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Home My WebLink About12-09-13 Regular Meeting of La Porte City Council LOUIS R. RIGBY DARYL LEONARD Mayor Councilmember District 3 JOHN ZEMANEK TOMMY MOSER Councilmember At Large A Councilmember District 4 DOTTIE KAMINSKI JAY MARTIN Councilmember At Large B Mayor Pro-Tem MIKE MOSTEIT Councilmember District 5 Councilmember District 1 MIKE CLAUSEN CHUCK ENGELKEN Councilmember District 6 Councilmember District 2 CITY COUNCIL MEETING AGENDA Notice is hereby given of a Regular Meetingof the La Porte City Council to be held December 9, 2013,beginning at 6:00 p.m.in the Council Chambers of City Hall, 604 West Fairmont Parkway, LaPorte, Texas, for the purpose of considering the following agenda items. All agenda items are subject to action. 1. CALL TO ORDER 2. INVOCATION – The invocation will be givenbyBrian Christen, La Porte Community Church. 3. PLEDGE OF ALLEGIANCE – The Pledge of Allegiancewill be led by CouncilmemberJohn Zemanek. 4. PUBLIC COMMENTS (Limited to five minutesper person.) 5. CONSENT AGENDA (All consent agenda items are considered routine by City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember requests anitem be removed and considered separately.) (a) Consider approval or other action regarding the minutes of the regular council meeting held November 11, 2013 – P. Fogarty (b) Consider approval or other action awarding Bid #14002 for plastic garbage bags – D. Mick (c) Consider approval or other action awarding Bid # 14003 for Vehicles – D. Mick (d) Consider approval or other action awarding Bid # 14005 for Heavy Trucks – D. Mick (e) Consider approval or other action awarding Bid#14008 for Fairmont Park Pool Renovations – S. Barr (f) Consider approval or other action awarding Bid # 14010 for Portable Scales – K. Adcox (g) Consider approval or other regarding a Resolution authorizing the resale of certain surplus real property located in Blocks 68 and 719, Town of La Porte – K.Powell (h) Consider approval or other action regarding contract with ING for stop loss coverage from January 1, 2014, through December 31, 2014 – A. Curry (i) Consider approval or other action regarding adoption of changes to the City self-funded health plan as mandated by the Patient Protection and Affordable Care Act – A. Curry (j) Consider approval or action regarding an Ordinance authorizing the City Manager to execute a contract between the City of La Porte and La Porte Independent School District for Property Tax Collection Operations – K. Powell (k) Consider approval or other action regarding Amendment No. 1 to the agreement between the City of La Porte and the La Porte-Chamber of Commerce – T. Leach (l) Consider approval or other action authorizing the Mayor to execute an agreement between San Jacinto College and the City of La Porte for the transfer of surplusfire engine – T. Leach (m) Consider approval or other action amending Fiscal Year 2013 outstanding purchase orders – M. Dolby 6. AUTHORIZATIONS/RESOLUTIONS/ORDINANCES (a) Consider approval or other action regarding an agreement between the City of La Porte and the City of Shoreacres for city jail and dispatch services – K. Adcox (b) Consider approval or other action regarding a Resolution supporting the Ike Dike structural protection system – T. Tietjens (c) Consider approval or other action changing Employee Handbook Chapter 10, Section 10.03 Non-Civil Service Employees and 24 Hour Employees to properly designate the payout bank from Sick Bank 1 to Sick Bank 3 –A. Curry (d) Consider approval or other action regarding an incentive grant request to the Richard Industrial Group to open a new office and relocate and/or hire at least 74 full-time employees in La Porte – S. Livingston (e) Consider approval or other action regarding proposed TIRZ Development Agreement between the City of La Porte, La Porte Redevelopment Authority, Reinvestment Zone No. 1, and Beazer Homes Texas, LP –S. Livingston (f) Consider approval or other action regarding an Ordinance enlarging the boundaries of TIRZ No. 1, City of La Porte, Texas – S. Livingston (Postponed at the October 28, 2013, meeting until December 9, 2013, meeting) (g) Consider approval or other action regarding an Ordinance accepting and adopting the amended TIRZ No. 1 Project Plan and Reinvestment Zone Financing Plan – S. Livingston (Postponed at the October 28, 2013, meeting until December 9, 2013, meeting) 7. PUBLIC HEARING AND ASSOCIATED ORDINANCES (a) Public Hearing to receive comments regarding recommendation by the Planning and Zoning Commission to approve an update to the Future Land Use Plan component of the Comprehensive Plan of the City of La Porte to change future land use classification for tract located northwest of Sens Road and Spencer Highway from commercial to low-density residential – T.Tietjens(Postponed at the October 28, 2013, meeting until December 9, 2013, meeting) (b) Consider approval or other action regarding an Ordinance adopting an update to the Future LandUse Plan component of the Comprehensive Plan of the City of La Porte to change future land use classification for tract located northwest of Sens Road and Spencer Highway, from commercial to low-density residential – T. Tietjens (c) Public Hearing to receive comments regarding recommendation by the Planning and Zoning Commission to approve Rezone Request # 13-92000002, for the rezoning of a 17.3705-acre-tract of land located northwest of Sens Road and Spencer Highway, from General Commercial (GC) to Low Density Residential (R-1) – T. Tietjens (Postponed at the October 28, 2013, meeting until December 9, 2013, meeting) (d) Consider approval other action regarding an Ordinance amending Chapter 106 “Zoning” of the Code of Ordinances of the City of La Porte by changing the zoning classification of a 17.3705-acre-tract of land located northwest of Sens Road and Spencer Highway from General Commercial (GC) to Low Density Residential (R-1) – T. Tietjens 8.DISCUSSION OR OTHER ACTION (a) Discussion or other action regarding the proposed Fiscal Year 2014 Marketing Plan for tourism promotion – T. Leach th (b) Discussion or other action regarding the video sponsorship for the 100Anniversary of the Battleship Texas – T. Leach 9. REPORTS (a) Receive report of La Porte Development Corporation Board – Councilmember Engelken (b) Receive Delinquent Tax Report – T. Leach 10. ADMINISTRATIVE REPORTS (a) Receive report from City Manager Christmas Holidays,Tuesday,December 24, 2013,and Wednesday, December 25, 2013 New Year Holiday Wednesday, January 1, 2014 City Council Meeting, Monday, January 13, 2014 Fiscal Affairs Committee Meeting, Monday, January 27, 2014 City Council Meeting, Monday, January 27, 2014 11. COUNCIL COMMENTS regarding matters appearing on the agenda; recognition of community members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies– CouncilmembersZemanek,Leonard, Engelken,Mosteit, Clausen, Martin, Moser, Kaminski and Mayor Rigby. 12. ADJOURN 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. In compliance with the Americans with DisabilitiesAct, 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 I certify that a copy of the December 9, 2013,agenda of items to be considered by the City Council was posted on the City Hall bulletin board on December 3, 2013. Council Agenda Item December 9, 2013 ************************************************************************ Council Agenda Item December 9, 2013 CONSENT AGENDA (All consent agenda items are considered routine by City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember requests an item be removed and considered separately.) (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) *********************************************************************************** LOUIS RIGBY DARYL LEONARD JOHN ZEMANEK TOMMY MOSER DOTTIE KAMINSKI JAY MARTIN MIKE MOSTEIT MIKE CLAUSEN CHUCK ENGELKEN MINUTES OF THE REGULAR MEETING OF THE CITY COUNCILOF THE CITY OF LA PORTE NOVEMBER 11, 2013 Monday,November 11, 2013, 6:00 p.m 1.CALL TO ORDER 2.INVOCATION 3.PLEDGE OF ALLEGIANCE 4.PRESENTATIONS, PROCLAMATIONS, and RECOGNITIONS 5.PUBLIC COMMENTS 6. CONSENT AGENDA (All consent agenda items are considered routine by City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember requests an item be removed and considered separately.) (a) (b) 14 (c) (d) (e) (f) MOTION PASSED. Ordinance2013-3501 7.AUTHORIZATIONS/RESOLUTIONS/ORDINANCES (a) 24 Resolution 2013-26 MOTION PASSED. (b) MOTION PASSED. 8. REPORTS (a) (b) 9.ADMINISTRATIVE REPORTS (a) 34 10. COUNCIL COMMENTS 11. EXECUTIVE SESSION 12. RECONVENE 13. ADJOURN MOTION PASSED 44 REQUEST FOR CITY COUNCIL AGENDA ITEM Budget Agenda Date Requested: December 9, 2013 Source of Funds: General Fund Requested By: David Mick Account Number: 001-7072-532-2015 Department:Public Works Amount Budgeted$ 120,840 Report: Resolution: Ordinance Amount Requested: $ 111,650 Exhibits:Bid Tabulation Budgeted Item:yes Exhibits: Bidder’s List: Public PurchaseAccess Report Exhibits SUMMARY & RECOMMENDATION The Solid Waste Division will order 27,500 rolls (1.5 mil thick; 30 gallon size). This is the same quantity and dimensions as recent prior years. 27,500 rolls will provide for the distribution of 3 rolls of bags to each residential customer in the Cityand an additional 2,000 rolls for new services and 2,000 for sale. Bags are scheduled for distributionto residentsin February. Delivery of the bags is scheduled for mid-December. Bids for the advertised sealed bid (Bid #14002) for plastic garbage bags were opened and read on November 5, 2013. Bid notification was accessed online by 27vendors, with 7 returning bids. A request for bids was also advertised in the Houston Chronicle and posted on the City website. $4.00 $3.90 The lowest and best bid was submitted by Dyna Pak $3.80 Corporation for $4.06per rollrepresenting a total of $3.70 $111,650for 27,500 rolls. The prices for the past six $3.60 $3.50 years are shown in the chart. $3.40 $3.30 The FY 13_14 budget for this item is $120,840. $3.20 $3.10 201220112010200920082007 Action Required by Council: Consider approval or other action of the purchase of 27,500 rolls of 1.5 mil, 30 gallon plastic garbage bags from Dyna Pak Corporation in the amount of $111,650. Approved for City Council Agenda Corby D. Alexander, City Manager Date Documents Most Recent Access Accessed First Time Vendor Name REQUEST FOR CITY COUNCIL AGENDA ITEM Budget Agenda Date Requested: December 9, 2013 Source of Funds: Motor Pool Requested By:David Mick Account Number: Various Department:Public Works Amount Budgeted:$ 285,194.00 Report: X Resolution: Ordinance: Amount Requested: $ 270,025.77 Exhibits:Bid Tabulation Budgeted Item:YES Exhibits: Public Purchase Access Report Exhibits SUMMARY & RECOMMENDATION Sealed bids (#14003) were received on November 19, 2013for replacement of nine pickup trucks, one half ton crew cab pickup, and one one-ton cab/chassis with service body, one three yard dump truck, and one 12 foot flat bed truck.Bids were accessed online bytwentytwo vendors with five returning bids. Low bid meeting specifications or best value are as follows: BIDDERITEMBUDGETEDBIDUSER Randall ReedNine-½ ton Pickup Trucks156,020.00$150,300PARK INSP PW ENG Sam Pack’s Ford*Nine-½ ton Pickup Trucks156,020.00147,442.77PARK INSP PW ENG One-Half Ton Crew Cab 28,825.0022,820.00PD Pickup One-One ton cab/chassis with29,727.0029,375.00PARKS service body Caldwell Country Dual rear wheel Crew 38,279.0034,590.00PW Ford cab/chassis with 12 foot flat bed Silsbee FordDual rear wheel Cab/chassis 32,343.0035,798.00PW with 3 yd dump body TOTAL$285,194.00$270,025.77 *The Texas Smart Buy Program(available through the State) cost for the nine ½ ton pick-up trucks was lower than the low bid cost.Staff recommends that City Council reject the bids receivedfrom Randall Reed in amount of $150,300and authorize purchase through the Smart Buy Program(via Sam Pack’s Ford). Action Required by Council: 1.Consider approval or other action to reject bids from Randall Reed for nine half-ton pickup trucks and authorize the purchase of nine ½-ton pickup trucks through the State of Texas Smart Buy Program($147,442.77 total cost for the nine (9) vehicles), saving $2,857.23. 2.Consider approval or other action to award bid 14003 to Caldwell Country Fordfor one half-ton crew cab pickuptruck ($22,820.00), one one-ton cab and chassis with service body truck ($29,375.00), and one dual rear wheel crew cab/chassis with twelve foot flat bedtruck (34,590.00) for the bid prices provided. 3.Consider approval or other action to award bid 14003 to Silsbee Ford for one dual rear wheel cab/chassis with three yard dump body truckfor the bid price provided ($35,798.00). Approved for City Council Agenda Corby D. Alexander, City Manager Date #14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf Addendum 1 Letter to #14003.pdfAddendum 2 Letter to #14003.pdfAddendum 1 Letter to #14003.pdfAddendum 2 Letter to #14003.pdfAddendum 1 Letter to #14003.pdfAddendum 1 Letter to #14003.pdfAddendum 1 Letter to #14003.pdfAddendum 2 Letter to #14003.pdfAddendum 1 Letter to #14003.pdfAddendum 2 Letter to #14003.pdfAddendum 1 Letter to #14003.pdfAddendum 2 Letter to #14003.pdf Documents Most Recent Access 2013-10-26 02:15 AM CDT2013-10-28 09:44 AM CDT2013-10-25 12:34 PM CDT 2013-11-12 09:51 AM CST2013-11-16 12:10 PM CST2013-11-11 11:34 AM CST2013-11-18 05:09 AM CST2013-11-14 02:18 PM CST2013-11-18 03:45 PM CST2013-11-12 01:20 PM CST2013-11-12 08:45 AM CST Accessed First Time 2013-10-26 02:15 AM CDT2013-10-30 11:44 AM CDT2013-10-28 09:44 AM CDT2013-10-25 03:15 PM CDT2013-10-28 07:09 AM CDT2013-10-26 03:46 AM CDT2013-10-25 04:38 PM CDT2013-10-25 12:23 PM CDT2013-10-30 11:02 AM CDT2013-10-28 10:22 AM CDT 2013-11-06 07:57 AM CST City of La Porte (TX) Vehicles 14003 Southwest International Trucks Inc.Utility Truck Equipment CompanyGRAPEVINE DODGE CHRYSLER JEEPINTERNATIONAL TRUCKS OF HOUSTON BABY JACK II AUTOMOTIVE Monhar Construction, Inc. Vendor Name Grande Truck Center SILSBEE FORD, INC Lindsay Circle, LLC Access Report Bid Number PV RENTALS helfman ford Bid Title Agency #14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf#14003 - Vehicles COMPLETE.pdf Addendum 1 Letter to #14003.pdfAddendum 2 Letter to #14003.pdfAddendum 1 Letter to #14003.pdfAddendum 2 Letter to #14003.pdfAddendum 1 Letter to #14003.pdfAddendum 1 Letter to #14003.pdfAddendum 1 Letter to #14003.pdfAddendum 1 Letter to #14003.pdfAddendum 1 Letter to #14003.pdf 2013-10-31 03:33 PM CDT2013-10-30 10:07 AM CDT2013-10-30 10:31 AM CDT2013-10-30 01:46 PM CDT 2013-11-18 09:55 AM CST2013-11-18 09:59 AM CST2013-11-12 08:46 AM CST2013-11-12 12:07 PM CST2013-11-11 03:17 PM CST2013-11-06 09:39 AM CST2013-11-18 12:52 PM CST 2013-10-24 02:24 PM CDT2013-10-25 07:43 AM CDT2013-10-31 03:33 PM CDT2013-10-25 10:05 AM CDT2013-10-25 09:13 AM CDT2013-10-28 10:40 AM CDT2013-10-29 10:24 AM CDT2013-10-25 09:07 AM CDT2013-10-28 03:08 PM CDT 2013-11-04 07:19 AM CST2013-11-11 09:12 AM CST Meador Chrysler Plymouth, Inc Randall Reed's Prestige Ford Truckers Equipment Inc. Houston Freightliner, Inc Judy's Iron & Metal, Inc. Reliable Supply, Inc. Luber Brothers, Inc. versalift southwest Granger chevrolet Barry Sims Inc Dallas Dodge REQUEST FOR CITY COUNCIL AGENDA ITEM Budget Agenda Date Requested: December 9, 2013 Source of Funds: Motor Pool Requested By:David Mick Account Number: Various Department:Public Works Amount Budgeted:$ 525,723 Report: X Resolution: Ordinance: Amount Requested: $ 501,139 Exhibits:Formal Bid Pages Budgeted Item:YES Exhibits: Public Purchase Access Report Exhibits SUMMARY & RECOMMENDATION Sealed bids (#14005) were received on November 12, 2013 for replacement of one 18-yard water tight dump truck, two 25-yard dump trucks with brush loaders, and one 30-yard dump truck. Bids were accessed online bytwentyvendors with tworeturning bids. Low bid meeting specifications or best value are as follows: BIDDERITEMBUDGETEDBIDUSER Grande Truck CenterOne 18-yard Dump Truck$103,199$99,829*PW Two 25-yard Dump Truck $330,000$305,396PW with Brush Loaders Houston Freightliner One 30-yardDump Truck$ 92,524$ 95,914PW TOTAL$525,723$501,139 *Optional trade-in allowanceis offered for 18-yard dump truck. Based on historical auction prices for vehicles of this type, accepting the trade-in allowance is recommended. Action Required by Council: one 18-yard water Consider approval or other action to award bid 14005 to Grande Truck Centerfor tight dump trucktwo 25-yard dump trucks with brush loaders and one and to Houston Freightliner 30-yard dump truck . Approved for City Council Agenda Corby D. Alexander, City Manager Date Documents Most Recent Access Accessed First Time Vendor Name REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: December 9, 2013 Appropriation Requested By: Stephen L. Barr Source of Funds: Fund 015 Department: Parks & Recreation Acct Number: 015-9892-662-1100 Report: Resolution:Ordinance:Amount Budgeted: 365,000 Exhibits: Bid Tabulation Amount Requested: 127,300 Exhibits: Bidder’s List Budgeted Item: YES X NO SUMMARY & RECOMMENDATION Sealed Bid #14008 for Fairmont Park Pool Renovation was released in Octoberwith 18 contractors invited to bid, and four contractors attendingthe pre-bid conference. The bids were opened on th November14and fourbids were received. Aquatec, LLC Staff has reviewed the projectbids overall,and recommends aBid Award to in the amount of $115,728 as lowest bid meeting specifications for the project, with a 10% contingency for a totalamount of $127,300for the project. Staff has reviewed the qualifications of the contractor and issatisfied that Aquateccan accomplish the needed renovation in a timely manner, well before the pool season begins in May. This project is for pool renovation only. The remaining budgeted amount will fund the Pool house replacement and basketball court construction. A second sealed bid will be issued for construction of thenew Pool House and Pump House as soon as construction plans and specifications are finalized. Project Benefits, Liabilities, and Operating Costs: Benefits: This project will provide a much needed facelift to the City’s oldest swimming pool and make Fairmont Park a “go to” park again. The new pool surface and deck will make the pool easier to clean and maintain, andthe new equipment will improve circulation and water quality at the pool. Liabilities: There are currently no known liabilities for the project; there was asbestos found in the old pool house but that has been abatedaccording to TDHprocedures. Operating Costs: Operating costs will be somewhat higher with a second pool pump and with the inclusion of outside restrooms that will service the new basketball court and eventual Sprayground. Staff expects operating costs to increase by approximately $900 per year, after all improvements are made. Action Required by Council: Consider approval or other action to award Sealed Bid #14008Fairmont Park Pool Renovation project to Aquatec, LLC and authorize the City Manager to execute a contractin the amount of $115,728, and a10% contingency funding for atotal of $127,300 for this portion of the renovation project. _____________________________________________________________________________ Approved for City Council Agenda ___________________________________________________________ Corby D. Alexander,CityManager Date BID TABULATION #14008 - FAIRMONT PARK POOL RENOVATION PROFESSIONAL HANCOCK POOL Item NoDESCRIPTIONAQUATECAZTEC POOL PLASTERINGSERVICES TOTAL BID$115,728.50$151,800.00$153,580.00$172,755.00 Documents Most Recent Access Accessed First Time Vendor Name REQUEST FOR CITY COUNCIL AGENDA ITEM Budget Agenda Date Requested: December 9, 2013 Source of Funds:Budget Requested By:Ken Adcox Account Number:00152535218021 Department: Police Amount Budgeted:$60,000 Report: Resolution: Ordinance: Amount Requested:$58,740 Exhibits:Bid Tabulation Budgeted Item:YES Exhibits: Bidder’s List Exhibits SUMMARY & RECOMMENDATION Bid #14010 for Portable Scales was opened and read onNovember 22, 2013. Bid notifications were sent to fourteen (14) vendors, with two (2) vendors responding. The low bidder, Fairbanks Scales product did not meet specifications with a 3”scale platform and only providing a one(1) year warranty. Loadometer Corporation bid a Haenni scale thatmet all specificationswith a three(3)year warranty, and the scales are compatible with the equipment currently being used by the DOT department, and the City’s partners throughout the state. Staff recommends award of the Portable Scales to Loadometer Corporationat a unit price of $4,895 and a total price of $58,740 for twelve (12) scales. Action Required by Council: Consider approval or other action awarding Bid #14010, Portable Scales to Loadometer Corporation in the amount of $58,740. Approved for City Council Agenda Corby D. Alexnader, Interim City Manager Date BID TABULATION #14010 - PORTABLE SCALES No of DESCRIPTIONFAIRBANKS SCALESLOADOMETER CORP. Units Portable Scales TOTAL PRICE$25,140.00$58,740.00 Information reflects pricing only and other factors may be considered during the evaluation process Documents Most Recent Access Accessed First Time Vendor Name REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested:December 9, 2013__ Appropriation :Kathy Powell_ ______Source of Funds: __ __________ Requested By Finance_________________________Account Number:__ __ Department: _ _Resolution: _X__Ordinance: ___ _ Amount Budgeted: __ __________ Report: Exhibits: _Resolution_& Summary of Foreclosure_Amount Requested: __________________ Exhibits: __Deeds Budgeted Item: (YES)NO Exhibits: __Maps_____________________________ SUMMARY & RECOMMENDATION If a property is sold or struck off to a taxing unit that is party to the judgment, the taxing unit may sell the property at any time by public or private sale. The City of La Porte has had these properties on the public resale list for more than an adequate amount of time and has received a bid for the minimum bid amount set bythe judgmentor higher; at this time staffis recommending thatthe City Council to pass a resolution to approve the sale of theseproperties for the amount that has beenoffered. P234 – Lots34 & 35 Block 68 Bayfront to La Porte – Offer $7,812.00 (Adjudged Value $7,8120.00 Taxes+Cost $11,737.17) P235 – Lot 40 Block 68 Bayfront to La Porte –Offer $3,800.00 (Adjudged Value $3,800.00 Taxes+Cost $5,715.81) P237 – Lots 2, 3, 4, 5 & 6 Block 719 Town of La Porte – Offer $4,400.00 (Adjudged Value $3,906.00 Taxes+Cost $6,548.47) Action Required by Council: Consider approval or other action of the Resolution authorizing the sale on the properties listed above. Approved for City Council Agenda ___________________________________________________________ CorbyD.Alexander, City Manager Date 9Decembe r Notice of confidentiality rights: If you are a natural person, you may remove or strike any of the following information from this instrument before it is filed for record in the public records: your social security number or your driver's license number (Language pursuant section 11.008 of the Texas Property Code) THE STATE OF TEXAS § § TAX RESALE DEED COUNTY OF HARRIS § KNOW ALL MEN BY THESE PRESENTS that the CITY OF LA PORTE, TRUSTEE, for the use and benefit of itself, the LA PORTE INDEPENDENT SCHOOL DISTRICT,the SAN JACINTO COMMUNITY COLLEGE DISTRICT and THE STATE OF TEXAS, COUNTY OF HARRIS, acting by and through its duly elected officials (“GRANTOR”) as authorized by Section 34.05, Texas Property Tax Code, for and in consideration of the sum of TEN DOLLARS AND 00/100 ($10.00) AND OTHER GOOD AND VALUABLE CONSIDERATION, in hand paid by JERRY ELDON LEMON, JR. (“GRANTEE”) the receipt of which is hereby acknowledged and confessed, has conveyed and quitclaimed and by these presents do convey and quitclaim unto said Grantees all right, title and interest of the CITY OF LA PORTE, THE LA PORTE INDEPENDENTSCHOOL DISTRICT, THESAN JACINTO COMMUNITY COLLEGE DISTRICT, AND THE STATE OF TEXAS, COUNTY OF HARRIS in the property herein conveyed, acquired by tax foreclosure sale heretofore held, in Cause No. 2006-31261, styled City of La Porte, et al vs. Clifford Washington, and in Cause No. 2006-77225, styled City of La Porte, et al vs. Daniel H. Burns, et al, said properties being described as: TRACT 1:LOT 40, IN BLOCK 68, OF BAYFRONT ADDITION, AN ADDITION TO THE TOWN OF LA PORTE, HARRIS COUNTY, TEXAS, ACCORDING TO THE MAP OR PLAT THEREOF RECORDED IN VOLUME 1, AT PAGE 53 OF THE MAP RECORDS OF HARRIS COUNTY, TEXAS, AND COMMONLY DESCRIBED AS 0 S. IDAHO STREET, LA PORTE, TEXAS 77571. (ACCOUNT NUMBER 006-158-000- 0040). TRACT 2:LOTS 34 AND 35, IN BLOCK 68, OF BAYFRONT ADDITION, AN ADDITION TO THE TOWN OF LA PORTE, HARRIS COUNTY, TEXAS, ACCORDING TO THE MAP OR PLAT THEREOF RECORDED IN VOLUME 1, AT PAGE 53 OF THE MAP RECORDS OF HARRIS COUNTY, TEXAS, AND COMMONLY DESCRIBED AS 0 S. IDAHO STREET, LA PORTE, TEXAS 77571. (ACCOUNT NUMBER 006-158-000-0034). This conveyance is made and accepted subject to the following matters to the extent that the same are in effect at this time: any and all rights of redemption, restrictions, covenants, conditions, easements, encumbrances and outstanding mineral interests, if any, relating to the hereinabove described property, but only to the extent they are still in effect, shown of record in the hereinabove mentioned County and State, and to all zoning laws, regulations and ordinances of municipal and/or other governmental authorities, if any but only to the extent that they are still in effect, relating to the hereinabove described property. TO HAVE AND TO HOLD said premises, together with all and singular the rights, privileges and appurtenances thereto in any manner belonging unto the saidJERRY ELDON LEMON, JR., his heirs and assigns forever, so that neither the CITY OF LA PORTE, THE LA PORTE INDEPENDENT SCHOOL DISTRICT,THE SAN JACINTO JUNIOR COMMUNITY COLLEGE DISTRICT, AND THE STATE OF TEXAS, COUNTY OF HARRISany person claiming under it shall at any time hereafter have, claim or demand any right or title to the aforesaid premises or appurtenances, or any part thereof. Grantee accepts the property in “AS IS, WHERE IS” condition and subject to any environmental conditions that might have or still exist on said property, and subject to any title defects and deficiencies, andsubject to the right of redemption, if any, provided under the Texas Property Tax Code. Grantee acknowledges and agrees that this conveyance is expressly made without warranty. This transaction is in full satisfaction of all taxes, penalties, interest,and costs that have accrued until the date hereof. Pro rata taxes for the current year are assumed by Grantee. IN TESTIMONY WHEREOF, THE CITY OF LA PORTE, TRUSTEE, for the use and benefit of itself, theLA PORTE INDEPENDENTSCHOOL DISTRICT, the SAN JACINTO JUNIOR COMMUNITY COLLEGE DISTRICT, and the STATE OF TEXAS, COUNTY OF HARRIShas caused these presents to be executed this ________day of ______________________ 2013. CITY OF LA PORTE, TRUSTEE LOUIS R. RIGBY, MAYOR ACCEPTED: ______________________________ JERRY ELDON LEMON, JR. THE STATE OF TEXAS § § COUNTY OF HARRIS § BEFORE ME , the undersigned authority, on this day personally appeared LOUIS R. RIGBY, Mayor of the City of La Porte, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed same for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this _______ day of __________________________, 2013. ________________________________ NOTARY PUBLIC, in and for the STATE OF TEXAS My Commission Expires: ____________ THE STATE OF TEXAS § § COUNTY OF HARRIS § BEFORE ME , the undersignedauthority, on this day personally appeared JERRY ELDON LEMON, JR. known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed same for the purposes and consideration therein expressed, in the capacity therein stated, and with the conditions and the limitations therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this _______ day of __________________________, 2013. ________________________________ NOTARY PUBLIC, in and for the STATE OF TEXAS My Commission Expires: ____________ After Recording Return To: JERRY ELDON LEMON, JR. 206 S. Idaho Street La Porte, Texas 77571 Notice of confidentiality rights: If you are a natural person, you may remove or strike any of the following information from this instrument before it is filed for record in the public records: your social security number or your driver's license number (Language pursuant section 11.008 of the Texas Property Code) THE STATE OF TEXAS § § TAX RESALE DEED COUNTY OF HARRIS § KNOW ALL MEN BY THESE PRESENTS that the CITY OF LA PORTE, TRUSTEE, for the use and benefit of itself, the LA PORTE INDEPENDENTSCHOOL DISTRICT, the SAN JACINTO COMMUNITY COLLEGE DISTRICT and THE STATE OF TEXAS, COUNTY OF HARRIS, acting by and through its duly elected officials (“GRANTOR”) as authorized by Section 34.05, Texas Property Tax Code, for and in consideration of the sum of TEN DOLLARS AND 00/100 ($10.00) AND OTHER GOOD AND VALUABLE CONSIDERATION, in hand paid by GREGORIO E. GRANA (“GRANTEE”) the receipt of which is hereby acknowledged and confessed, has conveyed and quitclaimed and by these presents do convey and quitclaim unto said Grantees all right, title and interest of the CITY OF LA PORTE, THELA PORTE INDEPENDENT SCHOOL DISTRICT, THE SAN JACINTO COMMUNITY COLLEGE DISTRICT, AND THE STATE OF TEXAS, COUNTYOF HARRIS in the property herein conveyed, acquired by tax foreclosure sale heretofore held, in Cause No. 2008-56955, styled City of La Porte, et al vs. James Murdock, et al, said property being described as: LOTS 2 THROUGH 6, BLOCK 719, LA PORTE, HARRIS COUNTY, TEXAS ACCORDING TO THE MAP OR PLAT THEREOF RECORDED IN THE PLAT RECORDS OF HARRIS COUNTY, TEXAS UNDER CLERK’S FILE NUMBER W524483, AND COMMONLY DESCRIBED AS 0 WEST A STREET, LA PORTE, TEXAS 77571. (ACCOUNT NUMBER 024-089-019-0002). This conveyance is made and accepted subject to the following matters to the extent that the same are in effect at this time: any and all rights of redemption, restrictions, covenants, conditions, easements, encumbrances and outstanding mineral interests, if any, relating to the hereinabove described property, but only to the extent they are still in effect, shown of record in the hereinabove mentioned County and State, and to all zoning laws, regulations and ordinances of municipal and/or other governmental authorities, if any but only to the extent that they are still in effect, relating to the hereinabove described property. TO HAVE AND TO HOLD said premises, together with all and singular the rights, privileges and appurtenances thereto in any manner belonging unto the saidGREGORIO E. GRANA, his heirs and assigns forever, so that neither the CITY OF LA PORTE, THE LA PORTE INDEPENDENT SCHOOL DISTRICT,THE SAN JACINTO JUNIOR COMMUNITY COLLEGE DISTRICT, AND THE STATE OF TEXAS, COUNTY OF HARRISany person claiming under it shall at any time hereafter have, claim or demand any right or title to the aforesaid premises or appurtenances, or any part thereof. Grantee accepts the property in “AS IS, WHERE IS” condition and subject to any environmental conditions that might have or still exist on said property, and subject to any title defects and deficiencies, and subject to the right of redemption, if any, provided under the Texas Property Tax Code. Grantee acknowledges and agrees that this conveyance is expressly made without warranty. This transaction is in full satisfaction of all taxes, penalties, interest, and costs that have accrued until the date hereof. Pro rata taxes for the current year are assumed by Grantee. IN TESTIMONY WHEREOF, THE CITY OF LA PORTE, TRUSTEE, for the use and benefit of itself, theLA PORTE INDEPENDENTSCHOOL DISTRICT, the SAN JACINTO JUNIOR COMMUNITY COLLEGE DISTRICT, and the STATE OF TEXAS, COUNTY OF HARRIS has caused these presents to be executed this ________day of ______________________ 2013. CITY OF LA PORTE, TRUSTEE LOUIS R. RIGBY, MAYOR ACCEPTED: ______________________________ GREGORIO E. GRANA THE STATE OF TEXAS § § COUNTY OF HARRIS § BEFORE ME , the undersigned authority, on this day personally appeared LOUIS R. RIGBY, Mayor of the City of La Porte, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed same for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this _______ day of __________________________, 2013. ________________________________ NOTARY PUBLIC, in and for the STATE OF TEXAS My Commission Expires: ____________ THE STATE OF TEXAS § § COUNTY OF HARRIS § BEFORE ME , the undersigned authority, on this day personally appeared GREGORIO E.GRANA known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed same for the purposes and consideration therein expressed, in the capacity therein stated, and with the conditions and the limitations therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this _______ day of __________________________, 2013. ________________________________ NOTARY PUBLIC, in and for the STATE OF TEXAS My Commission Expires: ____________ After Recording Return To: GREGORIO E. GRANA 404 Tiger Avenue San Juan, Texas 78589 AREA MAP 92 93 1 inch = 100 feet 195 69 68 204 66 Legend 67 LOT 40, BLOCK 68, BAYFRONT LOTS 34 & 35, BLOCK 68, BAYFRONT 203 215 AREA MAP 1 inch = 100 feet 687686685 718719720 W M AIN ST Legend LOTS 2-6, BLOCK 719, LA PORTE 723722721 REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: December 9, 2013 Source of Funds: Employee Health Fund Requested By:Allison Curry Account Number: 014-6144-515-6012 Department:Human Resources Amount Budgeted:$360,000 Report: Resolution: Ordinance: Amount Requested: $352,251 Exhibits: Stop Loss Comparison Worksheet Budgeted Item:YES NO Exhibit Exhibit SUMMARY & RECOMMENDATION Each year Council is asked to approve the City’s Stop Loss medical insurance contract, which is due to renew on January 1, 2014. This insurance covers payment of all claims for an individual employee or dependent that hasmedical andprescription charges that exceed $165,000.00 (deductible). The proposed contract includes an aggregate amount so that if all claims for all employees and dependents exceed $4.3 million, the insurance provider will cover 100% of all claims over this amount. On November 1, 2013, Requests for Proposals (RFP’s) were mailed to twelve (12) providers of Stop Loss coverage. Four (4) RFP’s were received. ING(the City’s current provider) provided the most competitive bid, for similar terms andconditions as no increase the current contract, which results in from the current year’s rate.The low proposal, submitted by AmWINS (Gerber), is not recommended based on the fact that plan exclusions exposes the City to potentially much higher claims above the stop loss amounts for run out claims (those claims that end up being billed in January 2014 for events that occurred in the prior plan year). For example, if an employee had $300,000 in claims in December 2013 and those claims were billed/paid by the City’s medical provider in January 2014, the exclusion in the Gerber plan would not reimburse the City for claim amounts over the stop loss amount ($165,000). This exclusion alone could eliminate any savings gained by accepting the Gerber proposal. The ING Plan does not exclude run out claims. Staff recommends that Stop Loss coverage be awarded to INGand authorization given to the City Manager to execute the final policy contract for January 1, 2014 through December 31, 2014. Action Required by Council: Consider approval or other action of Stop Loss Contract with ING for January 1, 2014 through December 31, 2014. Approved for City Council Agenda Corby D. Alexander, City Manager Date REQUEST FOR CITY COUNCIL AGENDA ITEM Budget Agenda Date Requested:December 9, 2013 Source of Funds: Requested By:Allison Curry, HR Manager Account Number: Department:Administration Amount Budgeted: Report: Resolution: Ordinance: Amount Requested: Exhibits:PPACA Mandates Out-of-Pocket MaxChanges Budgeted Item:YESNO Exhibits: Exhibits SUMMARY & RECOMMENDATION The Patient Protection and Affordable Care Act (PPACA)mandates that plans cannot have a combined medical and RX out-of-pocket maximum greater than $6,300 (Individual) or $12,700 (Family) starting January 1, 2014.These limits only apply to In-Network; there are no limits for Non-Network.Plans that have a separate RX administrator can invoke a “Safe Harbor” for 2014 and not have the RX count towards the overall maximum.Since AETNA uses Caremark to administer their RX program, the City is able to invoke the Safe Harbor for the PPO500 plan. (The Health Fund plans already credit the out-of-pocket maximum for any RX copay) In order to be compliant with PPACA, the City must make the below changes to the plans. must PPO500-In-Network Deductibles and copays start counting towards In-Network Out-of-Pocket Maximums HF1500-The Family Out-of-Pocket maximum of $13,500 exceeds the $12,700 allowable under PPACA. Therefore, the City must lower the individual out-of-pocket max from $4,500 to $4,200, and make the Family out-of-pocket max three (3) times the Individual max from $13,500 to $12,600. Additionally, staff recommends invoking the “Safe Harbor”provision for the PPO500to prevent RX copays fromaccumulating towards the Out-of-Pocket maximum for 2014 only (will have to change going forward in 2015). All changes proposed either maintain benefits at current levels or represent a greater benefit to the employees and retirees. There are no decreasesin benefits.The Chapter 172 Board met and recommended adoption of these changes. Action Required by Council: Consider approval or other action of changes mandated by PPACA: Invoking the “Safe Harbor” provision for the PPO500 and Loweringthe individual out-of-pocket maximum from $4,500 to $4,200, and the Family out-of-pocket maximum from $13, 500 to $12,600 on the Health Fund 1500 plan. Approved for City Council Agenda CorbyD.Alexander, City Manager Date Preliminary Comments PPACA mandates that plans cannot have a combined medical and RX out-of-pocket maximum greater than $6,300 (Individual) or$12,700 (Family) starting in 2014 These limitsonly apply toIn-Network only; there are no limitsfor Non-Network Plans that have a separate RX administrator can invoke a fe Harborfor 2014 and not have the RX count towards the overall maximum Since AETNA uses Caremarkto administer their RX program, the Cityis able to invoke the Safe Harbor for the PPO500 plan. (The Health Fund plans already credit the Out-of-Pocket Maximum for any RX copays) City of La Porte Medical Plans Plan FeaturePPO 500HF 1000HF 1500 Deductible (Ind./Fam.)$500/$1,500$1,000/$3,000$1,500/$4,500 OOP (Ind./Fam.)$3,500/$10,500$3,000/$9,000$4,500/$13,500 Employee Coinsurance20%20%20% Office Visits (PCP/Specialist)$25/$4020% after Ded.20% after Ded. Urgent Care$4020% after Ded.20% after Ded. Emergency Room$15020% after Ded.20% after Ded. $150/day, max 5, Hospital, Inpatient20% after Ded.20% after Ded. then 100% $100 copay + 20% Hospital, Outpatient20% after Ded.20% after Ded. after ded. Lab/X-ray/Complex Imaging20% after ded.20% after Ded.20% after Ded. Ambulance20% after ded.20% after Ded.20% after Ded. Skilled Nursing20% after ded.20% after Ded.20% after Ded. Hospice20% after ded.20% after Ded.20% after Ded. $500/$1,000 Fund pays employee portion of Health Fund (Ind./Family)N/A medical and RX expenses Unused balances roll over RX: (Retail/Mail Order) Level 1$10/$20$10/$20$10/$20 Level 2$30/$60$30/$60$30/$60 Level 3$60/$120$60/$120$60/$120 Benefitsingreen currently count towards the Out-of-Pocket Maximum BenefitsinRedexceed the maximum allowed underPPACA BenefitsinOrange could resultin member exceeding the Out-of-Pocket Maximum AdjustmentsNeeded toPlans PPO500 In-Network Deductibles and copays must start counting towardsIn-Network Out-of-Pocket Maximum City can invoke fe Harbor toprevent RX copays from accumulating towards the Out-of-Pocket maximum for 2014, but this is only for one year Decision for Committee:whether toinvoke Safe Harbor for 2014 AdjustmentsNeeded (contd) HF1000 No adjustments are needed to this plan. All accumulators (Deductibles, Copays & Coinsurance) already accumulate towards the Out-of-Pocket Maximum. Decision for Committee: None AdjustmentsNeeded (contd) HF1500 The Family Out-of-Pocket Maximum of $13,500 exceeds the $12,700 allowable underPPACA. Since the Health Fund is pro-ratedduring the calendar year, afamilywould not always have the full $1,000 tooffset the $13,500 maximum, so their Out-of-Pocket maximum could exceed the $12,700 allowable MSW recommends lowering individualOut-of- Pocket Maximum from $4,500 to$4,200, then making the Family Out-of-Pocket max 3 x Individual ($12,600) Decision for Committee: Change Family Out-of- Pocket maximum(s) so that it is reduced to <= $12,700. REQUEST FOR CITY COUNCIL AGENDA ITEM Budget Agenda Date Requested:December 9, 2013 Source of Funds:N/A Requested By:Kathy Powell Account Number: Department:Finance/Tax Amount Budgeted: Report: Resolution: Ordinance: X Amount Requested: Exhibits:Ordinance Budgeted Item:YESNO Exhibits: Approved Contract by LPISD Exhibits SUMMARY & RECOMMENDATION In July 1994, the City entered into a contract with the La Porte Independent School District to assume itsTax Collection operations. Under the terms of this contract, the City collects current and delinquent ad valorem taxes for the District through the City’sTax Assessor/Collector and the La Porte Tax Office, and performs all related duties. The services performed include, but are not limited to: (1) Receipt of the Certified Appraisal Roll from Harris County Appraisal District (HCAD); (2) Receipt and processing of all Correction and Supplemental Tax Rolls; (3) Provision of Tax Roll and payment data to mortgage companies, property owners and tax representatives; (4) Truth in Taxation calculation and public notices; (5) Deposit of Taxes collected into District account; (6) Compilation and mailing of Tax billing notices;and(7) Specialized reports as needed. This relationship has worked out extremely well, and staffbelieves it to be a benefit to the La Porte citizenry. Not only do citizens get the convenience of paying both City and School taxes in one place, they also get the added benefit of having their tax dollars support only one Tax Collection operation. Staff is recommending that the Cityrenew this contract for a three year period, to continue on a year to year basis thereafter. The City currently receives $4.35 for each separate assessed item on the District’s certified roll, as reported by the Harris County Appraisal District on its first roll. There are approximately 22,450 accounts, and the City currently receives approximately $97,660 per year for these services. This contract will increase by twenty-five cents ($0.25) per item per year, with a cap of seven dollars and forty-five cents in the third year of the contract. Fiscal Year 2013-14 $6.85 Fiscal Year 2014-15 $7.10 Fiscal Year 2015-16 $7.35 The City expects toreceive approximately $153,800 in Fiscal Year 2014; $159,400 in Fiscal Year 2015; and $165,000 in Fiscal Year 2016. Action Required by Council: Consider approval or other action to authorize the City Manager to execute a contract between the City of La Porte and La Porte Independent School District for Tax Collection Operations. Approved for City Council Agenda Corby D. Alexander, City Manager Date #C14-099 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: December 9, 2013 Appropriation Requested By: Traci Leach Source of Funds: Fund 037 Department: Administration Acct Number: Report: Resolution: Ordinance: Amount Budgeted: $70,000 Attachments: Amendment No. 1 Requested: $125,000 Budgeted Item(s): YES NO Attachments: Agreement _____________________________________________________________________________________________ SUMMARY & RECOMMENDATION At the November 11, 2013 Council meeting, the Chamber of Commerce presented information regarding a proposal to expand the Sylvan Beach Day festival to two days instead of one. The Chamber would book a musical act on Friday night to draw more visitors to the City. In order to book an additional musical act, the Chamber requested an additional $50,000. The current agreement includes an annual payment of $70,000. The Council approved additional funding for the Chamber of Commerce and directed staff to bring an amendment forward to include the additional funding and include this amount in the upcoming quarterly budget amendment (due in January 2014). At this time, staff recommends approval of Amendment No. 1 to the agreement. A ction Required by Council: Consider approval or other action of Amendment No. 1 to the Agreement between the City of La Porte and the La Porte-Bayshore Chamber of Commerce. Approved for City Council Agenda ___________________________________________________________ Corby D. Alexander, CityManager Date REQUEST FOR CITY COUNCIL AGENDA ITEM Budget Agenda Date Requested:December 9, 2013 Source of Funds: Requested By: Traci Leach Account Number: Department: Administration Amount Budgeted: Report: Resolution: Ordinance: Amount Requested: Exhibits: Proposed Agreement Budgeted Item:YESNO SUMMARY & RECOMMENDATION InOctober 2013, the Fire Department received a new fire truck and that truck wasofficially placed into servicein November 2013. With the new truck in service, the now has a truck that will be rotated out of the City fleet. For aspiring firefighters, San Jacinto College offers the Firefighter Training Academy, which has been one ofthe best training programs in the Houston area and consistently has nearly 100 percent of the graduating students pass the Texas Commission on Fire Protection written certification exam. This program meets and exceeds all State requirements for paid/career firefighters and provides additional fire-related education and certification opportunities as well as courses in general education. The addition of a fire engine would greatly enhance the programming and training offered through this program and the City would directly benefit, as many of the graduates of this program stay in the area and become paid and volunteer firefighters. The City and San Jacinto College have maintained a dialogue about thepossibility to conveying the retired truck to the College for use in the Firefighter Training Academy. The attached agreement provides for the title transfer of the fire engine to the College for educational purposes. The College commits to use the engine exclusively for educational/training purposes for a period of 5 years and assumes all responsibility for the engine, including maintenance and repair. After the 5 year period has been satisfied, the College may dispose of the truck as it sees fit. Action Required by Council: Consider approval or other action authorizing the Mayor to execute an agreement between San Jacinto College and the City of La Porte for the transfer of a fireengine. Approved for City Council Agenda Corby D. Alexander, City Manager Date INTERLOCAL AGREEMENT BETWEEN SAN JACINTO COLLEGE DISTRICT AND CITY OF LA PORTE, TEXAS STATE OF TEXAS § § COUNTY OF HARRIS § This Agreement is made and entered into this ___ day of ____________, 2013, between SAN JACINTO COLLEGE DISTRICT, a school district formed under the laws of the State of Texas (hereinafter "COLLEGE"), acting by and through its governing body, and the CITY OF LA PORTE, TEXAS, a municipal corporation, (hereinafter "CITY"), acting herein by and through its governing body, both of Harris County, Texas. WHEREAS, this Agreement is made under the authority granted by and pursuant to Chapter 791, Texas Government Code, known as the INTERLOCAL COOPERATION ACT; and WHEREAS, CITY owns a certain Fire Engine which has outlived its useful life but is still of value of use; and WHEREAS, COLLEGE conducts a Program known as the San Jacinto Fire Training Academy, which will utilize the Fire Engine in the training and education of its students; and WHEREAS, CITY and COLLEGE find that transferring the Fire Engine for use in the Program would serve the citizens of La Porte by enhancing the training and education experience of firefighter trainees, benefiting the recruitment pool for the La Porte Fire Department, thereby promoting a public purpose; and WHEREAS, the Parties, in paying for the performance of governmental functions or in performing such governmental function, shall make payments therefore only from revenues legally available to such parties; and WHEREAS, the governmental bodies of each party find that the project or undertaking is necessary for the benefit of the public and that each party has the legal authority to provide such service, and the services are in the common interest of both parties hereto; and that the division of costs and/or responsibilities provided for constitutes adequate consideration to each party, NOW THEREFORE, for and in consideration of the mutual undertaking hereinafter set forth and for adequate consideration given, the parties agree as follows: I. DEFINITIONS The following terms shall have the following meanings when used in this Agreement: 4S7HR109XWC0218001998 FERRARA A. "Fire Engine" shall mean that certain motor vehicle, Serial No. , a FIRE PUMPER, MODEL VA40M-2142 originally purchased by the City of La Porte, Texas. A Fire Engine apparatus is a critical learning tool for any State accredited fire academy program where the student learns fire pump theory and operations, fire stream and hose skills, vehicle operation, and other safety training as part of the basic training program. B."Parties" means CITY and COLLEGE. C."Program" is that certain program operated by COLLEGE and titled the San Jacinto Fire Training Academy. II. PURPOSE The purpose of thisAgreement is to provide for the transfer of a certain Fire Engine to the COLLEGE for the specific purpose of use in the Program run by COLLEGE. III. TERMS, RIGHTS, OBJECTIVES AND DUTIES OF THE PARTIES The following shall apply to the Parties in the performance of this Agreement: A.CITY shall upon execution of this Agreement transfer all rights and title to the Fire Engine to COLLEGE. B.COLLEGE agrees to take the Fire Engine in its present condition, "as is, where is", and agrees that CITY is providing no warranties including any warranty of merchantability or fitness for use. C.COLLEGE agrees that the Fire Engine for a period of five (5) years shall only be used for the Program and if COLLEGE fails to do so then the Fire Engine will be transferred back to CITY. If the failure of COLLEGE to use the Fire Engine in the Program for five (5) years is because of the inability of the Fire Engine to function, due to no intentional act of COLLEGE, then this provision shall not apply. D.COLLEGE agrees that after transfer it will take all rights and responsibilities of ownership, including all future maintenance and repairs of the Fire Engine. E.COLLEGE shall have the right to dispose of the Fire Engine in any lawful manner if the requirement of SectionIII(C) above has been met or if the Fire Engine becomes unusable for the Program due to no intentional act of COLLEGE. IV. NO VERBAL AGREEMENT This Agreement contains all the terms, commitments and covenants of the Parties pursuant to this Agreement. Any verbal or written commitment not contained in this Agreement or expressly referred to in this Agreement and incorporated by reference shall have no force or effect. V. AGREEMENT INTERPRETATION AND VENUE The Parties covenant and agree that in any litigation relating to this Agreement, the terms and conditions of the Agreement will be interpreted according to the laws of the State of Texas and venue shall be proper exclusively in Harris County, Texas. VI. CAPTION 2 The captions to the various clauses of this Agreement are for informational purposes only and in no way alter the substance of the terms and conditions of this Agreement. VII. IMMUNITY It is expressly understood and agreed that, in execution of this Agreement, no party waives, nor shall be deemed hereby to waive, any immunity or defense that would otherwise be available to it against claims arising in the exercise of governmental powers and functions. VIII. WAIVER OF CLAIMS Each party hereto waives all claims against the other party hereto for compensation for any loss, damage, personal injury, or death, occurring as a consequence of the performance of this Agreement. IX. SEVERABILITY If any of the terms, sections, subsections, sentences, clauses, phrases, provisions, covenants or conditions of this Agreement are for any reason held to be invalid, void or unenforceable, the remainder of the terms sections, subsections, sentences, clauses, phrases provisions, covenants, or conditions in this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. X. JOINT VENTURES Nothing contained in this Agreement is intended by the Parties to create a partnership or joint venture between the Parties, and any implication to the contrary is hereby expressly disavowed. It is understood and agreed that this Agreement does not create a joint enterprise, nor does it appoint any party as an agent of any other party, for any purposes whatsoever. XI. THIRD PARTIES The Parties to this Agreement do not intend by this Agreement that any specific third party may obtain a right by virtue of the execution or performance of this Agreement. This Agreement shall become effective on the date first written above. 3 IN WITNESS WHEREOF, the Parties hereto have executed four (4) copies of this Agreement in Harris County, Texas, this ___ day of ____________, 2013. SAN JACINTO COLLEGE DISTRICT By: ____________________________ President, Board of Trustees ATTEST: _________________________ Secretary CITY OF LA PORTE, TEXAS By: ____________________________ Louis R. Rigby, Mayor ATTEST: _________________________ Patrice Fogarty City Secretary APPROVED AS TO FORM: _________________________ Clark T. Askins Assistant City Attorney 4 REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: December 9, 2013 Source of Funds:Various Requested By:Michael Dolby Account Number:Various Department:Finance Amount Budgeted:YES X Resolution: Ordinance: Report: Amount Requested: Exhibits: Encumbrance Rollover Report Budgeted Item:YES X NO Exhibits: Exhibits: SUMMARY & RECOMMENDATION The City’s fiscal year ended September 30, 2013.There are 28 outstanding purchase ordersstaff is requesting toroll-over.The purchase orders represent goods that areordered and budgeted funds committed to procure items necessary to operate the City. A breakdown of the open purchase orders, encumbrances and budget roll-over requests by operating fund are as follows: FundNumberAmount General Fund17$ 103,690.20 Utility Fund 24,493.36 Vehicle Replacement Fund3 483,769.86 Grant Fund443,305.68 Emergency Services District Fund270,633.24 Totals28$ 705,892.34 The above amendments will not have an impact on the projected working capital balances for fiscal year 2014 because they were budgeted in the fiscal year 2013, and following approval by Council, the system will automatically increase each line item. Action Required by Council: Consider approval or other action of the encumbrance roll over request. Approved for City Council Agenda Corby D. Alexander, City Manager Date CITY OF LAPORTE ENCUMBRANCE ROLLOVER REPORT For the Fiscal Year Ended September 30, 2013 P. O Encumbrance endor NamemountDescription FundNumbe rVA 17Total General Fund103,690.20 2Total Utility Fund4,493.36 3Total Vehicle Replacement Fund483,769.86 4Grant Fund43,305.68 2Emergency Services District Fund70,633.24 Total Encumbrances$705,892.34 REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested:12-9-13 Source of Funds: Requested By: Ken Adcox Account Number: Department:Police Department Amount Budgeted: Report: Resolution: Ordinance: Amount Requested: Exhibits: Agreement with City of Shoreacres for Jail & Dispatch Services Budgeted Item:YESNO SUMMARY & RECOMMENDATION The City of La Porte currently provides contract jail services to the City of Shoreacres. Staff is now requesting that the Council consider anagreement between the City of Shoreacres and the City of La Porte for both jail and dispatch services. This agreement allows La Porte to charge reasonable and customary charges and fees for services provided. In consideration for the jail and dispatch services provided by the City of La Porte, the City of Shoreacres will pay a monthly service fee of $4,720.83.Thefee amount is proportionately based on the total cost for the City of La Porte to maintain and operate a Jail and Emergency Communications Center and the population for the three cities that the City of La Porte provides these services to (La Porte, Morgan’s Point, and Shoreacres).The agreementwill be in effect for aterm of thirty-three months (December 30, 2013 through September 30, 2016) with a cancellation clause allowing either party to withdraw from the contract upon sixty (60) days written notice to the other party. Action Required by Council: Consider approval or other action of an agreement between the City of La Porte and the City of Shoreacres for City jail and dispatch services. Approved for City Council Agenda Corby D. Alexander, City Manager Date REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: December 9, 2013 ______N/A___________ Source of Funds: Tim Tietjens Requested By: Account Number:______N/A__________ Department: Planning Amount Budgeted: _____N/A___________ Report: ___Resolution: _X_Ordinance: ___ Amount Requested: ____N/A__________ Budgeted Item: YES NO Exhibits:Resolution Exhibits: Presentation SUMMARY& RECOMMENDATION After Hurricane Ike, Texas A & M Galveston Professor Dr. Bill Merrell, studied and proposed a structural protection system, known as “Ike Dike”to protect the Houston Galveston region from storm surgeof a major hurricane. Located along the Gulf of Mexico at the mouth of Galveston Bay, it would include a combination of movable gate systems and revetment levees covered with natural materials on Galveston Island and the Bolivar Peninsula,which would protect the entire Galveston Bay area. It would not only protect the Houston Ship Channel industries from environmental catastrophe, but also the Bayport, Texas City and Galveston Industrial areas as well as every community fronting Galveston Bay, including La Porte. Such a system along the Gulf of Mexico and the mouth of Galveston Bay would also mitigate the rising surge that tends to increase in height as it moves further up into a bay system like Galveston Bay. While the project is unfunded at this time, the proposed Resolution in favor of the Ike Dike, would also be presented to the six-county public corporation known as the Gulf Coast Community Protection and Recovery District, created after Hurricane Ike to investigate possible funding sources. Dr. Merrell is scheduled to present the concept in detail tonight. Action Required by Council: Consider approval or other action of a resolution supporting the Ike Dike structural protection system. _____________________________________________________________________________________ Approved for City Council Agenda __________________________________ _______________________ Corby Alexander,City Manager Date dams 20 Challenge the future Two rows of several bellows- This option will decrease the water leakage. Another option: REQUEST FOR CITY COUNCIL AGENDA ITEM Budget Agenda Date Requested:December 9, 2013 Source of Funds: Requested By:Allison Curry, HR Manager Account Number: Department:Administration Amount Budgeted: Report: Resolution: Ordinance: Amount Requested: Exhibits: Interoffice Memo From City Manager to Council Sick Buy Back and Disability Insurance Budgeted Item:YESNO Exhibits: 12-3-2007 Council MeetingMinutes- 8C Exhibits01-17-2008-Memo to Emps Sick Time Chapter 10 of Employee Handbook Current/Proposed Exhibits SUMMARY & RECOMMENDATION In November 2011,staff proposed a reduction in sick time liability. Staff senta Sick Buy Back and Disability Insurance Interoffice Memorandum to City Council proposingthis change, and included detailed information on the process. At the December 3, 2007 Council Meeting, Council approvedthe changes for all non-civil service employees. On January 17, 2008 an interoffice memorandum was sent out to all non-civil service employees outlining the changes to the sick buy back, and defined the differences of sick banks. The only CASH VALUE bank is Sick Bank 3, as noted in the attached documents. Currently the Employee Handbook Chapter 10 section 10.03 Non-Civil Service Employees and 24 hour employees’sick sections incorrectly define Sick Bank 1 asthe payout bank, and it should reflect Sick Bank 3. Staff proposes to Council that both Sick sections for non-civil service employees in Chapter Ten section 10.03 be changed to Sick Bank 3 to correctly reflect the approved changes in 2007. Action Required by Council: Consider approval or other action to change Handbook Chapter 10 Section 10.03 Non-Civil Service Employees and 24 Hour Employeesto properly designate the payout bank from Sick Bank 1 to Sick Back 3. Approved for City Council Agenda Corby D. Alexander, City Manager Date Proposed Changes Current Language to be Removed Proposed Language Change CHAPTERTEN TERMINATION OF EMPLOYMENT 10.01 VoluntaryTerminations Resignation InabilitytoPerformJob Serious Health Condition/Disabilities Medical Exams forCurrentEmployees - TerminationDuetoReorganizationor Economics Proposed Changes Current Language to be Removed Proposed Language Change 10.02 ExitInterview 10.03SeparationPay Non-CivilServiceEmployees Vacation Sick Non-CivilService24HourEmployees Vacation Sick CivilServiceEmployees Vacation Sick Proposed Changes Current Language to be Removed Proposed Language Change Longevity RetirementDeduction must CityProperty Proposed Changes CurrentLanguageto be Removed Proposed Language Change REQUEST FOR CITY COUNCILAGENDA ITEM Budget Agenda Date Requested: 9 December2013 Source of Funds:4B Board Requested By: Scott D. Livingston Account Number: 038 Department: Administration/Economic Development Amount Budgeted: N/A Report: Resolution: Ordinance: Amount Requested: $15,000 Exhibit:Project Facts and Figures Budgeted Item:YES NO Exhibit: Richard Industrial Group Flyer Exhibit: Public Hearing Notice SUMMARY & RECOMMENDATION The Richard Industrial Group(RIG) (www.rig-rds.com) is a full-service engineering, procurement, and constructionfirm that has completed projects for Chevron Phillips, LLC, Enterprise Product Partners, LP, ExxonMobil, Firestone Polymers, Flint Hills Resources, Hess, Honeywell, INEOS Phenol, Motiva Enterprises, LLC, Panther Companies, Sunoco Logistics, Total, and Valero to name a few. With a reputation for integrity and reliability, the Richard Industrial Group offerssome of the industry’s top talent through a family of four companies that capture synergies and integrateservices across the full spectrum of any project. Baton Rouge The Richard Industrial Group(RIG)currently has offices in , LA, and three (West) HoustonBeaumont,Huffman locations in Texas: , and . Due tothe investment and growth of the companies in the area surrounding the Houston Ship Channel, RIGwanted to open a new office in the ship channel area.RIG recently signeda3 year lease for 7,500 square feet with the first right of refusal on an additional 3,500 square feet of office spaceat 1200 SH 146 in La Porte, Texas.The initial space will house a new engineering office to establish a presence on the ship channel. Over the next 2 years, while the engineering office is working to develop market share in the area, RIG will search for undeveloped land sites in the Bayport Industrial District upon which to construct a permanent, brand new facility in year #3. \[Note: More information is provided about RIG’s future plans beyond year #3 after the Incentive Request at the conclusion of this summary.\] 90full-time However, over the next 3 years, RIG plans to relocate and/or hire employees with full (medical, dental, and 401k) benefits: By the End of 2013Relocated New Hires Total Managers 2 6 8 Admin 0 2 2 Engineers 1 5 6 Designers 5 7 10 Total Employment by the End of 2013: 26 By the End of 2014New Hires Total Managers 1 10 Admin 1 2 Engineers 1 7 Designers 17 47 Total Employment by the End of 2014:66 By the End of 2015New HiresTotal Managers 0 10 Admin 1 3 Engineers 3 10 Designers 20 67 Total Employment by the End of 2015: 90 In addition to full benefits (medical, dental, and 401k), the average, annual salary for each category of employees is as follows: Managers $250,000 Admin $ 55,000 Engineers $160,000 Designers $200,000 In openingthe new engineering office in La Porte, RIG estimates that it spent: $160,000 in building improvements, infrastructure/utility installation, and furniture, $120,000 in hiring/human resource expenses including signing bonuses, and $340,000 in computers and software. Other than fresh paint in the lease space and carpet cleaning, the owner of the 1200 Building on SH 146 did not offerRIG any allowance for tenant improvements. Incentive Grant Request In order to facilitate the opening of theirnew office in La Porte, RIGrequests a cash incentive $15,000 grant in the amount of . In order to facilitate the opening of RIG’s new office inLa 90 Porte and support the creation of new full-time jobs in La Porte, staff recommends that the 4B $15,000 Board award RIG a cash incentive grant in the amount of . Per the Board’s direction on 23 September 2013, staff scheduled a public hearing to discuss this incentive grant request on 9 December 2013. Public notice was published on Thursday, October rd 3, which satisfiesthe 60-day petition period. No qualified petition was receivedin opposition to this proposed incentive award. This project will require that the Richard Industrial Group, Inc. enter into a performance agreement with the La Porte Development Corporation, the terms of which would establish minimum thresholds for key performance indicators such as the 75 requirement to open a new office and re-locate and/or hire at least full-time employees in La Porte. RIG’s Future Plans The new, proposed facilityto be constructed in year #3will include engineering office space for up to 150 personnel including designers, admin, project managers, managers, accounting, project controls, human resources,etc.The new facility will also include space for RIG’s automation engineering/fabrication group, whichwill have office space for 35 +/- employees (designers, project managers, procurement, admin and managers),plus 45+/- fabrication/shop personnel.It will also include warehouse, fabrication and testing facilities.The testing facility will be designed for clients who are taking delivery of new automation buildings to set up and test the buildings/instruments over a several week period, bringing in testing personnel from other communities. The new, proposed facility will also include facilities for Richard’sconstruction group with office space for 50+/- managers, human resources, admin, construction managers, accounting, safety, project controls, etc.Warehouse space will be for storage of tools, consumables and small equipment with 5-10 employees to control inventory. A large storagearea will also be provided for large equipment parking and some material. The number of construction field personnel will fluctuate with workload. Action Required by the City Council: Consider approval or other action to approve moving forward with an incentive grant request in $15,000 the amount not to exceed to the Richard Industrial Group to open a new office and re- 75 locate and/or hire at least full-time employees in La Porte. Approved for the City CouncilAgenda Corby D. Alexander, City Manager Date RICHARD INDUSTRIAL GROUP: FACTS AND FIGURES Assumptions: 90 Relocate and/or hire approximately full-time employees with full benefits. Pay average salaries for employees as follows: $250,000 Managers $ 55,000 Admin $160,000 Engineers $200,000 Designers $160,000 RIG will spend in building improvements, infrastructure installation, and furniture, $120,000 RIG will spend in hiring/human resource expenses including signing bonuses, $340,000 RIG will spend in computers and software, $400,000 RIG will own roughly ($340,000 plus $60,000 in furniture and other property) of taxable business personal property, RIG will spend the first two years looking for a site upon which to construct a new, permanent facility in year #3. Real and Business Personal Property Tax Projections: $2,840 Total annual taxes paid to the City of La Porte over 3 years: ($400,000/100 x 0.71 = $2,840) Primary Job Opportunities for La Porte Residents: 82 RIG willoffer approximately new full-time, well paid positions with benefits to work in their engineering office in La Porte. Other Benefits of the Project: Improvement of an old suburban office in town, Opportunity to forge a new relationship with a growing company that may build a new, permanent facility, and further expand in La Porte after 3 years, Opportunity to attract other quality tenants/businesses to both the 1200 Building and the City of La Porte. REQUEST FOR CITY COUNCILAGENDA ITEM Budget Agenda Date Requested: 9 December2013 Source of Funds: Requested By: Scott D. Livingston Account Number: Department: Administration/Economic Development Amount Budgeted: Report: Resolution: Ordinance: Amount Requested: Exhibit: Letter to the City Council Budgeted Item:YES NO Exhibit: Proposed TIRZ Development Agreement SUMMARY & RECOMMENDATIONS Beazer Homes wishes to annex approximately 32 acres on the northwest corner of Sens Road and Spencer Hwy into TIRZ No. 1 and rezone approximately 17 acres of land in the same area from General Commercial (GC) to Low Density Residential (R-1). Beazer requests that the City Council consider approving the annexation of the 33 acre tract ofland on the northwest corner of Sens Road and Spencer Hwy into TIRZ No. 1 to make the proposed residential development economically feasible to develop. On the 17 acres of land which are requested to be rezoned, Beazer Homes proposes to build approximately 73 single family homes. The plans Beazerwill offer have a base average size of 2,025 square feet, but their business model is to sell structural options which Beazerbelieves will increase the square footage of the homes to an average size of 2,200 square feet. Beazer Homes has enclosed information showing the average sales price per square foot for existing and new, competing residential developments as compared to the average, projected sales price per square foot for each proposed Beazer Home. Beazer also provides information which shows how competing residential developers sell homes in this area at a higher price than the same homes in other communities around Houston. Beazer Homes has agreed to enter into a four-way development agreement among the following entities: Beazer Homes Texas LP, the La Porte Redevelopment Authority, Reinvestment Zone Number One, and City of La Porte. In order to address the concerns of the residents of Spencer Landing regarding the square footage and appearance of the Beazer product, Beazer has agreed to some restrictionswithin the TIRZDevelopment Agreement (enclosed) that would require: (1) 100% masonry on the front first floor elevationwith 50% along the sides, (2)the investment of approximately $2,097,297in public improvements, and (3) that the cumulative, average sales price (documented at the time Developer sells a finished home to an initial end- user) of all homes within the Project Site is not less than $175,000. A representative from Beazer Homesis available tonight to address any questions or concerns that theCity Council may have about Beazer Homes’proposed residential development, the request to annex the 33 acre tract of land into TIRZ No. 1, and/or the request to re-zone approximately 17 acres of land to accommodate the proposed residential development. Action Required by the City Council: Consider approval or other action of the proposed TIRZ Development Agreement. Approved for the City CouncilAgenda Corby D. Alexander, City Manager Date Draft 12.3.13 DEVELOPMENT AGREEMENT among CITY OF LA PORTE, TEXAS, and REINVESTMENT ZONE NUMBER ONE, CITY OF LAPORTE, TEXAS, and LA PORTE REDEVELOPMENT AUTHORITY and BEAZER HOMES TEXAS LP HOU:3372249.1 DEVELOPMENT AGREEMENT This Agreement (“Agreement”), effective ________, 2013, is made by and among the CITY OF LA PORTE, TEXAS (the “City”),REINVESTMENT ZONE NUMBER ONE, CITY OF LAPORTE, TEXAS (the “Zone”), a tax increment reinvestment zone created by theCity, acting by and through its Board of Directors (the “Zone Board”), LAPORTE REDEVELOPMENT AUTHORITY (the “Authority”), a local government corporation created by the City,acting by and through its Board of Directors (the “Authority Board”) andBEAZER HOMES TEXAS LP, a Delaware limited partnership(the “Developer”). RECITALS WHEREAS, by OrdinanceNo. 99-2325 (the “TIRZ Ordinance”),the City Council of the City created the Zone pursuant to Chapter 311, Texas Tax Code, as amended(the “TIRZ Act”); and WHEREAS, the Zone Board adopted a final Project Plan and Reinvestment Zone Financing Plan; and WHEREAS, the City Council approved the final Project Plan and Reinvestment Zone Financing Plan by Ordinance No. 99-2352; and WHEREAS, the Zone Board recommended that the Zone’s boundaries be expanded and adopted an AmendedProject Plan and Reinvestment Zone Financing Plan (as amended, the “Project Plan”); and WHEREAS, the City Council approved the expansion of the Zone’s boundaries by Ordinance No. 2013-______ and approved the Project Plan by Ordinance No. 2013-___; and WHEREAS, the City authorized the creation of the Authority to aid, assist and act on behalf of the City in the performance of the City’s governmental functions with respect to the common good and general welfare of the Cityand neighboring areas as described in the TIRZ Ordinance; and WHEREAS, the City, the Zone and the Authority have entered into that certain Agreement dated July 9, 2001, and approved byOrdinance No. 2001-2498 (the “Tri-Party Agreement”), pursuant to which the City and the Zone contracted with the Authority to administer the Zone, including, but not limited to, the power to engage in activities relating to the acquisition and development of land, to construct and improve infrastructure in the City, to enter into development agreements with developers and builders in the City, and to issue, sell or deliver its bonds, notes or other obligations in accordance with the terms of the Tri-Party Agreement upon the approval of the City Council of the City; and WHEREAS, the Tri-Party Agreementfurther provides that the Authority must obtain the prior approval of the City for any project approved in the Project Plan that is constructed or caused to be constructed by the Authority; and WHEREAS, the TIRZ Actprovides that the Zone may enter into agreements as the Zone Board considers necessary or convenient to implement the Project Plan and achieve its purposes; and WHEREAS, the Authority Boardand the Zone Board have determined that it is in the best interest of the Zone and the Authority to contract with the Developer, in order to provide for the efficient and effective implementation of certain aspects of the Project Plan; and WHEREAS, the Developer desires to proceed with the development of an urban project consisting of residential,commercialand retail development locatedon land within the Zone (the “Project”)prior to the time that the Authority can issue its bonds or otherwise pay the costs of the Public Improvements (as defined herein); NOW THEREFORE, for and in consideration of the mutual promises, covenants, obligations, and benefits of this Agreement, the City, the Zone, the Authority and the Developer contract and agree as follows: AGREEMENT ARTICLE 1 GENERAL TERMS 1.1Definitions. The terms “Agreement,” “Authority,” “Authority Board,” “City,” “Developer,” “Project,” “Project Plan,” “TIRZ Act,” “Tri-Party Agreement,” “Zone” and “Zone Board” have the above meanings, and the following terms have the following meanings: “Authority Bonds” shall mean the Authority’s tax increment revenue bonds issued in one or more series pursuant to Section 6.1(H) of this Agreement. “Available Tax Increment” shall mean funds in the Tax Increment Revenue Fund. “Completion” shall mean completion of construction of the Public Improvements in accordance with the Plans and Specifications so that the Project can be used and maintained for its intended purposes. Completion shall be approved by the City and certified by the engineering firm engaged by Developer to make such certification. “Contract Progress Payment” shall mean the payment due to a contractor or consultant hired by Developer to complete the Public Improvements. A contract progress payment must be supported not only by a report of a certified public accountant as required in Section6.1(B), but also by customary documentation including, but notlimited to, the name and address of the contractor, a description of the contract pursuant to which the payment is requested, the amount of such payment, the original contract amount, total payments made to date on such contract, an estimate of remaining work to be completed, the cost of such work, and customary lien and subcontractor releases. “County” shall mean Harris County, Texas. 2 HOU:3372249.1 “Developer Advances” shall mean any funds advanced for Project Costsby the Developer pursuant to Section 6.1 of this Agreement and shall include any interest payable thereon as prescribed in this Agreement. “HCAD” shall mean the Harris County Appraisal District. “Parties” or “Party” shall mean the City, the Zone, the Authority and the Developer, the parties to this Agreement. “Plans and Specifications” shall mean the designs, plans and specifications for the Public Improvements prepared or to be prepared by engineering and landscape architect firms at the direction of Developer in accordance with the Project Plan and as approved by the City in accordance with Section 4.2. “Pledged Available Tax Increment” shall mean the Available Tax Increment attributable to the ProjectSite. “Property Account” means an account within the Tax Increment Revenue Fund for deposit of Pledged Available Tax Increment, the proceeds of Authorized Bonds issued to finance Public Improvements pursuant to this Agreement, and other obligations issued pursuant to Article 6, and earnings from the investment of such amounts. “Project Costs” shall mean the cost of the Public Improvements. “Project Site” shall mean the area known asLa Porte Outlots Subdivision, located in certain tracts described in Exhibit A, and all improvements located thereon. “Public Improvements” shall have the meaning provided in Article 3 of this Agreement. “State” shall mean the State of Texas. “Tax Increment” shall have the meaning given such term in the Tri-Party Agreement. “Tax Increment Revenue Fund” shall mean the special fund established by the Authority and funded with payments made by the City and any other participating Taxing Units, pursuant to the Tri-Party Agreement. “Taxing Unit” shall mean individually and collectively, the City and any other taxing units participating in the Zone. 1.2Singular and Plural. Words used herein in the singular, where the context so permits, also include the plural and vice versa. The definitions of words in the singular herein also apply to such words when used in the plural where the context so permits and vice versa. 3 HOU:3372249.1 ARTICLE 2 REPRESENTATIONS 2.1Representations of the Authority. The Authority hereby represents to the Developer that: (A)The Authority is duly authorized, created and existing in good standing under the laws of the State and is duly qualified and authorized to carry on the governmental functions and operations as contemplated by this Agreement. (B)The Authority has the power, authority and legal right to enter into and perform this Agreement and the execution, delivery and performance hereof (i) have been duly authorized, (ii)to the best of its knowledge, will not violate any applicable judgment, order, law or regulation, and (iii)do not constitute a default under, or result in the creation of, any lien, charge, encumbrance or security interest upon any assets of the Authority under any agreement or instrument to which the Authority is a party or by which the Authority or its assets may be bound or affected. (C)The Project, the Public Improvements and the Project Costs are components of or are consistent with the Project Plan. (D)This Agreement has been duly authorized, executed and delivered by the Authority and, constitutes a legal, valid and binding obligation of the Authority, enforceable in accordance with its terms except to the extent that (i)the enforceability of such instruments may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application in effect from time to time relating to or affecting the enforcement of creditors’ rights and (ii)certain equitable remedies including specific performance may be unavailable. (E)The execution, delivery and performance of this Agreement by the Authority does not require the consent or approval of any person which has not been obtained. (F)The Authority has an exemption from the payment of sales and use taxes pursuant to the statute under which the Authority was created. 2.2Representations of the Zone. The Zone hereby represents to the Developer that: (A)The Zoneis duly authorized, created and existing in good standing under the laws of theState and is duly qualified and authorized to carry on the governmental functions and operations as contemplated by this Agreement. (B)The Zone has the power, authority and legal right to enter into and perform this Agreement and the execution, delivery and performance hereof (i)have been duly authorized, (ii)to the best of its knowledge, will not violate any applicable judgment, order, law or regulation, and (iii)do not constitute a default under, or result in the creation of, any lien, charge, encumbrance or security interest upon any assets of the Zone under any agreement or instrument to which the Zone is a party or by which the Zone or its assets may be bound or affected. 4 HOU:3372249.1 (C)The Project, the Public Improvements and the Project Costs are components of or are consistent with the Project Plan. (D)This Agreement has been duly authorized, executed and delivered by the Zone and constitutes a legal, valid and binding obligation of the Zone, enforceable in accordance with its terms except to the extent that (i)the enforceability of such instruments may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application in effect from time to time relating to or affecting the enforcement of creditors’ rights and (ii)certain equitable remedies including specific performance may be unavailable. (E)The execution, delivery and performance of this Agreement by the Zone does not require the consent or approval of any person which has not been obtained. 2.3Representations of the Developer. The Developer hereby represents to the Authority and the Zone that: (A)The Developer is duly authorized, created and existing in good standing under the laws of the State and is qualified to do business in the State. (B)The Developer has the power, authorityand legal right to enter into and perform its obligations set forth in this Agreement, and the execution, delivery and performance hereof, (i)have been duly authorized by requisite corporate action, (ii)will not, to the best of its knowledge, violate any judgment, order, law or regulation applicable to the Developer or any provisions of the Developer’s bylaws or limited partnership agreement, and (iii)do not constitute a default under or result in the creation of, any lien, charge, encumbrance or security interest upon any assets of the Developer under any agreement or instrument to which the Developer is a party or by which the Developer or its assets may be bound or affected. (C)The Developer will have sufficient capital to perform its obligations under this Agreement at the time it needs to have sufficient capital. (D)This Agreement has been duly authorized, executed and delivered and constitutes a legal, valid and binding obligation of the Developer, enforceable in accordance with its terms except to the extent that (i)the enforceability of such instruments may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application in effect from time to time relating to or affecting the enforcement of creditors’ rightsand (ii)certain equitable remedies including specific performance may be unavailable. (E)The Developer will prepare and record residential covenant/deed restrictions for the Project Site requiring that (1) the square footage for each single-family home constructed thereon shall be no less than 1,629 square feet (as determined by HCAD); (2) upon build-out of the Project Site, at least 64% of the single-family homes will have at least 2,000 square feet (as determined by HCAD); and (3) each single-family home shall have a masonry exterior on 100% of the first-floor front elevation and on not less than 50% onof each first-floor side elevation. 5 HOU:3372249.1 ARTICLE 3 THE PUBLIC IMPROVEMENTS 3.1Public Improvements. The Public Improvements shall be and include the design, construction and installation of certain public infrastructure relating to the Project, such infrastructure being more particularly described in the Plans and Specifications. 3.2Project Costs. Theestimated Project Costs of the Public Improvements are described in ExhibitB. The Public Improvements will be developed pursuant to the Plans and Specifications and a schedule that is mutually agreeable to the Parties. The Project Costs shall include all architectural, engineering, design, legal and other consultant fees and expenses (as further set forth in Section6.1(A) hereof) related to such Public Improvements. The Project Costs may be modified with approval of the Authority Board. 3.3Obligation. The Public Improvements shall be designed, acquired, constructed and implemented in accordance with the Plans and Specifications to be approved by the City pursuant to Article 4. ARTICLE 4 DUTIES AND RESPONSIBILITIES OF THE DEVELOPER 4.1Construction Manager. Subject to Article3, the Developer agrees to construct the Public Improvements as described in the Plans and Specifications and to provide and furnish, or cause to be provided and furnished, all materials and services as and when required in connection with theconstruction of the Public Improvements. The Developer will obtain all necessary permits and approvals from the City and all other governmental officials and agencies having jurisdiction (including the approvals required under the Tri-Party Agreement), provide supervision of all phases of construction of the Public Improvements, provide periodic reports as may be reasonably requested and required by the Authority from time to time of such construction to the Authority Boardwith copies to the City, and cause the construction to be performed in accordance with the Plans and Specifications. 4.2Design of the Public Improvements. The Developer shall prepare or cause to be prepared the Plans and Specifications for the Public Improvements. Prior to the commencement of construction or implementation of the Public Improvements, the Plans and Specifications must be submitted to and approved by the City and all other regulatory authorities having jurisdiction. Once the City has approved the Plans and Specifications, no changes thereto can be made without the express written approval of the City, the Zone Board, and the Authority. 4.3Completion. On the later of completion of the construction of the Public Improvements or thirty days after this Agreement is executed, Developer shall provide the Authority and the City with a final cost summary of all costs associated with such Public Improvements, a Certificate of Completion and evidence that all amounts owing to contractors and subcontractors have been paid in full evidenced by customary affidavits executed by such contractors. 4.4Conveyance of Easements. If applicable, the Developer shall grant the City and the Authority all required temporary construction and access easements necessary to maintain the 6 HOU:3372249.1 Public Improvements. The easements granted must be satisfactory for the intended purpose as determined by the City. On property owned by the Authority, the Authority shall grant the Developer at no cost all required temporary construction and access easements necessary to install the Public Improvements. 4.5Payment of Fees. If applicable, Developer agrees to pay anymonthly rates and charges for water and sewer servicesand shall pay all applicable City building permit fees for the Public Improvements. 4.6Cooperation. Developer agrees that it will cooperate with the Zoneand the Authority and Developer will provide all necessary information to the Authority and its consultants in order to assist the Authority in complying with the Tri-Party Agreement, including, without limitation, the completion of the audit and construction audit required therein. 4.7Ad Valorem Taxes. The Developer agrees that all real property within the Project Site will be valued for taxation in accordance with Section23.01, Texas Tax Code, as hereinafter may be amended, and that it will not request such property to be valued for taxation on the basis of inventory as permitted by Section 23.12, Texas Tax Code and as hereinafter may be amended. 4.8Design and Completion of Public Improvements prior to Effective Date. Prior to the effective date of this Agreement, the Developer has committed and expended funds in amounts for Public Improvements described in Exhibit B, in reliance upon the City’s authorization to enlarge the Zone and the Authority’s commitment to pay or reimburse such costs in accordance with the terms herein, but no other contract has heretofore been entered into by the Developer with the Authority or the Zone to provide for such expenditures and reimbursement. The Developer represents that the fair market value of the work and property resulting from the funds so committed or expended and benefiting the Authority and the Zoneis at least equal to the amounts so committed and expended, respectively. In order to compromise and settle all claims the Developer may have arising out of any failure by the Authority and Zone to reimburse funds heretofore expended by the Developer for such Public Improvements, by entering into this Agreement, (A)the Authority and the Zoneagree to reimburse the Developer for Project Costs of such Public Improvements paid or incurred prior to the date hereof in a total amount of committed funds specified in Exhibit Bplus financing costs and/or interest as set forth in Section6.1 below, attributable thereto in accordance with and subject to the other provisions hereof, without admitting liability of any kind on their part, and (B)the Developer releases and discharges the Authority and the Zone from all claims of any nature the Developer might make, now or in the future, arising out of any failure by the Authority and Zoneto pay or reimburse the Developer for any other work done prior to the date hereof or in any greater amount or on any other conditions for work performed in connection with Public Improvements prior to the date hereof. 4.9Changes in Project. The Developer shall not make any change in the Project as to the uses of the property or change the boundaries within the Project Site without the express written consent of the City, the Authority Board and the Zone Board. 7 HOU:3372249.1 4.10No Vested Rights. The Developer expressly understands and agrees that neither this Agreement nor any approvals required herein shall be construed as a “permit,” as defined in Section245.001 of the Texas Local Government Code, or anapplication therefor; and, as such, the Developer has no vested right as a “permit” in any order, regulation, ordinance, rule, expiration date or other requirement in effect at the time of execution of this Agreement or at the time any approval pursuant to the terms hereof is obtained. To this end, Developer, for itself, its officers, agents, employees, successors and assigns, hereby releases and holds harmless the City, the Authority and the Zonefrom any claim or cause of action involving vested rights, including, but not limited to, such a right claimed pursuant to Chapter245 of the Texas Local Government Code, arising out of this Agreement or the approvals required to be obtained herein. ARTICLE 5 DUTIES AND RESPONSIBILITIES OF THE AUTHORITY 5.1Authority Contributions. The Authority shall pay or reimburse to Developer the Project Costs in the amount of the actual costs of the Public Improvements, subject to the conditions of andprovided by Articles3 and 4. The total, actual Project Costs of the Public Improvements, for which the Authority shall be responsible under the terms of this Agreement, is estimated to be $2,097,297. Attachedhereto as Exhibit Bis a detailed description of the engineering estimates of the Public Improvements. The Project Costs shall be financed and funded in accordance with Article6 hereof. In the event a portion of the Public Improvements is determined to be ineligible under the Act, the Project Costs shall be reduced by the amount of such ineligible Public Improvements. If the Authority has already repaid Developer for such ineligible Public Improvements in accordance with this Agreement, the Parties agree that Developer shall reimburse the Authority for such repayment within thirty (30) days of receipt of an invoice from the Authority and all such sums shall bear interest at the rate established in Section 6.1(F) from the date past due until the date of such reimbursement. Should the Developer fail to timely pay such amount, the Authority may, in its solediscretion, withhold the amount due, including accrued interest, from future Contract Progress Payments. 5.2Project Costs. The Authority shall pay or reimburse the Project Costs in accordance with this Agreement. In the event the Authority does not have funds available at the time all or part of the Project Costs are payable by the Authority in accordance with this Agreement, the Project Costs shall be funded in accordance with Article6 hereof, and such funding shall not be deemed a default by the Authority under this Agreement. ARTICLE 6 PUBLIC IMPROVEMENTS FINANCING AND FUNDING 6.1Developer Advances. (A)Developer shall advance sufficient funds as such become due for all costs comprising the Project Costs including, without limitation, all costs of design, engineering, materials, labor, construction, and inspection arising in connection with the Public Improvements, including all payments arising under any contracts entered into by Developer pursuant to this Agreement, all costs incurred in connection with obtaining governmental approvals, certificates or permits (including any building permit fees) 8 HOU:3372249.1 required as a part of any contracts entered into in accordance with this Agreement and all related legal fees incurred in connection therewith. (B)The Developer must submit, within sixty (60) days after the latest of recording a final plat of property within the Project Site, signing this Agreement, or completing an identifiable segment of Public Improvements not subject to the platting requirements of the City, a request for aContract Progress Payment when an identifiable segment of Public Improvements has been completed. Documentation of cost and completion shall be forwarded to the Authority. The Authority, at its expense, shall hire a certified public accountant to calculate the amount due Developer and shall prepare and submit, within a reasonable time,a report to the Authority Boardand send a copy to the City Managerof the City. Requests for Contract Progress Payments shall be submitted only when an identifiable segment of Public Improvements has been completed and shall be submitted no more often than once every sixty (60) days. If the Authority does not have sufficient funds to pay any Contract Progress Payment within 30 days of the date the certified public accountant’s report is received by the Authority Board,the Developer shall be deemed to have advanced such amount to the Authority as of the date actually expended by the Developer. Interest (as calculated pursuant to Subsection 6.1(F)) on each Developer Advance made pursuant to this subsection shall accrue from the date the Developer expended the funds and shall accrue for a maximum period of five (5) years from such date. At such time as funds are available to pay all or any portion of the Developer Advances made hereunder, the Authority, at its expense, shall hire a certified public accountant to calculate the amount due to the Developer and shall prepare and submit a report to the Authority Boardand send a copy to the City Manager of the City certifying (1)the amount due to the Developer for the Developer Advances being repaid, with interest calculated thereon as specified herein and (2)that funds are available to make such payment. Upon receipt of such report, the Authority Boardshall promptly authorize and make payment to the Developer. (C)If, upon completion of the Public Improvements and conveyance of the Public Improvements to the Authority or the City, as applicable, the Authority does not have sufficient funds to reimburse to Developer the unpaid balance of the Project Costs, Developer shall be deemed to have advanced to the Authority an amount equal to the difference between (i)the amount of the Project Costs which has been previously paid by the Authority to Developer and (ii)the final cost of the Public Improvements as evidenced by documentation approved by the Authority Boardin accordance with Section 4.3. (D)Each Developer Advance shall be evidenced by a certificate in the form attached hereto as Exhibit C. (E)The Authority shall begin repaying the Developer Advances, and shall continue such repayment until repaid in full, on the earliest date that funds are available from any of the following sources. (1)proceeds of any applicable bank loan; 9 HOU:3372249.1 (2)proceeds from the sale of applicable Authority Bonds; or (3)PledgedAvailable Tax Increment. (F)Subject to the limitations described in Section 6.1(B) hereof, interest on each Developer Advance shall accrue at the prime rate of JPMorgan Chase Bank. Interest shall be calculated on the basis of a year of 360 days and the actual days elapsed (including the first day but excluding the last day) occurring in the period for which such interest is payable, unless such calculation would result in a usurious rate, in which case interest shall be calculated on the per annum basis of a year of 365 or 366 days, as applicable, and the actual days elapsed (including the first day but excluding the last day). In no case shall the interest rate exceed one percent per month. (G)The Authority’s obligation to pay the Developer Advances or reimburse the Developer for Project Costs is limited to any Pledged Available Tax Increment. The rights of Developer in and to the Pledged Available Tax Incrementgranted herein are subject only to (i)the rights of any holders of bonds, notes or other obligations that have been heretofore or are hereafter issued by the City or any other participating taxing unit that are payable from and secured by a general levy of ad valorem taxes throughout the taxing jurisdiction of the City or any other participating taxing unit, (ii)the rights of any of the holders of bonds and notes that are hereafter issued or incurred by the Authority and which are secured by a pledge of the Tax Increment Revenue Fund, and (iii)the rights of any of the holders of notes that are hereafter issued or incurred by the Authority, which are secured by a pledge, all or a part, of the Tax Increment Revenue Fund,the proceeds of which are used solely to fund the annual operating and administration budget of the Authorityapproved by the Authority Boardand the City Council of the City. Except in the event that (i) the cumulative average sales price (documented at the time Developer sells a finished home to aninitial end-user) of all homes within the Project Site is less than $175,000, or(ii) sufficient tax increment increase does not occur within the term of the Zone or within the Project Site to generate sufficient revenue to repay the Developer Advance(s), it shall be the obligation of the Authority to repay the Developer Advances and accrued interest thereon as set forth in this Agreement from the Pledged Available Tax Incrementuntil such time as the Developer Advances and accrued interest thereof incurred pursuant to this Agreementhave been fully repaid or provision for payment thereon to Developer shall have been made in accordance with this Agreement. The Developer Advances constitute a special obligation of the Authority payable solely from the Pledged Available Tax Incrementas and to the extent provided in this Agreement. The Developer Advances do not give rise to a charge against the general credit or taxing powers of the Authority, the Zone, the City, the County or any other Taxing Unit and is not payable except as provided in this Agreement. Developer, its successors and assigns, shall not have the right to demand payment thereof out of any funds of the Authority other than the Pledged Available Tax Increment or sources described in Section 6.1(E). (H)The Authority will evaluate and consider bond issues to reimburse the Developer upon the following circumstances: 10 HOU:3372249.1 (1)Projected incremental revenue generates 1.25 times coverage for the bonds over projected annual debt service(or such lesser coverage if recommended to the Authority by its financial advisor); (2)Projected incremental revenue will be calculated by multiplying estimated or certified incremental value from HCADby the participant(s) tax rate(s) divided by 100 times one minus a reasonable historical tax collection factor times one minus the City set-aside percentage; (3)A reserve fund equal to maximum annual debt service must be funded from the bond proceeds; (4)Adequate cash or capitalized interest must be set aside to assure payment of the bonds through the date of the next increment payment; and (5)The minimum bondsize will be that size that after funding the Reserve Fund, any capitalized interest and any costs of issuance will allow for a reimbursement to the developer of at least $1.5 million plus developer interest. Reimbursements to multiple developers may be aggregated in a single bond issue to achieve the minimum bond size. (I)The Authority shall not issue obligations in accordance with this Article unless the resulting debt service requirements on all Zoneobligations may be paid in full when due from all money then on deposit in or thereafter required to be deposited to the Property Accountduring the term of such Zone obligations, assuming that (a)the rates at which property taxes are levied by all taxing units required to make deposits to the Tax Increment Fund do not change from the rates at which they most recently levied property taxes, (b)the assessed value of taxable property (net of exemptions) within the Project Sitedoes not change from the amount then most recently estimated or certified by HCAD, (c)all amounts deposited (or required to be deposited) to the Property Account bear interest at the City’s investment rateuntil expended, (d)proceeds of such obligations are deposited to and set aside in the Property Accountas capitalized interest in the amount requested by the Developer and approved by the City Managerof the City, and (e)the Property Accountis expended in each year to pay administrative expenses of the Zone in an amount equal to the product of (i)the total amount of such expenses budgeted in the Zone’s most recent operating budget and (ii)a fraction, the numerator of which is the current Tax Increment attributable to the Project Siteand the denominator of which is the current Tax Increment for the Zone. (J)The Authority shall provide to Developer, upon the written request of Developer, and on the earliest date such information is available after the date of such request, certified copies of all statements of revenue attributable tothe Project Site and the source of such revenue of the Zoneand of the Authority the intended use of which is to verify the availability of funds for payment of the Project Costs or Developer Advances, if applicable, pursuant to this Section. 11 HOU:3372249.1 (K)The Zoneandthe Authority shall use commercially reasonable effortsto cause each Taxing Unit to collect all ad valorem taxes due on property located within the Zone and shall use commercially reasonable effortsto cause such Taxing Units to deposit all tax increments due with the City for transfer to the Tax Increment Revenue Fund pursuant to the Tri-Party Agreement. ARTICLE 7 INSURANCE; RELEASE 7.1Insurance. With no intent to limit any contractor’s liability or obligation for indemnification, the Developer shall require thateach contractor providing work or service on the Public Improvements provide and maintain certain insurance in full force and effect at all times during the construction of the Public Improvements and shall require that the City, the Authority, and the Zone are named as additional insured’s under such contractor’s insurance policies. The insurance, at a minimum, must include the following coverage’s and limits of liability: CoverageLimit of Liability Worker’s CompensationStatutory Employer’s LiabilityBodily Injury by Accident $100,000 (each accident) Bodily injury by Disease $500,000 (policy limit) Bodily injury by Disease $100,000 (each employee) Comprehensive General Liability: Bodily Injury and Property Damage, Combined Including Broad Form Coverage, Limits of $500,000 each Occurrence and $1,000,000 Contractual Liability, Bodily and Aggregate Personal Injury, and Completed Operations (for a period of one year after completion of work) Automobile Liability Insurance (for $500,000 Combined Single Limit per Occurrence automobiles used in performing under this Agreement, including Employer’s Non Ownership and Hired Auto Coverage) Professional Liability Coverage (for $500,000 per occurrence $1,000,000 aggregate professional service contract only) Defense costs are excluded from the face amount of the policy. Aggregate Limits are per 12 month policy period unless otherwise indicated. If the amount of any contract awarded by Developer to construct the Public Improvements shall exceed $1,000,000, Developer shall contract with the contractor to maintain Commercial General 12 HOU:3372249.1 Liability coverage and the Auto Liability coverage for at least twice the combined minimum limits specified above. th The amounts of the insurance required herein shall be reviewed on the fifth (5) anniversary date th of this Agreement and each fifth (5) year thereafter until the construction of the Project is completed and shall be increased, if necessary, so that the amount of such coverage is at all times generally equal to the limitsdescribed herein measured in year 2006 dollars. (A)Form of Policies. The Authority Boardmay approve the form of the insurance policies, but nothing the Authority Boarddoes or fails to do relieves Developer of its obligation to provide the required coverage under this Agreement. The Authority Board’s actions or inactions do not waive the Zone’s or Authority’s rights under this Agreement. (B)Issuers of Policies. The issuer of each policy shall have a certificate of authority to transact insurance business in Texas or a Best’s rating of at least A and a Best’s Financial Size Category of Class VI or better, according to the most current edition Best’s Key Rating Guide, Property Casualty United States. (C)Insured Parties. Each policy, except those for Workers’ Compensation, Employer’s Liability, and Professional Liability, must name the Authority, its officers, agents and employees as additional insured parties on the original policy and all renewals or replacements. (D)Deductibles. Developer shall be responsible for and bear (or shall contract with each applicable contractor to bear and assume) any claims or losses to the extent of any deductible amounts and waives (and shall contract with each contractor to waive) any claim it may have for the same against the Authorityor Zone, its officers, agents, or employees. (E)Cancellation. Each policy must state that it may not be canceled, materially modified, or non-renewed unless the insurance company gives the Authority 30 days’ advance written notice. Developer shall (and shall contract with each contractor to) give written notice to the Authority within five days of the date on which total claims by any party against such person reduce the aggregate amount of coverage below the amounts required by this Agreement. In the alternative, the policy may contain an endorsement establishing a policy aggregate for the particular Public Improvements or location subject to this Agreement. (F)Subrogation. Each policy must contain an endorsement to the effect that the issuer waives any claim or right of subrogation to recover against the Authority, the Zone, its officers, agents, or employees. (G)Primary Insurance Endorsement. Each policy, except Workers’ Compensation and Professional Liability (if any), must contain an endorsement that the policy is primary to any other insurance available to the additional insured with respect to claims arising under this Agreement. 13 HOU:3372249.1 (H)Liability for Premium. Developer shall pay (or shall contract with contractors to pay) all insurance premiums for coverage required by this Section, and the Authority or Zone shall not be obligated to pay any premiums. (I)Subcontractors. Notwithstanding the other provisions of this Section, the amount of coverage contracted to be provided by subcontractors shall be commensurate with the amount of the subcontract, but in no case less than $500,000 per occurrence. Developer shall provide (or shall contract with contractors to provide) copies of insurance certificates to the Authority. (J)Proof of Insurance. Promptly after the execution of this Agreement and from time to time during the term of this Agreement at the request of the Authority, Developer shall furnish the Authority with certificates of insurance maintained by Developer in accordance with this Section. If requested in writing by the Authority, Developer shall furnish the City with certified copies of Developer’s actual insurance policies. If Developer does not comply with the requirements of this Section, the Authority, at its sole discretion, may (1) suspend performance by the Authority hereunder and begin procedures to terminate this Agreement for default or (2) purchase the required insurance with Authority or Zone funds and deduct the cost of the premiums from amounts due to Developer under this Agreement. The Authorityshall never waive or be estopped to assert its right to terminate this Agreement because of its acts or omissions regarding its review of insurance documents. Indemnification and Release 7.2. DEVELOPER SHALL DEFEND, INDEMNIFY, AND HOLD THE AUTHORITY, THE CITY AND THE ZONE, THEIR AGENTS, EMPLOYEES, OFFICERS, AND LEGAL REPRESENTATIVES (COLLECTIVELY, THE “INDEMNIFIED PERSONS”) HARMLESS FOR ALL CLAIMS, CAUSES OF ACTION, LIABILITIES, FINES, AND EXPENSES (INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS’ FEES, COURT COSTS, AND ALL OTHER DEFENSE COSTS AND INTEREST) FOR INJURY, DEATH, DAMAGE, OR LOSS TO PERSONS OR PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTAL TO PERFORMANCE UNDER THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, THOSE CAUSED BY: (A)DEVELOPER’S AND/OR ITS AGENTS’, EMPLOYEES’, OFFICERS’, DIRECTORS’, CONTRACTORS’, OR SUBCONTRACTORS’ (COLLECTIVELY, “DEVELOPER’S”) ACTUAL OR ALLEGED SOLE AND/OR CONCURRENT NEGLIGENCE OR INTENTIONAL ACTS; ; (B)THE INDEMNIFIED PERSONS’ AND DEVELOPER’S ACTUAL OR ALLEGEDCONCURRENT NEGLIGENCE AND/OR GROSS NEGLIGENCE, WHETHER DEVELOPER IS IMMUNE FROM LIABILITY OR NOT; AND (C)THE INDEMNIFIED PERSONS’ AND DEVELOPER’S ACTUAL OR ALLEGED STRICT PRODUCTS LIABILITY OR STRICT STATUTORY LIABILITY, WHETHER DEVELOPER IS IMMUNE FROM LIABILITY OR NOT. 14 HOU:3372249.1 IT IS THE EXPRESSED INTENTION OF THE PARTIES HERETO THAT THE INDEMNIFICATION PROVIDED FOR IN THIS SECTION IS AN INDEMNITY BY THE DEVELOPER TO INDEMNIFY AND PROTECT THE INDEMNIFIED PERSONS FROM THE CONSEQUENCES OF THE INDEMNIFIED PERSONS’ OWN NEGLIGENCE, INCLUDING GROSS NEGLIGENCE, WHERE THAT NEGLIGENCE IS A CONCURRING CAUSE OF THE RESULTING INJURY, DEATH OR DAMAGE. FURTHERMORE, THE INDEMNITY PROVIDED FOR IN THIS PARAGRAPH SHALL HAVE NO APPLICATION TO ANY CLAIM, LOSS, DAMAGE, CAUSE OF ACTION, SUIT AND LIABILITY WHERE THE INJURY, DEATH OR DAMAGE RESULTS FROM THE SOLE NEGLIGENCE OF THE INDEMNIFIED PERSONS UNMIXED WITH THE FAULT OF ANY OTHER PERSON OR ENTITY. THE INDEMNITY PROVIDED FOR IN THIS SECTION7.2 SHALL SURVIVE THE TERMINATION OR EXPIRATION OF THIS AGREEMENT. If an Indemnified Person or Developer receives notice of any claim or circumstance which could give rise to an indemnified loss, the receiving party shall give written notice to the other party within 30-days. The notice must include a description of the indemnification event in reasonable detail, the basis on which indemnification may be due, and the anticipated amount of the indemnified loss. This notice shall not estop or prevent an Indemnified Person from later asserting a different basis for indemnification or a different amount of indemnified loss than that indicated in the initial notice. If an Indemnified Person does not provide this notice within the 30-day period, it does not waive any right to indemnification except to the extent that Developer is prejudiced, suffers loss, or incurs expense because of the delay. For those matters for which the Developer has the obligation to defend an Indemnified Person pursuant to this Section7.2, Developer shall assume the defense of the claim at its own expense with counsel chosen by it that is on the approved list established by the Texas Municipal League or that is otherwise approved by the City. Within 10 days after receiving written notice of the indemnification request, Developer shall advise the Indemnified Person as to the chosen counsel. If Developer does not properly notify the Indemnified Persons as required above, the Indemnified Person shall assume and control the defense, and all defense expenses actually incurred by it shall constitute an indemnified loss, which must be paid by the Developer within thirty (30) days of receipt of an invoice from an Indemnified Person. Such indemnified loss shall bear interest at the rate, but not the time, established in Section6.1 (F) from the due date noted in the invoice until the date of payment. Should the Developer fail to timely pay such amount, the Authority may, in its sole discretion, withhold the amount due, including accrued interest, from future Contract Progress Payments. If Developer defends a claim against any Indemnified Person, the Indemnified Person may retain separate counsel at the sole cost and expense of such Indemnified Person to participate in (but not control) the defense and to participate in (but not control) any settlement negotiations. Developer may not settle the claim without the consent or agreement of the Indemnified Person, unless such settlement is at no cost to the Indemnified Person and no judgment is entered against any Indemnified Person. 15 HOU:3372249.1 DEVELOPERRELEASES EACH INDEMNIFIED PERSON FROM ALL LIABILITY FOR INJURY, DEATH, DAMAGE, OR LOSS TO PERSONS OR PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTAL TO PERFORMANCE UNDER THIS AGREEMENT, EVEN IF THE INJURY, DEATH, DAMAGE, OR LOSS IS CAUSED BY THE INDEMNIFIED PERSON’S SOLE OR CONCURRENT NEGLIGENCE AND/OR THE INDEMNIFIED PERSON’S STRICT PRODUCTS LIABILITY OR STRICT STATUTORY LIABILITY; PROVIDED, HOWEVER, THIS RELEASE SHALL HAVE NO APPLICATION TO AN INDEMNIFIED PERSON’S FAILURE TO PAY MONIES OWED PURSUANT TO THIS AGREEMENT. FROM AND AFTER THE DATE OF THIS AGREEMENT, DEVELOPER SHALL REQUIRE ALL CONTRACTORS ENGAGED BY IT TO CONSTRUCT PUBLIC IMPROVEMENTS (AND THEIR SUBCONTRACTORS) TO RELEASE AND INDEMNIFY THE INDEMNIFIED PERSONS TO THE SAME EXTENT AND IN THE SAME FORM AS ITS RELEASE OF AND INDEMNITY TO THE INDEMNIFIED PERSONS HEREUNDER. THE DEVELOPER SHALL REQUIRE ALL GENERAL CONTRACTORS TO POST PAYMENT AND PERFORMANCE BONDS IN THE AMOUNT OF THE PROJECT COST AND ONE YEAR MAINTENANCE BONDS AS DEEMED APPROPRIATE BY THE AUTHORITY. ARTICLE 8 DEFAULT 8.1Default. (A)If the Authority or the Zone does not perform its obligations hereunder in compliance with this Agreement in all material respects, in addition to the other rights given the Developer under this Agreement, the Developer may enforce specific performance of this Agreement for any such default if such default is not cured or is not commenced and diligently pursued within thirty (30) days after receipt by the Authority and the Zone of a written notice detailing the event ofdefault. Failure of a project to generate sufficient tax increment increase to repay Developer Advances is not a default on the part of the Authority or the Zone. (B)In the event the Developer completes the Public Improvements and the Project but does not otherwise perform its obligations hereunder as provided in Article4 in compliance with this Agreement, in addition to the other rights and remedies the Authority and the Zone may have under this Agreement or in law or equity, the Authority and/or the Zonemay enforce specific performance or seek actual damages incurred for any such default if such default is not cured within thirty (30) days after receipt by Developer of a written notice of default or such cure is not commenced within ten (10) days after receipt by Developer of a written notice of default and thereafter diligently prosecuted to completion as determined in the discretion of the Authority. 16 HOU:3372249.1 ARTICLE 9 GENERAL 9.1Inspections, Audits. The Developer agrees to keep such operating records relating to the Public Improvements as may be required by the Authority, or by state and federal law or regulation for a period not to exceed four (4) years after completion unless otherwise required by law. The Developer shall allow the Authority and the Zoneaccess to documents and records in the Developer’s possession, custody or control that the Authority deems necessary to assist the Authority in determining the Developer’s compliance with this Agreement. 9.2Developer Operations and Employees. No personnel supplied or used by the Developer in the performance of this Agreement shall be deemed employees, agents or contractors of the Authority, the Zone or the City for any purpose whatsoever. The Developer shall be solely responsible for the compensation of all such personnel, for withholding of income, social security and other payroll taxes and for the coverage of all worker’s compensation benefits. Under no circumstance shall the Authority, the Zone, or the City be deemed responsible for compensation of the above. 9.3Personal Liability of Public Officials. To the extent not limited by State law, no director, officer, employee or agent of the Zoneor the Authority, and no officer, employee or agent of the City, shall be personally responsible for any liability arising under or growing out of the Agreement. 9.4Notices. Any notice sent under this Agreement (except as otherwise expressly required) shall be written and mailed via certified mail, return receipt requested, or sent by electronic or facsimile transmission confirmed by mailing written confirmation via certified mail, return receipt requested at substantially the same time as such electronic or facsimile transmission, or personally delivered to an officer of the receiving party at the following addresses: CITY City Manager City of LaPorte 604 West Fairmont Parkway La Porte, Texas 77571 FAX: 281-842-1259 with a copy to: City Attorney City of LaPorte 604 West Fairmont Parkway La Porte, Texas 77571 FAX: (281)471-2047 17 HOU:3372249.1 ZONE Reinvestment Zone Number One, City of LaPorte, c/o City of La Porte 604 West Fairmont Parkway La Porte, Texas 77571 Attn: _____________ FAX: (281)471-2047 AUTHORITY La Porte Redevelopment Authority c/o City of La Porte 604 West Fairmont Parkway La Porte, Texas 77571 Attn: _____________ FAX: (281)471-2047 DEVELOPER Beazer Homes Texas, LP 10235 West Little York, Suite 200 Houston, Texas 77040 Attn: Jeff Anderson FAX: Each party may change its address by written notice in accordance with this Section. Any communication addressed and mailed in accordance with this Section shall be deemed to be given when so mailed, any notice so sent by electronic or facsimile transmission shall be deemed to be given when receipt of such transmission is acknowledged, and any communication so delivered in person shall be deemed to be given when receipted for by, or actually received by, the City, the Zone, the Authority or the Developer, as the case may be. 9.5Amendments and Waivers. Any provision of this Agreement may be amended or waived if such amendment or waiver is in writing and is signed by the Zone, the Authority and the Developer. No course of dealing on the part of the Developer,nor any failure or delay by the Developer with respect to exercising any right, power or privilege of the Developer under this Agreement shall operate as a waiver thereof, except as otherwise provided in this Section. 9.6Successors and Assigns. All covenants and agreements contained by or on behalf of the Authority and the Zone in this Agreement shall bind their successors and assigns and shall inure to the benefit of the Developer and its successors and assigns. The Authority and the Zone may assign its rights and obligations under this Agreement or any interest herein, with the prior written consent of the Developer. The Developer may sell or otherwise transfer the Project with the prior written consent of the Authority and the Zone. Provided, however,any such purchaser or assignee must specifically assume all of the obligations of the Developer hereunder; notwithstanding, if the Developer is in compliance with this Agreement prior to the assignment, the Developer may retain the right to be reimbursed for actual costs of Project Costs, which are then accrued and vested in the Developer. If such assignment of the obligations by the Developer hereunder is effective, the Developer shall be deemed released from such obligations. 18 HOU:3372249.1 If any assignment of the obligations by the Developer hereunder is deemed ineffective or invalid, the Developer shall remain liable hereunder. Nothing in this section shall be construed so as to prevent the Developer from selling any portion of the Project for which a final plat has been approved and recorded in the records of the county clerk. 9.7Exhibits; Titles of Articles, Sections and Subsections. The exhibits attached to this Agreement are incorporated herein and shall be considered a part of this Agreement for the purposes stated herein, except that in the event of any conflict between any of the provisions of such exhibits and the provisions of this Agreement, the provisions of this Agreement shall prevail. All titles or headings are only for the convenience of the parties and shall not be construed to have any effect or meaning as to the agreement between the parties hereto. Any reference herein to a Section or Subsection shall be considered a reference to such Section or Subsection of this Agreement unless otherwise stated. Any reference herein to an exhibit shall be considered a reference to the applicable exhibit attached hereto unless otherwise stated. 9.8Construction. This Agreement is a contract made under and shall be construed in accordance with and governed by thelaws of the United States of America and the State of Texas. 9.9Venue. All parties hereby irrevocably agree that any legal proceeding arising out of or in connection with this Agreement shall only be brought in the District Courts of Harris County, Texas or in the United States District Court for the Southern District of Texas, in Houston, Texas. 9.10Severability. All parties agree that should any provision of this Agreement be determined to be invalid or unenforceable, such determination shall not affect any other term of this Agreement, which shall continue in full force and effect. 9.11No Third Party Beneficiaries. This Agreement shall not bestow any rights upon any third party, but rather, shall bind and benefit the Parties hereto only. 9.12Authority to EnterContract. Each party has the full power and authority to enter into and perform this Agreement, and the person signing this Agreement on behalf of each party has been properly authorized and empowered to enter into this Agreement. The persons executing this Agreement hereby represent that they have authorization to sign on behalf of their respective corporations, or limited partnerships. 9.13No Partnership. Nothing herein contained shall be construed or held to make the Parties hereto partners in the conduct of any business. 9.14Entire Agreement. This written agreement represents the final agreement between the parties, unless later amended in writing and signed by the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties. 9.15Ambiguities. In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. 19 HOU:3372249.1 9.16Non-Waiver. Failure of either party hereto to insist on the strict performance of any of the agreements contained herein or to exercise any rights or remedies accruing hereunder upon default or failure of performance shall not be considered a waiver of the right to insist on and to enforce by an appropriate remedy, strict compliance with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future default or failure of performance. 9.17Multiple Originals. It is understood and agreed that this Agreement may be executed in a number of identical counterparts each of which shall be deemed an original for all purposes. 9.18Term. This Agreement shall be in force and effectfrom the date of execution hereof for a term expiring on the later of (i)December31 in the year following completion of the Public Improvements pursuant to Section4.3 hereof or (ii)the date the Developer Advances have been repaid in full. It is expressly understood and agreed that Section7.2 shall not expire but shall remain in full force and effect regardless of the termination of this Agreement. If the Authority is dissolved, the Tri-Party Agreementrequires that the City shall make satisfactory arrangements to provide for the payment of the obligations to the Developer of the Authority hereunder. 9.19Approval by the Parties. Whenever this Agreement requires or permits approval or consent to be hereafter given by any of the parties, the parties agree that such approval or consent shall not be unreasonably withheld or delayed. 9.20Additional Actions. The Parties agree to take such actions, including the execution and delivery of such documents, instruments, petitions and certifications as may be necessary or appropriate, from time to time, to carry out the terms, provisions and intent of this Agreement and to aid and assist each other in carrying out said terms, provisions and intent. \[The remainder of this page is intentionally left blank.\] 20 HOU:3372249.1 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed as of the _____ day of ____________________, 2013. CITY OF LAPORTE, TEXAS By: Name: Louis R. Rigby Title: Mayor ATTEST: By: Name:Patrice Fogarty Title: City Secretary THE STATE OF TEXAS § § COUNTY OF HARRIS § BEFORE ME, the undersigned authority, on this day personally appeared __________________________ ,known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ day of _________, 2013. Notary Public in and for The State of Texas (SEAL) S-1 REINVESTMENT ZONE NUMBER ONE, CITY OF LAPORTE, TEXAS By: Name: Title: ATTEST: By: Name: Title: THE STATE OF TEXAS § § COUNTY OF HARRIS § BEFORE ME, the undersigned authority, on this day personally appeared __________________________ , known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ day of _________, 2013. Notary Public in and for The State of Texas (SEAL) 2 HOU:3372249.1 LA PORTE REDEVELOPMENT AUTHORITY By: Name: Title: ATTEST: By: Name: Title: THE STATE OF TEXAS § § COUNTY OF HARRIS § BEFORE ME, the undersigned authority, on this day personally appeared __________________________ , known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ day of _________, 2013. Notary Public in and for The State of Texas (SEAL) 3 HOU:3372249.1 BEAZER HOMES TEXAS, LP By: Name: Title: THE STATE OF TEXAS § § COUNTY OF HARRIS § BEFORE ME, the undersigned authority, on this day personally appeared __________________________ , known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for thepurposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ day of _________, 2013. Notary Public in and for The State of Texas (SEAL) 4 HOU:3372249.1 EXHIBIT A PROJECT SITE A-1 HOU:3372249.1 EXHIBIT B PUBLIC IMPROVEMENTS B-1 HOU:3372249.1 C-1 HOU:3372249.1 C-2 HOU:3372249.1 EXHIBIT C CERTIFICATE OF ADVANCE This Certificate is issuedunder that certain Development Agreement (the “Development Agreement”),by and among the City of La Porte, Texas (the “City”),the LaPorte Redevelopment Authority (the “Authority”), Reinvestment Zone Number One, City of LaPorte, Texas(the “Zone”), and Beazer Homes Texas, LP (the “Developer”),dated ______________, 2013. Capitalized terms used in this Certificate shall have the meaning provided for in the Development Agreement. This Certificate evidences a Developer Advance under the Development Agreement in the amount of $_______________ for the \[describe the project category and nature of work completed\]. Interest on the Developer Advance evidenced by this Certificate shall accrue at the prime rate of JPMorgan Chase Bank as described in the DevelopmentAgreement for the period described in 6.1(B) of the Development Agreement and shall be payable in accordance with the Development Agreement. By Developer’s execution of this Certificate, Developer represents that it has made the expenditures and completedthe work described in this Certificate. Copies of the relevant invoices and other appropriate documentation are attached to this Certificate. By the Authority’s execution of this Certificate, the Authority indicates its approval of the expenditures and work described in this Certificate and its approval of the matters set forth in this Certificate and recognizes its obligation to repay such Developer Advance together with interest pursuant to the Development Agreement. C-3 HOU:3372249.1 AGREED TO this ______ day of _______________, 20__. LA PORTE REDEVELOPMENT AUTHORITY By: Name: Title:Chairman,Board of Directors ATTEST: By: Name: Title:Secretary, Board of Directors THE STATE OF TEXAS § § COUNTY OF HARRIS § BEFORE ME, the undersigned authority, on this day personally appeared __________________________ , known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ day of _________, 20__. Notary Public in and for The State of Texas (SEAL) C-4 HOU:3372249.1 REINVESTMENT ZONE NUMBER ONE, CITY OF LAPORTE By: Name: Title:Chairman,Board of Directors ATTEST: By: Name: Title:Secretary, Board of Directors THE STATE OF TEXAS § § COUNTY OF HARRIS § BEFORE ME, the undersigned authority, on this day personally appeared __________________________ , known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ day of _________, 20__. Notary Public in and for The State of Texas (SEAL) C-5 HOU:3372249.1 BEAZER HOMES TEXAS, LP By: Name: Title: THE STATE OF TEXAS § § COUNTY OF HARRIS § BEFORE ME, the undersigned authority, on this day personally appeared __________________________ ,known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ day of _________, 20__. Notary Public in and for The State of Texas (SEAL) C-6 HOU:3372249.1 REQUEST FOR CITY COUNCILAGENDA ITEM Budget Agenda Date Requested: 9 December2013 Source of Funds: Requested By: Scott D. Livingston Account Number: Department: Administration/Economic Development Amount Budgeted: Report: Resolution: Ordinance: X Amount Requested: Exhibit:Copy of the TIRZ Board’s Minutes from Sept. 18, Budgeted Item:YES NO 2013Recommending Expansion of TIRZ #1 Exhibit: Proposed Ordinance to Approve an Expansionof TIRZ #1 in La Porte Exhibit:Metes and Bounds of the Proposed Expansion Area SUMMARY & RECOMMENDATIONS NOTE: This item was postponed at the October 28, 2013 Council meeting until December 9. This item has been unchanged from the information that appeared in the October th agenda.The public hearing was opened and closed during the October 28meeting and therefore, the items are ready for Council consideration and action. The purpose of this TIRZ enlargement is to provide for the construction of public utilities and storm water detention facilities to accommodate the proposed residential and commercial development project within a 33 acres tract located at the northwest corner of Spencer Highway and Sens Road. The tax increment revenue to fund the public improvements will come from the increase in taxable value in the enlargement area of the Zone. According to estimates, the TIRZ project costs (those development costs that will be reimbursed to the developer from TIRZ revenues) are $1,741,849. The project is projected to create over $25 million in taxable value and $2.5 million in TIRZ revenues through the end of the term of the TIRZ in 2030. This is the first step in the process for formally enlarge the TIRZ. The companion item, approving the revised Project Plan, is set for a Public Hearing on this agenda as well. The proposed enlargement and TIRZ Project Plan amendment were presented to the TIRZ board in September and the TIRZ board recommended approval by City Council. Action Required by the City Council: Consider approval or other action of an ordinance that expands TIRZ #1 in La Porte, Texas. Approved for the City CouncilAgenda Corby D. Alexander, City Manager Date R( O. W. . AV R EI )S ES N S OR A P.O.B.D 6( R '0 W.O. ). S NEP EC AL R DN GNI AE TS REQUEST FOR CITY COUNCILAGENDA ITEM Budget Agenda Date Requested: 9 December2013 Source of Funds: Requested By: Scott D. Livingston Account Number: Department: Administration/Economic Development Amount Budgeted: Report: Resolution: Ordinance: X Amount Requested: Exhibit:Revised TIRZ ProjectPlan Budgeted Item:YES NO Exhibit: Metes and Bounds of the AreaProposedto be Added to the TIRZ Exhibit: Proposed Ordinance to Approve and Adopt the Revised TIRZ ProjectPlan SUMMARY & RECOMMENDATIONS NOTE: This item was postponed at the October 28, 2013 Council meeting until December 9. This item has been unchanged from the information that appeared in the October th agenda. The public hearing was opened and closed during the October 28meeting and therefore, the items are ready for Council consideration and action. The purpose of this TIRZ Plan Amendment is to provide for the construction of public utilities and storm water detention facilities to accommodate the proposed residential and commercial development project within the proposed enlargement area of the Zone. The enlargement area is located at the northwest corner of Spencer Highway and Sens Road. The tax increment revenue to fund the public improvements will come from the increase in taxable value in the enlargement area of the Zone. According to estimates, the TIRZ project costs (those development costs that will be reimbursed to the developer from TIRZ revenues) are $1,741,849. The project is estimatedto create over $25 million in taxable value and $2.5 million in TIRZ revenues through the end of the term of the TIRZ in 2030. The amendment was presented to the TIRZ board in September 2013and the TIRZ board recommended approval by City Council. The public hearing notice was published in the Houston Chronicle on Monday, October 21, 2013, which met the requirement for 7 days notice. The public hearing was opened, held, and closed by the City Council on Monday, October 28, 2013. Action Required by the City Council: Consider approval or other action of an Ordinanceto accept and adopt the revised TIRZ Project Plan as recommended by the TIRZ Board. Approved for the City CouncilAgenda Corby D. Alexander, City Manager Date TAX INCREMENT REINVESTMENT ZONE, NUMBER ONE CITY OF LA PORTE 2013 AMENDMENT TO THE PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN SEPTEMBER 10, 2013 HAWES HILL CALDERON 1 of 6 TABLE OF CONTENTS Page PROJECT PLAN I. Existing uses and conditions of real property within the area of the proposed Zone 3 II. Proposed changes in zoning ordinance, master plan of the municipality, building codes 4 and other municipal ordinances III. List of estimated non-project cost items 4 REINVESTMENT ZONE FINANCING PLAN I. A detailed list describing the estimated projects of the Zone, including administrative 4 expenses II. A statement listing the kind, number and location of all proposed public works or 5 public improvements in the Zone III. The estimated amount of bonded indebtedness to be incurred 5 IV. The time when related costs or monetary obligations are to be incurred 5 V. A description of the methods of financing all estimated project costs and the expected 5 sources of revenue to finance or pay project costs, including the percentage of tax increment to be derived from the property taxes of each taxing unit that levies taxes on real property in the Zone VI. The current total appraised value of taxable real property in the Zone 5 VII. The estimated captured appraised value of the Zone during each year of its existence 5 VIII. Duration of the Zone 6 IX. Schedule A 7 X. Schedule B 8 XI. Schedule C and D 9 2 of 6 2013 AMENDMENT PROJECT PLAN I.EZ XISTING USES AND CONDITIONS OF REAL PROPERTY WITHIN THE AREA OF THE ONE Tax Increment Reinvestment Zone Number One, City of La Porte generally located along the east and west side of State Highway 146 south of Fairmont Parkway. The Zone also includes property near Sylvan Beach Park. Existing development within the Zone consists of residential, commercial, and light industrial development. The below map shows existing conditions of the Zone. As also depicted in the map, the Zone is proposed for enlargement and will include approximately 33.4 acres of land at the northwest corner of Spencer Highway and Sens Road. The enlargement area will be developed for residential and commercial use. The purpose of this Plan Amendment is to provide for the construction of public utilities and storm water detention facilities to accommodate the development within the proposed enlargement area of the Zone. The tax increment revenue to fund the public improvements will come from the increase in taxable value in the enlargement area of the Zone. 3 of 6 II.P,, ROPOSED CHANGES IN ZONING ORDINANCES THE MASTER PLAN OF THE MUNICIPALITY BUILDING CODES AND OTHER MUNICIPAL ORDINANCES There are no proposed changes to any city ordinance, master plan or building codes. III. L- IST OF ESTIMATED NONPROJECT COSTS Estimated Non-Project Costs Project Estimated Cost 1. Residential Public $ 169,568 Utilities & Drainage Infrastructure (30%) 2.Residential Street $ 413,964 3.Engineering & Testing for Above Items $ 105,036 TOTAL $ 688,568 IV. There will be no persons dislocated as a result of this plan amendment. REINVESTMENT ZONE FINANCING PLAN I. AZ, DETAILED LIST DESCRIBING THE ESTIMATED PROJECT COSTS OF THE ONE INCLUDING ADMINISTRATIVE EXPENSES Estimated Project Costs Project Estimated Cost 4. Residential Public $ 395,870 Utility & Drainage Infrastructure (70%) 5.Detention Including $ 756,240 Land Cost (100%) 6.Commercial Public $ 393,750 Utilities & Drainage (100%) 7.Engineering & Testing $ 192,989 Above Items (100%) TOTAL $ 1,741,849 Administrative expenses are anticipated to be negligible as the La Porte Redevelopment Authority currently manages the Zone under contract with the City of La Porte. 4 of 6 II.S, TATEMENT LISTING KIND NUMBER AND LOCATION OF ALL PROPOSED PUBLIC WORKS OR PUBLIC Z IMPROVEMENTS IN THE ONE Public improvements in the Zone enlargement area will consist of public utilities, streets, and storm water detention facilities to serve the new residential and commercial development at the northwest corner of Spencer Highway and Sens Road. III.EFS CONOMIC EASIBILITY TUDY This plan amendment is found to be economically feasible as provided in the financial exhibits to this plan amendment (which exhibits constitute an economic feasibility study). IV.T HE ESTIMATED AMOUNT OF BONDED INDEBTEDNESS TO BE INCURRED The cost of the improvements are estimated at $1,741,849 and will be reimbursed through tax increment and/or La Porte Redevelopment Authority bonds. If bonds are issued, the bonded indebtedness is estimated to equal to the cost of the improvements plus cost of issuance. V.T HE TIME WHEN RELATED COSTS OR MONETARY OBLIGATIONS ARE TO BE INCURRED The Zone will incur a monetary obligation upon execution of the development agreement with the developer of the Zone enlargement tract. The Zone will be obligated to reimburse the developer for the eligible public improvements through increment derived from the development project. VI. A DESCRIPTION OF THE METHODS OF FINANCING ALL ESTIMATED PROJECT COSTS AND THE EXPECTED SOURCES OF , REVENUE TO FINANCE OR PAY PROJECT COSTS INCLUDING THE PERCENTAGE OF TAX INCREMENT TO BE DERIVED Z FROM THE PROPERTY TAXES OF EACH TAXING UNIT THAT LEVIES TAXES ON REAL PROPERTY IN THE ONE Description of the Methods of Financing The developer will advance the public improvement costs and be reimbursed through tax increment or La Porte Redevelopment Authority bonds. Sources of Tax Increment Revenue: INCREMENT DEDICATED TO THE ZONE Taxing Unit Tax Rate Dedicated City of La Porte 100% of Tax Rate VII. TZ HE CURRENT TOTAL APPRAISED VALUE OF TAXABLE REAL PROPERTY IN THE ONE $1,652,696 The total current market value within the Zone is: . 5 of 6 VIII.TZ HE ESTIMATED CAPTURED APPRAISED VALUE OF THE ONE DURING EACH YEAR OF ITS EXISTENCE The estimated captured appraised value of the Zone during each year of its existence is shown in Schedule C attached to the rear of this document. IX.DZ URATION OF THE ONE The Zone enlargement does not affect the duration of the Zone which is scheduled to terminate in 2030. 6 of 6 73$12,775 Subtotal $0$12,775 Ώ B 5 5 5 5 Captured Value (K) 5 2021 5 5 5 5 5 5 5 5 5 5 5 5 Ώ 5- υ Home Construction $0$12,775 Ώ υ Captured Value (K) 2020 Ώ- Home Construction $0 $12,775 Ώ υ Captured Value (K) 2019 Ώ - Home Construction $0$12,775 Ώ υ Captured Value (K) 2018 Ώ - Residential Buildout Schedule (In Thousands) LA PORTE TIRZ 1 ZONE ENLARGEMENT Home Construction $4,025$12,775 ЍͲЉЋЎ υ ВΉЊЌΉЋЉЊЌ Captured Value (K) 2017 ЋЌ 23 Home Construction $4,375$8,750 ЍͲЌАЎ υ Captured Value (K) 2016 ЋЎ 25 Home Construction $4,375$4,375 ЍͲЌАЎ υ Captured Value (K) 2015 ЋЎ 25 Home Construction $0$0 Captured Value (K) 2014 - Home Construction Њ͵ /ğƦƷǒƩĻķ ǝğƌǒĻ źƭ ƦƩĻƭĻƓƷĻķ źƓ ƷŷƚǒƭğƓķƭ ƚŅ ķƚƌƌğƩƭ͵ Cumulative Captured Value Residential Project Values Total Captured Value II/Ͳ \[\[t Total Home Sales SINGLE FAMILY SCHEDULE A {ĻĭƷźƚƓ hƓĻ bƚƷĻʹ Subtotal $5,750$14,375 ЎͲАЎЉ υ Captured Value (K) 2021 ЎЉ͵Љ Square Feet $0 $8,625 Ώ υ Captured Value (K) 2020 Square Feet $2,875$8,625 ЋͲБАЎ υ Captured Value (K) 2019 ЋЎ͵Љ Square Feet $0$5,750 Ώ υ Captured Value (K) 2018 Commercial Buildout Schedule (In Thousands) LA PORTE TIRZ 1 ZONE ENLARGEMENT Square Feet $2,875$5,750 ЋͲБАЎ υ ВΉЊЌΉЋЉЊЌ Captured Value (K) 2017 ЋЎ͵Љ Square Feet $2,875 $0 Ώ υ Captured Value (K) 2016 Square Feet $2,875$2,875 ЋͲБАЎ υ Captured Value (K) 2015 ЋЎ͵Љ Square Feet $0$0 Captured Value (K) 2014 Њ͵ 9ƭƷźƒğƷĻķ ĭğƦƷǒƩĻķ ǝğƌǒĻ źƭ ƦƩĻƭĻƓƷĻķ źƓ ƷŷƚǒƭğƓķƭ ƚŅ ķƚƌƌğƩƭ͵ Square Feet /ƚƒƒĻƩĭźğƌΉwĻƷğźƌ 5ĻǝĻƌƚƦƒĻƓƷ ΛźƓ ƭƨǒğƩĻ ŅĻĻƷΜ Cumulative Captured Value Commercial Project Values Total Captured Value II/Ͳ \[\[t SCHEDULE B bƚƷĻʹ 45,263115,375228,762343,237479,230616,344795,421977,1851,161,6741,348,9311,538,9971,731,9141,927,7252,126,4732,328,2022,532,957 Tax Revenue Cumulative $ - Available $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 45,26370,113113,387114,475135,993137,114179,077181,763184,490187,257190,066192,917195,811198,748201,729204,755 2,532,957 Revenues Available Total - Tax $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 45,26370,113113,387114,475135,993137,114179,077181,763184,490187,257190,066192,917195,811198,748201,729204,755 2,532,957 100% of Collection City Tax - $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 0.71000.71000.71000.71000.71000.71000.71000.71000.71000.71000.71000.71000.71000.71000.71000.71000.7100 100% of Tax Rate City $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 20152016201720182019202020212022202320242025202620272028202920302031 Coll. Year SCHEDULE D 20142015201620172018201920202021202220232024202520262027202820292030 Year Tax 1234567891011121314151617 9/13/2013 6,375,0009,875,00015,970,00016,123,30019,153,90019,311,83325,222,13525,600,46825,984,47526,374,24226,769,85527,171,40327,578,97427,992,65928,412,54928,838,737 - $ Cumulative Valuation Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2,875,0002,875,0005,750,0005,750,0008,625,0008,625,00014,375,00014,590,62514,809,48415,031,62715,257,10115,485,95815,718,24715,954,02116,193,33116,436,231 Commercial - $ CumulativeValuation Reflects 1.5% annual appreciation once buildout is complete $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Projected Assessed Valuations and Tax Increment (875,000)(1,750,000)(2,555,000)(2,593,325)(2,632,225)(2,671,708)(2,711,784)(2,752,461)(2,793,748)(2,835,654)(2,878,189)(2,921,361)(2,965,182)(3,009,660)(3,054,804)(3,100,626) Exemption (20%) -$ Homestead Residential $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ LA PORTE TIRZ 1 ZONE ENLARGEMENT 4,375,0008,750,00012,775,00012,966,62513,161,12413,358,54113,558,91913,762,30313,968,73814,178,26914,390,94314,606,80714,825,90915,048,29815,274,02215,503,132 -$ Residential Cumulative Valuation $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ HHC, LLP SCHEDULE C Note: Roll Jan 1 20142015201620172018 201920202021202220232024202520262027202820292030 Tax R( O. W. . AV R EI )S ES N S OR A P.O.B.D 6( R '0 W.O. ). S NEP EC AL R DN GNI AE TS REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested:December 9, 2013Appropriation: N/A Requested By: Tim Tietjens Source of Funds: N/A Planning Account Number:N/A Department: ____Resolution: ____Ordinance: _X___Amount Budgeted: N/A Report: Amount Requested: N/A Exhibits : Ordinance Budgeted Item: N/A P & Z Recommendation Letter Revised Future Land Use Plan Existing Land Use Plan _____________________________________________________________________________________________ SUMMARY & RECOMMENDATION NOTE: This item was postponed at the October 28, 2013 Council meeting until December 9. This item has been unchanged from the information that appeared in the October agenda. During the last two meetings of the Planning & Zoning Commission, a revision to the Future Land Use Plan and a rezoning request were reviewed and recommended for a17.37 acre tract near the intersection of Sens Road and Spencer Highway.Currently, the zoning map shows this tract as General Commercial (GC) while the requested changeor proposed useis for Low Density Residential(R-1).A proposed subdivision with 73 homes starting at $175,000is currently in the design stage. Section 211.004of the Texas Local Government Code requires that rezoning must occur in conformance with the Future Land Use Plan.Therefore, therequest to revise the Future Land Use Plan element of the Comprehensive Plan is procedurally before City Council for review in advance of the rezoning request.The Future Land Use Planmap serves as abasis for the City’s overall future development plan. The letter of recommendation from the Planning and Zoning Commission for changing the Future Land Use Plan is attached for Council consideration. _____________________________________________________________________________________________ Action Required by Council: Consider approval or other action of an ordinance changingthe Future Land Use Plan component of the City’s Comprehensive Plan for a 17.37 acre tract near the intersection of Sens Road and Spencer Highway. ______________________________________________________________________________________ Approved for City Council Agenda ______________________________________________________ Corby D. Alexander, City Manager Date REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested:December 9, 2013Appropriation: N/A Requested By: Tim Tietjens Source of Funds: N/A Planning Account Number:N/A Department: ____Resolution: ____Ordinance: _X___Amount Budgeted: N/A Report: Amount Requested: N/A Exhibits : Ordinance Budgeted Item: N/A P & Z Recommendation Letter Revised Future Land Use Plan Existing Land Use Plan _____________________________________________________________________________________________ SUMMARY & RECOMMENDATION NOTE: This item was postponed at the October 28, 2013 Council meeting until December 9. This item has been unchanged from the information that appeared in the October agenda. During the last two meetings of the Planning & Zoning Commission, a revision to the Future Land Use Plan and a rezoning request were reviewed and recommended for a17.37 acre tract near the intersection of Sens Road and Spencer Highway.Currently, the zoning map shows this tract as General Commercial (GC) while the requested changeor proposed useis for Low Density Residential(R-1).A proposed subdivision with 73 homes starting at $175,000is currently in the design stage. Section 211.004of the Texas Local Government Code requires that rezoning must occur in conformance with the Future Land Use Plan.Therefore, therequest to revise the Future Land Use Plan element of the Comprehensive Plan is procedurally before City Council for review in advance of the rezoning request.The Future Land Use Planmap serves as abasis for the City’s overall future development plan. The letter of recommendation from the Planning and Zoning Commission for changing the Future Land Use Plan is attached for Council consideration. _____________________________________________________________________________________________ Action Required by Council: Consider approval or other action of an ordinance changingthe Future Land Use Plan component of the City’s Comprehensive Plan for a 17.37 acre tract near the intersection of Sens Road and Spencer Highway. ______________________________________________________________________________________ Approved for City Council Agenda ______________________________________________________ Corby D. Alexander, City Manager Date etatS d641 ywH ecivreS 641 ywH etatS 46 y 1 w e H tat S ht62 ffO tuC relliM U doowredn tsaE alleuL relliM REQUEST FOR CITY COUNCIL AGENDA ITEM December 9, 2013Appropriation: Agenda Date Requested: :Tim Tietjens Source of Funds: N/A Requested By Department:Planning Account Number: N/A Report: __ __Resolution: _____Ordinance: _X___Amount Budgeted: N/A Exhibits: Amount Requested: N/A Ordinance N/A P&Z RecommendationLetter Budgeted Item: Area Map Preliminary Site Plan Mailout Response _____________________________________________________________________________________ SUMMARY & RECOMMENDATION NOTE: This item was postponed at the October 28, 2013 Council meeting until December 9. This item has been unchanged from the information that appeared in the October agenda. The Planning & Zoning Commission, during theirSeptember 19, 2013,meeting, held a public hearing to receive citizen comments regarding Rezone Request #13-92000002.Ken Schick, on behalf of Lawrence B. Chapman, Trustee,seeks to have the propertyrezoned from General Commercial (GC) to LowDensity Residential (R-1). The 17.37 acre property is located northwest of Sens Road and Spencer Highway. The applicant is proposing a 73lot single-family residential subdivision to be built by Beazer Homes.In addition, current parcel configuration and depth of the property do not support retail/commercial activities. Therefore, lowdensity residential zoning is requested for the subject tract. The adjoining properties to the west and north are single-family residential. The proposed subdivision will have access along Sens Road. Public utilities are available to the property.Staff recommends on-site sub-regional detention for the proposeddevelopment of the entire 33 acres. Spencer Landing Subdivision Homeowners’ Associationsupports this rezone requestat the $175,000 and up value. In addition, written comments have been received from adjoining property owners in favor of this request. A property posting sign notifying the public of a hearing on this request was posted along withmailout to property owners within 200’ of the subject property, which included 35 homeowners/residents of the Spencer Landing subdivision. The subject tract would be better served by the proposed rezoning from General Commercial to Low Density Residential.The proposed development would contribute considerably to the City’s tax roll, and the remainder of theproperty at the intersection of Sens Road and Spencer Highway will be conducive for future retail and commercial activities. After a public hearing, the Planning and Zoning Commission, by unanimous vote, recommends City Council approval of Rezone Request #13-92000002. Action Required by Council: 1.Conduct public hearing. 2.Consider approval or other action on a recommendation by the Planning and Zoning Commission to approve Rezone Request #13-92000002, rezoning the referenced property from GC to R-1. Approved for City Council Agenda __________________________________________________________ Corby D. Alexander, City Manager Date REQUEST FOR CITY COUNCIL AGENDA ITEM December 9, 2013Appropriation: Agenda Date Requested: :Tim Tietjens Source of Funds: N/A Requested By Department:Planning Account Number: N/A Report: __ __Resolution: _____Ordinance: _X___Amount Budgeted: N/A Exhibits: Amount Requested: N/A Ordinance N/A P&Z RecommendationLetter Budgeted Item: Area Map Preliminary Site Plan Mailout Response _____________________________________________________________________________________ SUMMARY & RECOMMENDATION NOTE: This item was postponed at the October 28, 2013 Council meeting until December 9. This item has been unchanged from the information that appeared in the October agenda. The Planning & Zoning Commission, during theirSeptember 19, 2013,meeting, held a public hearing to receive citizen comments regarding Rezone Request #13-92000002.Ken Schick, on behalf of Lawrence B. Chapman, Trustee,seeks to have the propertyrezoned from General Commercial (GC) to LowDensity Residential (R-1). The 17.37 acre property is located northwest of Sens Road and Spencer Highway. The applicant is proposing a 73lot single-family residential subdivision to be built by Beazer Homes.In addition, current parcel configuration and depth of the property do not support retail/commercial activities. Therefore, lowdensity residential zoning is requested for the subject tract. The adjoining properties to the west and north are single-family residential. The proposed subdivision will have access along Sens Road. Public utilities are available to the property.Staff recommends on-site sub-regional detention for the proposeddevelopment of the entire 33 acres. Spencer Landing Subdivision Homeowners’ Associationsupports this rezone requestat the $175,000 and up value. In addition, written comments have been received from adjoining property owners in favor of this request. A property posting sign notifying the public of a hearing on this request was posted along withmailout to property owners within 200’ of the subject property, which included 35 homeowners/residents of the Spencer Landing subdivision. The subject tract would be better served by the proposed rezoning from General Commercial to Low Density Residential.The proposed development would contribute considerably to the City’s tax roll, and the remainder of theproperty at the intersection of Sens Road and Spencer Highway will be conducive for future retail and commercial activities. After a public hearing, the Planning and Zoning Commission, by unanimous vote, recommends City Council approval of Rezone Request #13-92000002. Action Required by Council: 1.Conduct public hearing. 2.Consider approval or other action on a recommendation by the Planning and Zoning Commission to approve Rezone Request #13-92000002, rezoning the referenced property from GC to R-1. Approved for City Council Agenda __________________________________________________________ Corby D. Alexander, City Manager Date AREA MAP (Rezone Request #13-92000002) VALRY CA 1 inch = 400 feet R-1 BI N D ST N SPE NCER LAN DING LLD LOCATION OF PROPERTY FOR PROPOSED REZONE LI FROM GC TO R-1 R-1 GC S SP E N C E R L AN D I NG SPENCER HWY PUD PREPARED BY CLP GIS REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: December 9, 2013 Appropriation Requested By: Traci Leach Source of Funds: Fund 037 Department: Administration Acct Number: Report:X Resolution: Ordinance: Amount Budgeted: Attachments: FY 2014 Proposed Marketing Plan Requested: $354,300 Attachments: Presentation Budgeted Item(s): YES NO Attachments:Hotel/Motel Fund Summary _____________________________________________________________________________________________ SUMMARY & RECOMMENDATION Beginning in November 2014, the City assumed control of tourism promotion in support of La Porte hotels and accompanying businesses, such as restaurants and other retailers that benefit from tourist stays. Staff has solicited feedback about priorities and areas of concern from hoteliers and based on this feedback, a marketing plan has been developed to address these areas. The Marketing Plan will focus effort into four key areas that had not been emphasized in the past: cruise traffic, historical tourism, wedding tourism, and sports tourism. The City allocated an advertising budget of $50,000 in the Hotel Motel Fund. Staff will brief the Council how those dollars are proposed tobe spent to achieve the goal of increased hotel room nights (outlined in greater detail in the attachment). Additionally, staff will be presenting proposals for several new initiatives for Council consideration. These new initiatives will help fill voids in service and provide the base from which La Porte can build upon in the future. New tourism initiatives include: Supporting a special event aimed at capturing cruisers that stay in La Porte on Friday nights in advance of Saturday departures ($5,300) Shuttle for Cruise Passengers and Crew ($35,000) Battleship Texas 100th Anniversary Sponsorship ($50,000) Digital Signage on SH 146 ($250,000) Event Venue Incentives ($14,000) Should Council desire to move forward, staff would include these expenditurestotaling $354,300in the upcoming quarterly budget amendment. A ction Required by Council: Consider approval or other action of the proposed FY 2014 Marketing Plan for tourism promotion. Approved forCity Council Agenda ___________________________________________________________ Corby D. Alexander, CityManager Date Date: November 19, 2013 To: Corby D. Alexander, City Manager From: The Tourism Team (Scott, Jaree, and Traci) RE: Marketing Initiatives for FY 2014 Tourism Tourism promotion has been on the front burner for several weeks now that the CVB has moved out of the picture. Staff has been brainstorming many different ideas for promoting tourism and hotel stays in La Porte. We are focusing on several different avenues for tourism promotion: Cruise Terminal traffic Historical tourism Wedding tourism Sports tournament traffic General Tourism, to include summer and beach stays This list was generated based on discussions we have had with hoteliers and our understanding of what might be the best niches for La Porte to capitalize on given our assets. We’ve focused our efforts on initiatives that we believe will have long-lasting impact, provide a service that our neighboring communities cannot or are not providing, or helps develop an image for La Porte tourism as a “hidden gem” coastal destination. The current available balance for the Advertising budget in the Hotel Fund is $45,911. The items listed below will show how we intend to address each marketing niche to make sure that La Porte is represented. For the funds currently budgeted, the following initiatives are planned: Tour Texas and Texas Highways for promoting events likely to generate room nights: $7,000 combined Texas Events Calendar: $1,100 Collateral materials for distribution to cruisers, crew and general tourism: $4,000 Ads in Wedding specific magazines: $2,000 Digital campaign for Visit la Porte website SEO, cruise specific campaign, and traffic to the Visit site: $12,000 Cruise Magazine ads: $5,000 Sports (competition events) Ads: $3,500 Mobile app for Tourism site: $500 Greater Houston tourism: $2,500 Event Specific Television ads: $8,000 However, in addition to these general advertising initiatives, we have identified several special initiatives for which we would like to request your consideration of an additional $389,300 for tourism promotion. There is currently an undesignated, unreserved estimated fund balance of $715,000, which assumes that the funds originally budgeted for Main Street Electrical are re-allocated towards the restoration of the Old Schoolhouse, plus allocates an additional $100,000 contingency for the project and the additional funds for the Chamber. We’d like to present the following marketing initiatives to you for consideration. CRUISE TERMINAL TRAFFIC: Development of a Friday Night Special Event: For cruises departing on Saturday, many out of town travelers will begin arriving on Friday. We are intending to provide support for an event, sponsored and spear-headed by the Main Street business owners, on Friday evenings to provide those tourists with a fun event prior to their cruise. Staff has attended two meetings with the Main Street group and they have indicated a desire to begin such an event after the first of the year. We believe this would have wide support from hoteliers based on our discussions with at least one hotel operator. Estimated costs to the City would include: Security for police officers: $2,800 \[$35/hour for off duty officers for 4 officers (at least o at the outset) for 20 Fridays between January and April\] Production of signage: $2,500. This may include signage for individual shops on Main o Street to display on the sidewalk outside their establishment as well as a street banner across Main Street. Shuttle for Cruising Hotel Guests: One perk that our hotels have over some others is proximity to the terminal. Providing a free shuttle service for hotel guests would be an added perk that our hotels could offer to guests. This shuttle could be used to transport guests to and from the hotel and terminal on the day of the cruise but could also be used to transport guests to and from the Friday night event. While we are not sure what type of response we’ll get from hotel guests to the shuttle, we believe that focusing on the crew will be consistent source of patrons for La Porte restaurants and shops. The City currently owns a bus and several vans that would be suitable for the purpose. Estimated costs to the City would include: Vehicle wrap or custom paint job: Based on the pricing for the DARE car, our o conservative estimate is $15,000 to address one of the large Parks buses and one passenger van. Driver and Fuel: Assuming that Fridays will run 1 bus and Saturdays will run both the o bus and a passenger van, I am asking for $20,000. This includes $2,000 for Friday evenings, which would require a single bus and $9,600 for Saturdays, which we anticipate running both the big bus and the passenger van, plus fuel for 2 vehicles. The bus requires a driver with a CDL license so we may be utilizing appropriately licensed staff on an overtime basis to fill this gap. We are also evaluating options to contract out this service. In speaking with Harris County Transit staff, they typically use $65/hour to estimate the cost of new service. Based on this amount and the number of hours per weekend the shuttle would operate, I am estimating that contracted service would begin at $23,400 for one bus. HISTORICAL TOURISM: th 100 Anniversary Video Sponsorship: While the event itself is a onetime occurrence, the sponsorship of the video is something that we could get exposure long after the event is concluded. The beginning and ending of the video will include footage from the last welcome home ride down Independence Parkway of the remaining 40+ veterans that served on the Battleship Texas. We are working with the Battleship staff on helping with the parade down Independence and having a very visible presence. This will be a terrific opportunity to brand La Porte with the Battleship and make sure that it is something that has longer lasting impression than the one day event. In identifying the funding level of this recommendation, we considered several factors: longevity, exposure, what our neighboring cities might contribute, and with which city people will associate the Battleship. Estimated cost to the City: Video Sponsorship: $50,000. This is our recommendation for reasons of longevity, o name association, and substantial nature of the commitment. We felt that this would stamp La Porte all over the Battleship and begin making that association in people’s minds long after the event is over. GENERAL TOURISM: Digital Signage Along SH 146: There are a number of options we could use to reduce the initial capital investment (CBS Outdoor or Clear Channel, for example). However, we want to balance these options with the considering how much control of the messaging we will want to have. Ideally, if we are willing to invest in the signage on our own, we control the messaging and could sell time to help defray the cost of the sign. The sign would be utilized to advertise hotel properties, direct cruise passengers to points of interest in La Porte during fog delays, and advertise special events. Additionally, we could place emergency notifications on it in the event we needed it. Estimated cost to the City: City Purchased Digital Sign:$285,000. Placement of a single-sided digital sign would be o north of Barbour’s Cut along SH 146 or along SH 225 before the Interchange. Based on estimated traffic flow towards the terminal, we believe these will be the ideal locations to capture as much traffic as possible and divert them to La Porte restaurants and attractions. This estimate includes the sign installation and estimated land costs. WEDDING & OTHER EVENT TOURISM: Incentive Packages for Hotel and Event Venue Rental: Given the revival of the Sylvan Beach Pavilion and the opening of a second event center of Main Street, we believe that La Porte can fill a niche for weddings, corporate events, and family functions such as reunions and quinceñeras in the area. Presumably, even sport tournaments could qualify for the program. All of these events will often include guests from out of town and will stay for the entire weekend. We want to encourage visitors to book not only the hotel rooms required, but the venue and also any additional services, such as catering, from La Porte businesses and restaurateurs. The amount of the discount would be determined by the number of room nights booked and filled, plus additional incentives for venue rental and utilization of La Porte restaurants for catering. It should be noted that the incentive is not designed to be revenue generating to the City. Instead, we want to build the market, fill hotels during times when they typically don’t hit capacity, and create an environment where these incentives would not be necessary in the long term. Implementation of such a program would require close coordination between hotels, restaurateurs, the booking parties, and the City, as there is no structure in place today. Staff would work with the hotels to verify room night stays via booking codes for the room blocks and would work direct with the end user for the restaurant and catering pieces. This program is based on a reimbursement incentive to allow us to verify that the hotel stays did occur and that venue/catering occurred as booked before writing any checks. The sliding scale could be structured as follows: Total Number Of Base Incentive La Porte Event Venue Using La Porte Room Nights Amount/Room Rental Restaurants to Cater Booked For Group Night* 5-9 >$500: Add $10/Room night to Base Incentive $25 10-15 >$2,000 Add $20/Room If Yes: Add $20/Room Reimbursement night to Base Incentive 16 to 20 Night to Base for Each Room Incentive More than 20 Night >$4,000: Add $25/Room night to Base Incentive *Participants in this incentive program must book room nights at La Porte hotels in order to be eligible for any additional incentives. Note: Based on an average daily rate for a weekend hotel of $101, the average hotel occupancy tax revenue is $7/room night. Example: A bride wants to have the wedding at the Pavilion. She books 6 rooms at a La Porte hotel for both Friday and Saturday night for a total of 12 room nights. She would be eligible to receive a base incentive of $25 per room night for her hotel block. She also books the Pavilion for Saturday evening at a cost of $5,000. The facility rental adds another $25/room night to her incentive amount, so she’s up to $50/room in incentives. Finally, she adds catering from a La Porte restaurant and is eligible for another $20/room night, which brings her total incentive to $70/room night or a total incentive amount of $920. Estimated cost to the City: Incentives for Room Blocks: $14,000. This amount assumes 10 rentals at $1,400 o incentive each (max incentive available per room night multiplied by 20 rooms). REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: December 9, 2013 Appropriation Requested By: Traci Leach Source of Funds: Fund 037 Department: Administration Acct Number: Report:X Resolution: Ordinance: Amount Budgeted: $0 th Attachments: 100Anniversary Sponsorship Requested: $50,000 Packet Budgeted Item(s): YES NO Attachments: Presentation _____________________________________________________________________________________________ SUMMARY & RECOMMENDATION th The 100Anniversary of the Battleship Texas will be celebrated this March with a huge commemorative event. The $850,000event will include a Welcome Home parade for the remaining 40+ veterans of the ship, plus a daylong celebration featuring displays of historical vehicles and aircraft, fireworks, food trucks, children’s area, and aflyover. The event will conclude with a concert by Robert Earl Keen, Charlie Robison, Reckless Kelly, and Kelly Willis and Bruce Robison. This event is of particular importance to the City of La Porte due to the fact that the monument and Battleship are within the City’s ETJ. While the “ownership” of the Battleground attractions has been claimed by some, this is an area that staff intends on aggressively marketing and associating with La Porte. The first step in this effort will be to ensure that the City’s name is prominent among this event, which is estimated to bring upwards of 20,000 visitors. The proposal for Council consideration includes sponsoring the tribute video. The video is being produced by Alpheus Media out of Austin. This film will be played multiple times and in multiple venues many of which are yet to be determined. The video will be shown several times during the festival on the screen on the big stage. Crew members will be gifted with a video. The video will be featured on Texas Parks and Wildlife Departmentand Battleship Texas Foundation websites, linked to promotional partners, used in social media outreach, etc. Other potential viewings may include – Rockets game spring of 2014, inclusion in exhibits at the Bullock Museum of Texas History spring of 2014, the Houston Museum of Natural Science during Normandy exhibit 2014, and offered to the WWII Museum in New Orleans. Staff is recommending this sponsorship option based on longevity of exposure, positivename association, and substantial nature of the commitment. Staff believesthat this would provide high visibility forLa Porte the day of the event and begin making that association in people’s minds long after the event is over. A ction Required by Council: th Consider approval or other actionof the video sponsorship for the 100Anniversary of the Battleship Texas. Approved for City Council Agenda ___________________________________________________________ Corby D. Alexander, CityManager Date Saturday, March 15, 2014 Noon 10pm San Jacinto Battleground State Park La Porte, Texas On March 15, 2014 the Battleship Texas Foundation, in partnership with Texas Parks and Wildlife th Department, will host a public festival to commemorate Commissioning Anniversary. This festival will honor the Battleship TEXAS, her legendary history and the men who served on her. This is an opportunity to pay homage to the last remaining dreadnought to have served in both world wars and the living crew members from "The Greatest Generation." The festival will be held on the grounds surrounding the Battleship TEXAS and will feature educational exhibits, fun activities, concessions and live entertainment for people of all ages (projected attendance 25,000). Historical educational interactive exhibits highlighting: missions across the globe,, o and its symbolic representation of our freedom today The significant history of the Great War and World War II - including the Battles of o Normandy, Iwo Jima and Okinawa World War I and World War II zones with vintage military aircraft and land vehicles Headliner musical entertainment including Charlie Robison, Reckless Kelly, Kelly Willis and Bruce Robison Tours of the historic Battleship TEXAS Fireworks display Kids activity area with inflatables, games and interactive booths Food and beverage concessions including local restaurants and gourmet food trucks The Battleship Texas Foundation (BTF) was established in 1998 with the mission to work in partnership with the Texas Parks and Wildlife Department (TPWD) to preserve and enhance the Battleship TEXAS, and help develop the historic ship into a premier hands-on museum and world class visitor attraction. th In addition to publicly acknowledging and commemorating the commissioning anniversary, the Centennial Celebration will help build awareness of this iconic piece of history and help highlight the urgent need for 1) critical repairs of the ship and 2) the creation of a permanent solution to ensure that she is preserved for future generations. All funds raised for this one-time event will: Underwrite the cost of hosting this event for the community Support the Battleship Texas Foundation mission to preserve and enhance the Battleship TEXAS. Fund the Wednesday, March 12, 2014 Battleship TEXAS final crew reunion and commissioning celebration MEDIA INFO: Alex Carreno Jessica Manning Alexandra@loveadv.com Jessica@loveadv.com 602-418-0144 713-398-2525 Wednesday, March 12, 2014 Battleship TEXAS San Jacinto Battleground Park La Porte, Texas The Battleship Texas Foundation, in partnership with Texas Parks and Wildlife Department, will host a final private reunion and celebration for crew members and their families on Wednesday, March 12. th Held on the actual 100 , 1914, this special day of recognition will include an on deck Commissioning Celebration featuring key note speakers and dignitaries, a state declaration, a special tribute to crew members, music and more. Military fanfare will be the order of the day as members, who served on this veteran dreadnought of both world wars, will be honored for their WWII wartime service in which the Battleship TEXAS was awarded five Battle Stars and the crew participated in and bore witness to the North African Campaign, D-Day Normandy landings, the Battles of Iwo Jima and Okinawa, and eluded German U-boats and Japanese Kamikaze strikes. A reunion luncheon honoring crew members and dignitaries will be held on the grounds near the National Historic Landmark following the celebration. Guests will be able to tour the Battleship TEXAS throughout the afternoon with optimal time for special photo opportunities and reminiscences. The crew members will also be honored during the Centennial Celebration public festival on Saturday, March 15. MEDIA INFO: Alex Carreno Jessica Manning Alexandra@loveadv.com Jessica@loveadv.com 602-418-0144 713-398-2525 Council Agenda Item December 9, 2013 9. (a) Receive report ofLa Porte Development Corporation Board – Councilmember Engelken *********************************************************************************** REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: December 9, 2013 Appropriation Requested By: Traci Leach Source of Funds: Department: Administration Acct Number: Report:X Resolution: Ordinance: Amount Budgeted: Attachments: November Payment Report Requested: Attachments: November 2013 Reports Budgeted Item(s): YES NO _____________________________________________________________________________________________ SUMMARY & RECOMMENDATION At the request of the City Council, staff is providing an update of delinquent taxeson properties within La Porte. The following reports are attachedand are current through mid-November 2013: Bankruptcies Delinquent Deferrals Partial Payments Litigation Partial Payments Uncollectable accounts Struck off properties Additionally, the payment report has been added back to this report. Staff will be present to take note of any accounts that Council has questions about and will provide follow up as necessary. A ction Required by Council: None. Approved for City Council Agenda ___________________________________________________________ Corby D. Alexander, CityManager Date Due to the volume of this report, a copy is available for review in the City Secretary’s Office. Council Agenda Item December 9, 2013 10.ADMINISTRATIVE REPORTS (a)Receive report from City Manager Christmas Holidays, Tuesday, December 24, 2013, and Wednesday, December 25, 2013 New Year Holiday Wednesday, January 1, 2014 City Council Meeting, Monday, January 13, 2014 Fiscal Affairs Committee Meeting, Monday, January 27, 2014 City Council Meeting, Monday, January 27, 2014 11. COUNCIL COMMENTS regarding matters appearing on the agenda; recognition of community members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies – Councilmembers Zemanek, Leonard, Engelken, Mosteit, Clausen, Martin, Moser, Kaminski and Mayor Rigby. *********************************************************************************** Council Agenda Item December 9, 2013 ***********************************************************************************