HomeMy WebLinkAbout09-22-14 Regular Meeting of La Porte City Council
LOUIS R. RIGBYDARYL LEONARD
MayorCouncilmember District 3Councilmember District 3
JOHN ZEMANEKTOMMY MOSER
Councilmember At Large ACouncilmember At Large ACouncilmember District 4Councilmember District 4
DOTTIE KAMINSKIDOTTIE KAMINSKIJAY MARTIN
Mayor Pro-TemCouncilmember District 5Councilmember District 5
Councilmember At Large BCouncilmember At Large B
MIKE CLAUSEN
Councilmember District 6Councilmember District 6
DANNY EARP
Councilmember District 1Councilmember District 1
CHUCK ENGELKENCHUCK ENGELKEN
Councilmember District 2Councilmember District 2
CITY COUNCIL MEETING AGENDACITY COUNCIL MEETING AGENDA
Notice is hereby given of a Regular Meeting of the La Porte City Council to be held September 22, Notice is hereby given of a Regular Meeting of the La Porte City Council to be held
September 22,
2014, beginning at 6:00 PM in the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, 2014, beginning at 6:00 PM in the City Hall Council Chambers, 604 W. Fairmont Parkway,
La Porte,
Texas, for the purpose of considering the following agenda items. All agenda items are subject to Texas, for the purpose of considering the following agenda items. All agenda items are
subject to
action.
1.CALL TO ORDERCALL TO ORDER
The invocation will be given by Brian Christen of La Porte Community Church.The invocation will be given by Brian Christen of La Porte Community Church.
2.INVOCATIONINVOCATION
The Pledge of Allegiance will be led by Councilmember John The Pledge of Allegiance will be led by Councilmember John
3.PLEDGE OF ALLEGIANCEPLEDGE OF ALLEGIANCE
Zemanek.Zemanek.
4.PRESENTATIONS, PROCLAMATION, and RECOGNITIONSPRESENTATIONS, PROCLAMATION, and RECOGNITIONS
Recognition Recognition Recognition Recognition ---- City of La Porte Achievement of Excellence in Procurement Award for 2014 City of La Porte Achievement of Excellence in Procurement
Award for 2014 City of La Porte Achievement of Excellence in Procurement Award for 2014 City of La Porte Achievement of Excellence in Procurement Award for 2014 --
(a)(a)
Mayor RigbyMayor Rigby
(Limited to five minutes per person.) (Limited to five minutes per person.)
5.PUBLIC COMMENTSPUBLIC COMMENTS
6.CONSENT AGENDACONSENT AGENDA
(All consent agenda items are considered routine by City Council and will be enacted by (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 one motion. There will be no separate discussion of these items unless a Councilmember
requests an item be
removed and considered separately.)removed and considered separately.)
Consider approval or other action regarding minutes of the regular city council meeting held Consider approval or other action regarding minutes of the regular city council meeting held
(a)
on September 8, 2014 on September 8, 2014 -- S. Harris S. Harris
Consider approval or other action awarding RFP No. 14503 for Janitorial Services Consider approval or other action awarding RFP No. 14503 for Janitorial Services - C.
(b)
DaeumerDaeumer
Consider approval or other action regarding an Ordinance authorizing a second amendment Consider approval or other action regarding an Ordinance authorizing a second amendment
(c)
to the agreement with Harris County for the Northside Neighborhood IV Project, Phase II to the agreement with Harris County for the Northside Neighborhood IV Project, Phase II - T.
TietjensTietjens
Consider approval or other action regarding a Resolution approving General Fund Consider approval or other action regarding a Resolution approving General Fund
(d)
Commitments of Fund Balance for Fiscal Year 2013Commitments of Fund Balance for Fiscal Year 2013--2014 2014 -- M. Dolby M. Dolby
7.AUTHORIZATIONSAUTHORIZATIONS
Consider approval or other action authorizing the City Manager to sign a letter of agreement Consider approval or other action authorizing the City Manager to sign a letter of agreement
(a)
between the City of La Porte and Gringo's Mexican Kitchen for Animal Adoption Center Sign between the City of La Porte and Gringo's Mexican Kitchen for Animal Adoption Center Sign
Sponsorship Sponsorship -- K. Adcox K. Adcox
Consider approval or other action authorizing the La Porte Development Corporation to make Consider approval or other action authorizing the La Porte Development Corporation to make
Consider approval or other action authorizing the La Porte Development Corporation to make Consider approval or other action authorizing the La Porte Development Corporation to make
(b)(b)
expenditure of funds not to exceed $450,000 for economic incentive project benefiting ACT expenditure of funds not to exceed $450,000 for economic incentive project benefiting ACT
Independent Turbo Services, Inc. Independent Turbo Services, Inc. -- S. Livingston S. Livingston
8.DISCUSSION OR OTHER ACTIONDISCUSSION OR OTHER ACTION
Discussion or other action regarding dangerous buildings/structures Discussion or other action regarding dangerous buildings/structures -- R. Davidson R. Davidson
(a)
9.REPORTSREPORTS
Presentation Presentation -- Receive 2014 Annual Report from Bob Mitchell, President of the Bay Area Receive 2014 Annual Report from Bob Mitchell, President of the Bay Area
(a)
Houston Economic Partnership Houston Economic Partnership -- Mayor Rigby Mayor Rigby
Report of Fiscal Affairs Committee Report of Fiscal Affairs Committee -- Councilmember Engelken Councilmember Engelken
(b)
Receive report of La Porte Development Corporation Board Receive report of La Porte Development Corporation Board -- Councilmember Engelken Councilmember Engelken
(c)
10.ADMINISTRATIVE REPORTSADMINISTRATIVE REPORTS
City Council Meeting, Monday, October 13, 2014City Council Meeting, Monday, October 13, 2014
La Porte Development Corporation Board Meeting, Monday, October 27, 2014La Porte Development Corporation Board Meeting, Monday, October 27, 2014
City Council Meeting, Monday, October 27, 2014City Council Meeting, Monday, October 27, 2014
regarding matters appearing on the agenda; recognition of community regarding matters appearing on the agenda; recognition of community
11.COUNCIL COMMENTSCOUNCIL COMMENTS
members, city employees, and upcoming events; inquiry of staff regarding specific factual information members, city employees, and upcoming events; inquiry of staff regarding specific
factual information
or existing policies or existing policies Councilmembers Zemanek, Leonard, Engelken, Earp, Clausen, Martin, Moser, Councilmembers Zemanek, Leonard, Engelken, Earp, Clausen, Martin,
Moser,
Kaminski and Mayor RigbyKaminski and Mayor Rigby
12.ADJOURNADJOURN
The City Council reserves the right to meet in closed session on any agenda item should the need The City Council reserves the right to meet in closed session on any agenda item should
the need
arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas Government arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas
Government
Code (the Texas open meetings laws).Code (the Texas open meetings laws).Code (the Texas open meetings laws).Code (the Texas open meetings laws).
In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable In compliance with the Americans with Disabilities Act, the City of La Porte
will provide for reasonable
accommodations accommodations for persons attending public meetings. To better serve attendees, requests should be received 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 281.470.5019.24 hours prior to the meeting. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.
CERTIFICATIONCERTIFICATION
I certify that a copy of the September 22, 2014, agenda of items to be considered by the City Council was posted on the I certify that a copy of the September 22, 2014, agenda of items
to be considered by the City Council was posted on the
City Hall bulletin board on September 16, 2014.City Hall bulletin board on September 16, 2014.
Council Agenda Item Council Agenda Item
September 22, 2014 September 22, 2014
1.CALL TO ORDERCALL TO ORDER
The invocation will be given by Brian Christen of La Porte Community Church.The invocation will be given by Brian Christen of La Porte Community Church.
2.INVOCATIONINVOCATION
The Pledge of Allegiance will be led by Councilmember John The Pledge of Allegiance will be led by Councilmember John
3.PLEDGE OF ALLEGIANCEPLEDGE OF ALLEGIANCE
Zemanek.Zemanek.
4.PRESENTATIONS, PROCLAMATION, and RECOGNITIONSPRESENTATIONS, PROCLAMATION, and RECOGNITIONS
Recognition Recognition -- City of La Porte Achievement of Excellence in Procurement Award for 2014 City of La Porte Achievement of Excellence in Procurement Award for 2014 -
(a)
Mayor RigbyMayor Rigby
(Limited to five minutes per person.) (Limited to five minutes per person.)
5.PUBLIC COMMENTSPUBLIC COMMENTS
****************************************************************** ******************************************************************
I am pleased to recognize , which has earned the Achievement of Excellence in
Procurement Award for 2014. The Achievement of Excellence in Procurement recognizes organizational excellence in procurement.
The judging criteria are designed to measure innovation, professionalism, e-procurement, productivity and leadership. This program
encourages the development of excellence, as well as continued organizational improvement to earn the award annually. Receiving
this award serves as validation that our Purchasing staff is dedicated to continuous improvement of our processes and procedures
and to implement best practices. The City of La Porte is one of only 46 government agencies in Texas and one of only 68 cities in the
United States to receive this award. This is the first award for the City of La Porte.
Council Agenda Item Council Agenda Item
September 22, 2014 September 22, 2014
6.CONSENT AGENDACONSENT AGENDA
(All consent agenda items are considered routine by City Council and will be enacted by (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 one motion. There will be no separate discussion of these items unless a Councilmember
requests an item be
removed and considered separately.)removed and considered separately.)
Consider approval or other action regarding minutes of the regular city council meeting held Consider approval or other action regarding minutes of the regular city council meeting held
(a)
on September 8, 2014 on September 8, 2014 -- S. Harris S. Harris
Consider approval or other action awarding RFP No. 14503 for Janitorial Services Consider approval or other action awarding RFP No. 14503 for Janitorial Services - C.
(b)
DaeumerDaeumer
Consider approval or other action regarding an Ordinance authorizing a second amendment Consider approval or other action regarding an Ordinance authorizing a second amendment
(c)
to the agreement with Harris County for the Northside Neighborhood IV Project, Phase II to the agreement with Harris County for the Northside Neighborhood IV Project, Phase II - T.
TietjensTietjens
Consider approval or other action regarding a Resolution approving General Fund Consider approval or other action regarding a Resolution approving General Fund Consider approval or other
action regarding a Resolution approving General Fund Consider approval or other action regarding a Resolution approving General Fund
(d)(d)
Commitments of Fund Balance for Fiscal Year 2013Commitments of Fund Balance for Fiscal Year 2013--2014 2014 -- M. Dolby M. Dolby
****************************************************************** ******************************************************************
LOUIS RIGBY
Mayor
DARYL LEONARD
JOHN ZEMANEK
Councilmember District 3
Councilmember At Large A
TOMMY MOSER
DOTTIE KAMINSKI
Councilmember District 4
Mayor Pro Tem
JAY MARTIN
Councilmember At Large B
Councilmember District 5
DANNY EARP
MIKE CLAUSEN
Councilmember District 1
Councilmember District 6
CHUCK ENGELKEN
Councilmember District 2
MINUTES OF THE REGULAR MEETING OF THE
CITY COUNCIL OF THE CITY OF LA PORTE
SEPTEMBER 8, 2014
Monday, September 8, 2014,
The City Council of the City of La Porte met in a regular meeting on at the City
6:00 p.m
Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at . to consider the following
items of business:
1. CALL TO ORDER
Mayor Rigby called the meeting to order at 6:01 p.m. Members of Council present: Councilmembers
Kaminski, Clausen, Earp, Leonard, and Martin. Absent: Councilmembers Engelken, Moser and
Zemanek. Also present were Assistant City Secretary Sharon Harris, City Manager Corby Alexander,
and Assistant City Attorney Clark Askins.
2. INVOCATION
- The invocation was given by Windell Gill, First Baptist Church of La Porte.
3. PLEDGE OF ALLEGIANCE
-The Pledge of Allegiance was led by Councilmember Dottie Kaminski.
4.PUBLIC COMMENTS
(Limited to five minutes per person.)
Barbara Norwine, 202 S. Lobit, spoke in support of an Ordinance allowing the sale of alcoholic
beverages for on-premises consumption at Broadway Café.
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 an item be
removed and considered separately.)
(a)
Consider approval or other action regarding the minutes of the Regular Meeting, including a
Budget Workshop Meeting held on August 11-12, 2014 and the minutes of the Regular Meeting
held on August 25, 2014 S. Harris
(b)
Consider approval or other action regarding a Resolution authorizing the resale of certain tax
delinquent properties located in Block 201, Lots 9,10 & 11 and Block 201, Lot 12, Town of La
Porte K. Powell
(c)
Consider approval or other action authorizing the City Manager to execute an amended
(This item was pulled from the agenda at the
the use of Designated Youth Baseball Facilities
August 25, 2014 meeting)
T. Leach/R. Epting
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(d)
Consider approval or other action regarding an Ordinance vacating, abandoning, and closing
easement T. Tietjens
(e)
Consider approval or other action awarding Bid No. 14028 for Temporary Personnel Services
Solid Waste Worker D. Mick
Councilmember Leonard moved to approve the Consent Agenda pursuant to staff recommendations.
MOTION PASSED.
Councilmember Clausen seconded.
Ayes: Mayor Rigby, Councilmembers Clausen, Kaminski, Earp, Leonard,
and Martin
Nays: None
Absent: Councilmembers Engelken, Moser and Zemanek
Resolution 2014-05:
Prior to council action, Assistant City Attorney Clark Askins read the caption of A
RESOLUTION AUTHORIZING THE RESALE OF CERTAIN PROPERTY.
Ordinance 2014-3535:
Prior to council action, Assistant City Attorney Clark Askins read the caption of AN
ORDINANCE VACATING, ABANDONING AND CLOSING A PORTION OF THE ALLEY IN BLOCK 715,
DELIVERY OF A DEED TO THE ADJOINING LANDOWNER, FINDING COMPLIANCE WITH THE OPEN
MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF.
6. PUBLIC HEARING AND ASSOCIATED ORDINANCES
(a)
Public hearing to receive comments regarding recommendation by City Staff to authorize a variance to
Section 6-2, of the Code of Ordinances of the City of La Porte, by allowing the sale of alcoholic
beverages for on- premise consumption at Broadway Café located at 1023 S. Broadway
(This item was pulled from the agenda at the August 25, 2014 meeting)
T. Tietjens
The public hearing was opened at 6:08 p.m.
City Planner Eric Ensey presented a summary.
Councilmember Leonard questioned the proposed hours of operation at Broadway Café due to his
concerns of Friday night football games
microphone and responded, 6:00 a.m.-9:00 p.m. and the restaurant will be closed before the ending of
the football games.
Councilmember Earp questioned if the 300 feet distance is the state law. Assistant City Attorney Clark
Askins responded yes, and the City of La Porte adopted the 300 foot rule years ago. Councilmember
Earp then questioned if staff knows of any history of why the 300 foot rule exist. Assistant City Attorney
Clark Askins responded no.
Councilmember Martin commented the location is close to the school property, but quite a distance
from the front door of the school.
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Jimena Suarez, owner of Broadway Café addressed Council and informed how difficult it is to succeed
owning a restaurant and how they would like compete with other restaurants in the community by
having the option to sale alcoholic beverages and still own a family style restaurant.
The public hearing closed at 6:13 p.m.
(b)
Consider approval or other action regarding an Ordinance authorizing a variance to Section 6-2 of the
Code of Ordinances by allowing the sale of alcoholic beverages for on-premises consumption at
(This item was pulled from the agenda at the
Broadway Café, located at 1023 S. Broadway St.
August 25, 2014 meeting)
T. Tietjens
Councilmember Martin moved to approve an Ordinance authorizing a variance to Section 6-2 of the
Code of Ordinances by allowing the sale of alcoholic beverages for on-premises consumption at
MOTION
Broadway Café, located at 1023 S. Broadway St. Councilmember Kaminski seconded.
PASSED.
Ayes: Mayor Rigby, Councilmembers Clausen, Earp, Martin, Kaminski,
and Leonard
Nays: None
Absent: Councilmembers Engelken, Moser and Kaminski
Ordinance 2014-3536:
Prior to council action, Assistant City Attorney Clark Askins read the caption of AN
ORDINANCE WAIVING THE REQUIREMENTS OF SECTION 6-2 OF THE LA PORTE CODE OF ORDINANCES
AND AUTHORIZING THE SALE OF ALCOHOLIC BEVERAGES FOR V&V SUAZCA INVESTMENTS, INC D/B/A
BROADWAY CAFÉ, LOCATED AT 1023 S. BROADWAY ST., FOR ON-PREMISES CONSUMPTION OF
ALCOHOLIC BEVERAGES WITHIN THREE-HUNDRED FEET OF
LA PORTE HIGH SCHOOL, CONTAINING A SEVERABILITY CLAUSE, FINDING COMPLIANCE WITH THE
OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF.
(c)
-2015 Proposed
Budget M. Dolby
The public hearing was opened at 6:14 p.m.
Finance Director Michael Dolby presented a summary.
Councilmember Leonard questioned what will Council have to do in the next year or two in regards to
the Employee Health Insurance. Finance Director Michael Dolby responded a slide is forthcoming in the
presentation that will show the health funds are going to be higher than revenues but 1.5 million dollars
were set aside two years ago to transfer to the fund. Mr. Dolby also added the fund is monitored on a
monthly basis and whenever the fund cash gets in a deficit position staff will come back to Council for a
budget adjustment and transfer the funds at that time.
Councilmember Martin commented the General Property Tax increase of 6.26% for the General Fund
Revenue was due to Harris County and not the City. Finance Director Michael Dolby responded yes
correct. Councilmember Leonard questioned if the increase also includes the new buildings coming into
the City. Finance Director Michael Dolby responded yes.
Councilmember Earp questioned Operating Transfers in the General Fund. Finance Director Michael
Dolby responded funds that are transferred from Hotel/Motel and La Porte Area Water Authority.
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Councilmember Earp questioned the future of controlling and monitoring the Insurance Fund. Finance
Director Michael Dolby responded since the City is self- funded employees are encouraged to stay In-
network rather than Out-of network; the City is with Aetna an excellent carrier that offer large discounts;
and 1.5 million dollars are set aside based on trends. Councilmember Earp suggested staff begin
looking and discussing ways to control the future of the Insurance Fund.
During the presentation of the Hotel/Motel Occupancy Fund, Councilmember Earp commented Jake
Worthington advised him it may be a couple of years before he does a concert in La Porte due to Mr.
Worthington wanting to organize his own acts and music.
Councilmember Martin requested additional details for the $45,000 added for the San Jacinto
Monument Museum Expansion. City Manager Corby Alexander responded the City was requested to
fund Phase I of the expansion project which is the display of exhibits from the archeological work.
Mayor Rigby added before the design of the museum can begin they will have to dig underground for
metal detection of artifacts from the battle and use them for display in the museum.
Councilmember Earp questioned the nature of the Airport Study for $91,000 in the Airport Fund. City
Manager Corby Alexander responded the initial concept of the study was to see if the airport could be
repurposed, and be something totally different than an airport, and staff has since then been advised by
TxDOT that is an option they will not support. Mr. Alexander also added staff looked at things that can
be done to improve deficiencies at the airport and came up with a terminal building or a tower for
improvements and to generate more traffic. Public Works Director Dave Mick added he and City
Manager Corby Alexander have been informed by the TxDOT Aviation Director there is a consultant
that has conducted business studies at other airports that can make an airport more economical viable.
In addition, Mr. Mick advised he does not anticipate the cost to be $91,000 and he has contacted
TXDOT letting them know the City is ready to move forward with the idea of working with the consultant
and has requested TxDOT to assist with the cost of the study.
Councilmember Clausen questioned if the airport will go back to TxDOT if it is no longer a part of the
City and what will become of the airport. Public Works Director Dave Mick responded it will go to the
Federal Aviation Administration and he is not certain what will become of the airport.
Councilmember Martin questioned if the $91,000 can be pulled from the budget be brought back with
an updated cost for the study. City Manager Corby Alexander responded it can be pulled and amended
after it is determined to what extent TxDOT will participate with the cost.
Mayor Rigby questioned if there are any objections from City Council. There were no objections.
There being no public comments, the public hearing closed at 6:47 p.m.
(d)
Consider approval or other action regarding an Ordinance approving and adopting the City of
-2015 Proposed Budget M. Dolby
Councilmember Leonard moved to pull the $91,000 from the Airport Fund and to approve and adopt the
-2015 Proposed Budget. Councilmember Martin seconded.
MOTION PASSED.
Ayes: Mayor Rigby, Councilmembers Clausen, Earp, Martin, Kaminski
and Leonard
Nays: None
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Absent: Councilmembers Engelken, Moser and Zemanek
Ordinance 2014-3537:
Prior to council action, Assistant City Attorney Clark Askins read the caption of AN
ORDINANCE APPROVING AND ADOPTING THE BUDGET FOR THE CITY OF LA PORTE, TEXAS FOR THE
PERIOD OF OCTOBER 1, 2014 THROUGH SEPTEMBER 30, 2015; FINDING THAT ALL THINGS REQUISITE
AND NECESSARY HAVE BEEN DONE IN PREPARATION AND PRESENTMENT OF SAID BUDGET; FINDING
COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF.
7. AUTHORIZATIONS/RESOLUTIONS
(a)
Consider approval or other action ratifying property tax revenue increase reflected in 2014-2015
Fiscal Year Budget M. Dolby
Finance Director Michael Dolby presented a summary.
Councilmember Clausen moved to ratify property tax revenue increase reflected in 2014-2015 Fiscal
MOTION PASSED.
Year Budget. Councilmember Leonard seconded.
Ayes: Mayor Rigby, Councilmembers Clausen, Earp, Martin, Kaminski
and Leonard
Nays: None
Absent: Councilmembers Engelken, Moser and Zemanek
(b)
Consider approval or other action regarding a Resolution adopting the 2014 Appraisal Roll of
the Harris County Appraisal District M. Dolby
Finance Director Michael Dolby presented a summary.
Councilmember Leonard moved to adopt the 2014 Appraisal Roll of the Harris County Appraisal
MOTION PASSED.
District. Councilmember Earp seconded.
Ayes: Mayor Rigby, Councilmembers Clausen, Earp, Martin, Leonard
and Kaminski
Nays: None
Absent: Councilmembers Engelken, Moser and Zemanek
Resolution 2014-06:
Prior to council action, Assistant City Attorney Clark Askins read the caption of A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, ADOPTING THE 2014
APPRAISAL ROLL OF THE HARRIS COUNTY APPRAISAL DISTRICT.
(c)
Consider approval or other action regarding an Ordinance establishing the tax rate for the
current tax year (2014) for a total tax rate of $0.71 per hundred dollar valuation M. Dolby
Finance Director Michael Dolby presented a summary.
Councilmember Clausen moved to establish the tax rate for the current tax year (2014) for a total tax
MOTION PASSED.
rate of $0.71 per hundred dollar valuation. Councilmember Kaminski seconded.
Ayes: Mayor Rigby, Councilmembers Clausen, Earp, Martin, Leonard
and Kaminski
Nays: None
Absent: Councilmember Engelken, Moser and Zemanek
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Prior to council action, Assistant City Attorney Clark Askins read the caption of Ordinance 2014-3538: AN
ORDINANCE LEVYING TAXES UPON TAXABLE PROPERTY LOCATED WITHIN AND SUBJECT TO
TAXATION IN THE CITY OF LA PORTE, TEXAS MAKING APPROPRIATIONS FOR SUPPORT,
MAINTENANCE, AND IMPROVEMENT OF THE CITY GOVERNMENT OF SAID CITY OF LA PORTE, FINDING
THAT ALL REQUIRED NOTICES HAVE BEEN PUBLISHED AND ALL REQUIRED HEARINGS HELD;
CONTAINING A REPEALING CLAUSE; CONTAINING
(d)
Consider approval or other action awarding Bid No. 14020 for purchase of Electric Golf Carts. A.
Osmond
Golf Course Manager Alex Osmond presented a summary.
Councilmember Leonard questioned what is done with the old golf carts. Golf Course Manager
Alex Osmond responded the golf carts are traded in.
Councilmember Kaminski questioned if the City only order 74 golf carts or can more be ordered.
Golf Course Manager Alex Osmond responded the City had 75 golf carts but now has only 74 golf
carts and that is the number traded in.
Mayor Rigby questioned the delivery time for the golf carts. Golf Course Manager Alex Osmond
responded early October.
Councilmember Martin moved to award Bid No. 14020 for purchase of Electric Golf Carts.
MOTION PASSED.
Councilmember Kaminski seconded.
Ayes: Mayor Rigby, Councilmembers Clausen, Earp, Martin, Leonard
and Kaminski
Nays: None
Absent: Councilmembers Engelken, Moser and Kaminski
8. ADMINISTRATIVE REPORTS
(a)
Receive report from City Manager
Fiscal Affairs Committee Meeting, Monday, September 22, 2014
La Porte Development Corporation Board Meeting, Monday, September 22, 2014
City Council Meeting, Monday, September 22, 2014
Planning and Zoning Commission Meeting, Thursday, September 25, 2014
City Manager Corby Alexander thanked Council for their time and patience preparing the budget
9. 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 Kaminski, Zemanek, Leonard, Engelken, Earp, Clausen, Martin,
Moser, and Mayor Rigby.
Councilmember Kaminski thanked staff for preparing the budget and reported she attended the Food
Drive last weekend; Councilmembers Leonard and Earp thanked staff for preparing the budget and
congratulated Broadway Café; Councilmember Martin congratulated Finance Director Michael Dolby
and his staff for the budget process; welcomed Dollar Tree to the community and congratulated
Broadway Café and wished them the best, and Mayor Rigby reported he attended the Ribbon Cutting
Page 6 of 7
September 8, 2014, Council Meeting Minutes
at the Dollar Tree, visited the Promote Houston Ship Channel at the Cruise Terminal, the Economic
2014 Petrochemical & Maritime Conference, thanked Finance Director Michael Dolby, the Finance
Department and City Staff for the budget process; thanked Larry Spasic for attending the meeting; and
congratulated the Suarez family at Broadway Café.
10. ADJOURN
There being no further business, the meeting adjourned at 6:58 p.m.
_______________________________
Sharon Harris, Assistant City Secretary
Passed and approved on September 22, 2014.
________________________________
Mayor Louis R. Rigby
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REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
September 22, 2014September 22, 2014AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
General Fund General Fund
Cherell Daeumer Cherell Daeumer Source of Funds:Source of Funds:
Requested By:
Multiple Multiple
Finance Finance Account Number:Account Number:
Department:
155,623 155,623
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
176,161 176,161
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
1. Final Evaluation1. Final Evaluation
2. Vendor Access Report2. Vendor Access Report
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The current janitorial services contract is due to expire on October 31, 2014. The city facilities included in this The current janitorial services contract is due to expire on October
31, 2014. The city facilities included in this
contract are Fitness/Recreation/Senior Center, Special Programs Center, City Hall, Golf Course Restrooms, contract are Fitness/Recreation/Senior Center, Special Programs Center, City
Hall, Golf Course Restrooms,
Municipal Courts, Police Department, Public Works, Fire Station 1, Library and Records Storage Building. Municipal Courts, Police Department, Public Works, Fire Station 1, Library and
Records Storage Building.
A Request for Proposal was issued on June 12, 2014. Five (5) proposals were received. Proposers were A Request for Proposal was issued on June 12, 2014. Five (5) proposals were received.
Proposers were
requested to submit pricing with supplies and without supplies. An evaluation team consisting of a representative of requested to submit pricing with supplies and without supplies. An
evaluation team consisting of a representative of
each facility included in the contract rated the proposals on the following criteria; 30% price, 20% experience, each facility included in the contract rated the proposals on the following
criteria; 30% price, 20% experience,
20% quality control and support services after award, 15% proposed services, frequency and available equipment, 20% quality control and support services after award, 15% proposed services,
frequency and available equipment,
and 15% references and qualifications of key personnel. and 15% references and qualifications of key personnel.
After the evaluations, the top two (2) vendors were interviewed and asked for a best and final offer. The top After the evaluations, the top two (2) vendors were interviewed and asked
for a best and final offer. The top After the evaluations, the top two (2) vendors were interviewed and asked for a best and final offer. The top After the evaluations, the top two (2)
vendors were interviewed and asked for a best and final offer. The top
choice of the committee was McLemore Building Maintenance. McLemore has been in business locally since choice of the committee was McLemore Building Maintenance. McLemore has been in
business locally since
1970. Current municipal contracts include City of Baytown and City of Houston. They also have a safety award 1970. Current municipal contracts include City of Baytown and City of
Houston. They also have a safety award
program and use green cleaning products. References were checked with McLemore receiving very favorable program and use green cleaning products. References were checked with McLemore
receiving very favorable
reviews.
McLemores best and final offer includes a combination of day and night cleaning. With day cleaning, the City s best and final offer includes a combination of day and night cleaning.
With day cleaning, the City
would have an increased level of service maintained throughout the work day and would have direct contact with would have an increased level of service maintained throughout the work
day and would have direct contact with
the provider during business hours. This approach is safer, more secure and the staff is more responsive to the the provider during business hours. This approach is safer, more secure
and the staff is more responsive to the
Citys needs when the buildings are occupied. According to McLemore there is also less contractor turnover with s needs when the buildings are occupied. According to McLemore there
is also less contractor turnover with
the day worker approach. The more intrusive cleaning will be done after hours so there will be minimal disruptions the day worker approach. The more intrusive cleaning will be done after
hours so there will be minimal disruptions
to daily operations for our citizens and employees. to daily operations for our citizens and employees.
The current janitorial contract does not include supplies. The benefits of the contractor providing supplies are the The current janitorial contract does not include supplies. The benefits
of the contractor providing supplies are the
following: receive better pricing; the elimination of city employees ordering and stocking supplies, and older following: receive better pricing; the elimination of city employees ordering
and stocking supplies, and older
dispensers will be replaced at no charge to the city. dispensers will be replaced at no charge to the city.
Staff recommends awarding the janitorial services contract including supplies to McLemore Building Maintenance Staff recommends awarding the janitorial services contract including supplies
to McLemore Building Maintenance
in the amount of $176,161.00. This contract will be for a period of one (1) year with two (2) additional one (1) year in the amount of $176,161.00. This contract will be for a period
of one (1) year with two (2) additional one (1) year
options.
Budget Impact:udget Impact:
Total Budget for FY 14Total Budget for FY 14--1515$155,623$155,623
Total Request for McLemore FY 15Total Request for McLemore FY 15$170,751$170,751
Additional Funds NeededAdditional Funds Needed $$ 15,12815,128
Savings from SuppliesSavings from Supplies$(12,200)$(12,200)
Total Budget ImpactTotal Budget Impact $$ 2,9282,928
Action Required of Council:Action Required of Council:
Consider approval or other action to award RFP #14503 for Janitorial Services to McLemore Building Consider approval or other action to award RFP #14503 for Janitorial Services to McLemore
Building
Maintenance and to authorize a budget amendment to the FY 2015 budget in the amount of $2,928.Maintenance and to authorize a budget amendment to the FY 2015 budget in the amount of $2,928.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
September 22, 2014September 22, 2014AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/A N/A
Tim Tietjens Tim Tietjens Source of Funds:Source of Funds:
Requested By:
Account Number:Account Number:
Planning & Development Planning & Development
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
1. Ordinance1. Ordinance
2. Second Amendment to Agreement2. Second Amendment to Agreement
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The City has an agreement with Harris County Community Services Department to construct six singleThe City has an agreement with Harris County Community Services Department to construct
six single--family family
affordable homes in two phases of three homes each for the Cityaffordable homes in two phases of three homes each for the Citys Northside Neighborhood IV Project. s Northside Neighborhood
IV Project.
Phase I: In October 2013, Council approved the first amendment to the agreement, whereby Harris County (at Phase I: In October 2013, Council approved the first amendment to the agreement,
whereby Harris County (at
the Citys request) agreed to provide an additional $10,000 per unit over and above the funding already provided in s request) agreed to provide an additional $10,000 per unit over and
above the funding already provided in
their Down Payment Assistance Program, providing for a total of $24,200. With the Citytheir Down Payment Assistance Program, providing for a total of $24,200. With the Citys commitment
of s commitment of
$10,000 per unit, eligible buyers received $34,200 in down payment assistance. In March 2014, the City closed out $10,000 per unit, eligible buyers received $34,200 in down payment
assistance. In March 2014, the City closed out
Phase I of the project; Phase II is underway.Phase I of the project; Phase II is underway.
Phase II: At the CityPhase II: At the Citys request, Harris County has agreed to provide eligible buyers with anywhere from $14,900 s request, Harris County has agreed to provide
eligible buyers with anywhere from $14,900
to $35,000 (based upon the homebuyerto $35,000 (based upon the homebuyerto $35,000 (based upon the homebuyerto $35,000 (based upon the homebuyers need and other funding sources)
in down payment assistance. This s need and other funding sources) in down payment assistance. This s need and other funding sources) in down payment assistance. This s need and other
funding sources) in down payment assistance. This
amount of down payment assistance significantly widens the very tight window of income maximums and the amount of down payment assistance significantly widens the very tight window of
income maximums and the
ability of the buyer to get a mortgage.ability of the buyer to get a mortgage.
Additionally, the agreement is being amended to add a provision to the General Conditions for the Whistleblower Additionally, the agreement is being amended to add a provision to the
General Conditions for the Whistleblower
Protection Act.Protection Act.
Action Required of Council:Action Required of Council:
Consider approval or other action of an ordinance authorizing a second amendment to the agreement with Harris Consider approval or other action of an ordinance authorizing a second amendment
to the agreement with Harris
County for the Northside Neighborhood IV Project, Phase II, allowing for Harris County to provide up to $35,000 County for the Northside Neighborhood IV Project, Phase II, allowing for
Harris County to provide up to $35,000
nd nd rdrd
in financial assistance to eligible buyers for three homes to be located at 218 N. 2in financial assistance to eligible buyers for three homes to be located at 218 N. 2St., 520 N. 3St.,
520 N. 3 St., and 524 N. St., and 524 N.
rd
3 St. and adding a provision to the General Conditions for the Whistleblower Protection Act. St. and adding a provision to the General Conditions for the Whistleblower Protection Act.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
September 22, 2014September 22, 2014AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/A N/A
Michael Dolby Michael Dolby Source of Funds:Source of Funds:
Requested By:
Account Number:Account Number:
Finance Finance
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
1. Resolution1. Resolution
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
GASB 54 has a requirement that must be completed prior to the end of the fiscal year to commit fund balance of GASB 54 has a requirement that must be completed prior to the end of the
fiscal year to commit fund balance of
the General Fund. The General Fund fund balance can only be committed for a specific purpose by formal action the General Fund. The General Fund fund balance can only be committed for
a specific purpose by formal action
of the City Council. Committed fund balance does not lapse at yearof the City Council. Committed fund balance does not lapse at year--end. The formal action required to commit end.
The formal action required to commit
fund balance shall be by resolution. The $2,000,000 committed in fiscal year 2013 for future construction will be fund balance shall be by resolution. The $2,000,000 committed in fiscal
year 2013 for future construction will be
used in the 2014used in the 2014--2015 budget. The $1,500,000 committed in fiscal year 2012 for health expenses will remain 2015 budget. The $1,500,000 committed in fiscal year 2012
for health expenses will remain
committed. A recommendation has been made to commit $5,000,000 for utility improvements.committed. A recommendation has been made to commit $5,000,000 for utility improvements.
The total committed funds as of September 30, 2014 will be $8,500,000. The total committed funds as of September 30, 2014 will be $8,500,000.
Utility Improvements $5,000,000 Utility Improvements $5,000,000
Future Construction $2,000,000 Future Construction $2,000,000
Health Expenses $1,500,000 Health Expenses $1,500,000
Action Required of Council:Action Required of Council:
Consider approval or other action to approve a resolution committing a total of $5 million of Consider approval or other action to approve a resolution committing a total of $5 million
of
General Fund Balance for Utility improvements.General Fund Balance for Utility improvements.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
RESOLUTION NO. 2014-____
A RESOLUTION OF THE CITY OF LA PORTE, TEXAS, APPROVING GENERAL
FUND COMMITMENTS OF FUND BALANCE FOR FISCAL YEAR 2013-2014;
FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND SETTING AN
EFFECTIVE DATE THEREOF.
WHEREAS,
the Governmental Accounting Standards Board (GASB) has issued
its Statement No. 54, Fund Balance Reporting and Governmental Fund type definitions
with the intent of improving financial reporting by providing fund balance categories that
will be more easily understood; and
WHEREAS,
the City Council may adopt a resolution to commit General Fund
fund balance for specific purposes by taking formal action and those committed
amounts cannot be used for any other purpose unless the City Council removes or
changes the specific use through the same formal action taken to establish the
commitment; and
WHEREAS,
the City Manager has recommended to the City Council that the
following commitment of the General Fund fund balance for Fiscal Year 2013-2014 be
established and approved as follows:
Utility Improvements $5,000,000.00
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LA PORTE, THAT:
SECTION 1.
The findings and recitations set out in the preamble to this Resolution are
found to be true and correct and that they are hereby adopted by the City Council of the
City of La Porte, Texas and made a part hereof for all purposes.
SECTION 2.
The City Council officially finds, determines, recites, and declares that a
sufficient written notice of the date, hour place and subject of this meeting of the City
Council was posted at a place convenient to the public at City Hall of the City for the
time required by law preceding this meeting, as required by the Open Meetings Law,
Chapter 551, Texas Government Code; and that this meeting has been open to the
public as required by law at all times during which this Resolution and the subject matter
thereof has been discussed, considered and formally acted upon. The City Council
further ratifies, approves and confirms such written notice and the contents and posting
thereof.
INTRODUCED, READ and PASSED
by the affirmative vote of a majority of the
City Council of the City of La Porte, Texas, on this the 22nd day of September 2014.
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
September 22, 2014September 22, 2014AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
Source of Funds:Source of Funds:
Ken Adcox Ken Adcox
Requested By:
Account Number:Account Number:
Police Police
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
1. Letter of Agreement1. Letter of Agreement
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
As part of the approved Animal Adoption Center fundraising campaign, the Adoption Center fundraising As part of the approved Animal Adoption Center fundraising campaign, the Adoption
Center fundraising
committee has secured a fifteencommittee has secured a fifteen--thousand dollar ($15,000) sponsorship for onethousand dollar ($15,000) sponsorship for one--half (one side) of the large
LED half (one side) of the large LED
sign planed for the new Center. The sign will highlight pets that are available for adoption. As agreed, the logo sign planed for the new Center. The sign will highlight pets that
are available for adoption. As agreed, the logo
for the sponsor (Gringofor the sponsor (Gringos Mexican Kitchen) will be placed in the fixed advertisement section of the sign. The s Mexican Kitchen) will be placed in the fixed
advertisement section of the sign. The
advertisement portion of the sign will be approximately 5advertisement portion of the sign will be approximately 5x 4x 4at the base on the sign, below the LED board. By at the base
on the sign, below the LED board. By
letter of agreement, the City has outlined provisions as to the responsibilities for the sign and recognizes the letter of agreement, the City has outlined provisions as to the responsibilities
for the sign and recognizes the
sponsor for a ten (10) year period, during which time they have rights to advertise on the sign. sponsor for a ten (10) year period, during which time they have rights to advertise
on the sign.
Action Required of Council:Action Required of Council:
Consider approval or other action to authorize the City Manager to sign the letter of agreement between the City Consider approval or other action to authorize the City Manager to sign
the letter of agreement between the City
and Gringos Mexican Kitchen.s Mexican Kitchen.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
September 22, 2014September 22, 2014AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
Source of Funds:Source of Funds:
Scott Livingston Scott Livingston
Requested By:
Account Number:Account Number:
Economic Development/Tourism Economic Development/Tourism
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:N/A N/A
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
1. Business Overview, ACT Independent Turbo1. Business Overview, ACT Independent Turbo
2. Incentive Request, ACT Turbo2. Incentive Request, ACT Turbo
3. Facts and Figures3. Facts and Figures
4. LPDC Project Score Card4. LPDC Project Score Card
5. ACT Turbo, Public Hearing Affidavit5. ACT Turbo, Public Hearing Affidavit
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
(ACT) is a fast growing company that specializes in industrial gas (ACT) is a fast growing company that specializes in industrial gas
ACT Independent Turbo Services, Inc.ACT Independent Turbo Services, Inc.
turbine overhaul and repair and has positioned itself as a leader in the market. Based upon the successes over the turbine overhaul and repair and has positioned itself as a leader
in the market. Based upon the successes over the
last couple of years, increases in production capacity and expanded facilities will be required to keep up with the last couple of years, increases in production capacity and expanded
facilities will be required to keep up with the
demand for ACTdemand for ACTs service offerings. Company management believes that consolidating and relocating all service s service offerings. Company management believes that consolidating
and relocating all service
offerings to La Porte will benefit the business, employees, and the community. However, a significant cost offerings to La Porte will benefit the business, employees, and the community.
However, a significant cost
difference exists between expanding at ACTdifference exists between expanding at ACTs existing location in Houston versus relocating to La Porte. In order s existing location in Houston
versus relocating to La Porte. In order
to assist ACT in the proposed relocation of its Main Production facility to La Porte, ACT requests economic to assist ACT in the proposed relocation of its Main Production facility to
La Porte, ACT requests economic
assistance in the amount ofassistance in the amount of..
$450,000 $450,000
Public Hearing PostingPublic Hearing PostingPublic Hearing PostingPublic Hearing Posting
On 14 July 2014, staff presented this proposed project to the 4B Board. The 4B Board authorized staff to post On 14 July 2014, staff presented this proposed project to the 4B Board.
The 4B Board authorized staff to post
public notice for at least sixty (60) days of a public hearing at 5:00 pm on 22 September 2014 to consider awarding public notice for at least sixty (60) days of a public hearing at
5:00 pm on 22 September 2014 to consider awarding
an economic development grant for this project. Public notice for tonightan economic development grant for this project. Public notice for tonights public hearing was posted on 17
July s public hearing was posted on 17 July
2014.
Proposed Expansion HighlightsProposed Expansion Highlights
If ACT relocates to La Porte, it will:If ACT relocates to La Porte, it will:
Invest a total, estimated taxable value of Invest a total, estimated taxable value of in property and business personal property as in property and business personal property as
$6.6 million$6.6 million
follows:
Invest in new building construction as follows: in new building construction as follows:
$3.6 million$3.6 million
15,000 square foot office,15,000 square foot office,
33,000 square foot, crane served industrial building,33,000 square foot, crane served industrial building,
Relocate Relocate of existing equipment and inventory, of existing equipment and inventory,
$2 million$2 million
Purchase Purchase in new equipment, in new equipment,
$1 million$1 million
Relocate seventyRelocate seventy--three (73) full time employees from its existing location at Hobby Airport in Houston. three (73) full time employees from its existing location at
Hobby Airport in Houston.
Note: Seven (7) full time employees are already working at ACT: Seven (7) full time employees are already working at ACTs facility in La Porte.s facility in La Porte.
Start the project in September of 2014 and finish the relocation by the end of 2015.Start the project in September of 2014 and finish the relocation by the end of 2015.
Personnel InformationPersonnel Information
Below is an itemized categorization of the ACTBelow is an itemized categorization of the ACTs employment:s employment:
(6) Executive Management (6) Executive Management
(9) Sales, Accounting and Support Staff (9) Sales, Accounting and Support Staff
(12) Engineering & Supervision(12) Engineering & Supervision
(53) Hourly Technicians(53) Hourly Technicians
ACT offers competitive salary and benefits. Many of ACTACT offers competitive salary and benefits. Many of ACTs hourly employees make between $20 s hourly employees make between
$20 --$$30/hr. 30/hr.
Supervisors and engineering staff are typically compensated at or above the industry average. All full time Supervisors and engineering staff are typically compensated at or above
the industry average. All full time
employees are eligible to receive benefits that include generous insurance benefits (medical, vision, dental), 401(k) employees are eligible to receive benefits that include generous
insurance benefits (medical, vision, dental), 401(k)
plan with matching program, disability & life insurance, profit sharing incentives, paid vacation and holidays. plan with matching program, disability & life insurance, profit sharing
incentives, paid vacation and holidays.
Other Pertinent InformationOther Pertinent Information
Of the six (6) senior members of ACTOf the six (6) senior members of ACTs executive management team, three (3) are La Porte High School s executive management team, three (3) are
La Porte High School
graduates and two (2) others have lived and/or worked in La Porte for over 20 years. graduates and two (2) others have lived and/or worked in La Porte for over 20 years.
Impact AnalysisImpact Analysis
Excluding the impact of the seventyExcluding the impact of the seventy--three (73) new jobs to be relocated to La Porte, three (73) new jobs to be relocated to La Porte,
each each
this project would this project would contribute approximately contribute approximately of new, annual property of new, annual property
yeardirectlydirectly$42,600$42,600
tax revenue to the City of La Porte.tax revenue to the City of La Porte.
Please refer to Please refer to Project Facts and FiguresProject Facts and Figuresand the and the
LPDC Project Score Card LPDC Project Score Card --10 September 201410 September 2014((enclosed) for payback figures.enclosed) for payback figures.
Demand for Capital, Other Projects, and PrioritiesDemand for Capital, Other Projects, and Priorities
According to the enclosed monthly financial reports, the 4B Board currently has approximately According to the enclosed monthly financial reports, the 4B Board currently has approximately
$933,155$933,155
available at its discretion to use for new economic development projects. According to the same financial reports, available at its discretion to use for new economic development projects.
According to the same financial reports,
the 4B Boards projected fund balance, assuming that no additional funds are committed to new projects, by 30 s projected fund balance, assuming that no additional funds are committed
to new projects, by 30
September 2014 is September 2014 is . .
$1,347,674$1,347,674
It is important to note that, while staff has not yet formally received additional incentive requests from developers, It is important to note that, while staff has not yet formally
received additional incentive requests from developers,
there are several projects for which an incentive has been discussed. These projects range from redevelopment there are several projects for which an incentive has been discussed.
These projects range from redevelopment
of existing retail space to new business attraction. of existing retail space to new business attraction.
Staff RecommendationStaff Recommendation
Earlier this evening the La Porte Development Corporation considered an incentive award to ACT Turbo. At the Earlier this evening the La Porte Development Corporation considered an
incentive award to ACT Turbo. At the Earlier this evening the La Porte Development Corporation considered an incentive award to ACT Turbo. At the Earlier this evening the La Porte
Development Corporation considered an incentive award to ACT Turbo. At the
time this agenda item was developed, action by the Board had not been taken and thus, specifics regarding a time this agenda item was developed, action by the Board had not been taken
and thus, specifics regarding a
recommendation are not included here. However, should the La Porte Development Corporation approve an recommendation are not included here. However, should the La Porte Development
Corporation approve an
incentive grant exceeding $15,000 at the September 22, 2014 meeting, this item was placed on the agenda to incentive grant exceeding $15,000 at the September 22, 2014 meeting, this item
was placed on the agenda to
streamline the approval process, which is required by Corporation bylaws, for the applicant, ACT Turbo. If the streamline the approval process, which is required by Corporation bylaws,
for the applicant, ACT Turbo. If the
Board approves an incentive, staff recommends Council approval of the appropriation.Board approves an incentive, staff recommends Council approval of the appropriation.
Action Required of Council:Action Required of Council:
Consider approval or other action awarding an economic incentive grant to ACT Independent Turbo Services, Inc. Consider approval or other action awarding an economic incentive grant
to ACT Independent Turbo Services, Inc.
and authorize staff to create a development agreement. and authorize staff to create a development agreement.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
Rotor Facility
Component Facility
12022 N. P Street
8525 Freeland St
La Porte, TX 77571
Houston, TX 77061
713-364-7500
713-364-7500
To: City of La Porte Economic Development Corporation
604 W. Fairmont
La Porte, TX 77571
Attn: Scott Livingston
Re: ACT Independent Turbo Services Application for Economic Assistance
Executive Summary
ACT Independent Turbo Services is a fast growing company that specializes in IGT Overhaul and Repair. The company has
worked hard to position itself as a leader in the market and based on the successes over the last couple of years, increase in
production capacity and facilities expansion will be required to keep up with demand and expand our service offerings.
Company management believes that relocating all service offerings to La Porte will be beneficial to the business, employees
and the community. However, there is significant cost difference between expanding at the existing Houston location and
performing a relocation of the business to La Porte. To assist in the relocation of our Main Production facility to La Porte,
ACT Independent Turbo Services is requesting economic assistance in the amount of $450,000.
About ACT Independent Turbo Services
ACT Independent Turbo Services was founded in 1996 and served as a small niche market IGT (Industrial Gas Turbine)
service provider for many years. In 2011 the decision was made to expand the service offerings as well as make significant
investments in capabilities and personnel. Today, we employ 80 people between two locations and provide skilled services
to industrial rotating equipment and power generation clients all over North and South America. We take pride in our
highly skilled employee base that includes expert craftsman such as super-alloy welders, precision machinists, industrial
mechanics, engineers and a tenured supervision and support network. With the addition of our Rotor facility in early 2013
and installation of state of the art equipment; ACT has invested more than $8MM into the business since 2011.
Starting in early 2013, ACT Independent Turbo Services opened a second facility with expanded capabilities. This allows us
to serve our clients out of not only our original and main facility located near Hobby Airport but a newly built rotor & heavy
mechanical facility located in La Porte TX. Since 2012, the business has experienced growth greater than 20% year over
year growth and are projected to reach full capacity at our main facility near Hobby Airport before or during the 2016
calendar year. The company is at a critical juncture as there is a requirement to invest capital to expand our operations to
meet the current and projected demand. ACT Independent Turbo Services will need to enlarge the existing Hobby Airport
location or totally relocate the entire business to La Porte.
Why La Porte?
The management team is familiar with the La Porte area and the benefits that living and working in the area have to offer.
Our Rotor Facility property has room for an expanding business and could easily accommodate the current Houston
business plus room for future expansions. In addition to La Porte favorable location, our executive management is
comprised of (6) senior members of which (3) are La Porte High School graduates and (2) others have lived and/or worked
in La Porte for over 20 years. We not only have a commitment to make the business grow, but also a personal connection
to the community.
Some of the many benefits to the local La Porte economy and community upon
will be:
-Several of our Employees are looking to relocate and buy homes in the area
-We often entertain our clients and staff at local restaurants and golf courses
-Development of Vocational programs to train students and recent graduates with vocational skills
Drafting / Engineering
o
Welding / Fabrication
o
Machining
o
June 30, 2014 Page:
1 of 3
Rotor Facility
Component Facility
12022 N. P Street
8525 Freeland St
La Porte, TX 77571
Houston, TX 77061
713-364-7500
713-364-7500
Proposed Expansion
ACT Independent Turbo Services is proposing to custom build 48,000sqft of NEW crane building and offices, and move our
existing equipment, operations and (73) full time personnel from our Hobby Location to La Porte. This will require a new
build, likely utilizing local contractor(s) on undeveloped land. Assuming all hurdles are met and the company receives
approval from the ACT Board of Directors for the relocation, we would anticipate the start of the project in September of
2014 and completion by the end of 2015.
The Taxable Value of the proposed improvement is estimated to be:
-$3.6MM in New Building Construction
-$1.0MM in New Equipment
-$2.0MM in movement of existing equipment and inventory
-$6.6MM Total estimated property & equipment value
-This would lead to an estimated Yearly City Tax Revenue of $46,860
-This would lead to an estimated Yearly LPISD Tax Revenue of $87,780
Employee Relocation
ACT Independent Turbo Services currently employs (80) people at various levels within the organization. As of June 2014 we
have (73) personnel reporting full time to our Hobby facility and (7) personnel reporting full time to our La Porte Facility.
Below is a breakdown of Employees throughout ACT:
-(6) Executive Management
-(9) Sales, Accounting and Support Staff
-(12) Engineering & Supervision
-(53) Hourly Technicians
As a leader in the service business, ACT Independent Turbo Services also offers competitive salary and benefits. Many of
our Hourly employees make between $20 - $30/hr. Our supervision and engineering staff are typically compensated at our
above industry average. All Full Time employees (Hourly and Salaried) are eligible to receive benefits that include generous
insurance benefits (medical, vision, dental), 401(k) plan with matching program, disability & life insurance, profit sharing
incentives, paid vacation and holidays. If approved and finalization of construction, all personnel would report to the La
Porte facility.
June 30, 2014 Page:
2 of 3
Rotor Facility
Component Facility
12022 N. P Street
8525 Freeland St
La Porte, TX 77571
Houston, TX 77061
713-364-7500
713-364-7500
La Porte Development Corporation Board Assistance
Since 2011, ACT Independent Turbo Services has added additional service offerings and experienced rapid growth. The
company is prepared to invest in additional capacity and capabilities, but the move to La Porte at this time is very cost
prohibitive. Below is a summary of the costs associated with moving the business to La Porte versus expanding at our
existing location near Hobby Airport.
Estimated Costs
Hobby Facility
Note: The Building Costs would be born by the developer
Developer Cost - Estimated
Additional Building and Laydown Capacity
- 15,000sqftand amortized to ACT as lease costs. This is to Expand Hobby
$1,700,000
- Pavement ImprovementsFacility to Match Capacity with Proposed LP Facility.
Business Interruption$ 200,000
Project Management Expenses$ 75,000
ACT Independent Turbo Services 2014/2015 Expenses$ 275,000
La Porte Facility
Estimated Costs
Developer Cost - Estimated
NEW 40,000sqft Crane & Offices Building
Note: The Building Costs would be born by the developer
$2,600,000
and amortized to ACT as lease costs.
Developer Cost - Estimated
NEW 6,000sqft Main Office Building & Employee Parking
$1,000,000
Note: Previous Management signed long term lease. The
Mitigated Lease Obligations at Hobby until early 2018$ 600,000 total lease obligation is over $1MM. This is the estimated
mitigated value.
Business Interruption$ 400,000
Moving Expenses$ 450,000
Project Management$ 150,000
ACT Independent Turbo Services 2014/2015 Expenses$ 1,600,000
The company Board of Directors has indicated that approval may be given for relocation if management can keep the total
expansion and relocation cost to the company at less than $1MM total. The management team feels that with a
commitment of assistance from the Development Corporation of $450k and internal efforts by management on the
continued mitigation of existing lease obligations, moving expenses, business interruption and overall project costs that we
can achieve the $1MM target.
June 30, 2014 Page:
3 of 3
PROJECT FACTS AND FIGURES
for
ACT Independent Turbo Services, Inc.
$6 million
Estimated, total amount of new taxable value to be invested:
annual $42,600
Estimated, total amount of new tax revenue to the City of La Porte:
Payback Period Analysis (raw, excluding employment)
$200,0004.69years
City of La Porte Payback Period for a grant is .
$250,000 5.87 years
City of La Porte Payback Period for a grant is .
$300,000 7.04 years
City of La Porte Payback Period for a grant is .
$350,000 8.22 years
City of La Porte Payback Period for a grant is .
$400,000 9.39 years
City of La Porte Payback Period for agrant is .
$450,000 10.56 years
City of La Porte Payback Period for a grant is .
Payback Period Analysis (adjusted for employment)
$200,000-2.81years
City of La Porte Payback Period for a grant is .
$250,000 -1.63years
City of La Porte Payback Period for a grant is .
$300,000 -0.46year
City of La Porte Payback Period for a grant is .
$350,000 0.72year
City of La Porte Payback Period for a grant is .
$400,000 1.89years
City of La Porte Payback Period for agrant is .
$450,000 3.06years
City of La Porte Payback Period for a grant is .
ACT is proposing to retain seven (7) full time employees and relocate seventy-three (73) full time employees at
the La Porte facility. ACT wishes to reserve a few positions
students) Program at LPISD.
REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
September 22, 2014September 22, 2014AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
General Fund General Fund
R.J. Davidson R.J. Davidson Source of Funds:Source of Funds:
Requested By:
001001--90929092--524524--6021 6021
Planning & Development Planning & Development Account Number:Account Number:
Department:
60,000 60,000
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
33,000 33,000
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
1. Dangerous Building Inspection Reports1. Dangerous Building Inspection Reports
2. Substandard Building List2. Substandard Building List
3. Presentation3. Presentation
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The Dangerous Building Inspection Board, as established by Sect. 82The Dangerous Building Inspection Board, as established by Sect. 82--472 of the City472 of the Citys Code of Ordinances,
is s Code of Ordinances, is
composed of the Deputy Building Official (R.J. Davidson), the Fire Chief (Mike Boaze) and the Fire Marshal (Clif composed of the Deputy Building Official (R.J. Davidson), the Fire Chief
(Mike Boaze) and the Fire Marshal (Clif
Meekins).
The Board has identified twelve (12) locations that are a public nuisance and hazard as described in Sect. 82The Board has identified twelve (12) locations that are a public nuisance
and hazard as described in Sect. 82-473
of the Citys Code of Ordinances. Whenever the Board determines violations under this section exist, the building s Code of Ordinances. Whenever the Board determines violations under
this section exist, the building
or structure is considered or structure is considered dangerous or substandard.dangerous or substandard.
Council is being asked to review the BoardCouncil is being asked to review the Boards findings and then authorize a public hearing for the purpose of s findings and then authorize
a public hearing for the purpose of
possible condemnation and subsequent demolition of the structures. Staff is requesting an October 13, 2014, public possible condemnation and subsequent demolition of the structures.
Staff is requesting an October 13, 2014, public
hearing date.hearing date.
The Finance Department has confirmed Acct. 001The Finance Department has confirmed Acct. 001--90929092--524524--6021 has $59,319.50 in budgeted funds. 6021 has $59,319.50 in budgeted
funds.
Action Required of Council:Action Required of Council:
Review findings of the Dangerous Building Inspection Board;Review findings of the Dangerous Building Inspection Board;
Consider approval or other action authorizing a public hearing date of October 13, 2014.Consider approval or other action authorizing a public hearing date of October 13, 2014.
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
SUBSTANDARD BUILDING LIST
(Summer 2014 Group)
9/3/14
9114 Belfast Rd
1)
(Mobile Home in R-1 Low-Density Residential Zone)
HCAD: 079-083-005-0075
Legal Description: Blk. 5; Lots 75 & 76; Spencer Hwy Estates
Improvements: $ 4,549.00 as of January 2014 per HCAD
Taxes Owed: $ 2,958.32
Mowing/Clean-up: $ 1,560.00
Utility Billing: $ 31.25 (Write- Off)
3318 Clarksville St.
2)
(Mobile Home in R-1 Low-Density Residential Zone)
HCAD: 079-083-006-0092
Legal Description: Blk. 6; Lots 92 & 92; Spencer Hwy Estates
Improvements: $ 7,366.00 as of January 2014 per HCAD
Taxes Owed: $ 0
Mowing/Clean-up: $ 0- No Pending Liens
Utility Billing: $27.86 (Owed- Active Account)
3322 Clarksville St.
3)
(Single-Family Dwelling in R-1 Low-Density Residential Zone)
HCAD: 079-083-006-0090
Legal Description: Blk. 6; Lot 91 & N ½ of Lt 90; Spencer Hwy Estates
Improvements: $ 27,943.00 as of January 2014 per HCAD
Taxes Owed: $ 0
Mowing/Clean-up: $ 0- No Pending Liens
Utility Billing: $ 0 (Termination Date 10/14/2013)
504 S. Virginia St.
4)
(Single-Family Dwelling in R-1 Low-Density Residential Zone)
HCAD: 069-099-007-0024
Legal Description: Blk. 241; Lots 24, 25 & 26; San Jacinto Homes
Improvements: $ 58,215.00 as of January 2014 per HCAD
Taxes Owed: $ 0
Mowing/Clean-up: $ 642.50
Utility Billing: $ 0 (Termination Date: 10/18/2012)
tandard Bldg. List Summer
Subs2014 Group
235 S. Holmes St.
5)
(Single-Family Dwelling in R-1 Low-Density Residential Zone)
HCAD: 006-163-000-0017
Legal Description: Blk. 73; Lots 17 & 18; Bay Front to La Porte
Improvements: $ 26,441.00 as of January 2014 per HCAD
Taxes Owed: $ 4,513.41
Mowing/Clean-up: $ 2,775.00
Utility Billing: $ 107.48 (Write- Off)
316 N Fifth St.
6)
(Single-Family Dwelling in R-1 Low-Density Residential Zone)
HCAD: 023-204-080-0009
Legal Description: Blk.80; Lots 9 & 10; La Porte
Improvements: $ 19,498.00 as of January per HCAD
Taxes Owed: $ 9,869.84
Mowing/Clean-up: $ 0- No Pending Liens
Utility Billing: $ 0.52 (Write- Off)
303 S. Iowa St.
7)
Secondary Structure
(Single-Family Dwelling in R-1 Low-Density Residential Zone, )
HCAD: 024-007-016-0003
Legal Description: Blk. 216; Lots 4 & 5 & S. ½ of Lot 6; La Porte
Improvements: $ 37,728.00 as of January 2014 per HCAD
Taxes Owed: $ 0
Mowing/Clean-up: $ 0- No Pending Liens
Utility Billing: $ 0
119 S. Carroll St.
8)
(Single-Family Dwelling in R-1 Low-Density Residential Zone)
HCAD: 006-177-000-0010
Legal Description: Blk. 87; Lots 10 & 11; Bay Front to La Porte
Improvements: $ 3,135.00 as of January 2014 per HCAD
Taxes Owed: $ 0
Substandard Bldg. List Summer 2014 Group
Mowing/Clean-up: $ 212.20
Utility Billing: $ 53.86 (Termination Date 10/22/2013)
500 W. Main St.
9)
(Commercial Structure in Main Street District Overlay)
HCAD: 023-189-000-0021
Legal Description: Blk. 56; Lots 21 & 22; La Porte
Improvements: $ 42,539.00 as of January 2014 per HCAD
Taxes Owed: $ 0
Mowing/Clean-up: $ 0- No Pending Liens
Utility Billing: $ 0 (Termination Date 3/10/2011)
613 S. Iowa (VOLUNTARY DEMOLITION)
10)
(Single-Family Dwelling in R-1 Low-Density Residential Zone)
HCAD: 024-016-051-0007
Legal Description:
Blk. 251; Lots 8 & 9 & S 5ft of Lot 7 & N 5ft of Lot 10; La Porte
Improvements: $ 35,142 as of January 2014 per HCAD
Taxes Owed: $ 0
Mowing/Clean-up: $ 0- No Pending Liens
Utility Billing: $ 0
324 S. Iowa (VOLUNTARY DEMOLITION)
11)
(Single-Family Dwelling in R-1 Low-Density Residential Zone)
HCAD: 023-204-080-0005
Legal Description: Blk. 80; Lots 5 & 6; La Porte
Improvements: $ 37,771.00 as of January 2014 per HCAD
Taxes Owed: $ 0
Mowing/Clean-up: $ 0- No Pending Liens
Utility Billing: $ 37.19 (Active Account)
420 S. Utah (VOLUNTARY DEMOLITION)
12)
(Single-Family Dwelling in R-1 Low-Density Residential Zone)
HCAD: 024-010-027-0017
Legal Description:
Blk.227; Lots 18 & 19 & N 5ft of LT 17 & S 15 of Lt 20; La Porte
Improvements: $ 44,156.00 as of January 2014 per HCAD
Taxes Owed: $ 1,853.34
Mowing/Clean-up: $ 0- No Pending Liens
Utility Billing: $ 0
Substandard Bldg. List Summer 2014 Group
Substandard Bldg. List Summer 2014 Group
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82
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REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
September 22, 2014September 22, 2014AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/A N/A
Scott Livingston Scott Livingston Source of Funds:Source of Funds:
Requested By:
Account Number:Account Number:
Economic Development/Tourism Economic Development/Tourism
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Other:
Budgeted Item:Budgeted Item:YESYESNONO
Attachments :Attachments :
1. BAHEP 2014 Annual Report1. BAHEP 2014 Annual Report
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
Bob Mitchell, President of the Bay Area Houston Economic Partnership, will present BAHEPBob Mitchell, President of the Bay Area Houston Economic Partnership, will present BAHEPs 2014
Annual s 2014 Annual
Report to the City Council. Report to the City Council.
Action Required of Council:Action Required of Council:
None
Approved for City Council AgendaApproved for City Council Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
Council Agenda Item
September 22, 2014
Receive report of Fiscal Affairs Committee Councilmember Engelken
***********************************************************************************
Council Agenda Item
September 22, 2014
Receive report of La Porte Development Corporation Board Councilmember Engelken
***********************************************************************************
Council Agenda Item Council Agenda Item
September 22, 2014 September 22, 2014
10.ADMINISTRATIVE REPORTSADMINISTRATIVE REPORTS
City Council Meeting, Monday, October 13, 2014City Council Meeting, Monday, October 13, 2014
La Porte Development Corporation Board Meeting, Monday, October 27, 2014La Porte Development Corporation Board Meeting, Monday, October 27, 2014
City Council Meeting, Monday, October 27, 2014City Council Meeting, Monday, October 27, 2014
regarding matters appearing on the agenda; recognition of community regarding matters appearing on the agenda; recognition of community
11.COUNCIL COMMENTSCOUNCIL COMMENTS
members, city employees, and upcoming events; inquiry of staff regarding specific factual information members, city employees, and upcoming events; inquiry of staff regarding specific
factual information
or existing policies or existing policies Councilmembers Zemanek, Leonard, Engelken, Earp, Clausen, Martin, Moser, Councilmembers Zemanek, Leonard, Engelken, Earp, Clausen, Martin,
Moser,
Kaminski and Mayor RigbyKaminski and Mayor Rigby
12.ADJOURNADJOURN
The City Council reserves the right to meet in closed session on any agenda item should the need The City Council reserves the right to meet in closed session on any agenda item should
the need
arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas Government arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas
Government
Code (the Texas open meetings laws).Code (the Texas open meetings laws).
****************************************************************** ******************************************************************