4
May 9, 2011, City Council Meeting Minutes
D
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: May 23, 2011 Appropriation
Requested By: Michael G. Dolby, CPA Source of Funds: N/A
Department: Finance Account Number: N/A
Report: Resolution: X Ordinance: Amount Budgeted: N/A
Exhibits Resolution Amount Requested: NSA
Exhibits: Investment Policy- Clean & Edited Version Budgeted Item: YES NO
Exhibits
SUMMARY & RECOMMENDATION
The City Council of the City of La Porte originally adopted an Investment Policy on January 13, 1992, by Ordinance
No. 1802. The Investment Policy governs how the City will invest the City's funds and outlines administrative and
legal guidelines for the Investment Officers to follow for the preservation of capital. The Public Funds Investment
Act requires that a City must present the Investment Policy to Council annually for review or amendment.
On May 9, 2011, the Finance Department presented the Investment Policy to the Fiscal Affairs Committee. A few
changes have been made to the Investment Policy based on recommendations from the Government Treasurers
Organization. Staff recommends that the Investment Policy be amended to include the following:
• Address requirements for acceptance, substitution and release of collateral — Collateralization is the
pledging of appropriate securities or other instruments (i.e. Federal agency securities or letters of credit) by
depositories to protect public deposits. The investment officer should approve the acceptance, substitution
and release of all collateral pledged in order to maintain control and reduce the risk to the City's deposits
and investments.
• Reference of independent third -party safekeeping for investment securities - Public deposits are best
protected by collateral that is held in safekeeping by an independent third party, so the section on
safekeeping has been added to the policy to better protect the City's investments. The City currently has
third party agreements in place for safekeeping; however, that language is not in the current investment
policy.
• Outline reporting requirements for the quarterly investment reports — The reporting requirements include
the investment details, market values and interest earnings. Additionally, verbiage has been added to
reference the Public Funds Investment Act. The reference to annual reports has been removed, since more
frequent reports are submitted.
• Guaranteed Investment Contracts (GIC's) as an authorized investment - A guaranteed investment contract
(GIC) is a contract that guarantees repayment of principal and a fixed or floating interest rate for a
predetermined period of time. A GIC is used primarily as a vehicle that yields a higher return than a
savings account or United States Treasury securities. Staff is proposing the addition of GICs as an
authorized investment since a few of the pools include them in their investment portfolio.
In addition to the above mentioned changes, the policy has been reformatted and the order of the wording moved
around to improve the flow of the document. The authorized investment wording has been condensed and references
to the Act added. The changes proposed are not making the policy less stringent. Additions have been made to
better protect the City's investments.
Action Required by Council:
aff reco i nds that the Council receive and approve the amended Investment Policy by resolution.
AI iru /freflatiit cilA.enda
(fib f »!
Ron Bottoms, T ty anager Date
RESOLUTION NO. IX NS
A RESOLUTION OF THE CITY OF LA PORTE, TEXAS, AMENDING AN
INVESTMENT POLICY CONFORMING TO ALL STATUTES GOVERNING
INVESTMENT OF THE CITY OF LA PORTE'S FUNDS, INCLUDING, BUT NOT BY
WAY OF LIMITATION, THE PUBLIC FUNDS INVESTMENT ACT, CHAPTER 2256,
TEXAS GOVERNMENT CODE; FINDING COMPLIANCE WITH THE OPEN
MEETINGS LAW; AND SETTING AN EFFECTIVE DATE THEREOF.
WHEREAS, the City of La Porte requires that funds be invested in a manner which will
preserve the principal of funds invested while meeting daily cash flow demands of the City; and
WHEREAS, the Public Funds Investment Act requires the adoption of certain
investment policies and controls regarding the investment of its funds; and
WHEREAS, the Public Funds Investment Act further requires that the governing body
of an investing entity shall adopt a written investment policy by resolution, and shall further state
that it has reviewed the investment policy and investment strategies adopted, and that the written
policy adopted shall record any changes made to either the investment policy or investment
strategies previously adopted; and
WHEREAS, the City will endeavor to earn a return on funds invested at the highest
return possible after taking into account the primary goals of preservation of liquidity of funds
invested, consistent with the City's Investment Policy;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LA PORTE, THAT:
SECTION 1. The findings and recitations set out in the preamble to this Resolution are found to
be true and correct and that they are hereby adopted by the City Council of the City of La Porte
and made a part hereof for all purposes.
SECTION 2. The City of La Porte hereby designates the attached policy titles, City of La Porte,
Texas Investment Policy, as an official policy of the City of La Porte and that it is hereby
adopted by the City of La Porte and made a part hereof for all purposes.
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 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
Resolution 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 resolution shall be effective upon its passage and approval.
Passed by the City Council this 23rd day of May, 2011.
CITY OF LA PORTE
Al, •
Lo 14 Rigby I
Ma
ATTEST:
P te( CQ,
Patrice Fogarty (1 `�
City Secretary
APPROVED:
/ 1.---4/4-4
Clark T. Askins
Assistant City Attorney
City of La Port Texas
In
vestmt Poli dopted by th en City Council
A
Of the City o f L Porte
On January
13, 992
by
Ordinance No. 1802
L 7 o e i I
' v. , ,- � r.a Nor
fl II
tea f k
'I/ ''''''1, , ili
Am ended: City of La Port e, Texas
Novem 1995 Michael G. Dolby, CPA
August 1997 Director of Finance
November 2000
February 2003 Shelley Wolny
February 2005 Treasurer
October 2005
July 2009
POLICY
It is the policy of the City of La Porte, Texas (the "City ") to administer and invest its funds in a
manner which will preserve the principal and maintain the liquidity through limitations and
diversification while meeting the daily cash flow requirements of the City. The City will invest all
available funds in conformance with legal and administrative guidelines, seeking to optimize
interest earnings to the maximum extent possible.
The purpose of this investment policy is to comply with all statutes governing the investment of
the City's funds, including the Public Funds Investment Act, Chapter 2256 of the Texas
Government Code (the " Act "), which requires the City to adopt a written investment policy
regarding the investment of its funds and funds under its control. The Investment Policy
addresses the methods, procedures and practices that must be exercised to ensure effective and
judicious fiscal management of the City's funds.
II. SCOPE
The City will strive to earn a return on funds invested at the highest investment return possible
after taking in consideration the primary goals of preservation of principal and liquidity of funds
invested, consistent with the policy objectives described below. This investment policy applies to
the investment activities of the government of the City of La Porte, Texas.
FUNDS INCLUDED The City's funds, which are pooled together and constitute the investment
portfolio, include all financial assets of all funds managed by the City, including but not limited
to receipts of tax revenues, charges for services, bond proceeds, interest incomes, loans and funds
received by the City where the City performs a custodial function. These funds are accounted for
in the City's Comprehensive Annual Financial Report (CAFR) and include:
General Fund
Special Revenue Funds
Debt Service Funds
Capital Projects Funds
Enterprise Funds
Internal Service Funds
Investment income will be allocated to the various funds based on their respective participation
and in accordance with generally accepted accounting principles.
111. OBJECTIVES
SAFETY The primary objective of the City's investment activity is the preservation of capital
and the protection of investment principal in the overall portfolio. Each investment transaction
shall seek first to ensure that capital losses are avoided, whether they are from securities defaults
or erosion of market value. The City will strive to minimize credit risk by limiting investments to
the safest types of investments, prequalifying the financial institutions and broker /dealers with
which the City conducts business, and diversify the investment portfolio so that potential losses
on individual issuers will be minimized. To minimize interest rate risk, the City will ladder the
portfolio and match investments with future cash requirements and invest operating funds in
shorter, more liquid securities and investments.
1
LIQUIDITY The City's investment portfolio will remain sufficiently liquid to enable the City to
meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by
matching investment maturities with forecasted cash flow requirements and by investing in
securities with active secondary markets. Because all possible cash demands cannot be
anticipated, a portion of the portfolio will be invested in shares of money market mutual funds or
local government investment pools that offer same day liquidity.
PUBLIC TRUST All participants in the investment process shall seek to act responsibly as
custodians of the public trust. Investment Officials shall avoid any transaction that might impair
public confidence in the City's ability to govern effectively. The governing body recognizes that
in a diversified portfolio, occasional measured losses due to market volatility are inevitable, and
must be considered within the context of the overall portfolio's investment return, provided that
adequate diversification has been implemented.
YIELD (Optimization of Interest Earnings) The City's cash management portfolio shall be
designed with the objective of regularly meeting or exceeding the average rate of return on U.S.
Treasury Bills at a maturity level comparable to the City's weighted average maturity in days.
The investment program shall seek to augment returns above this threshold consistent with risk
limitations identified herein and prudent investment principles.
IV. RESPONSIBILITY AND CONTROL
Oversight Responsibility for the investment activity of the City of La Porte shall rest with the
Fiscal Affairs Committee and the City Manager.
DELEGATION Management responsibility for the investment program is hereby delegated to
the Director of Finance, who shall establish written procedures for the operation of the investment
program, consistent with this investment policy. Such procedures shall include explicit delegation
of authority to persons responsible for investment transactions.
SUBORDINATES All persons involved in investment activities will be referred to as
"Investment Officers." No person shall engage in an investment transaction except as provided
under the terms of this policy and the procedures established by the Director of Finance. The
Director of Finance shall be responsible for all transactions undertaken, and shall establish a
system of controls to regulate the activities of Subordinate Investment Officers. All investment
officers, including the Director of Finance, will demonstrate competence in the execution of the
city's investments. All Investment Officers will insure compliance with the investment program
with ongoing training and evaluation by management.
PRUDENCE Investments shall be made with the exercise of due care, which persons of
prudence, discretion and intelligence exercise in the management of their own affairs, not for
speculation but for investment considering the probable safety of their own capital as well as the
probable income to be derived. Investment Officers acting in accordance with written procedures
and this investment policy and exercising due diligence shall be relieved of personal
responsibility for an individual security's credit risk or market price changes, provided deviations
from expectations are reported in a timely fashion and the liquidity and the sale of securities are
carried out in accordance with the terms of this policy.
IMDEMNIFICATION The Director of Finance and the Investment Officer, acting in accordance
with written procedures and exercising due diligence, shall not be held personally responsible for
2
a specific investment's credit risk or market price changes, provided that these deviations are
reported immediately and the appropriate action is taken to control adverse developments.
ETHICS DISCLOSURE AND CONFLICTS OF INTEREST Officers and employees involved
in the investment process shall refrain from personal business activity that could conflict with
proper execution and management of the investment program, or which could impair their ability
to make impartial investment decisions. Employees and Investment Officers shall disclose to the
City Manager any material interests in financial institutions that conduct business with the City of
La Porte, and shall further disclose any personal financial or investment positions that could be
related to the performance of the City's investment portfolio. Employees and Investment Officers
shall refrain from undertaking personal investment transactions with the same individual with
which business is conducted on behalf of the City of La Porte.
An Investment Officer of the City of La Porte who has a personal business relationship with an
organization seeking to sell an investment to the City of La Porte shall file a statement disclosing
that personal business interest. An Investment Officer who is related within the second degree by
affinity or consanguinity to an individual seeking to sell an investment to the City of La Porte
shall file a statement disclosing that relationship. A statement required under subsection
2256.005(i) of the Act must be filed with the Texas Ethics Commission and the governing body
of the City of La Porte.
TRAINING Investment Officers shall attend 10 hours of investment training within 12 months
after taking office or assuming duties, and 10 hours every succeeding two years. The investments
training shall be provided from an independent source approved by the Fiscal Affairs Committee
to insure the quality and capability of investment management in compliance with the Act. For
the purposes of this policy, an "independent source" is defined as a professional organization, an
institute of higher learning or any other sponsor other than a Business Organization with whom
the City may engage in investment transactions. Training shall be in accordance with the Act and
shall include education in investment controls, security risks, strategy risks, market risks,
diversification of investment portfolio, and compliance with statutes governing the investment of
public funds.
V. REPORTING
Investment reports shall be prepared quarterly and be signed and submitted by the Investment
Officers, in a timely manner. These reports will be submitted to the City Manager and City
Council. This report shall describe in detail the investment position of the City, disclose the
market value and book value of each fund group as well as each separate investment, and state the
maturity date of each security and accrued interest for the reporting period. The report shall
include all information as required by Section 2256.023 of the Act. It must also express
compliance of the portfolio to the investment strategy contained in the City's Investment Policy,
the Act, and Generally Accepted Accounting Principles (GAAP).
MONITORING The market price of each investment shall be obtained monthly from a source
such as the Wall Street Journal newspaper, a reputable brokerage firm or security pricing service
and reported on the investment reports.
3
VI. INVESTMENTS
ACTIVE PORTFOLIO MANAGEMENT The City intends to pursue active versus passive
portfolio management philosophy. That is, securities may be sold before they mature if market
conditions present an opportunity for the City to benefit from the trade.
AUTHORIZED INVESTMENTS The following are authorized investments for the City and all
are authorized and further defined by the Act:
A. Obligations, including letters of credit, of the United States or its agencies and
instrumentalities; direct obligations of this state or its agencies and instrumentalities; other
obligations, the principal and interest of which are unconditionally guaranteed or insured by,
or backed by the full faith and credit of, this state or the United States or their respective
agencies and instrumentalities; and obligations of states, agencies, counties, cities, and other
political subdivisions of any state rated as to investment quality by a nationally recognized
investment rating firm not less than A or its equivalent. (Section 2256.009 (a) of the Act)
The following are not authorized investments under Section 2256.009 (b) of the Act:
• obligations whose payment represents the coupon payment on the outstanding
principal balance of the underlying mortgage- backed security collateral and pays not
principal (Interest only bonded);
• obligations whose payment represents the principal stream of cash from the
underlying mortgage- backed security collateral and pays no interest (Principal only
bonds);
• collateralized mortgage obligations that have a final stated maturity date of greater
than 10 years; and
• collateralized mortgage obligations, the interest rate of which is determined by an
index that adjusts opposite to the changes in a market index.
B. Fully collateralized certificates of deposit issued by a depository institution that has its main
office or branch office in Texas and, guaranteed or insured by the Federal Deposit Insurance
Corporation or its successor or the National Credit Union Share Insurance Fund or its
successor; secured by obligations authorized by this subchapter, or secured in any other
manner and amount provided by law for deposits of the City. (Section 2256.010 of the Act)
C. Fully collateralized repurchase agreements with a defined termination date; and secured by
obligations described by the Act (Section 2256.009 (a)(1)); such collateral, held in the City's
name, and deposited at the time the investment is made with the City or an independent third
party selected and approved by the City. Repurchase agreements must be purchased through
a primary government securities dealer, as defined by the Federal Reserve, or a financial
institution doing business in this Texas. Repurchase agreements and reverse repurchase
agreements shall be entered into only with dealers who have executed a Master Repurchase
Agreement with the City. The term of any reverse security repurchase agreement may not
exceed 90 days after the date the reverse security repurchase agreement is delivered. Money
received by the City under the terms of a reverse security repurchase agreement shall be used
to acquire additional authorized investments, but the term of the authorized — investments
acquired must mature no later than the expiration date stated in the reverse security
repurchase agreement. (Section 2256.011 of the Act)
4
D. Bankers' acceptances with a stated maturity of 270 days or fewer from the date of its
issuance; liquidated in full at maturity; eligible for collateral for borrowing from a Federal
Reserve Bank; and accepted by a bank organized and existing under the laws of the United
States or any state, if the short-term obligations of the bank, or of a bank holding company of
which the bank is the largest subsidiary, are rated not less that A -1 or P -1 or an equivalent
rating by at least one nationally recognized credit rating agency. (Section 2256.012 of the
Act)
E. Commercial Paper with a stated maturity of 270 days or fewer from the date of its issuance;
and is rated not less than A -1 or P -1 or an equivalent rating by at least two nationally
recognized credit rating agencies. (Section 2256.013 of the Act)
F. AAA - rated, no -load money market mutual funds registered with and regulated by the
Securities and Exchange Commission; having a dollar - weighted average stated maturity of 90
days or fewer; and includes in its investment objectives the maintenance of a stable net asset
value of $1 for each share. (Section 2256.014 of the Act) The Fund must provide the City
with a prospectus and other information required by the Securities and Exchange Act of 1934
(15 U.S.C. Section 80a -1 et seq.);
The City is not authorized by Section 2256.014 (c) of the Act to:
• invest in the aggregate more than 15 percent of its monthly average fund balance,
excluding bond proceeds and reserves in other funds held for debt service, in mutual
funds described in the Act (Section 2256.014);
• invest any portion of bond proceeds, reserves and funds held for debt service, in
mutual funds described in the Act (Section 2256.014); or
• invest its funds or funds under its control, including bond proceeds and reserves and
other funds held for debt service, in any one mutual fund described in the Act
(Section 2256.014) in an amount that exceeds 10 percent of the total assets of the
mutual fund.
G. Guaranteed Investment Contracts (GICS) with a defined termination date; secured by
obligations described in the Act (Section 2256.009) in an amount at least equal to the amount
of bond proceeds invested under the contract; and pledged to the City and deposited with the
City or with a third party selected and approved by the City. GICS are further subject to the
limitations contained in Section 2256.015 of the Act.
H. AAA - rated, constant dollar, investment pools with a weighted average maturity of no greater
than 90 days as authorized by the City Council and as further defined by the Act, which
invests in eligible securities as authorized by Section 2256.016 of the Act.
EXISTING INVESTMENTS The Investment Officer is not required to liquidate investments that
were authorized investments at the time of purchase. Any investments currently held that do not
meet the guidelines of this policy shall be reviewed to determine the ability to liquidate. If the
investment cannot be liquidated because of material adverse change in the value since the time of
purchase, and holding the investment to maturity does not negatively affect disbursements or cash
flow, a recommendation of holding said investment to maturity is acceptable.
MAXIMUM MATURITIES The maximum stated maturity, from the date of purchase, for any
individual investment may not exceed 5 years and the maximum dollar- weighted average
maturity for the pooled fund group (investment portfolio) may not exceed 2 years.
5
DIVERSIFICATION It is the policy of the City to diversify its investment portfolios. Assets
held in the pooled investment portfolio shall be diversified to eliminate the risk of loss resulting
from over - concentration of assets in a specific maturity, specific issuer or specific class of
securities. Diversification strategies shall be determined and revised periodically by the Fiscal
Affairs Committee.
FINANCIAL INSTRUMENTS Maximum allowable percentages of the total portfolio for
investments are stated as follows:
Investment Type Maximum Limit
1. Investment Pools 100%
2. Money Market Accounts 10%
3. Certificates of Deposit 60%
4. U.S. Government Securities 80%
5. U.S. Agency Securities 80%
6. Repurchase Agreements 50%
7. Bankers' Acceptances 20%
8. Commercial Paper 25%
VII. SELECTION OF FINANCIAL INSTITUTIONS AND BROKER DEALERS
SELECTION OF FINANCIAL INSTITUTIONS Depositories shall be selected through the City's
banking services procurement process, which shall include a formal request for proposal (RFP)
issued every five (5) years. In selecting depositories, the services available, service costs, and
credit worthiness of institutions shall be considered, and the Director of Finance shall conduct a
comprehensive review of prospective depositories' credit characteristics and financial history.
The City shall select financial institutions from which the City may purchase certificates of
deposit in accordance with the Act and this policy and will have a written depository agreement
with the selected institution. The Investment Officer shall monitor the fiscal condition of
financial institutions where certificates of deposit are held.
AUTHORIZED FINANCIAL BROKER/DEALERS AND INSTITUTIONS The Investment
Officer shall maintain a list of broker /dealers and financial institutions authorized to provide
investment services. These may include primary dealers or regional dealers that qualify under
Securities & Exchange Commission Rule 15C3 -1 (uniform net capital rule). All financial
institutions and broker /dealers who desire to become qualified bidders for investment transactions
must submit: audited financial statements, proof of National Association of Security Dealers
certification, and proof of state registration.
Before engaging in investment transactions with a financial institutions or broker /dealers, the
Investment Officer shall have received, from a Qualified Representative of said firm, a signed
Certification Form. (Exhibit B) This form shall attest that the individual responsible for the City's
account with that firm has (1) received and reviewed the investment policy of the City; and (2)
acknowledged that the business organization has implemented reasonable procedures and controls
in an effort to preclude investment transactions conducted between the City and the organization
that are not authorized by the City's investment policy, except to the extent that this
authorization is dependent on an analysis of the makeup of the City's entire portfolio or requires
an interpretation of subjective investment standards. Investment Officers of the City may not
acquire or otherwise obtain any authorized investment described in the investment policy from a
6
person who has not delivered a signed Certification Form. The Fiscal Affairs Committee shall at
least annually review, revise, and adopt a list of qualified broker /dealers and other financial
institutions that are authorized to engage in investment transactions with the City. (Exhibit A)
COMPETITIVE BIDDING All investment transactions must be competitively transacted and
executed with broker /dealers or financial institutions that have been authorized by the City. The
City will obtain at least three competitive offers. Exception: New issues will not be required to
be competitively transacted as all broker /dealers would show the same price and yield.
VIII. COLLATERAL
COLLATERALIZATION OF PUBLIC DEPOSITS Collateralization requirements are governed
by the Texas Government Code Chapter 2257 (Public Funds Collateral Act). All bank deposits,
certificates of deposit, and repurchase agreements shall be secured by pledged collateral. In order
to anticipate market changes and provide a level of security for all funds, the required minimum
collateral level will be a market value equal to no less than 102% of the deposits. Collateral
levels should be monitored and maintained by the financial institution. Repurchase agreements
shall be documented by specific agreement noting the collateral pledged in each agreement and
should be monitored daily. Collateral shall be reviewed monthly to assure the market value of the
securities pledged equals or exceeds the related bank balances.
Collateral shall always be held in the City's name by an independent third party with whom the
City of La Porte has a current custodial agreement. Evidence of the pledged collateral shall be
maintained by a written agreement. A safekeeping receipt must be supplied to the City of La
Porte for any transaction involving sales /purchases /maturities of securities and /or underlying
collateral, which the City of La Porte will retain. The right of collateral substitution is granted
provided the substitution has prior approval of the City and is followed by the delivery of an
original safekeeping receipt to the City, and replacement collateral is received prior to the release
of original collateral.
COLLATERAL DEFINED The City shall accept only the following securities as collateral:
A. FDIC insurance coverage;
B. United States Treasuries and Agencies;
C. Obligations, including letters of credit, of the United States or its agencies and
instrumentalities.
D. Other securities as approved by the Fiscal Affairs Committee.
SUBJECT TO AUDIT All collateral shall be subject to inspection and audit by the Director of
Finance or the City's independent auditors.
IX. SAFEKEEPING AND CUSTODY
SAFEKEEPING AGREEMENT All securities owned by the City shall be held in the City's
designated third party safekeeping. The third party custodian shall be required to issue
safekeeping receipts to the City listing each specific security, description, maturity, cusip number
yield and/or coupon and other pertinent information. Each safekeeping receipt shall clearly
indicate that the instrument is held for the City of La Porte. All safekeeping arrangements shall
be documented by the Investment Officer.
7
DELIVERY VERSUS PAYMENT All investment transactions shall be executed on a delivery
versus payment basis. That is, funds shall not be wired or paid until verification has been made
that the collateral was received by the Trustee. The collateral shall be held in the name of the
City. The Trustee's records shall assure the notation of the City's ownership of or explicit claim
on the securities. The original copy of all safekeeping receipts shall be delivered to the City.
X. MANAGEMENT AND INTERNAL CONTROLS
The Director of Finance shall establish a system of internal controls, which shall be reviewed by
an independent auditor. The controls shall be designed to prevent losses of public funds arising
from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial
markets, or imprudent actions by employees or Investment Officers of the City.
Controls and managerial emphasis deemed most important that shall be employed where practical
are:
A. Control of collusion
B. Separation of duties
C. Separation of transaction authority from accounting and record keeping
D. Custodian safekeeping receipts records management
E. Avoidance of physical delivery securities
F. Clear delegation of authority to subordinate staff members
G. Documentation on investment bidding events
H. Written confirmation of transactions for investments and wire transfers
I. Reconcilement and comparisons of security receipts with the investment subsidiary records
J. Compliance with investment policies
K. Accurate and timely reports
L. Validation of investment maturity decisions with supporting cash flow data
M. Adequate training and development of Investment Officers
O. Review of financial condition of all brokers, dealers and financial institutions
P. Staying informed about market conditions, changes, and trends that require adjustments in
investment strategies
COMPLIANCE AUDIT The City shall perform, in conjunction with its annual financial audit, a
compliance audit of management controls on investments and adherence to the entity's
established investment policies. The audit shall include a formal review of the quarterly
investment reports by an independent auditor and the results reported to the governing body by
the independent auditor. Also, the governing body shall review its investment policy and
investment strategy not less than annually and adopt a written instrument by rule, order,
ordinance, or resolution stating that it has reviewed the investment policy and strategy, and
recorded any changes made to them.
8
Exhibit A
City of La Porte
Approved List of Brokers/Dealers and Investment Pools
Brokers/Dealers
Coastal Securities
Wells Fargo
Morgan Stanley, Inc.
Investment Pools
TexPool
LOGIC Investment Pool
TexSTAR
Exhibit B
BROKER/DEALER CERTIFICATION FORM
As required by Texas Government Code 2256.005 (k -1)
CITY OF LA PORTE, TEXAS
This certification is executed on behalf of (the Investor)
and (the Dealer) pursuant to the Public Funds
Investment Act, Chapter 2256, Government Code, Texas Codes Annotated (the Act) in
connection with investment transactions conducted between the Investor and Dealer.
The Undersigned Qualified Representative of the Dealer hereby certifies on behalf of the
Dealer that:
1. The Dealer Qualified Representative is duly authorized to execute this
Certification on behalf of the Dealer, and
2. The Dealer Qualified Representative has received and reviewed the Investment
Policy furnished by the Investor, and
3. The Dealer has implemented reasonable procedures and controls in an effort to
preclude investment transactions conducted between the Dealer and the Investor
that are not authorized by the entity's investment policy, except to the extent that
this authorization is dependent on an analysis of the makeup of the entity's entire
portfolio or requires an interpretation of subjective investment standards.
Dealer Qualified Representative
Signature
Name (Printed):
Title:
Date:
Exhibit C
City of La Porte, Texas
Investment Strategy Statement
The City of La Porte, Texas (the "City ") will strive to administer and invest its pooled
funds at the highest investment return possible while always taking into account the
primary goals of preservation of principal and liquidity of funds invested consistent with
the City's investment policy.
The City's funds, which are pooled together and constitute the investment portfolio,
include all financial assets of all funds managed by the City, including but not limited to
receipts of tax revenues, charges for services, bond proceeds, interest incomes, loans and
funds received by the City where the City performs a custodial function.
The City will never invest its funds in a security that is deemed unsuitable to the financial
requirements of the City. Maturities will be staggered in a manner that meets the cash
flow needs of the City.
The primary investment objective is the preservation and safety of principal. Each
investment transaction shall seek first to ensure that principal losses are avoided, whether
they are from security defaults or erosion of market value.
The City's investment portfolio will remain sufficiently liquid to enable the City to meet
operating requirements that might be reasonably anticipated. Liquidity shall be achieved
by matching investment maturities with forecasted cash flow requirements and by
investing in securities with active secondary markets.
The City shall always maintain a highly diversified investment portfolio in order to
reduce the amount of credit and market risk exposed to the City's portfolio.
After first considering safety and liquidity, the City's investment portfolio shall be
designed with the objective of regularly exceeding the average rate of return on U.S.
Treasury Bills at a maturity level comparable to the City's weighted average maturity in
days. The City shall seek to augment returns above this threshold consistent with risk
limitations identified in the City's investment policy and prudent investment principles.
City o La Porte, Texas
Investment Policy
Adopted by the City Council
Of the City of La Porte
On January 1 3,1992, by
Ordinance N o. 1802
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Amen City o La Porte, Texas
November 199 u
Michael G. Dolby, CPA
August 1997 Director °f- inance
November 2000
February 2003 Shelley Wolny
February 2005 Treasurer
October 2005
July 2009
POLICY
It is the policy of the City of La Porte, Texas (the "City ") to administer and invest its funds in a
manner which will preserve the principal and maintain the liquidity through limitations and
diversification while meeting the daily cash flow requirements of the City. The City will invest all
available funds in conformance with legal and administrative guidelines, seeking to optimize
interest earnings to the maximum extent possible.
II. PURPOSE
The purpose of this investment policy is to comply with all statutes governing the investment of
the City's funds, and in including the Public Funds Investment Act, Chapter 2256 of the Texas
Government Code (the "Public Funds Investmcnt Act "), which requires the City to adopt a
written investment policy regarding the investment of its funds and funds under its control. The
Investment Policy addresses the methods, procedures and practices that must be exercised to
ensure effective and judicious fiscal management of the City's funds.
III. SCOPE
The City will strive to earn a return on funds invested at the highest investment return possible
after taking in consideration the primary goals of preservation of principal and liquidity of funds
invested, consistent with the policy objectives described below. This investment policy applies to
the investment activities of the government of the City of La Porte, Texas.
FUNDS INCLUDED The City's funds, which are pooled together and constitute the investment
portfolio, include all financial assets of all funds managed by the City, including but not limited
to receipts of tax revenues, charges for services, bond proceeds, interest incomes, loans and funds
received by the City where the City performs a custodial function. These funds are accounted for
in the City's Comprehensive Annual Financial Report (CAFR) and include:
General Fund
Special Revenue Funds
Debt Service Funds
Capital Projects Funds
Enterprise Funds
Internal Service Funds
Investment income will be allocated to the various funds based on their respective participation
and in accordance with generally accepted accounting principles.
VIII. OBJECTIVES
SAFETY The primary objective of the City's investment activity is the preservation of capital
and the protection of investment principal in the overall portfolio. Each investment transaction
shall seek first to ensure that capital losses are avoided, whether they are from securities defaults
or erosion of market value. The City will strive to minimize credit risk by limiting investments to
the safest types of investments, prequalifying the financial institutions and broker /dealers with
which the City conducts business, and diversify the investment portfolio so that potential losses
on individual issuers will be minimized. To minimize interest rate risk, the City will ladder the
portfolio and match investments with future cash requirements and invest operating funds in
shorter, more liquid securities and investments.
1
LIQUIDITY The City's investment portfolio will remain sufficiently liquid to enable the City to
meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by
matching investment maturities with forecasted cash flow requirements and by investing in
securities with active secondary markets. Because all possible cash demands cannot be
anticipated, a portion of the portfolio will be invested in shares of money market mutual funds or
local government investment pools that offer same day liquidity.
PUBLIC TRUST All participants in the investment process shall seek to act responsibly as
custodians of the public trust. Investment Officials shall avoid any transaction that might impair
public confidence in the City's ability to govern effectively. The governing body recognizes that
in a diversified portfolio, occasional measured losses due to market volatility are inevitable, and
must be considered within the context of the overall portfolio's investment return, provided that
adequate diversification has been implemented.
YIELD (Optimization of Interest Earnings) The City's cash management portfolio shall be
designed with the objective of regularly meeting or exceeding the average rate of return on U.S.
Treasury Bills at a maturity level comparable to the City's weighted average maturity in days.
The investment program shall seek to augment returns above this threshold consistent with risk
limitations identified herein and prudent investment principles.
IV. RESPONSIBILITY AND CONTROL
OVERSIGHT RESPONB_f_LITY
•v r isht Res on '.' 't for the inv•stm- of the Ci of L. P. - h.1 -- ith th-
Fiscal Affairs Committee and the City Manager.
DELEGATION Management responsibility for the investment program is hereby delegated to
the Director of Finance, who shall establish written procedures for the operation of the investment
program, consistent with this investment policy. Such procedures shall include explicit delegation
of authority to persons responsible for investment transactions.
SUBORDINATES All persons involved in investment activities will be referred to as
"Investment Officers." No person shall engage in an investment transaction except as provided
under the terms of this policy and the procedures established by the Director of Finance. The
Director of Finance shall be responsible for all transactions undertaken, and shall establish a
system of controls to regulate the activities of Subordinate Investment Officers. All investment
officers, including the Director of Finance, will demonstrate competence in the execution of the
city's investments. All Investment Officers will insure compliance with the investment program
with ongoing training and evaluation by management.
PRUDENCE Investments shall be made with the exercise of due care, which persons of
prudence, discretion and intelligence exercise in the management of their own affairs, not for
speculation but for investment considering the probable safety of their own capital as well as the
probable income to be derived. Investment Officers acting in accordance with written procedures
2
and this investment policy and exercising due diligence shall be relieved of personal
responsibility for an individual security's credit risk or market price changes, provided deviations
from expectations are reported in a timely fashion and the liquidity and the sale of securities are
carried out in accordance with the terms of this policy.
IMDEMNIFICATION The Investment Officer, acting in accordance with written procedures
and exercising due diligence, shall not be held personally responsible for a specific investment's
credit risk or market price changes, provided that these deviations are reported immediately and
the appropriate action is taken to control adverse developments.
ETHICS DISCLOSURE AND CONFLICTS OF INTEREST Officers and employees involved
in the investment process shall refrain from personal business activity that could conflict with
proper execution and management of the investment program, or which could impair their ability
to make impartial investment decisions. Employees and Investment Officers shall disclose to the
City Manager any material interests in financial institutions that conduct business with the City of
La Porte, and shall further disclose any personal financial or investment positions that could be
related to the performance of the City's investment portfolio. Employees and Investment Officers
shall refrain from undertaking personal investment transactions with the same individual with
which business is conducted on behalf of the City of La Porte.
An Investment Officer of the City of La Porte who has a personal business relationship with an
organization seeking to sell an investment to the City of La Porte shall file a statement disclosing
that personal business interest. An Investment Officer who is related within the second degree by
affinity or consanguinity to an individual seeking to sell an investment to the City of La Porte
shall file a statement disclosing that relationship. A statement required under subsection
2256.005(i) of the Act must be filed with the Texas Ethics Commission and the governing body
of the City of La Porte.
TRAINING Investment Officers shall attend 10 hours of investment training within 12 months
after taking office or assuming duties, and 10 hours within every succeeding two years. The
investments training shall be provided from an independent source approved by the Fiscal Affairs
Committee to insure the quality and capability of investment management in compliance with the
Act. For the purposes of this policy, an "independent source" is defined as a professional
organization, an institute of higher learning or any other sponsor other than a Business
Organization with whom the City may engage in investment transactions. Training shall be in
accordance with the Act and shall include education in investment controls, security risks,
strategy risks, market risks, diversification of investment portfolio, and compliance with statutes
governing the investment of public funds.
V. REPORTING
QUARTERLY REPORTS The Director of Finance shall submit quarterly an investment report
characteristics, book values, market values and other features. The report shall explain the
quarter's total investment return and compare the return to budgetary expectations. The report • - • - • • • • . • - - • • •. • - .. •. • .Investment reports
shall be prepared quarterly and be signed and submitted by the Investment Officers, in a timely
manner. These reports will be submitted to the City Manager and City Council. This report shall
3
describe in detail the investment position of the City, disclose the market value and book value of
each fund group as well as each separate investment, and state the maturity date of each security
and accrued interest for the reporting period. The report shall include all information as required
by Section 2256.023 of the Act. It must also express compliance of the portfolio to the
investment strategy contained in the City's Investment Policy, the Act, and Generally Accepted
Accounting Principles (GAAP).
MONITORING The market price of each investment shall be obtained monthly from a source
such as the Wall Street Journal newspaper, a reputable brokerage firm or security pricing service
and reported on the investment reports.
ANNUAL REPORTS Within 90 days of the end of the fiscal year, the Dircctor of Finance shall
.. .. - .. - ., . ..., . .. - - . , . . .
I4VI. INVESTMENTS
ACTIVE PORTFOLIO MANAGEMENT The City intends to pursue active versus passive
portfolio management philosophy. That is, securities may be sold before they mature if market
conditions present an opportunity for the City to benefit from the trade.
AUTHORIZED INVESTMENTS • • . . . . - • : rnment of the City of La Porte may
• - : •- • • - ' - ' • • • • - • The following are
authorized investments for the City and all are authorized and further defined by the Act:
.. _ - -
1. Exccpt as provided by Subsection (b), thc following arc authorized investments under
this section:
A. obligations Obligations, including letters of credit, of the United States or its agencies and
instrumentalities;
direct obligations of this state or its agencies and instrumentalities;
of thc United States, thc underlying security for which is guaranteed by an agency or
other obligations, the principal and interest of which are unconditionally guaranteed or
insured by, or backed by the full faith and credit of, this state or the United States or their
respective agencies and instrumentalities; and
obligations of states, agencies, counties, cities, and other political subdivisions of any
state rated as to investment quality by a nationally recognized investment rating firm not
less than A or its equivalent. (Section 2256.009 (a) of the Act)
The following are not authorized investments under this- sSection 2256.009 (b) of the Act:
• obligations whose payment represents the coupon payment on the outstanding
principal balance of the underlying mortgage- backed security collateral and pays not
principal (Interest only bonded);
4
• obligations whose payment represents the principal stream of cash from the
underlying mortgage- backed security collateral and pays no interest (Principal only
bonds);
• collateralized mortgage obligations that have a final stated maturity date of greater
thatthan 10 years; and
• collateralized mortgage obligations, the interest rate of which is determined by an
index that adjusts opposite to the changes in a market 137—fully collateralized C-certificates of Ddeposit and Share Certificates
issued by a depository institution that has its main office or branch office in this state Texas
ands
guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the
National Credit Union Share Insurance Fund or its successor; secured by obligations
authorized by this subchapter,
- . . .. • _ : :. cribcd by Section 2256.009 (a), including mortgage
• . • • - • .. amount of the certificates, but excluding those mortgage
backed securities of the nature described by Scction 2256.009 (b); or
or secured in any other manner and amount provided by law for deposits of the investing
entityCity. (Section 2256.010 of the Act)
.C—Fully collateralized Repurchase Agreements with
if the repurchase agreement: ... .
has a defined termination date; and
is-secured by obligations described by the Act (Section 2256.009 (a)(1) »; such collateral, and
..• - -- - . ' - .. ... : -- -- • _ . -- -- , held in the
entity's City's name, and deposited at the time the investment is made with the entity -City or
with -aan independent third party selected and approved by the entityCity--and,
Repurchase agreements must be ii -plied purchased through a primary government securities
dealer, as defined by the Federal Reserve, or a financial institution doing business in this
statoTexas.
repurchase Repurchase agreements and reverse repurchase agreements shall be entered into
only with dealers who have executed a Master Repurchase Agreement with the City.
In this section, "repurchase agfcement" means a simultaneous agreement to buy, hold for a
.. - .. . . .. - .. - .. •_ . . •. . ... - •- , •
funds disbursed. The tcrm includes a direct security repurchase agreement and a reverse
security repurchase agreement. • • • - _ - - : , The term of any reverse security repurchase agreement may
not exceed 90 days after the date the reverse security repurchase agreement is delivered.
Money received by an-- entitythe City under the terms of a reverse security repurchase
agreement shall be used to acquire additional authorized investments, but the term of the
authorized - investments acquired must mature no later than the expiration date stated in the
reverse security repurchase agreement. (Section 2256.011 of the Act)
D: Banker's Aacceptances
acceptance:
has-with a stated maturity of 270 days or fewer from the date of its issuance;
5
will bc, in accordancc with its tcrms, liquidated in full at maturity;
is-eligible for collateral for borrowing from a Federal Reserve Bank; and
is-accepted by a bank organized and existing under the laws of the United States or any state,
if the short-term obligations of the bank, or of a bank holding company of which the bank is
the largest subsidiary, are rated not less that A -1 or P -1 or an equivalent rating by at least one
nationally recognized credit rating agency. (Section 2256.012 of the Act)
E - Commercial Paper
has with a stated maturity of 270 days or fewer from the date of its issuance; and
is rated not less than A -1 or P -1 or an equivalent rating by at least;
two nationally recognized credit rating agencies,; -er
. - - . _ = ncy and is fully secured by an irrevocable letter of
credit issued by a bank or ndcr the laws of thc United States or any
state. (Section 2256.013 of the Act)
AAA- rated, no -load money market Mmutual 1funds
fnutual-fund: ..
is with and regulated by the Securities and Exchange Commission;
- ''
hasving a dollar- weighted average stated maturity of 90 days or fewer; and
includes in its investment objectives the maintenance of a stable net asset value of $1 for each
share. (Section 2256.014 of the Act) The Fund must proyides the t -en* City with. a
prospectus and other information required by the Securities and Excha_n_ge_Act of 1934_(15
U.S.C. Section 80a -1 et seal:
mutual
d -with thc Securities and Exchange Commission;
rating-firm of not less than AAA or it equivalent; and
An entity is not authorized by this Ssection 2256.014 (c) of the Act to:
• invest in the aggregate more than 15 percent of its monthly average fund balance,
excluding bond proceeds and reserves in other funds held for debt service, in mutual
funds described in the Act (Section 2256.014);
• invest any portion of bond proceeds, reserves and funds held for debt service, in
mutual funds described in Subso�eefien- the Act (Section 2256.014); or
• invest its funds or funds under its control, including bond proceeds and reserves and
other funds held for debt service, in any one mutual fund described in Sub3uo�ection
or (b)the Act (Section 2256.014) in an amount that exceeds 10 percent of the total
assets of the mutual fund.
6
G. Guaranteed Investment Contracts (GICS) with a defined termination date; secured by
obligations described in the Act (Section 2256.009) in an amount at least equal to the amount
of bond proceeds invested under the contract; and pledged to the City and deposited with the
City or with a third party selected and approved by the City. GICS are further subject to the
limitations contained in Section 2256.015 of the Act.
A— AAA- rated, constant dollar, i`investment Pools with a weighted average maturity of no
greater than 90 days as authorized by the City Council and as further defined by the Act,
which invests in eligible securities as authorized by Section 2256.016 of the Act.
An cntity may invest its funds and funds under its control through an eligible investment
- -- " - _ ... .• • . •, .. , . . • . , . . .
To-be-eligible to receive funds from and invest funds on behalf of an cntity under this
infefmatiem
date, of the pool;
• the objectives of the pool;
• the size of the pool;
expire;
• whether the intent of the pool is to maintain a nct asset value of one dollar and the
risk of market price fluctuation;
• ' • • • •• • • • : •- • . . - • .. . •_ .. • ics required for the entity to
• thc performance history of thc pool, including yield average dollar weighted
maturities, and expense ratios.
this chapter, an investment pool must furnish to thc investment officer or other
ii. the current average dollar weighted maturity, based on thc stated maturity date,
of the pool;
7
iii. the current percentage of the pool's port : - : .
maturities of more than one year;
iv. the book value versus the market value of thc pool's portfolio, using the
v. the size of the pool;
vi. thc number of participants in thc pool;
vii. thc custodian bank that is safekeeping the assets of the pool;
... . . . . . . .. . .
ix. the yield and expense ratio of the pool;
x. the portfolio managers of the pool; and
2. An entity by contract may delegate to an investment pool the authority to hold legal title
3. In this section, "yield" shall be calculated in accordance with regulations governing the
registration of open end management investment companics undcr thc Investment
Company Act of 1940, as promulgated from time to time by thc Federal Securities and
Exchangc Commission.
4. To be cligiblc to rcccivc funds from and invest funds on behalf of an cntity undcr this
chapter, a public funds investment pool created to function as a moncy market mutual
stabilize a $1 net asset value. If thc ratio of the market value of the portfolio divided by
the book value of the portfolio is less than 0.995 or greater than 1.005, portfolio holding:,
shall be sold as necessary to maintain the ratio between 0.995 and 1.005.
5. To be eligible to rcccivc funds from and invest funds on behalf of an cntity under this
a) equally of participants in the pool and other persons who do not have a business
6. To maintain eligibility to rcccivc funds from and invest funds on behalf of an entity under
EXISTING INVESTMENTS The Investment Officer is not required to liquidate investments that
were authorized investments at the time of purchase. Any investments currently held that do not
meet the guidelines of this policy shall be reviewed to determine the ability to liquidate. If the
investment cannot be liquidated because of material adverse change in the value since the time of
purchase, and holding the investment to maturity does not negatively affect disbursements or cash
flow, a recommendation of holding said investment to maturity is acceptable.
LENGTH OF INVESTMENTSMAXIMUM MATURITIES The maximum stated maturity, from
the date of purchase, for any individual investment may not exceed 5 years and the maximum
8
dollar- weighted average maturity for the pooled fund group (investment portfolio) may not
exceed 2 years.
DIVERSIFICATION It is the policy of the City of La Porte to diversify its investment portfolios.
Assets held in the eennen-pooled investment portfolio shall be diversified to eliminate the risk
of loss resulting from eee -over- concentration of assets in a specific maturity, e- specific issuer or a
specific class of securities. Diversification strategies shall be determined and revised periodically
by the Fiscal Affairs Committee.
In establishing specific diversification strategies, the following general policies and constraints
ski
. - . - - . - - --
sector. Securities shall be selected which provide for stability of income and reasonable
liquidity. The City shall continually invest a portion of the portfolio in readily available
ongoing obligations.
Treasury bill and notes, or insured and collateralized certificates of deposits. The Fiscal
Affairs Committee shall condu . • •• • - . - - - - _ . - , .
FINANCIAL INSTRUMENTS Maximum allowable percentages of the total portfolio for
investments are stated as follows:
Investment Type Maximum Limit
1. Investment Pools 100%
2. Money Market Accounts 10%
3. Certificates of Deposit 60%
4. U.S. Government Securities 80%
5. U.S. Agency Securities 80%
3- M Securities 20%
7. Repurchase Agreements 50%
8. Bankers' Acceptances Beads 3320%
9. Commercial Paper 3325%
IVII. SELECTION OF FINANCIAL INSTITUTIONS AND
BROKER DEALERS
BIDDING PROCESSSELECTION OF FINANCIAL INSTITUTIONS — Depositories shall be
selected through the City's banking services procurement process, which shall include a formal
request for proposal (RFP) issued every five (5) years. In selecting depositories, the services
available, service costs, and the credit worthiness of institutions shall be considered, and the
Director of Finance shall conduct a comprehensive review of prospective depositories' credit
characteristics and financial history.
9
The City shall select financial institutions from which the City may purchase certificates of
deposit in accordance with the Act and this policy and will have a written depository agreement
with the selected institution. The Investment Officer shall monitor the fiscal condition of
financial institutions where certificates of deposit are held.
INSURABILITY Banks and Savings & Loans Associations seeking to establish eligibility for
PRIMARY DEALERS AND APPROVED LIST AUTHORIZED FINANCIAL
BROKER/DEALERS AND INSTITUTIONS The Investment Officer shall maintain a list of
broker /dealers and financial institutions authorized to provide investment services. These may
include primary dealers or regional dealers that qualify under Securities & Exchange Commission
Rule 15C3 -1 (uniform net capital rule). For brokers and dealers of government securities,
.. e .. - - ' - -
Federal Reserve Bank of New York, also known as "primary government . securities dealers,"
.. • . ... • .. • • - . All financial institutions and broker /dealers who desire to
become qualified bidders for investment transactions must submit: audited financial statements,
proof of National Association of Security Dealers certification, and proof of state registration.
Before engaging in investment transactions with a financial institutions or broker /dealers, the
Investment Officer shall have received, from a Qualified Representative of said firm, a signed
Certification Form. (Exhibit B) This form shall attest that the individual responsible for the City's
account with that firm has (1) received and reviewed the investment policy of the entityCity; and
(2) acknowledged that the business organization has implemented reasonable procedures and
controls in an effort to preclude investment transactions conducted between the entity City and
the organization that are not authorized by the entity's City's investment policy, except to the
extent that this authorization is dependent on an analysis of the makeup of the entity's City's
entire portfolio or requires an interpretation of subjective investment standards. Investment
Officers of the City may not acquire or otherwise obtain any authorized investment described in
the investment policy from a person who has not delivered a signed Certification Form. The
Fiscal Affairs Committee shall at least annually review, revise, and adopt a list of qualified
broker /dealerss and other financial institutions that are authorized to engage in investment
transactions with the City. (Exhibit A)
COMPETITIVE BIDDING All investment transactions must be competitively transacted and
executed with broker /dealers or financial institutions that have been authorized by the City. The
City will obtain at least three competitive offers. Exception: New issues will not be required to
be competitively transacted as all broker /dealers would show the same price and yield.
IXVIII.. • .. .. ' . • ! .. ! ! COLLATERAL
INSURANCE OR COLLATERALIZATION OF PUBLIC DEPOSITS Collateralization
requirements are governed by the Texas Government Code Chapter 2257 (Public Funds
Collateral Act). All bank deposits, certificates of deposit, and repurchase agreements shall be
10
secured by pledged collateral. In order to anticipate market changes and provide a level of
security for all funds, the required minimum collateral level will be ::, . : .. • :,- : - • • . -
of deposit shall be collateralized with a market value equal to no less than 102% of the deposits
plus accrued interest less than an amount insured by FDIC. Rcpurchasc agreements shall be
monitored daily. Collateral levels should be monitored an maintained by the financial institution.
E ffee of t he plcdgcd collateral shall be maintained by the Director of Finance or a third party
financial institution. Repurchase agreements shall be documented by specific agreement noting
the collateral pledged in each agreement and should be monitored daily. Collateral shall be
reviewed monthly to assure the market value of the securities pledged equals or exceeds the
related bank balances.
Collateral shall always be held by an independent third party with whom the City of La Porte has
a current custodial agreement. Evidence of the pledged collateral shall be maintained by a written
agreement. A safekeeping receipt must be supplied to the City of La Porte for any transaction
involving sales /purchases /maturities of securities and/or underlying collateral, which the City of
La Porte will retain. The right of collateral substitution is granted provided the substitution has
prior approval of the City and is followed by the delivery of an original safekeeping receipt to the
City, and replacement collateral is received prior to the release of original collateral.
COLLATERAL DEFINED The City of La Porte shall accept only the following securities as
collateral:
A. FDIC insurance coverage;
B. United States Treasuries and Agencies;
C. Texas State, City, County, School or Road District bonds with a remaining maturity of ten
received a rating of not less than A or its equivalent;
C. Obligations, including letters of credit, of the United States or its agencies and
instrumentalities.
ED. Other securities as approved by the Fiscal Affairs Committee.
SUBJECT TO AUDIT All collateral shall be subject to inspection and audit by the Director of
Finance or the City's independent auditors_
IX. SAFEKEEPING AND CUSTODY
SAFEKEEPING AGREEMENT All securities owned by the City shall be held in the City's
designated third party safekeeping. The third party custodian shall be required to issue
safekeeping receipts to the City listing each specific security, description, maturity, cusip number
yield and/or coupon and other pertinent information. Each safekeeping receipt shall clearly
indicate that the instrument is held for the City of La Porte. All safekeeping arrangements shall
be documented by the Investment Officer.
DELIVERY VERSUS PAYMENT All investment transactions, with thc exception of local
- - - - - - - -, - . .. . - . • - , shall be pH-el:lased executed using on
a the delivery versus payment— methed basis. That is, funds shall not be wired or paid until
verification has been made that the collateral was received by the Trustee. The collateral shall be
held in the name of the City or held on behalf of thc City. The Trustee's records shall assure the
11
notation of the City's ownership of or explicit claim on the securities. The original copy of all
safekeeping receipts shall be delivered to the City.
X. MANAGEMENT AND INTERNAL CONTROLS
The Director of Finance shall establish a system of internal controls, which shall be reviewed by
an independent auditor. The controls shall be designed to prevent losses of public funds arising
from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial
markets, or imprudent actions by employees or Investment Officers of the City.
Controls and managerial emphasis deemed most important that shall be employed where practical
are:
A. Control of collusion:
B. Separation of duties:
C. Separation of transaction authority from accounting and record keeping.
D. Custodian safekeeping receipts records management:
E. Avoidance of physical delivery securities:
F. Clear delegation of authority to subordinate staff members:
G. Documentation on investment bidding events:
H. Written confirmation of telephone- transactions for investments and wire transfers:
I. Reconcilement and comparisons of security receipts with the investment subsidiary records:
J. Compliance with investment policies:
K. Accurate and timely reports, -
L. Validation of investment maturity decisions with supporting cash flow data, -
M. Adequate training and development of Investment Officers:
O. Review of financial condition of all brokers, dealers and depesitery- financial institutions:
P. Staying informed about market conditions, changes, and trends that require adjustments in
investment strategies:
COMPLIANCE AUDIT The City of La Porte shall perform, in conjunction with its annual
financial audit, a compliance audit of management controls on investments and adherence to the
entity's established investment policies. The audit shall include a formal review of the quarterly
investment reports by an independent auditor and the results reported to the governing body by
the independent auditor. Also, the governing body shall review its investment policy and
investment strategy not less than annually and adopt a written instrument by rule, order,
ordinance, or resolution stating that it has reviewed the investment policy and strategy, and
recorded any changes made to them.
12
Exhibit A
City of La Porte
Approved List of Brokers/Dealers and Investment Pools
Brokers/Dealers
Coastal Securities
Wells Fargo
Morgan Stanley, Inc.
Investment Pools
TexPool
LOGIC Investment Pool
TexSTAR
Exhibit B
BROKER/DEALER CERTIFICATION FORM
As required by Texas Government Code 2256.005 (k -1)
CITY OF LA PORTE, TEXAS
This certification is executed on behalf of (the Investor)
and (the Dealer) pursuant to the Public Funds
Investment Act, Chapter 2256, Government Code, Texas Codes Annotated (the Act) in
connection with investment transactions conducted between the Investor and Dealer.
The Undersigned Qualified Representative of the Dealer hereby certifies on behalf of the
Dealer that:
1. The Dealer Qualified Representative is duly authorized to execute this
Certification on behalf of the Dealer, and
2. The Dealer Qualified Representative has received and reviewed the Investment
Policy furnished by the Investor, and
3. The Dealer has implemented reasonable procedures and controls in an effort to
preclude investment transactions conducted between the Dealer and the Investor
that are not authorized by the entity's investment policy, except to the extent that
this authorization is dependent on an analysis of the makeup of the entity's entire
portfolio or requires an interpretation of subjective investment standards.
Dealer Qualified Representative
Signature
Name (Printed):
Title:
Date:
Exhibit C
City of La Porte, Texas
Investment Strategy Statement
The City of La Porte, Texas (the "City ") will strive to administer and invest its pooled
funds at the highest investment return possible while always taking into account the
primary goals of preservation of principal and liquidity of funds invested consistent with
the City's investment policy.
The City's funds, which are pooled together and constitute the investment portfolio,
include all financial assets of all funds managed by the City, including but not limited to
receipts of tax revenues, charges for services, bond proceeds, interest incomes, loans and
funds received by the City where the City performs a custodial function.
The City will never invest its funds in a security that is deemed unsuitable to the financial
requirements of the City. Maturities will be staggered in a manner that meets the cash
flow needs of the City.
The primary investment objective is the preservation and safety of principal. Each
investment transaction shall seek first to ensure that principal losses are avoided, whether
they are from security defaults or erosion of market value.
The City's investment portfolio will remain sufficiently liquid to enable the City to meet
operating requirements that might be reasonably anticipated. Liquidity shall be achieved
by matching investment maturities with forecasted cash flow requirements and by
investing in securities with active secondary markets.
The City shall always maintain a highly diversified investment portfolio in order to
reduce the amount of credit and market risk exposed to the City's portfolio.
After first considering safety and liquidity, the City's investment portfolio shall be
designed with the objective of regularly exceeding the average rate of return on U.S.
Treasury Bills at a maturity level comparable to the City's weighted average maturity in
days. The City shall seek to augment returns above this threshold consistent with risk
limitations identified in the City's investment policy and prudent investment principles.
E
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: May 23, 2011 Appropriation
Requested By: Stephen L. Barr Source of Funds: N/A
Department: Parks & Recreation Account Number:
Report: Resolution: X Ordinance: Amount Budgeted:
Exhibits: Land Use Resolution Amount Requested:
Exhibits: Budgeted Item: YES NO
Exhibits:
SUMMARY & RECOMMENDATION
The Klein's Retreat Property and Happy Harbor Property were purchased for an undetermined future use.
One possible use for a portion or all of the properties is for parkland, to connect the Seabreeze Park with
Sylvan Beach to the southwest. The future land use has not been determined at this date.
There is an issue of the properties becoming "de facto" parks, where the occasional recreational use becomes
the primary activity and could be claimed as the intended use. While this is a possibility, in order to reserve
the final determination of how the land will be used in the future, the City Attorney's office is
recommending that this resolution be considered by the Council establishing that the future use has not been
determined and that although the property is available for recreational use, it is not dedicated parkland.
The resolution does not preclude the future use of the property as parkland, should the Council determine
that should be its future use. It does eliminate the claim for "de facto" parkland based on previous use,
should the Council decide some other future use for the land.
tion R quired by Council:
onsider , pproval or other action regarding a Land Use Resolution for former Klein's Retreat and Happy
Harbor odist Ho' e properties.
A i -S uncil A. enda
1■1- CAP ill
Ron Bottoms, City Manager Date
RESOLUTION No. 2011 0 0 2
WHEREAS, on May 25, 2004 the City of La Porte, Texas acquired a 3.6850 acre tract of land from
Neighborhood Centers, Inc., located at 1010 Bayshore Drive along Galveston Bay, and commonly known
as the "Klein Retreat" site;
WHEREAS, on June 30, 2009 the City of La Porte, Texas acquired a 3.320 acre tract of land from the
Aldersgate Trust, located at 1106 Bayshore Drive along Galveston Bay, and commonly known as the
former "Happy Harbor Methodist Home" site;
WHEREAS, the City of La Porte, Texas is in the process of considering any and all qualifying options for
the use of the aforementioned properties;
WHEREAS, despite the lack of development or active use of these tracts by the City of La Porte neither
of the aforementioned sites are restricted from public access by a fence or other obstruction, and have
been used for recreational purposes by the public;
WHEREAS, the City of La Porte has not declared or dedicated either tract as a public park or parkland,
nor has it utilized them as such; and furthermore was not required to do so under the terms of the
conveyance instruments by which the City of La Porte received title to said tracts;
WHEREAS, the City of La Porte desires to express its intent to preserve the right to utilize the
aforementioned properties for any and all qualifying uses and to pursue such use as it deems proper;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE,
TEXAS:
That the findings of the City and its actions approving this resolution taken at the council meeting are
hereby approved and adopted.
BE IT FURTHER RESOLVED that the City of La Porte City Council does hereby determine and declare
that the property located at 1010 Bayshore Drive, and commonly known as the "Klein Retreat Site ", and
the property located at 1106 Bayshore Drive, and commonly referred to as the former "Happy Harbor
Methodist Home" site are not, and at no time have been, declared or dedicated as a public park or
parkland.
BE IT FURTHER RESOLVED that the City of La Porte shall install signs on the perimeter of both of the
aforementioned properties to advise members of the general public of the fact that neither tract is a part of
the La Porte park system or a public park.
PASSED BY THE CITY COUNCIL of the City of La Porte, 0 his 3rd day of May 2011.
a. trip
S r s R. Rigby,R� o yor
City Secretary ' r
L T Al '
City Attorney
F
,.___
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: May 23, 2011 Budget
Requested By: Tim Tietjens Source of Funds: N/A
Department: Planning Account Number: N/A
Report: X Resolution: Ordinance: X Amount Budgeted: N/A
Amount Requested: N/A
Exhibits: Ordinance with Exhibit A
Budgeted Item: YES NO
Exhibits:
Exhibits:
Exhibits:
SUMMARY & RECOMMENDATION
This ordinance renames a portion of East E Street to Evelyn Kennedy Boulevard in memory of
the late Ms. Evelyn Kennedy. The portion of street to be renamed is a one block section between
San Jacinto Street and Arizona Street. Currently, the pavement section does extend west of San
Jacinto Street but terminates at Arizona Street. Both the Neighborhood Centers facility and the
Evelyn Kennedy Center abut the portion of the street proposed for renaming, but no buildings or
properties contain an East E Street address.
Upon approval of the name change, the Planning Department will advise all appropriate parties
of the change and the effective date.
Action ' equired by Council:
pprove o . inance changing the name of East E Street to Evelyn Kennedy Boulevard, from San Jacinto
Street to k r2 a Street.
A i FA HUM ncil A enda
,-744
Ron Botto ' i Manager Date
ORDINANCE NO. 2011 -
AN ORDINANCE CHANGING THE NAME OF EAST E STREET, FROM SAN JACINTO STREET
TO ARIZONA, TO EVELYN KENNEDY BOULEVARD; FINDING COMPLIANCE WITH THE
OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The name of East E Street, from the western
right -of -way line of San Jacinto Street to the eastern right -of -way
line of Arizona, and as depicted on the diagram attached hereto as
Exhibit A, is hereby changed to Evelyn Kennedy Boulevard.
Section 2. The City Council officially finds, determines,
recites, and declares that a sufficient written notice of the date,
hour, place and subject of this meeting of the City Council was posted
at a place convenient to the public at the City Hall of the City for
the time required by law preceding this meeting, as required by the
Open Meetings Law, Chapter 551, Texas Government Code; and that this
meeting has been open to the public as required by law at all times
during which this ordinance and the subject matter thereof has been
discussed, considered and formally acted upon. The City Council
further ratifies, approves and confirms such written notice and the
contents and posting thereof.
Section 3. This Ordinance shall be effective from and after its
passage and approval, and it is so ordered.
PASSED AND APPROVED, this 23rd day of May, 2011.
CITY O� ��
By: `�
Lo W R. Rig b Mayor
ATESST :
NA
Patrice Fogarty(' air 4 V
City Secretary
APPROVED:
‘4,4e„,
Clark T. Askins
Assistant City Attorney
H
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested May 23, 2011 Appropriation
Requested By Heather Weger Source of Funds:
Department: Human Resources Account Number:
Report Resolution: Ordinance: Amount Budgeted:
Amount Requested:
Exhibits: Retiree Medical Benefits Policy -Track Changes
Budgeted Item: YES NO
Exhibits: Retiree Medical Benefits Policy — Changes Accepted
Exhibits:
SUMMARY & RECOMMENDATION
At the April 25, 2011 City Council meeting, staff and the Chapter 172 Committee requested
some modifications to the Retiree Medical Policy. At that time Staff and the Chapter 172
Committee recognized the Retiree Medical Policy needed to be cleaned up. The changes that
were approved at the April 25 Council meeting have been incorporated into the Retiree Medical
Policy as well as some clarifications made by the Chapter 172 Committee at the May 5, 2011
meeting. The clarifications being requested are not intended to change the administration of the
policy or the retiree benefits in any way. The modifications being requested are as follows:
• Adding the word `consecutive' to the 4 bullet point in the first section.
• Deleting any paragraphs or phrases that are redundant.
• Moving paragraphs and/or phrases to make the policy more clear and concise.
• Modifying the covered dependent age from 25 to 26 and deleting the full time status
requirement in accordance with the Healthcare Reform Law.
Action Required by Council:
App • ve the • apter 172 Committee's recommendation for modifications to the Retiree Medical
B' efits Pol y.
A• srov/lb .'� ►1, IA enda
111 1..• / r� /�
Ron Bottom r Manager Date
8.04 Retiree Medical Benefits
The following persons are eligible for retiree medical coverage:
• City employees who retire from City of La Porte employment who have a combination of
years of service with the City of La Porte, plus age, totaling 80; and
• who retire as a qualified annuitant under the Texas Municipal Retirement System;
• who retire in accordance with the City of La Porte Employee Policies Handbook;
• who complete at least 20 consecutive years of service with the City of La Porte, and are
currently employed by the City of La Porte at the time of their retirement.
Retirees re- employed after retirement from the City of La Porte that have employer sponsored
health care coverage available through the new employer may not continue health coverage
with the City of La Porte, except for those with 30 years or more tenure with the City of La
Porte.
Retirees who delay their retirement annuity shall not be eligible for retiree health coverage from
the City.
Retirees who are self - employed are eligible for medical coverage, but occupational illnesses or
injuries shall not be covered
Retirees with Thirty (30) or More Years of Service
If an employee works 30 years or more with the City of La Porte they may maintain the City of
La Porte sponsored health plan as secondary, while working for a new employer offering a
health plan option. All applicable costs of the plan will still apply. In the case of Retirees that are
reemployed by a new employer, and who subsequently separate employment from the new
employer, a one time deferral shall be allowed whereby the retiree may rejoin the City of La
Porte health plan as a retiree participant, regardless of age. If a qualifying retiree carried a
spouse as a dependent at the time of their initial retirement, a retiree who rejoins the City of La
Porte health plan as a retiree participant under the one time deferral may include their spouse
as a dependent, consistent with allowances made under Federal COBRA law. The Retiree and
dependent coverage will be secondary for Retirees with 30 or more years tenure with the City of
La Porte, who have employer sponsored health coverage available through their new employer.
City employees meeting the eligibility requirements for
• disability retirement under the Texas Municipal Retirement System Act and
• have been declared permanently disabled under the Social Security Act, and have
elected to receive Medicare, Parts A and B, shall be eligible for medical benefits, which
shall be secondary to Medicare benefits, provided they have worked for the City of La
Porte for ten (10) continuous years at the time of disability determination. Costs
associated with retirement under this tier shall be 75% of the city cost.
Medicare Eligible Retirees
The coverage will be secondary for those retirees and retirees' dependents who are Medicare
eligible.
Death of an Employee
An employee who would have otherwise qualified for Retiree Medical Coverage, but dies prior
to their retirement, will be allowed to continue coverage for dependents who were covered at the
time of the Retiree's death under this policy until the earlier of the date the surviving spouse
remarries, obtains group insurance, or becomes entitled to Medicare, or until any unmarried
children financially dependent upon the covered retiree is 26 years of age. Surviving
dependents shall pay the appropriate contribution toward dependent coverage as established in
this chapter.
Death of a Retiree
If a covered retiree dies, dependents may continue coverage until the earlier of the date the
surviving spouse remarries, obtains group insurance, or becomes entitled to Medicare, or until
any unmarried children financially dependent upon the covered retiree is 26 years of age.
Surviving dependents shall pay the appropriate contribution toward dependent coverage as
established in this chapter.
Eligible dependents include:
• Your lawful spouse who is legally married to and living with you;
• natural children; stepchildren; children who, before reaching the age of 18, are either
adopted by you;
• Or other children for whom you have care, custody and control under court decree.
A dependent child must be unmarried and rely on you for primary support and maintenance.
Dependent children remain eligible until age 26 Retirees may not add dependents once retired.
There are no qualifying events to add dependents. Dependents may be dropped by written
request at any time.
Premiums
The City of La Porte utilizes a self - funded medical plan so there are no formal premiums paid for
health coverage. Each year, during the budget process, an amount is determined for each
employee to cover claims and administration of the medical fund.
The Total Plan Cost is the Total annual dollar allocated each year by budget as approved by
City Council for the City of La Porte for Health Insurance for each employee, including employee
and employer contributions.
Costs to the retiree shall be based on a cost schedule determined by years of service, outlined
below. Under this schedule, a retiree pays a percentage of the total plan cost, based on years of
service, but pays the entire cost of dependent coverage, regardless of years of service.
Retirees shall pay all required contributions to the City by the 15 of the month of coverage.
One annual statement will be mailed to retirees for selection of payment plan: annual, bi- annual,
quarterly or monthly. Failure to pay the required contribution will result in termination of the
member's participation in the City of La Porte sponsored health plan. Payment delayed beyond
60 days will initiate COBRA notification for continuation of health coverage once the member is
terminated from the Plan.
Years of Service Percentage Retiree Pays
20 60% of the Total Plan Cost + dependent coverage
21 55% of the Total Plan Cost + dependent coverage
22 50% of the Total Plan Cost + dependent coverage
23 45% of the Total Plan Cost + dependent coverage
24 40% of the Total Plan Cost + dependent coverage
25 35% of the Total Plan Cost + dependent coverage
26 30% of the Total Plan Cost + dependent coverage
27 25% of the Total Plan Cost + dependent coverage
28 20% of the Total Plan Cost + dependent coverage
29 15% of the Total Plan Cost + dependent coverage
30 Active Employee /Dependent Rate
COBRA Coverage for Retirees
As mandated by Texas Local Government Code Chapter 175, City employees meeting eligibility
requirements under the Texas Municipal Retirement System Act to receive retirement benefits,
may, regardless of age or years of service with the City, purchase at their own expense, the
combined City and employee cost of continued health benefits coverage for the employee and
the employee's dependents, unless the employee is eligible for group health benefits coverage
through another employer. To purchase continued health benefits coverage the employee must
inform the City of their election not later than the day on which the employee retires from the
City. A person who elects to purchase continued coverage who subsequently discontinues
coverage, is no longer eligible for coverage; likewise, a dependent for whom coverage is
discontinued is no longer eligible for continued coverage. A person who was not covered under
the employee's plan at the time of retirement is not eligible for continued coverage. The City
may substitute Medicare supplemental health benefits coverage as the coverage provided to a
retiree under this section, including a dependent, after the date the retiree becomes eligible for
federal Medicare benefits.
8.04 Retiree Medical Benefits
The following persons are eligible for retiree medical coverage:
• City employees who retire from City of La Porte employment who have a combination of Moved (insertion) [1]
years of service with the City of La Porte, plus age, totaling 80: and
• who retire as a qualified annuitant under the Texas Municipal Retirement System:,
• who retire in accordance with the City of La Porte Employee Policies Handbook; Deleted: All applicable costs of the Plan will
still apply.
• who complete at least 20 consecutive years of service with the City of La Porte, and are Deleted: For those retirees who are self -
currently employed by the City of La Porte at the time of their retirement. • employed, occupational illnesses or injuries
shall not be covered. Annual contributions by
retirees to the health plan will be based on a
cost schedule determined by years of service,
as established under Section 5, "Premiums ", of
• this chapter.¶
Deleted: <# >Present retirees of the City of
• La Porte receiving retirement annuities as a
Retirees re- employed after retirement from the City of La Porte that have employer sponsored qualified annuitant under the Texas Municipal
health care coverage available through the new employer may not continue health coverage Retirement system¶
with the City of La Porte, except for those with 30 years or more tenure with the City of La ¶ <#>Who have retired in accordance with the
Porte. • City of La Porte Employee Policies
- etirees who dela their retirement annuity - La Porte at shall not be eligible for retiree health coverage from Handbooatand were employed by the City of
- - - - -- the time of their retirement. ¶
the City.
Betirees who are self - employed are eligible for medical coverage, but occupational illnesses or Deleted` ¶
injuries shall not be covered Moved (insertion) [4]
Deleted: ¶
Retirees with Thirty (30) or More Years of Service (Moved (insertion) [2]
Deleted: or for retirees reemployed with the
If an employee works 30 years or more with the City of La Porte they may maintain the City of City of La Porte, as hereinabove provided.
La Porte sponsored health plan as secondary, while working for a new employer offering a Deleted Retirees who are self-employed are
health plan option. All applicable costs of the plan will still apply. In the case of Retirees that are eligible for medical coverage, but occupational
reemployed by a new employer, and who subsequently separate employment from the new illnesses or injuries shall not be covered
employer, a one time deferral shall be allowed whereby the retiree may rejoin the City of La Deleted: Annual contributions by retirees to the
Porte health plan as a retiree participant, regardless of age. If a qualifying retiree carried a health plan will be based on the total cost per
employee of the plan to the City.¶
spouse as a dependent at the time of their initial retirement, a retiree who rejoins the City of La City employees who retire from City of La Porte
Porte health plan as a retiree participant under the one time deferral may include their spouse employment on or after January 01, 2006 and
as a dependent, consistent with allowances made under Federal COBRA law. • The Retiree and Moved up [1]: who have a combination i
de •endent covera.e will be seconda for Retirees with 30 or more ears -nure with the Cit of of years of service with the City of La
La Porte who have em.l • er sponsored health cover.. a availa • le throu • h heir new em • to er • Porte, who retire r ti a as a q lit ied 80; and ¶
re as a ual�ed annuitant under
the Texas Municipal Retirement System;
who retire in accordance with the City of La
Porte • • complete Employee
t least 0 years of serrvice with
o the City of La Porte, and are currently
0 employed by the City of La Porte at the
time of their retirement. All applicable
City employees meeting the eligibility requirements for costs of the Plan will still apply. For those
retirees who are self-employed,
occupational illnesses or injuries shall not
• disability retirement under the Texas Municipal Retirement System Act and be covered. Annual contributions by
• have been declared permanently disabled under the Social Security Act, and have retirees to the health plan will be based on
elected to receive Medicare, Parts A and B, shall be eligible for medical benefits, which a cost schedule determined by years of
service, as established under Section 5,
"Premiums", of this chapter.¶
shall be secondary to Medicare benefits, provided they have worked for the City of La
Porte for ten (10) continuous years at the time of disability determination. Costs
associated with retirement under this tier shall be 75% of the city cost.
Medicare Eligible Retirees
The coverage will be secondary for those retirees and retirees' dependents who are Medicare Deleted: The retiree and dependent coverage
eligible. be primary for those participants not yet
qualified for Medicare.
Death of an Employee Moved up [2]: The Retiree and dependent
coverage will be secondary for Retirees with 30 I
An employee who would have otherwise qualified for Retiree Medical Coverage, but dies prior or more years tenure with the City of La Porte,
who have employer sponsored health coverage
to their retirement, will be allowed to continue coverage for dependents who were covered at the available through their new employer, or for
time of the Retiree's death under this policy until the earlier of the date the surviving spouse retirees reemployed with the City of La Porte, as
remarries, obtains group insurance, or becomes entitled to Medicare, or until any unmarried hereinabove provided.
children financially dependent upon the covered retiree is 26 years of aqe. Surviving
dependents shall pay the appropriate contribution toward dependent coverage as established in
this chapter.
Death of a Retiree
If a covered retiree dies, dependents may continue coverage until the earlier of the date the
surviving spouse remarries, obtains group insurance, or becomes entitled to Medicare, or until
1 any unmarried children financially dependent upon the covered retiree is 2 6 years of a�e� Deleted: 25
Surviving dependents shall pay the appropriate contribution toward dependent coverage as
established in this chapter.
gligible dependents include: Moved (insertion) [3]
• Your lawful spouse who is legally married to and living with you
• natural children: stepchildren: children who, before reaching the age of 18, are either
adopted by you:
• Or other children for whom you have care, custody and control under court decree.
A dependent child must be unmarried and rely on you for primary support and maintenance.
Dependent children remain eligible until a egetirees may not add dependents once retired. Deleted: 5
There are no •uali in. events to add dependents. Dependents ma be dro••ed b written _ _-- y -
request at any time. Deleted: as long as the are enrolled as a full-
time student.¶
Moved up [4]: Retirees who delay their
I 11
retirement annuity shall not be eligible for retiree i
health coverage from the City.%
Premium; Deleted:
Retirees who work for another employer offering
The City of La Porte utilizes a self- funded medical plan so there are no formal premiums paid for health coverage shall not be eligible for retiree
health coverage. Each year, during the budget process, an amount is determined for each health coverage from the City after their
subsequent employment ends, regardless of the
employee to cover claims and administration of the medical fund. length of service with the subsequent employer.%
Deleted: :
The Total Plan Cost is the Total annual dollar allocated each year by budget as approved by
City Council for the City of La Porte for Health Insurance for each employee, including employee
and employer contributions.
Costs to the retireeshali be based on a cost schedule determined by years of service, outlined ( Deleted: , retiring on or after January 01, 2006,
below. Under this schedule, a retiree pays a percentage of the, total plan cost, based on years of Deleted: city's contribution to the plan
service, but pays the entire cost of dependent coverage, regardless of years of service. participant's health coverage
Moved up [3]: Eligible dependents include: ¶
Your lawful spouse who is legally married to
and living with 11
natural children; stepchildren; children who,
before reaching the age of 18, are either
adopted by you; ¶
Or other children for whom you have care,
custody and control under court decree. ¶
¶
A dependent child must be unmarried and rely
on you for primary support and maintenance.
Retirees shall pay all required contributions to the City by the 15 of the month of coverage. Dependent children remain eligible until age 25
as long as they are enrolled as a full -time
One annual statement will be mailed to retirees for selection of payment plan: annual, bi- annual, student.¶
quarterly or monthly. Failure to pay the required contribution will result in termination of the Retirees may not add dependents once retired.
member's participation in the City of La Porte sponsored health plan. Payment delayed beyond There are no qualifying events to add
dependentu. Dependents may be dropped by
60 days will initiate COBRA notification for continuation of health coverage once the member is written request at any time.¶
terminated from the Plan.
Years of Service Percentage Retiree Pays
20 60% of the Total Plan Cost + dependent coverage
21 55% of the Total Plan Cost + dependent coverage
22 50% of the Total Plan Cost + dependent coverage
23 45% of the Total Plan Cost + dependent coverage
24 40% of the Total Plan Cost + dependent coverage
25 35% of the Total Plan Cost + dependent coverage
26 30% of the Total Plan Cost + dependent coverage
27 25% of the Total Plan Cost + dependent coverage
28 20% of the Total Plan Cost + dependent coverage
29 15% of the Total Plan Cost + dependent coverage
30 Active Emolovee /Dependent Rate
COBRA Coverage for Retirees
As mandated by Texas Local Government Code Chapter 175, City employees meeting eligibility
requirements under the Texas Municipal Retirement System Act to receive retirement benefits,
may, regardless of age or years of service with the City, purchase at their own expense, the
combined City and employee cost of continued health benefits coverage for the employee and
the employee's dependents, unless the employee is eligible for group health benefits coverage
through another employer. To purchase continued health benefits coverage the employee must
inform the City of their election not later than the day on which the employee retires from the
City. A person who elects to purchase continued coverage who subsequently discontinues
coverage, is no longer eligible for coverage; likewise, a dependent for whom coverage is
discontinued is no longer eligible for continued coverage. A person who was not covered under
the employee's plan at the time of retirement is not eligible for continued coverage. The City
may substitute Medicare supplemental health benefits coverage as the coverage provided to a
retiree under this section, including a dependent, after the date the retiree becomes eligible for
federal Medicare benefits.
8
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Council Agenda Item
May 23, 2011
8. ZONING PUBLIC HEARINGS AND ASSOCIATED ORDINANCES
(a) Public Hearing to receive comments for or against Rezone Request #11-
92000002, for the property located at 801 North 16 Street, further described as a
9.1460 -acre tract of land situated in the Johnson Hunter Survey, Abstract No. 35,
Harris County, Texas, containing TRS A & 1A, Block 1, Nebraska Syndicate.
Brolyn Petri, on behalf of Chemical Lime (Lhoist North America), seeks to have this
property rezoned from Light Industrial (LI) to Heavy Industrial (HI) — T. Tietjens
Ordinance — Consider approval or other action regarding an Ordinance
amending Chapter 106 "Zoning" of the Code of Ordinances by changing
classification from light industrial (LI) to heavy industrial (HI) for the property
located at 801 North 16 Street — T. Tietjens
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: May 23, 2011 Appropriation:
Requested By: Tim Tietiens Source of Funds: N/A
Department: Planning Account Number: N/A
Report: X Resolution: Ordinance: X Amount Budgeted: N/A
Exhibits: Amount Requested: N/A
Ordinance
Aerial /Zoning Map
Budgeted Item: N/A
SUMMARY & RECOMMENDATION
Brolyn Petri, on behalf of Chemical Lime (Lhoist North America), seeks to have the property rezoned from Light
Industrial (LI) to Heavy Industrial (HI). The property is located at 801 North 16 Street. This property (9.1460 acres) is
located just north of Barbour's Cut Boulevard adjacent to the Strang Road Yard and Union Pacific Railroad's undeveloped
parcels of land. Surrounding properties to the north and east are currently zoned Heavy Industrial (HI). Properties to the south
and west are Light Industrial (LI) zoned. This rail - served facility has been used for lime manufacturing since the mid 1980s
and is currently a legal non - conforming use based on existing zoning. If approved, the zone change would bring this use into
compliance with the requested zoning.
The property is proximate to the Port of Houston's Barbour's Cut Terminal and a few miles from the Bayport Terminal.
The City's Land Use Map shows underlying land uses as industrial. With the requested change, the property will be
compatible with the current use and zoning designation of the surrounding properties. In addition, there is no future plan
for its expansion or redevelopment. Therefore, traffic and public utilities will not be affected with the requested change to
Heavy Industrial (HI).
During the April 21, 2011 Planning & Zoning Commission meeting, a public hearing was held to receive citizen
comments regarding Rezone Request #11-92000002. As required by Ordinance, notices of the public hearing were
mailed to property owners within 200' of the subject site. No response was received from the mail out.
The Planning and Zoning Commission, by unanimous vote, recommends City Council approval of Rezone Request #11-
92000002.
Action Required by Council:
1. Conduct public hearing.
2. Consider taking action on a recommendation by the Planning and Zoning Commission to approve Rezone Request
# -*2 ► 00002, for the subject property from Light Industrial (LI) to Heavy Industrial (HI).
Ali roj or Ci uncil A. enda
1 5- -
Ron Bottoms, City Manager Date
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 106 "ZONING" OF THE CODE OF
ORDINANCES OF THE CITY OF LA PORTE BY CHANGING THE ZONING
CLASSIFICATION FROM LIGHT INDUSTRIAL (LI) TO HEAVY INDUSTRIAL (HI) FOR
TRACT OF LAND HEREIN DESCRIBED; MAKING CERTAIN FINDINGS OF FACT
RELATED 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: Chapter 106 "Zoning" of the Code of Ordinances is hereby amended by changing the
zoning classification of the following described property, to wit: 9.1460 acres tract of land
situated in the Johnson Hunter Survey, Abstract No. 35, Harris County, Texas, containing TRS A
& 1A, Block 1, Nebraska Syndicate, a subdivision according to the map or plat thereof recorded
in Volume 458, Page 331 of the Deed Records of Harris County, from Light Industrial (LI) to
Heavy Industrial (HI).
Section 2: All ordinances or parts of ordinances inconsistent with the terms of this ordinance are
hereby repealed; provided, however, that such repeal shall be only to the extent of such
inconsistency and in all other respects this ordinance shall be cumulative of other ordinances
regulating and governing the subject matter covered by this ordinance.
Section 3. Should any section or part of this ordinance be held unconstitutional, illegal, or
invalid, or the application to any person or circumstance for any reasons thereof ineffective or
inapplicable, such unconstitutionality, illegality, invalidity, or ineffectiveness of such section or
part shall in no way affect, impair or invalidate the remaining portions thereof; but as to such
remaining portion or portions, the same shall be and remain in full force and effect and to this
end the provisions of this ordinance are declared to be severable.
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 is 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 Chapter 551, Tx. Gov't 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. The City Council of the City of La Porte hereby finds that public notice was properly
mailed to all owners of all properties located within two hundred feet (200') of the properties
under consideration.
Section 6. The City Council of the City of La Porte hereby finds, determines, and declares that
all prerequisites of law have been satisfied and hereby determines and declares that the
amendments to the City of La Porte Zoning Map and Classification contained in this Ordinance
as amendments thereto are desirable and in furtherance of the goals and objectives stated in the
City of La Porte's Comprehensive Plan.
Section 7. This Ordinance shall be effective after its passage and approval.
PASSED AND APPROVED this the day of L , 2011.
OF A PORTE
By: I. k
outs R. Ri:., Mayor
ATTEST:
NISI /'
Patrice Fogarty, C Secreta'y
APPROV D:
Clark Askins, Assistant City Attorney
2
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Council Agenda Item
May 23, 2011
9. ORDINANCES
(a) Consider approval or other action regarding an Ordinance appointing a
Re- Districting Committee and establishing its powers and duties — P.
Fogarty
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: May 23, 2011 Budget
Requested By: Patrice Fogarty Source of Funds: N/A
Department: City Secretary Account Number: N/A
Report: Resolution: Ordinance: X Amount Budgeted: N/A
Amount Requested: N/A
Exhibits: Ordinance
Budgeted Item: YES NO
Exhibits:
Exhibits:
Exhibits:
SUMMARY & RECOMMENDATION
Following publication of the 2010 Federal Census, a re- districting committee is appointed to
conduct an investigation to determine the population of the City, and the population of each
Council district. The committee will report to council the results of such determination; and, if
the distribution of population among the various districts is determined by the City Council to be
materially unbalanced, the re- districting committee shall, following public notice and an
opportunity for public input, recommend to the City Council the establishment of new
boundaries for the election of district councilmembers.
This ordinance appoints a re- districting committee and establishes its power and duties. Further,
it makes a change from prior appointments by appointing Charlie Perry as a member, instead of
an alternate, in place of Howard Ebow, who resigned.
Actio 1 ' _ • uired by Council:
opt this e dinance appointing a Re- Districting Committee, establishing its powers and duties, and
. ppoint C rry as a member in place of Howard Ebow.
AI r AWAIT ilA.enda
s -f% A/
Ron Bottoms anager Date
ORDINANCE NO. 2011 -335a
AN ORDINANCE APPOINTING A RE- DISTRICTING COMMITTEE, AND
ESTABLISHING ITS POWERS AND DUTIES; FINDING COMPLIANCE WITH THE
OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council of the City of La Porte hereby
appoints the following residents of the City of La Porte to a Re-
Districting Committee, to -wit:
Chairperson: Charles Harrington
District 1: Nolan Allen
District 2: Nanci Lotze
District 3: Nancy Ojeda
District 4: Mark Follis
District 5: Paul Berner
District 6: Lisa Garcia
Position A: Charles Montgomery
Position B: Charlie Perry
Alternate 1:
Alternate 2:
Alternate 3:
Section 2. Following publication of the 2010 Federal Census,
the Re- Districting Committee shall conduct an investigation and
determine the population of the City, and the population of each of
the districts from which district Councilpersons are elected. Each
such determination shall be based upon the best available data,
including, but not limited to, the 2010 Federal Census. Each such
determination shall be reported by the Re- Districting Committee to
City Council, which shall express the results of such determination
in an ordinance, which shall be a final determination for purposes
of the Home Rule Charter of the City of La Porte. After any such
determination, if the distribution of population among the various
districts is determined by City Council to be materially
unbalanced, the Re- Districting Committee shall, following public
notice and an opportunity for public input, recommend to City
Council the establishment of new boundaries for the election of
district Councilpersons.
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.
PASSED AND APPROVED, this 4 23'ay of -/h , 2011.
CITY 9F r' •'TE
By:
I{oui . Rig 4 Mayor
A EST: / � / y��/ j
Patrice Fogai (f
City Secretary
APPRVE.:
T.
k T. Askins
Assistant City Attorney
2
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Council Agenda Item
May 23, 2011
10. ADMINISTRATIVE REPORTS — R. Bottoms
May 30, 2011 — City Offices closed in Observance of Memorial Day
June 6, 2011 — City Council Meeting — 6 PM
June 11, 2011 — Runoff election
Newly Elected City Officials' Orientation — TML — July 15 -16, 2011, in Irving, TX
11. COUNCIL COMMENTS REGARDING MATTERS APPEARING ON AGENDA;
RECOGNITION OF COMMUNITY MEMBERS, CITY EMPLOYEES, AND
UPCOMING EVENTS; INQUIRY OF STAFF REGARDING SPECIFIC
FACTUAL INFORMATION OR EXISTING POLICIES — Councilmembers
Mosteit, Clausen, Martin, Black, Moser, Zemanek, Leonard, Engelken, and
Mayor Rigby.
04 A
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Council Agenda Item
May 23, 2011
12. EXECUTIVE SESSION
The City Council will now go into executive session pursuant to the provisions of
the Texas Open Meetings Act, Chapter 551 of the Texas Government Code, in
accordance with the authority contained in:
Texas Government Code, Section 551.074 — Deliberation concerning the duties
of a public officer or employee: Patrice Fogarty, City Secretary
13. RECONVENE into regular session and consider action, if any, on items
discussed in executive session.